Here's How to Create Your Own Cryptocurrency
Mike O'Leary wakes up, gets some coffee and logs onto his computer to check out today's crypto market. Bitcoin is up, Ethereum is up and O'Leary Coin is skyrocketing. That's right, Mike O'Leary has his very own cryptocurrency and you can too. Here's how it all works but first, a quick educational lesson on crypto fundamentals.
HOW TO CREATE YOUR OWN CRYPTOCURRENCY: COIN VS. TOKEN
There are a lot of words in the crypto space. Sometimes, it feels like a new language entirely. Hence, it helps to know as much vocabulary as possible. You might think you know the words "coin" and "token" but do you really? They have two, entirely different meanings and if you want to make your own cryptocurrency, it's time you know this terminology.
To put it simply, a coin operates on its own blockchain while a token sits on top of an existing blockchain (like Ethereum for example. Furthermore, coins are a method of transferring wealth (think Bitcoin) and tokens represent a contract of sorts. This contract can be anything from event tickets, loyalty points or even physical objects. In the cryptocurrency market, tokens are often "sold" through a crowdsale called an initial coin offering (ICO) in exchange for coins already in existence. In turn, this helps fund new startups. Now that you know the difference, here are two different methods to create your own cryptocurrency.
HOW TO CREATE YOUR OWN CRYPTOCURRENCY: BUILD A BLOCKCHAIN
How to create your own cryptocurrency is not always an easy question to answer but one solution is to build your own blockchain. Now, if you don't know anything about blockchain technology then this is not exactly the method for you. It requires a fair bit of technical know-how. However, if you are a savvy developer (or know someone who is) then this is a good option.
Because coins exist on their own blockchains, it's possible to build a blockchain or modify an existing one to construct your own coin. But as already mentioned, the first option takes some advanced coding skills. Another, slightly easier option to fork an existing blockchain by taking an open-source code from places like Github. Litecoin, for example, did just that and you can too. It requires a little bit of knowledge but certainly doable. If none of those options interest you, then perhaps you'd rather "tokenize yourself" with this next method.
HOW TO CREATE YOUR OWN CRYPTOCURRENCY: YOUTOKEN
The beauty of blockchain technology is that it's opening up new doors to different universes that no one knew existed a few years ago. Let's take YouToken for example. This innovative blockchain based platform lets entrepreneurs create their very own crypto tokens and offer them to investors in exchange for funding. As a result, this entrepreneurs can successfully build their original idea while investors get the chance to capitalize on a promising individual in the earliest stages of their success. The best part is, this platform is perfect for newcomers to the cryptocurrency game and also has many advanced options for the experts. This is just one example of how blockchain technology is opening up new opportunities every day. Will you take advantage of it?