I am building my own Crypto based on Ethereum Blockchain. Is it possible for this newly created currency to be traded on any crypto currency exchange?
And secondly, will my new currency be compatible with any normal Ethereum Wallet?
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Yes, ERC-20 tokens can be listed on various exchanges and they already do.
They need to be explicitly listed and some exchanges will ask money upfront.
At the moment, wallets maintain internal list of token names and contract addresses, and each wallet must be updated separately to display your token.