Self-Signed Certificates are more secure than bought ones.
nope ... self signed certs are just certs that a client can not verify on its own because there is no trusted third party saying: "this cert is ok"
you have to have your own way of securely delivering the cert to the client, possibly by having an admin manually installing them or bundling them with your app...
if you have no control over some of the clients, things tend to get ugly with self signed certs...
For this scenario, there must be three certificates separately;
root cert,
a server side cert related to root cert,
a client side cert related to server cert.
as far as i understood, you want x509 certs for SSL/TLS to authenticate the server and to avoid MITM attacks, not for client recognition by the server
in this kind of scenario you need only one certificate, or maybe two if you want to base your own PKI on this later ...
the case with one cert:
create a keypair and selfsign a x509 cert with that ... private key stays with your server, the public key will be included in the cert, which is shipped with your application and also handed out to other developers for their clients to authenticate the server...
this certificate will be required to be used in the client application to authenticate the server during SSL/TLS handshake
this is basically certificate pinning
darwback: depending on the size of the clientbase it will become challanging to replace this cert
case with 2 certs:
same as above, but the self signed cert is actually a root cert that can be used to sign other certs, in this use case in particular: the server cert...
the self signed root cert can then be used by the client to verify that the root cert was used to sign the server cert, which makes replacing the server cert easier ...
you might want to do the later and also setup a certificate revocation list in case you need to invalidate a cert ...
-Every client can have same client side certificate.
all the client needs is (as @john already pointed out) the self signed server cert (case 1) / self signed root cert (case 2)
-Visiual Studio Command Prompt is enough to create these certificates.
please notice that the documentation of makecert states "The Certificate Creation tool generates X.509 certificates for testing purposes only."
apparently this limitation was lifted ...