What Is ApeCoin And How Does It Work?

Last Updated April 11th 2022

7 Min Read

ApeCoin continues to bring sparks to millions of portfolios. Therefore, as a beginner or novice trader, you can certify that ApeCoin is an asset you should consider investing in due to the millions of dollars being thrown into the cryptocurrency daily.

With the 1,000% to 3,840% returns of investment (ROI) ApeCoin provided its holders in March 2022, it is clear as day that APE is one of the hottest digital assets in the market today.

One of the primary drivers of ApeCoin’s price is the announcement of huge purchases by individual whales and institutional investors. Such an impact was felt on March 17 when ApeCoin became a crypto trading asset.

The token opened at $1 and rallied to an all-time high price of $39.40 within a few hours.

As ApeCoin became the cryptocurrency of choice in March 2022, many analysts, experts, and trading gurus forecasted the token to reach around $100 in the short term and $1,000 in the long term.

However, due to the reporting of PROFITs and not LOSSES by crypto news portals to advance the course of crypto gaining mainstream adoption, regulatory bodies have waned in on the subject.

Among others is the European Supervisory Authorities (ESA) which warned consumers in March 2022 that many crypto-assets are highly risky and speculative.

According to the ESA, “consumers face the real possibility of losing all their invested money if they buy these assets and should be particularly wary of promised fast or high returns, especially those that look too good to be true”.

With all the hype on social media and online financial portals, you may have been wondering ― what is ApeCoin and how does it all work?

What Is ApeCoin?

Apecoin trading

ApeCoin is often described as a virtual currency, cryptocurrency, or digital currency.

ApeCoin is a digital version of fiat currencies such as the United States Dollar (USD), Euro (EUR), and the Great British Pound (GBP). Based on its current utility, APE can be used as a payment option on online crypto casinos such as BC.GAMES, and be used for in-game purchases on blockchain-based games such as Benji Bananas.

As cryptocurrencies become popular in our daily financial lives, many companies have begun to buy into the possibilities of the use of digital assets as payment methods.

As a result, it would not be surprising to find mainstream companies supporting APE as a payment method for the buying of goods and services.

With time, it would not be surprising to see PayPal and e-wallets from PaySafe Group Skrill and Neteller allow their customers to buy, hold, and sell ApeCoin (APE).

You should know that ApeCoin, like all cryptocurrencies, is just representative money.

Aside from the faith crypto lovers have in them in addition to the private codes printed inside them, ApeCoin does not have any intrinsic value.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

How Does ApeCoin Work?

Each ApeCoin is a computer file stored in an online wallet on cryptocurrency exchanges and crypto-wallets.

Digital wallet holders that support the storing of APE such as TrustWallet and MetaMask can send and receive APE via the internet.

This can be done without the assistance of third-party financial institutions such as central banks, insurance companies, and clearinghouses.

The ApeCoin ecosystem is housed in the blockchain technology of Ethereum. Blockchain enables the recording of every transaction in a public ledger that can be accessed by anyone who has internet access.

Although every transaction can be traced, the possibilities of blockchain prevent double-spending and fraud.

How Do People Get ApeCoins?

There are several ways of getting ApeCoins.

Get paid in ApeCoin for completing tasks online.
ApeCoin mining can help you get tokens by contributing power to the verification and validation of transactions.
ApeCoin trading can see you get more coins by swapping them for fiat currency or other cryptocurrencies.
ApeCoin staking comes in the form of locking funds in a decentralized protocol or application (DAPP) or an exchange and enjoying periodical rewards.
Earn free ApeCoins through promotions such as airdrops.
Lending ApeCoin for profits by becoming a liquidity provider (LP) for several DAPPS.

Check Out: The Best Places to Buy ApeCoin (APE)

How Are New ApeCoins Created?

For the ApeCoin ecosystem to work, special computers have been built for the generation of APEs in addition to the use of personal computers.

You can use application-specific integrated circuits (ASICs) that are relatively costlier than normal desktop computers.

For a new APE to be created, there is the solving of complex puzzles by smart computers.

The results of the creation of APEs are kept by miners.

Mining is the technical term for the setting up of computers to create APE and several proof-of-work (POW) backed cryptocurrencies.

Thanks to the advancement in technology, you do not have to burden yourself with an ASIC device.

As a result, APE can be mined with the Graphic Processing Units (GPUs) of personal computers which are widely affordable.

This means that you can get more APE without having to fork out huge sums of money for computer hardware.

This is the reason why many people have gotten into the mining of ApeCoin.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Why Are ApeCoins Valuable?

ApeCoin is valuable because it has all the six attributes of what makes a currency successful.

They are transferability, non-counterfeitability, scarcity, durability, divisibility, and utility.

The two most important are scarcity (store of value) and utility (medium of exchange).

APE is considered valuable because millions of people are buying and holding the token with an eye on the long term.

Once there is a substantial increase in the price of the cryptocurrency, the tokens could be sold, and reinvested into other tokens, or physical assets.

APE is considered valuable by millions because it can be exchanged for in-game items and other goods and services in the future.

Aside from these, APE can be divided into 8 decimal points (1.00000000). If you cannot buy a whole APE token, you can purchase a fraction. An example is using $5 to buy 1APE which can get you approximately 0.46168051 APE.

There are 1 billion APE coins which mean scarcity lies ahead of the token.

APE can be transferred from one wallet to the other, and cannot be duplicated.

Don't Miss: ApeCoin (APE) Price Prediction

Why Do People Want ApeCoins?

Millions like the fact that they can use APE as a payment method on crypto casinos and not have to deal with any cautions from financial institutions about the use of their services on gambling websites.

Millions like the private nature of dealing with ApeCoins and cryptocurrencies as a whole since they cannot be tied to the identity of the person involved in a particular transaction.

Millions like ApeCoins because of the potential of the highest-selling NFT digital collectibles, the Bored Ape Yacht Club (BAYC). Once there is a huge demand for some of the unique 10,000 digital collectibles, it reflects positively in the price patterns of the token, and this brings consistent passive income.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Is ApeCoin (APE) Secure?

ApeCoin is very secure in many ways.

In its 13 years of existence, no one has been able to successfully break into any blockchain.

This is because it is almost impossible to double-spend or counterfeit APEs.

With that said, your APE tokens could still go missing.

If you choose to store your APE on a cryptocurrency exchange, you should know that you are holding your APEs in a custodial account. This way, you have access to your password which grants you access to your cryptocurrency exchange account.

Unfortunately, passcodes or private keys are in the hands of the exchange. So, in the case of a hack or security breach, you stand a chance of losing your APE holdings if the exchange is not insured.

If you choose to store your ApeCoins on a crypto wallet such as MetaMask or TrustWallet, you should know that you are holding your APEs in a non-custodial account.

With this, you have access to your password and private keys that grants you access to your holdings.

This is good and bad news. Good news because you have access to your tokens and bad news because crypto wallets do not grant you chances to recover your account.

Once you lose the private keys (minimum of 12 words and maximum of 24 words) generated for you, you will not be able to access your holdings.

Overall, APE is secure but the onus falls on you to find a reputable cryptocurrency exchange such as eToro for your trading activities. In addition to this, you can write passcodes to your APEs in multiple places so that you can retrieve them in case you lose your phone.

Since cryptocurrencies are classified as a highly-volatile asset class, it is extremely understandable to see various regulatory bodies raise concerns.

Although there are price fluctuations here and there, having the right investment strategy through a secure exchange and crypto wallet could bring you enormous gains you never thought possible.