The first crypto coin introduced in the market was “Bitcoin”. These are created to overcome the banking system or central authorities which have control over the user’s transactions. This, in turn, brings many altcoins similar to Bitcoin into the market by enabling different functionalities and purposes for each coin.
Altcoin is a combination of two words like “Alternative + coins”. According to the coin market cap, there are more than 9,000 altcoins introduced in the market. So, this raise of altcoins will be expected to impact future businesses and also many entrepreneurs have planned their business based on the blockchains by creating their own altcoins for future use.
This sudden increase in the number of altcoins increases the demand for altcoin development as well. This shows the indications that the future depends upon blockchains. But you may be confused with what is the difference between Bitcoin and altcoin, let us see below.
What is Altcoin Development?
Altcoin development is the process of building an altcoin for your business which is highly secured. Creating your own altcoin is not going to be a tough process.
If you’re a startup interested in creating your own altcoin you can check out for either a perfect Altcoin developer or an Altcoin Development Company to get the work done.
Okay, now coming to the question, here are a few ways which we could suggest you go with:
Give Your Coin an Identity to Look for
Provide the complete details of your coin including a unique Coin name, an abbreviation of the coin with exactly three letters, and the icon of the coin.
Pick the right algorithm and identify the scarcity.
When it comes to the algorithm, you are given a choice between the two!
- SHA256 and
- Scrypt.
On selecting the algorithm, if your settings are on default you will be answered with the block rate, the initial value per block, and the halving rate. However, if you need to change them, yes you can!
How Altcoins are Different from Bitcoin?
Even though alternative currencies (altcoins) and bitcoin are similar, there are a few reasons for developing alternative currencies.
- Bitcoin is mainly used as a store of value, whereas altcoin may offer innovative functions and purposes.
- Mainly altcoins are designed with the purpose of specific issues like transaction speeds, or security factors or to facilitate the functions on a specific blockchain.
- So creators or developers are planning to develop altcoins to create different versions of Bitcoin. Some cryptocurrencies are used only for sending and receiving for some purpose.
By understanding the difference between Bitcoin and altcoins, now you may be in doubt about how many types of altcoins are in the market. Let us see below.
Types of Altcoins
There are various altcoins introduced in the market. Let us see some of the major coins which were at their peak in the market.
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Stablecoins:
Stablecoins are cryptocurrencies that use an asset like gold as their backing or are pegged to a fiat currency like the US dollar to maintain price stability. Among them are USDC, DAI, and USDT. Stablecoins are gaining popularity as liquidity vehicles in the digital economy as a means of reducing the high volatility of other cryptocurrencies.
The value of a stablecoin may be directly connected to an asset or linked to a basket of reference assets to preserve price stability. The reference asset basket can contain a combination of commodities, fiat money, government securities, digital assets, and more.
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Utility token
A utility token is a cryptocurrency token having a particular use case inside a particular ecosystem. These tokens provide users the ability to do particular operations on a specific network.
Utility tokens cannot be mined like cryptocurrencies. Instead, they are frequently pre-mined, which refers to the generation of all of them at once and distribution in a manner chosen by the project team.
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Governance token
Voting rights (the chance to cast a ballot in elections affecting the whole blockchain) are secured using a particular kind of utility token called a governance token. Using governance tokens, as the name suggests, users can cast votes on decisions that influence blockchain ecosystems.
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Meme coins
Meme coins are parodies or hilarious versions of other well-known cryptocurrencies, as their name suggests. They are commonly promoted online by well-known influencers or investors trying to make quick cash, but they typically become well-known rapidly.
Dogecoin (DOGE), Shiba Inu (SHIB), and MonaCoin (MONA) are a few examples of meme currencies.
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Security token
Security tokens are one type of tokenized asset offered on exchanges. Tokenization is the process of converting the value of an asset into a token, which is then given to investors. Tokenizing may be done with any assets. Of course, the asset must be maintained and protected in order to be used. Otherwise, the tokens wouldn’t be worth anything because they wouldn’t represent anything.
These all types of altcoins are popular in the market, so if you are planning to create either one of these coins, you should know how the altcoins are actually developed, let us see below.
How to Develop an Altcoin?
There are various ways to develop an altcoin in the market, let us see the multiple ways.
Existing Blockchain
The quickest approach to building a new cryptocurrency, if you are a reasonably skilled developer and have frequently produced solutions based on the blockchain, will be the conversion of the codebase of one of the existing, publicly available currencies. Like with Bitcoin, creators of such code frequently post it on GitHub. The code provided by the Satoshi Nakamoto team was taken by Charles Lee, who then significantly changed it before making the changes public.
By Building Your Own Blockchain
Instead of using pre-made solutions, you can instead create your own code from scratch. In this situation, it is preferable to commit this procedure to a skilled development team because a single programmer, even a seasoned veteran, would find it challenging to properly build every component of the new alternative crypto-exchange platform.
By Using the Relevant Platform
Additionally, there is still another choice: using a specialized platform, you can introduce your own altcoin. This is a terrific approach for those who already have an idea of how blockchain functions in general but are less familiar with the specifications of its technological implementation. In this way, all elements of coin creation for your consumers will be handled by the technical support of your preferred platform. WalletBuilders and CryptoLife offer this kind of service.
Let us see the benefits of the altcoin development service below.
Benefits of Altcoin Development Service
Offering Solutions to Bitcoins’ Shortcomings
Even altcoins built on the Bitcoin architecture are designed with certain flaws in mind. They can therefore see improvements in elements like cost or mining pace.
Increasing Market Competition
Altcoin developers open up market space for new Bitcoin rivals by providing fresh approaches, enhancements, and answers to specific issues.
Low Transaction Costs
The comparatively cheap transaction fees of cryptocurrencies are one of their benefits over Bitcoin.
Mining altcoins can be accessed by anyone since it does not require the most advanced and high-cost hardware.
By knowing the exact benefits of the altcoin development service, you may be now eager to know the cost to create an altcoin, let us see below.
Development Cost to Create an Altcoin
The development of altcoin typically costs between $5000 – $10000
A medium-complexity altcoin can cost somewhere between $1000 – $ 20000. The development prices for sophisticated altcoins might range from $20,000 – $25000 and even more.
Knowing how much it will cost to produce an altcoin may have left you unsure about which service provider to choose.
Why Choose Coinsclone for Altcoin Development?
There are a plethora of Blockchain Development Company in the market! If you need an Altcoin, you can get in touch with us since we provide top-notch services in the field of Altcoin with desirable Altcoin prices.
However, never fail to remember the key points which we have discussed already right before investing in Altcoin creation.