How to Create Your Own Cryptocurrency?
Unless you’ve been avoiding the news completely in recent months, you’ve probably heard about the wild ride that’s the cryptocurrency market. Bitcoin and Ether are experiencing huge swings in value on a day to day , while Dogecoin — created as a joke in 2013 — has become a really real (if volatile) asset thanks partially to Elon Musk’s Twitter feed and his recent SNL appearance.
Meanwhile, China is cracking down on cryptocurrency trades and therefore the IRS is hunting down investors who haven’t reported profits from cryptocurrency holdings — so if you’ve sold or exchanged coins, you’ll get on the hook for capital gains or income taxes.
If the thrill of playing armchair observer or amateur investor isn’t enough for you, you would possibly be wondering if it’s possible to leap in on the action by creating your own cryptocurrency. The short answer is yes, but there are quite a few different options to consider — and caveats to stay in mind — before you dive in.
Know the difference between a coin and a token
First, it’s important to know the difference between coins and tokens. Both are cryptocurrencies, but while a coin — Bitcoin, Litecoin, Dogecoin — operates on its own blockchain, a token lives on top of an existing blockchain infrastructure like Ethereum. To continue reading…