#OnChainInsights

Everything you need to know about currencies

Cryptocurrencies are virtual money used as a means of exchange over the Internet, and are characterized by being encrypted and not affiliated with any central authority. They rely on technologies such as blockchain to ensure security and transparency in transactions. Types of digital currencies

Cryptocurrencies: such as Bitcoin and Ethereum, are used as a means of payment and operate on their own blockchains.

Tokens: are created on a pre-existing blockchain, such as ApeCoin on the Ethereum blockchain.

Characteristics of digital currencies

Decentralization: They are not subject to the control of any government or central bank, which gives users greater freedom to deal.

Security: They rely on complex encryption algorithms to ensure the safety of transactions.

Volatility: Cryptocurrency prices are greatly affected by supply and demand, leading to sharp fluctuations.

How to invest in digital currencies

Trading: Investors can buy and sell digital currencies through trading platforms such as eToro.

Storage: It is preferable to transfer the coins to special digital wallets for safe keeping.

Indirect investment: You can invest in the shares of companies related to blockchain technology.

Mining

Verification process: Mining is the process of verifying the validity of transactions and adding them to the blockchain.

Rewards: Miners receive rewards in the form of new coins for their efforts in solving algorithms.