NFTs vs Cryptocurrency is a hot topic in the crypto world. Both non-fungible tokens and crypto tokens are built on Blockchain, using the same technology and principles. So they are quite attractive and secure for users. But their identities are different from each other so, they work differently.
Here in this article you will get to know about the differences between NFT and Cryptocurrency, Keep reading! Before something else, let us understand both of them in detail.
What is NFT?
A piece of art which can be converted into a digital form can be an NFT. Everything from drawings, paintings, photos, videos, GIFs, music, games, and selfies. NFT is a non-fungible token i.e. “it is unique” and cannot be substituted with something else. NFT works by creating a blockchain-based digital certificate for digital collectables. It includes identifiable information like “ownership of the digital asset” and “who sold it”. In this way, it is easily verifiable and therefore cannot be forged. Each non- fungible token acts as a certificate with complete ownership. It can never be modified, stolen or forged, thanks to cryptographic principles.
What is Cryptocurrency?
Cryptocurrency is something we call a digital currency with secured cryptography. Cryptography helps to safeguard and verify transactions because it is decentralized and unaffected by third-party interference. We can regulate and control the creation of new currency units because it is neither issued nor regulated by any government or central authority. Cryptocurrencies are like traditional currencies used as an exchange currency
How can you distinguish between NFT and Cryptocurrency?
NFTs and Cryptocurrency are not similar although they are built on Blockchain Technology. Suppose you are holding an M1Verse Token and you buy the next M1Verse token, then both will be of the same value. But NFTs do not have the same value i.e., one NFT is not equal to another NFT. Making it non-fungible and unique.
Both cryptocurrencies and NFTs use comparable innovation standards. This makes them more interactive and attractive. NFTs are a subset of crypto culture, and you’ll almost certainly require cryptographic forms of money to trade them. However cryptocurrency is a kind of money. It just has economic value and is fungible.
If you are artistically inclined and willing to earn money passively, then NFTs are the best option for you guys.
In this article you must have understood about the cryptocurrencies and NFTs. How do they work and their productibility? NFT vs Crypto is quite a debatable topic so it has subjective opinions. So it is quite difficult to choose between them.