# How are cryptocurrencies created?

By [Contract](https://paragraph.com/@contract-2) · 2023-03-21

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One common way cryptocurrencies are created is through a process known as mining, which is used by Bitcoin. Bitcoin mining can be an energy-intensive process in which computers solve complex puzzles in order to verify the authenticity of transactions on the network. As a reward, the owners of those computers can receive newly created cryptocurrency. Other cryptocurrencies use different methods to create and distribute tokens, and many have a significantly lighter environmental impact.
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*Originally published on [Contract](https://paragraph.com/@contract-2/how-are-cryptocurrencies-created)*