List of micronations is intended to be a list of notable micronations.  You can read about the general concept of notability at WP:NOTABILITY.  The problem is that a lot of people "invent" a micronation with two friends one night, and then try to put it on Wikipedia.  Generally, notability requires that "has received significant coverage in reliable sources that are independent of the subject."  That could be articles in newspapers or magazine, TV coverage, mentions in academic books, that sort of thing.  There are other ways to become encyclopedically notable, but that's the main one.  (We especially don't want things that clearly just fall under WP:MADEUP.)

As to how to physically type in a reference, the easiest thing to do would be to discuss the reliable sources on the article's discussion page first to get feedback from other people.  Frankly, ever since that book about micronations came out, we've been deleting about three non-notable contributions a week because everybody's eager to make up a micronation and get in on Wikipedia.  The new ones that have been added generally haven't made it without some discussion first, so that's the place to start.  Once we get past that point, we can worry about how to format the citation for the article.

Please let me know if there's anything else I can help with ''' (talk)