Why is token minting so important for beginners? What is the fundamental difference between майнинг and минтинг

Many people just entering the crypto space get confused when they hear the words “minting” and “mining.” In fact, these two processes are completely different. Understanding their differences can help you avoid many detours.

Let’s start with the most confusing part

Mining requires hardware investment—you need to buy graphics cards or ASIC miners, which consume a lot of electricity to validate transactions. Bitcoin, Litecoin, and early Ethereum all used this model. Before 2022, Ethereum still maintained its network through Proof-of-Work mining.

In contrast, token minting is different—it is the process of directly generating new tokens or assets on the blockchain. No special hardware is needed, and energy consumption is close to zero or zero entirely. That’s why more and more new projects choose to mint on platforms like Ethereum, BNB Chain, Polygon, and others.

What is minting? Explained in the simplest way

Imagine the process of a country minting paper currency—design → printing → circulation. Token minting is the digital world’s “minting factory.” When you create a new token on the blockchain, it’s equivalent to:

1. Writing the token’s rules (total supply, decimal places, etc.)
2. “Minting” it via a smart contract
3. Recording it on the blockchain, permanently stored, unchangeable

Once created, the token has a unique blockchain address, and can be transferred, traded, or sold.

What are common minting scenarios?

NFT creators mint digital artworks on marketplaces like OpenSea, Rarible, etc. An artist can turn their paintings, music, videos directly into NFTs—this process is minting.

DeFi projects use minting to distribute governance tokens or liquidity mining rewards. Users stake assets on Uniswap, PancakeSwap, or Aave, and the system automatically mints new tokens for them—that’s also a form of minting.

ICO and IDO projects create tokens in bulk through minting at launch, then distribute to participants. This is a standard fundraising method for new projects.

Automatic minting occurs in some projects where holding and staking tokens automatically grants new token rewards—the system continuously performs minting operations in the background.

Which blockchains support minting?

Major supporting platforms include:

• Ethereum (ERC-20 tokens, ERC-721 NFTs, ERC-1155 multi-asset tokens)
• BNB Chain (BEP-20 tokens)
• Polygon (MATIC network)
• Solana (SOL ecosystem)
• Avalanche
• TON
• Waves

These networks have mature development tools and marketplaces supporting the minting process.

What is the cost of minting?

It depends on the network you choose:

• Ethereum: Due to network congestion, Gas fees range from $5-50, making it the most expensive
• Polygon or Solana: Fees are below $1, very cheap
• Personal wallets like Trust Wallet support certain types of minting and may be completely free

How to actually perform minting?

Common methods include:

• Coding directly with smart contracts—programmatically mint tokens on the blockchain. Requires some development knowledge but offers maximum flexibility.
• Using no-code tools on NFT marketplaces—OpenSea, LooksRare, Rarible, etc., provide user-friendly minting interfaces, just a few clicks.
• Participating in DeFi staking or liquidity mining—automatically triggers minting and rewards.
• Using ICO or IDO platforms—these handle the technical details of minting when distributing new tokens.
• Directly operating in supported crypto wallets, such as certain versions of MetaMask.

Can you make money from minting?

Absolutely.

NFT creators profit by minting and selling digital works.

DeFi participants earn new tokens by staking assets and participating in minting.

ICO investors buy newly minted tokens early, hoping for price appreciation.

Liquidity providers earn trading fees and governance tokens by providing liquidity in DEXs and participating in minting.

Final summary

Token minting is a core mechanism of the modern crypto ecosystem. It lowers the barrier to creating crypto assets—no longer needing mining rigs and electricity, just code, creativity, or capital. Understanding how minting works gives you the key technical foundation for emerging fields like DeFi, NFTs, and DAOs. This is a concept every aspiring crypto participant should know.