Cryptocurrencies have gained a lot of popularity recently and altcoins have played a major role in it. These days, investing in altcoins can be profitable. Making your own altcoin can be really fruitful and can give you good returns. If you are planning to start your new project or you have an existing business, intergrating it with altcoin and blockchain can be a no-brainer.
Why Should We Make Altcoins?
Altcoins can provide value to your business. If you have an excellent business idea and skill but do not posses the startup funds, building an Altcoin project can help you cover the startup cost. This enhances the possibility of growing into a established business. If you have an altcoin, you can start an ICO and collect funds to start your business. Also if you have an existing business or project, integrating it with blockchain can give you good results.
Before you proceed on this, you should know the types of altcoin that exists. This will help you understand which altcoin suits your business need.
Types of Altcoins
1-Mining-Based: These altcoins use proof of Work (PoW) to create new coins by solving the complex mathematical problems. You can also develop pre-mined coins.
2-Stable Coins: Stable coins remain stable in value. One unit equals one dollar and they do not fluctuate more than a certain level. Stablecoins main purpose is to reduce volatility by pegging their value to fiat currenices such a dollar.
3-Security Tokens: Security tokens are for investment purposes and they need to follow the strict regulations. They are like company shares.
4-Utility Tokens: Utility tokens are created to provide a service in the project that owns the token. Utility tokens are normally raised through crowdfunding or ICO.
Ways To Make Altcoins
You need to know what purpose you are making an altcoin and which blockchain will you use. You can build your own coin with its own blockchain or create a token using an existing blockchain.
Most people create utility tokens on existing blockchain like Ethereum or Binance Smart Chain. Using these blockchains saves a lot of time.
However, if your project requires additional functionality and you do not want to use existing blockchains for whatever reason, you can build your coin on your own blockchain.