What are cryptocurrencies? Cryptocurrencies are digital assets, not official currencies like the real or the dollar. They are not issued by governments and use technologies such as blockchain to record and validate transactions. Bitcoin was the first cryptocurrency and remains the best known. These assets attract investors due to their potential for appreciation, but they are also subject to strong price fluctuations, which makes them high-risk investments. In Brazil, the purchase and sale of cryptoactives are permitted, and the sector has been regulated by the Central Bank. Regulation, however, does not guarantee profitability or protect investors from losses. Every week, g1 Explains simplifies the economy, the financial market and financial education, showing the impact of all of this on your pocket.