Find out wether this controversial trend is the best option to finance your new project

Just as companies finance themselves with initial public offerings of shares, at present and with the growing trend of cryptocurrencies, many have considered financing through ICOs, or 'initial coin offerings'.

In an ICO, the owner of a company issues an arbitrary amount of units of its cryptocurrency at a certain price. Naturally, and as with stocks, the price of each unit at the time of its launch is relatively low, since it is expected that as the company grows the cryptocurrency with which it is associated increases its value. For this reason, currencies issued in ICOs of high profile companies are considered valuable investment assets.

Leer en español: ¿Qué debe tener en cuenta si quiere crear su propia criptomoneda?

But, unlike shares, which give the owner portions of the company, cryptocurrencies offer the owner access to the products and services that the company has and are comparable in some way with the frequent flyer miles that airlines have available.

The ICO process has been controversial, since from the moment cryptocurrencies broke IGNORE INTO the financial scene, it has been used many times to facilitate the creation of companies, but with alarming frequency there have been cases in which the issuer sells all the units of its currency and appropriates the money without ever having the infrastructure to support the currencies in the long term. For this reason, the financial authorities of the United States consider regulating the market of cryptocurrencies in the same way as that of the shares.

However, creating a cryptocurrency and organizing a continuous ICO without being a particularly complicated process, and the tools to do so are within everyone's reach. Here are some things to keep in mind if you would be interested in creating your own cryptocurrency.

Show interest in the process

There are services like CryptoLife and WalletBuilders that help you create your own cryptocurrency quickly and easily. These services offer you all the technical knowledge to carry out the process, and through them your currency can be aired in a day. However, you should expect to be charged for the service and in addition, many ask you to explain your business plan and show that your interest goes beyond 'simple curiosity'.

Count on a team of experts

If you do not have a solid knowledge of programming languages, particularly Python, plus an understanding of how HTTP works, a key protocol for creating web platforms, chances are you can not create your cryptocurrency without the help from any of the platforms mentioned above.

For that reason, if you want to embark on this process on your own, it is essential to have the knowledge of experts in programming. In the same way, if you wish to keep your currency in force after it is issued, in a way that yields benefits, a team of programmers will be very useful. Once you have them, it will be enough to send them to one of hundreds of online tutorials that will allow them to put their money on the air with relative ease.

Also, consider surrounding yourself with financial experts, who can do risk analysis and dialogue with investors; this will give you credibility when looking for participants for your ICO, since investors will treat your currency the same way they treat any other investment asset.

Sell ​​it and maintain it

Once your cryptocurrency exists, it is necessary that you have the ability to sell it to investors. A frequent method is the use of 'white papers', technical and almost academic reports that explain the strength of the project.

This document must have a technical explanation about the operation of your new cryptocurrency, as well as the blockchain, or platform where it operates. In addition, it should include everything an investor wants to know about your company, so that it demonstrates the prospect of growth it has and the investment it needs.

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It will be most useful to surround yourself with good programmers when it comes to keeping the cryptocurrency on the air. Cryptocurrencies are preferred targets of cybercriminals, and the teams of the largest 'home' cryptocurrencies, such as Dogecoin, have a team of developers constantly working to keep it safe and stable from a technical point of view.

Although the process of creating a cryptocurrency handles a high level of complexity from a technological point of view, the reality is that there are tools that simplify the process and allow many to access it as a financing option for an entrepreneurial project. However, adhering to these guidelines will make it easier for you to get through the complexities of a process that can be risky without adequate knowledge.

LatinAmerican Post | Pedro Bernal

Translated from "¿Qué debe tener en cuenta si quiere crear su propia criptomoneda?"