# How are cryptocurrencies created?

**Published by:** [Contract](https://paragraph.com/@contract-2/)
**Published on:** 2023-03-21
**URL:** https://paragraph.com/@contract-2/how-are-cryptocurrencies-created

## Content

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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