How can you create your own cryptocurrency? Depending on what you’re trying to do, the answer might surprise you by how simple it can be. While several types of cryptocurrencies have been created over the years, some of the more popular ones include Bitcoin, Dogecoin, and Ethereum. Cryptocurrency is digital currency, with coins and tokens, both of which are different from each other. So how does one create crypto tokens and how is it different from a crypto coin? We break down everything that you need to know about creating your own cryptocurrency.
Both coins and tokens are cryptocurrencies, but the difference is that coins like Bitcoin, Dogecoin, or Ethereum all run on their own blockchain technology. Blockchain is a digital ledger that stores data related to transactions in blocks. Each block is connected to the previous one with a unique hash code.
Tokens are a digital class asset that runs on top of a pre-existing blockchain. For example, Ethereum is a blockchain technology, and its native token is Ether. Just like Ether, there are several different types of tokens that run on the Ethereum platform.
Coins run on their own digital ledgers and hold value in the sense that they are used to transfer wealth. Tokens, on the other hand, rely on an existing underlying network to operate. Unlike coins that only exist digitally, tokens represent contracts for almost anything, even physical objects like tickets to a concert or redeemable flying points.
How are crypto tokens released?