The Best Advice on How to Start Your Own Cryptocurrency

min read
A stack of cryptocurrency coins.
BetMGM Mar 22, 2023, 7:08 AM

The adoption of blockchain technology has achieved tremendous popularity during the last two to three years. This has led to more and more people wondering how to create a cryptocurrency. Wouldn’t you like to play your favorite online casino games and use your own cryptocurrency? Before that is all possible, we need to look at the ways to do this. 

Let’s take a look at how to develop cryptocurrency.

1. Create your own blockchain and native coin

Anyone with technical computer programming knowledge can create cryptocurrencies. Apart from paying someone to do it, there are some ways of doing it yourself. First, you’ll need to create your own blockchain. This will be the most complicated part and advanced technical knowledge is needed to write the code. This method will also require you to be experienced in decentralized technologies. Keep in mind that you will be responsible for maintaining, supporting and promoting the coin because you need to create the logic of a blockchain to launch your coin. However, this method offers you the most flexibility to create a cryptocurrency.

2. Modify an existing blockchain

By using the open-source code of another blockchain, you can modify the code to suit your own crypto coin. If you use this method, you’ll still need advanced technical knowledge to avoid flaws and bugs. However, modifying instead of developing from scratch means that it has already been tested and requires less development.

3. Build a new cryptocurrency on the back of an existing blockchain

There are platforms such as Binance, Solana and the Ethereum network that allow for new cryptocurrencies to be built on established blockchains. It’s perhaps the easiest way to build your own blockchain. Of course, your cryptocurrency depends on the blockchain you build on. So, if that blockchain goes down or fails, you cannot transact with your token.

What’s the difference between a coin and token?

Before you can start using cryptocurrency for casino payments, you need to understand what cryptocurrencies are. Cryptocurrencies can be divided into two large subcategories, namely coins and tokens. Let’s examine the difference between a coin and a token.

Coins

A coin can operate on its own blockchain where all transactions occur. You’ll be familiar with coins such as Bitcoin, Ethereum, Emercoin and NEO.

Tokens

A token will work on top of an existing blockchain infrastructure, for example, Ethereum or NEO, which are used to verify all transactions and ensure that they are secure. A token can be used for smart contracts as it can represent everything from physical objects to digital services. It’s worth noting that the primary use for tokens is a security token offering (STO,) which helps projects and startups fund their operations through a crowd sale.

Advantages and disadvantages of cryptocurrencies

Knowing the advantages and disadvantages of anything you’re considering investing your time and/or money into is important. Building your own cryptocurrency is no different, so take a close look at the points below.

Advantages

  • Decentralization: The underlying technology, blockchain, makes cryptocurrency independent from authority. 
  • Fast and unlimited transactions: Through cryptocurrency, you can create an unlimited number of transactions and you can send them almost immediately to anyone with a crypto wallet.
  • Low transaction fees: The transaction fees are relatively low compared to the levies that banks and financial institutions have in place.
  • Transparency and anonymity: Every transaction is recorded. However, if a crypto address is not publicly confirmed, nobody will know who made a transaction and who received it.

Disadvantages

  • Limited acceptance: Many countries remain hesitant about granting any cryptocurrency their full support. There are still a lot of limited possibilities for those who want to make purchases using cryptocurrency.
  • High volatility: The cryptocurrency market is not stable, as you may have seen in the news. There are frequent ups and downs. It’s quite a huge risk to invest in cryptocurrency. 
  • Transactions are non-reversible: There’s no way to reverse a transaction. So, if you decide to use cryptocurrency for future online gambling and accidentally insert the wrong address, you could lose that money. Of course, you could request a refund, but if it is declined, there is no way of returning it. 

Find out more about cryptocurrency payment at BetMGM

As blockchain technology continues to grow, we have to consider how that will affect the gambling industry. Can we use cryptocurrency to pay for the best online slots.

 and live dealer casino games? Register at BetMGM and discover all there is to know about crypto and sports betting!

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Our BetMGM editors and authors are sports experts with a wealth of knowledge of the sports industry at all levels. Their coverage includes sports news, previews and predictions, fun facts, and betting.

Our BetMGM editors and authors are sports experts with a wealth of knowledge of the sports industry at all levels. Their coverage includes sports news, previews and predictions, fun facts, and betting.