How to create your own coins?

How to create your own coins?

Technology
May 21, 2022 by
6
Coins Some people might say that “yes, all coins can be created”. But as you will see in this article, this is not true. There are different ways to create your coin and each one has its pluses and minuses. So without further ado, let’s get right into it with how-to guides on the most
How to create your own coins?

Coins

Some people might say that “yes, all coins can be created”. But as you will see in this article, this is not true. There are different ways to create your coin and each one has its pluses and minuses. So without further ado, let’s get right into it with how-to guides on the most popular methods of creating your very own cryptocurrency!

The first way is called a ‘cross-chain fork’. That’s when someone copies an existing coin’s code and launches their new version of it via a fork on another blockchain.

It’s an easy method, but it’s not anonymous, secure, or decentralized. Plus, it’s a matter of trust. The difference between the original code and the copy usually isn’t noticeable by users because both versions are functionally the same.

The second way is called a ‘hard fork’. That’s when someone edits an existing codebase and launches a new version of it via a new blockchain. This is by far the most robust method for creating your coin. A hard fork means that everyone who has bitcoins will have coins on the new blockchain as well, which means that your coin would be able to operate independently of its parent chain.

But here’s the problem: it can also make you a target for government regulators. If your coin is too similar to Bitcoin, it could be classified as a security. So if you’re planning to release an alternate version of Bitcoin using the hard fork method, make sure you differentiate your project with unique features and different branding.

The third way is called a ‘sidechain’. That’s when someone clones an existing coin’s code and launches a new version of it via its own blockchain. Sidechains essentially allow you to take a coin from one blockchain and back it up onto another. This is a complicated and highly technical process, but it’s also secure and safe. The downside? Sidechains can be difficult for non-technical users to support or use.

The fourth way is called a ‘coin-swap’. That’s when someone uses an existing coin to create a new one. It’s like an in-house swap meet — the old coin is swapped with the new one, kind of like giving up your Volkswagen and receiving a Tesla in return. This method isn’t strictly speaking a fork because everyone doesn’t automatically receive coins on the new blockchain.

The fifth way is called a ‘token swap’. That’s when someone uses an existing coin to create a new one. It’s like a traditional exchange — an actual swap of coins takes place between two parties, but the swapped coins are then launched on its blockchain, which is technically a separate chain from the parent chain.

The sixth way is called ‘coin burn’. That’s when someone removes their old coin from circulation and launches the new coin with fewer coins at launch. This method is similar to token swaps in that it allows for an actual exchange of coins, but as you can imagine it also has its unique pros and cons.

The seventh and final way is called a ‘fork-merge’. That’s when someone uses an existing coin to validate a new one. It’s like the opposite of a hard fork — instead of launching an entirely new blockchain, you instead use the existing blockchain to create your new coin. But you don’t want to do this too often or it’ll disrupt the network and reduce its value.

So…there you have it! Seven different ways to create your very own cryptocurrency! Technologically speaking, these are all viable options that can help get you started with launching your coins and making money from home whoever wants. If you’re just getting into cryptocurrency and you’re looking for a simple way to get started, you should start with the cross-chain fork method.

But if you’re more sophisticated and you’ve already launched a few coins, perhaps then it’s time to try the hard fork method? Just make sure that your coin is sufficiently different from its parent chain so that it’s not classified as a security by government regulators. And if you want something robust that scales well, it’s best to go with the sidechain method, although again this is harder for some users without tech backgrounds to follow.

When it comes to the coin burn method, make sure that you do it only when your coin is fully developed and well-established. Because again, this will cause a lot of disruption to the network and may result in less value for your coins.

But if you’ve got the technical background and you want to go all-in on launching your cryptocurrency, then perhaps the final option is best suited for you — the fork merge method. This is where you use an existing blockchain to validate a new one that uses the same technology as its parent chain. This is where today’s technology takes you to the moon!

And just a final word of advice, when it comes to creating your coins, make sure that you go for the method that’s most conducive for your specific project. There are no hard and fast rules when it comes to creating new coins, so do what’s best for your project.

Coinbase

Once you have your coin or token, you’ll need to be able to exchange it. It’s here that Coinbase enters the picture. This platform is where you can exchange your coins for fiat currency and other coins such as Bitcoin and Ethereum. You can also use this platform as a wallet, so if you don’t want to store your coins on an exchange then Coinbase is a good option for you. It’s important to note, however, that the only coins available on Coinbase are those that they deem compliant with regulatory requirements, which means that anything else will not be supported.

A Final Note on Coinbase

This platform is known for its stability and reliability, but the fees can be a bit high. If you’re only looking to trade small amounts of cryptocurrencies, then this might not be the best option for you. But if you want to store your coins then they are really good. It’s also worth mentioning that they maintain a decent reputation when it comes to customer support. They have been around since 2012 and they have developed a good reputation as far as their customer support is concerned. The only other thing worth mentioning is that Coinbase will take some time to process your requests and sometimes there can be a delay.

Bitstamp

Next up on the list is Bitstamp, which is also known for its reliability and security. The platform has been around for years and it’s one of the most reliable exchanges out there. It does have some high fees though, which means that it’s probably best used as a storage option rather than an exchange. They provide a really good platform because their security measures are very good. So if you want your coins to be stored in a safe place and you don’t mind paying their fees then this is the platform that you should use.

Poloniex

Next up on our list is Poloniex. This platform is more focused on smaller cryptocurrencies, meaning that it lacks a lot of the larger cryptocurrencies that you might be looking to trade. If you’re more into the smaller altcoins then we recommend this platform because their security measures are great and they have a good reputation as far as customer support is concerned. But again, we think that this platform is best used for storing your cryptos rather than trading them because of its lack of liquidity.

Bitfinex

The next platform on our list is Bitfinex. This one focuses on using a vast array of cryptocurrency pairs to trade with different top Bitcoin pairs. It’s easy to use and its UI is really good, so if you want a platform that’s easy to use and has good liquidity then this could be the one for you. But you’re paying a pretty high premium to get access to a lot of pairs and this is something that many users do not prefer. Many users also feel that Bitfinex is quite expensive for the services to which they provide.

Kraken

Probably one of the most well-known exchanges out there, Kraken has been around for quite some time now, but there are still lots of people who aren’t aware of it. For that reason, we think that they deserve to be mentioned in this post. The platform was founded in 2011 and it’s pretty well known these days. They also operate out of San Francisco, which is a good sign and a clear sign that they are legit. The platform itself is easy to use and it has a good reputation when it comes to customer support.

Overall, Kraken does a good job and we think that most users will be happy with them. But there are some things worth noting about them. Some users say that the fees can be quite high at times and you need to keep in mind their liquidity as well when considering them for your needs. Overall, this is one of the most well-known exchanges out there and you won’t have a hard time finding other users to talk with.

Bitfinex Test

This is another platform that we think is worth mentioning in our list. This platform was founded in 2012 and it used to be considered one of the biggest Bitcoin exchanges before it got hacked back in 2016. The platform itself has a pretty good reputation but others have a higher opinion of it. In terms of fees, the fees can be high at times and you will also need to keep an eye on their liquidity because when trading with cryptocurrencies, liquidity is important for you as a user.

Bittrex

For those of you who are looking for a platform that can be used to trade a wide array of tokens and coins, then Bittrex might just be the one for you. This platform is pretty well known and it also has a good reputation overall. They have also been around since 2013, which means that they were there right from the very start. They also have solid security measures in place which is a plus. But when it comes to their fees, they can be quite high sometimes depending on what pairs you’re trading with, so this is something that you’ll need to keep in mind when considering them as your exchange platform.

Binance

This is another one of the more popular exchanges out there. And when it comes to their fees, they’re quite low and they can be as low as 1% or even 0.2%. On top of that, there is a very high trading volume on this platform, so you’ll be able to get involved in high liquidity trades much easier than with other exchanges. Another thing that makes Binance stand out is the fact that they were the first altcoin exchange to obtain regulatory approval in Japan. This was a big deal for them and we think that it’s admirable that they managed to make it to where they are now.

Final Thoughts

Those are some of the more popular exchanges out there and if you haven’t used them before then they are definitely worth your time. We do want to point out that these platforms are quite young and you might want to consider their position in the market. Many people believe that they will eventually take over, but at the moment they’re still not that powerful or popular. This means that you might have to go through some of the less reputable sites because of this. But if you can find a site like this, chances are that it won’t be long before it starts growing and gaining enough popularity for users to switch over from the other platforms.

There is of course more to crypto exchanges than those two, but they’re the two that we think are worth mentioning. There are plenty of other sites out there, but please keep in mind that these are the only ones that we recommend and their security records should always be taken seriously.

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