How To Create My Own Digital Currency: A Simple Guide
Everything around us is becoming digital, even money. In fact, it is quite difficult in the past years to avoid terms such as digital money, cryptocurrencies, and digital currency. You can read and see them anywhere, from the news, blogs, and financial authorities. Many people are becoming interested and have started investing in cryptocurrencies. If you are curious and interested in cryptocurrencies, you may have asked yourself how to create my own digital currency? Can anyone create a cryptocurrency?
Well, today is your lucky day, as this article will guide you on how to have your own digital currency. It takes certain skills to create your own digital money, but most importantly, you need the right information and passion to learn and know how to create your own digital currency.
What Is Cryptocurrency?
Before we go into details on the question "How to create my own digital currency?", let us first discuss some basic technical terms. First is cryptocurrency. Cryptocurrency is a digital currency that relies on encryption to generate new units and confirm transactions. It functions like other currencies, though the difference is that it does not run a single centralized platform like a bank. This type of currency uses coins instead of banknotes. Coins, in most cases, are often mistaken as token and vice versa. So, how are these two different?
Coins need to have their own blockchain to function, can be used anywhere, and can buy tokens. On the other hand, tokens can operate on existing blockchains, are used in limited specific projects, and cannot buy tokens. To make things simpler, tokens can be compared to a gift certificate while coins to cash. Both gift certs and cash can purchase food. However, the gift certificate is only limited to a particular store, while cash can be used anywhere. So, when you ask how to create my own digital currency, the first thing you need is to build a blockchain.
How To Create My Own Digital Currency?
Now that it’s clear what is the difference between a coin and a token in cryptocurrency let’s go back to the main question: how to create my own digital currency? Here are some ways:
- Create Your Own Blockchain - since coins need to have their own blockchains, you will need to build a blockchain or modify or fork an existing one for your digital coin. To create your own blockchain, you will need to have excellent coding skills. There are tutorials online on how to create one, but still, you will need a certain level of knowledge in this field, or you may not be able to finish your project successfully. On the other hand, you can use an existing blockchain. This method is a lot simpler. You can do it by taking the open-source on Github. For example, after making a few changes in Litecoin, launch a new blockchain using a different name.
- Using a Cryptocurrency Creation Platform - in this option, a creation service will do the technical work, then the finished coin or token will be delivered to you. This is the most feasible way for an average person to have their own digital money. You need to enter the parameters, like choosing or designing the logo and how many coins are awarded for signing a block. Like CryptoLife, some platforms have pre-built templates, and the only thing you are required to provide is a name and a symbol. The base price for this service is around 0.25 BTC or $2000. You can also create a token, with or without a public ICO or initial coin offering. Creating a token is cheaper and does not require a new or forked blockchain. It only relies on the technology already in use. The advantage of using tokens is that it can represent any asset and can be created with no real value or serious purpose. One example is the ERC-20 token, the standard for those built on the Ethereum blockchain. You can use user-friendly platforms such as CoinLaunch’s CoinCreator to create your token and launch your ICO. Simply add the MetaMask extension to your browser and follow their walk-through video.
What Are The Benefits Of Having Your Own Cryptocurrency
Many business analysts predict a big future for markets and industries in which blockchain technology will make a significant change in the status quo, and early adopters will undoubtedly be rewarded generously. There are other advantages if you want to start a cryptocurrency, such as:
- It eliminates fraud risks since cryptocurrency is impossible to counterfeit, and no party can reverse past transactions.
- It provides transaction anonymity. This is because customers can decide what exactly they want their sellers to know about them.
- It cuts down operating costs as it is free from the exchange and interest rates and transaction charges.
- Cryptocurrency is not affected by state holidays, business hours, or geographical locations. This enables cryptocurrencies to offer immediate transactions.
- Cryptocurrencies ensure an immediate pool of potential customers as you can easily do businesses with those who do not have access to traditional exchange resources. No need to worry about trade restrictions in any markets.
- Cryptocurrency is a decentralized system. This means that it provides security for funds as no Big Brother figure such as banks and government institutions can seize or freeze your assets.
It is essential to understand how cryptocurrencies work before deciding to create your own digital currency. Creating your own coin or token is not even the hardest part; it is only the beginning. The most challenging part is how to maintain it and how to make it last. Giving your crypto money value, building the infrastructure, convincing others to buy in - that’s the real work of having cryptocurrencies.
The next time you ask yourself how to create my own digital currency, you already have an answer to it. The next question will be: how are you going to make it work? Well, that is all up to you. Keep on learning and working, and you’ll be on your way to success. Find out more about digital currency here!
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