How to create Jira API Token for Atlassian Account to connect Jira Cloud REST API

If you wish to connect to the Jira Cloud instance remotely, say from an external application, you can achieve this by using basic authentication and Jira REST API's.
Basic auth uses API Tokens to authenticate the user without using an actual password. This is more secure as you do not use the actual password and can revoke the token anytime.

Steps to generate Atlassian account API Token - JIRA

REST clients can authenticate themselves using basic authentication with an Atlassian account email address and API token. You can only create a maximum of 25 tokens and revoke them when required.

1. From your Jira cloud instance, click "Your profile and settings" from the top-right screen option.
2. Click Profile from the options.
3. Click Manage your account.
4. Click Security.
5. Under API token section, click 'Create and manage API tokens'.
6. Click 'Create API token' to create a new token on the popup screen.
7. Provide a short and memorable label and click Create.

Atlassian Jira API token
8. The API token is presented on the next screen so you can copy and preserve it. Make sure you copy your new API token. You won’t be able to see this token again.

API Token
9. Click Close.
10. Note the JIRA Cloud API token for further authentication.

You can now supply the Atlassian email address and JIRA Token with Authentication Headers and connect to Jira using REST APIs, say to create an issue.