NFT vs Cryptocurrency: What Is the Difference?
NFTs and cryptocurrencies are both blockchain-based digital assets, but they are designed for different purposes. The most important technical difference is fungibility.
Simple Definition:
A cryptocurrency is generally a fungible digital asset whose units are interchangeable, while an NFT (Non-Fungible Token) represents a distinct, non-interchangeable digital asset or item according to its blockchain implementation.
A cryptocurrency is generally a fungible digital asset whose units are interchangeable, while an NFT (Non-Fungible Token) represents a distinct, non-interchangeable digital asset or item according to its blockchain implementation.
For example, one unit of a cryptocurrency can generally be exchanged for another equivalent unit of the same cryptocurrency. An NFT, however, can have a unique identifier and properties that distinguish it from another NFT.
What Is Cryptocurrency?
A cryptocurrency is a digital asset that uses cryptographic techniques and blockchain or distributed-ledger technology to support transactions and ownership records.
Many cryptocurrencies are designed to function as digital forms of value, payment assets or native assets of blockchain networks.
Cryptocurrency can be used for:
