The new feature is built into the YouTube app available on mobiles. Users can tap the capture button when they want to record a live video.
In a blog post, YouTube said: "It’s a launch that’ll put the power of live streaming in the hands of hundreds of thousands of talented creators, giving them a more intimate and spontaneous way to share their thoughts, lives, and creativity."
The videos will have the same features as other YouTube videos. YouTube announced plans to roll out the live feature in June last year.
The Google-owned platform is also helping its creators earn money from live streaming with a feature called Super Chat, which it describes as "paying for that front-row seat in the digital age".
If a user watching a live video wants to stand out from the crowd, they can buy a chat message that will be highlighted in a bright colour and stay at the top of the chat window for up to five hours, YouTube said.
The blog added: "Super Chat gives viewers a chance to add a little visual flair to their chats and gives creators a new way to keep connected to their fans while earning a little money on the side."
YouTube was criticised last year by vloggers who claimed its criteria for "advertiser-friendly" videos was too restrictive.