The origin of coin-making dates back thousands of years and was initially used for exorcism and in Taoist rituals, rather than for trade or commerce.

The first coins were minted between the 24th and 26th centuries BC under Emperor Xuanyuan. By the 7th century BC, they were believed to have the power to protect against evil spirits. The popularity of coins as talismans increased during the Liu Song dynasty, where they were frequently used in religious ceremonies.
Coins are made by stringing them onto iron rods to form a sturdy base. If a coin is too large, two rods can be used. The coins are then secured with a sturdy cord. Every aspect of the coin, including color, is considered important. Most coin cords are either red or yellow, as these colors were associated with royalty.
Coins are selected in specific quantities to facilitate counting. A typical coin sword is comprised of 18 coins in the blade, 10 in the hilt, 6 in the handle, and 2 at the end of the hilt. The blade must have a thickness of 3 coins to ensure its strength, meaning that it requires at least 108 copper alloy coins to make the sword.
The length of each sword is usually about 0.6 meters and weighs between 0.45 and 0.9 kilograms, but the weight can vary depending on the size of the sword and the type of coin used. The larger the sword, the heavier it is and vice versa. Ancient Chinese believed that the sword was only effective if it was made from coins minted during the same period as the emperor’s reign, and combining coins from different dynasties was considered bad luck and could result in a flawed sword. Today, coin swords can be seen in museums worldwide, including the British Museum and the museum in Munich, Germany.