Bitcoin’s recent plunge and small recovery have reminded us how volatile cryptocurrency can be. And if you're following the trends, you know that there's no shortage of predictions for both the near and the far future. And it's not just Bitcoin now; currencies like Ethereum are more than a medium of exchange, and Dogecoin is proving to be no pushover either.
As someone who’s not satisfied simply being an onlooker, you may be wondering if creating your own cryptocurrency is possible. While generating your own cryptocurrency is not really a practical idea, there are specific insights that’ll help you if you want to create your own currency.
Coins and tokens are used so interchangeably that the difference can be confusing sometimes.
But the complicated differences aside, coins are essentially currencies operating on a blockchain. In contrast, a token operates on an already-existing blockchain infrastructure (Ethereum, for example). In their simplest form, blockchains are transaction records that are performed and secured on a network. So, coins (Bitcoin, Litecoin, etc.) have a separate transactional ledger. However, tokens depend on the existing architecture for securing their transactions and verifying ownership.
While coins are used to transfer value from one owner to another, tokens can go well beyond this role. They can become contracts for almost any conceivable item of value.
We'll be honest here. Just because creating your very own cryptocurrency is possible doesn't mean it's easy by any standards. Regardless of the creation-method you choose, you'll need both technical knowledge and awareness of the industry. And both of these options come with those requirements.
To build a new blockchain, you’ll need a relatively advanced understanding of coding techniques. There are courses available today that can walk you through the process as a step-by-step guide. But with cryptocurrency being more popular among millennials, most takers for these courses are considerably young and not restricted to any gender. So, if you’re looking for gute Geburtstagsgeschenke für ein 18-Jähriges Mädchen who’s interested in creating their own blockchain, a course like this one may be a good idea.
But gifts and millennials aside, these courses won't allow you to create a fully-functional blockchain and coin that's ready to take off. Plus, the courses expect some basic coding expertise to begin with.
If creating a new cryptocurrency is too much of a mouthful, you can consider forking an existing one. With this method, you can take the open-source code of the existing blockchain on Github and make specific modifications to generate a new blockchain in the process. An example of this process was seen when Garlicoin was forked out of Litecoin. Of course, this method also requires you to understand what to modify and how to execute these modifications.
Creating a blockchain from scratch and forking both come with considerable technical requirements. So, if these routes are too tiresome, you can consider coin-creating services that sort of does the job for you.
Platforms like Walletbuilders and Rally can create functional coins if you're willing to pay for them. The former even has a free-launch package for people who merely want to experiment and see what it's like. And Rally works on an invite-only basis, so not everyone gets to dabble with the features there.
Another simple option is to create a smart contract that serves as a token. You can do this with or without an Initial Public Offering (IPO). In fact, you can create a token that has no real market value just to see how it works among your friends/family. It's an option that's relatively easier because it uses existing blockchain technologies like Bitcoin or Ethereum. For instance, tokens built on Ethereum are usually considered ERC-20 tokens and they're not all that rare, thanks to helpful tutorials available for free. Platforms like Guarda have a ready-made interface where you can create an ERC-20 token using only a few clicks of the mouse. These options may not create the next big cryptocurrency in the market. But they’ll certainly help you understand the industry’s ins and outs better.
While the technical aspects of creating cryptocurrency sound tough, it’s actually the subsequent process of building and maintaining the system that’s the real challenge. And we haven’t even gotten into marketing and persuading others to invest in the coin.
So, maybe a better place to start would be with an ERC-20 token. You can use it as an experiment within a trusted group of friends or colleagues. Once distributed, you can cash it in for monetary favors if everyone agrees to a specific value. It's simple and risk-free. More importantly, it gives you a basic yet clear insight into how coins and tokens work. And what it entails to create your very own cryptocurrency one day.