Dry your whole peppers -- I did mine for 10 hours in my very cheap ALDI food dehydrator, but you could also dry them in the oven on foil lined cookie sheets at about 160 degrees for 8-10 hours.
Once your peppers are nice and dry, throw them in a food chopper or food processor, cutting in half to fit if necessary.
Proceed with the chopping until you have a food chopper full of crushed red pepper.
Boom: You're done.
Store in your pantry in a tightly covered container.