These days, there is a high demand for digital currencies and everyone is talking about them. Not many people know exactly how they can build their own crypto coins and tokens. They are benefits in establishing or building crypto tokens or coins. So before going into details on how to make your own coin let us start with basics.
What is a Crypto Currency?
Crypto currency is a decentralized digital payment medium. This implies that can be exchanged for goods and services. It uses a special ledger to keep track of all the transactions.
Difference Between Coins and Tokens
Crypto currencies are classified into two subcategories – Coins and tokens. If you are planning to build your own crypto currency you should know the difference between the two. This will help you to decide whether you should build a coin or a token.
- Coins
Coins have their own blockchain and ecosystem where all the transactions will take place. Building your own coin gives you more flexibility but requires in-depth knowledge of blockchain programing.
Examples of coins are Bitcoin, Ethereum, ADA , MIOTA, etc.
- Tokens
Tokens do not have their own blockchain but they work on existing blockchains. You can build your token on top of the Ethereum blockchain or other blockchains that support such. It is relatively easy to create such tokens and you do not require high technical knowledge of blockchain to accomplish this.
How To Make Your Own Crypto Coin
If you have decided to create your coin or token, the following are the few key steps required in the development.
In case you are developing a token you will decide which blockchain platform you are going to use. You will then code the contract and test it on the test net. Once the source code is verified you will get it on the Mainnet and there you have your token. An example of a blockchain to build your token on is Ethereum’s ERC-20.
For development of the coin, you will have to design the nodes and establish the blockchain infrastructure. This is quite a complex process. So you won’t be able to do it without the help of a blockchain programmer. Also you have to develop the API’s and design the wallet interface, etc.
Benefits of Building Your Own Cryptocurrency
There are many benefits in developing your own cryptocurrency. Most of the time we have a plan and need to develop a project but are short on funds. The project owner may develop their tokens to conduct a crowdsale which helps in the project generate startup funds. If the project is established successfully, the token or coin price could appreciate. This is to the benefit of the company and the investors who have invested in such a project
