Watching companies like Bitcoin, Etherum, EOS, Ripple, and others reach market caps that are counted in millions of dollars has led some people to think about starting their own cryptocurrency. And rightly so. The returns that one could have by entering this market successfully are truly mind-boggling. Not to mention that there have already been innumerable winners as there are over a thousand different cryptocurrencies, hundreds of which are relatively successful.
In reality, however, the process of establishing a cryptocurrency and building one’s own blockchain system is about as complex as something can get according to Nando Caporicci. This is because it requires a prohibitive amount of dedication, seemingly limitless up-front capital, and a fair dose of luck.
So, what are some things that people who are firm on their idea to start a cryptocurrency can do to maximize the odds of success?
1. Improve the Existing
Unlike a lot of other inventions, blockchain is a market where people can use other’s algorithms to start something new. For instance, the vast majority of cryptocurrencies in the world are a byproduct of someone altering the original code of Bitcoin. That means that almost everything is some variation of this particular network and has been optimized to deliver more speed, efficiency, lower costs, and so on. This is why Bitcoin has been able to maintain a lead over the market and stay the most expensive and successful cryptocurrency ever invented.
What does this mean for entrepreneurs who are looking to start their own projects? It lets them know that a great starting point would be to look at the existing offers in the industry and find ways to modify them for the better. So, instead of trying to come up with a brand-new cryptocurrency from scratch, which could take years, one’s time would be much better used if they tried to modify existing systems. For instance, trying to improve the way in which Bitcoin miners go about verifying transaction could result in a brand-new digital currency that is unlike any other.
2. Building a Strategy Around the Initial Coin Offering
According to a builder of Bitcoin mining rigs, Nando Caporicci, the Initial Coin Offering (ICO) is arguably one of the most important stages in the life of any cryptocurrency. The reason why is that having a lot of success during this stage will set one’s venture up for success in the long-run.
Just consider all the companies that shattered records with the amount of money that they raised during their ICOs. For most of them, operations have been successful even after the market of digital assets experienced a downturn and the prices plummeted.
In order to host a successful ICO that will be failproof, one must start off with a solid whitepaper. For those unfamiliar, this is the original document that showcases all the details of the operation and how the new technology will function once it is established. Well, expectedly, companies that have a weak whitepaper are not going to attract enough investors and their ICO is most likely going to fall short of their goals. Hence why it is crucial to spend a decent amount of time planning this stage of the process and making sure that anything that could potentially go wrong is accounted for beforehand.
3. Creating a Marketing Plan
Courtesy of the success that a lot of cryptocurrencies had so far, the topic is still very popular. This means that it will be much easier to create a solid marketing campaign as there have been many others who did this successfully. So, according to Nando Caporicci, people can either mimic what others who had profitable advertisements did or rely on their own creativity combined with social media targeting.
Of course, this stage of the process must still be thoroughly analyzed, and it is crucial to be as creative as possible while showcasing the latest decentralized asset to the world in a way that will turn viewers into buyers.
4. Adapting to Changes
Once the ICO is done and the cryptocurrency is on the market, companies must keep a constant track of everything that is happening. This step is mostly there to prevent any large-scale frauds or attacks by malicious hackers. Given that there have been instances where crypto-theft cost networks millions of dollars, it is important to be ready to fight such problems form the beginning.