Difference Between NFT and Cryptocurrency | NFT Vs Crypto

Are you a bit confused about NFTs and Cryptocurrency? And You need to know what is the difference between NFT and Cryptocurrency. Since NFTs and cryptocurrency is similar to each other. That’s why most people are confused about these two terms. Which of these two is best? On which platform you should invest your money? This post will answer all your doubts and give you the best direction so you can smartly invest your money. 

Before proceeding to know about the major difference between NFTs and cryptocurrency, let’s find out some basic differences. 

Non-fungible tokens (NFTs) vs Cryptocurrency 

What are NFTs?

Basically, NFTs are the evolution of cryptocurrencies. Here are some of the most important benefits of NFTs.

  • NFTs have the potential to create a digital representation of physical assets.
  • NFTs have improved market efficiency through the representation of artwork on the blockchain without the agent’s needs. Also, it improves the functioning of the business process. 
  • NFTs use the minting process for identity management and thus that makes it unique. 
  • NFTs led the new market creation and also generates new forms of investments. 
  • NFTs provide the marketplace with the investors and creators to purchase and sell tokenized pieces of land and all the other real-world physical assets.

Must Read:-What is NFT | What are its characteristics?

Here are some famous NFTs collections.

  1. CryptoPunks
  2. Bored Ape Yacht Club
  3. Mutant Ape Yacht Club
  4. Axie Infinity
  5. Cool Cats
  6. Decentraland
  7. Meebits
  8. Upland

Cryptocurrency 

Cryptocurrencies are digital currencies or virtual currencies that use the concept of blockchain technology. Blockchain Technology is also known as Distributed Ledger Technology. It uses the concept of decentralization and hashing to store digital assets. So it makes the digital assets distributed in real-time and so it increases transparency in the system.

Blockchain is a technology that stores digital assets in encrypted form. Instead of copies, these digital assets are distributed. So it allows full-time real access to the public and increases transparency in the system.

The most popular example of cryptocurrency in the market is “Bitcoin”. Here’s the list of cryptocurrencies with their total market value. 

CryptosTotal Market Value
Bitcoin$826 billion
Ethereum$ 390 billion
Binance Coin$ 79.5 billion
Cardano$ 66.3 billion
Dogecoin$ 63.4 billion
Tether$ 58.2 billion
XRP$ 51.8 billion
Polkadot$ 30.5 billion
Internet Computer$ 25.6 billion
Bitcoin Cash$ 20.1billion

Cryptocurrency Benefits

Difference Between NFT and Cryptocurrency | NFT Vs Crypto
  1. Trustless: It is decentralized and records are immutable which helps to build trust between business partners and users.
  2. Unstoppable: Once the blockchain conditions are programmed into the system, no third parties like a central bank or government banks can stop this technology.
  3. Decentralized: It works in a decentralized structure. No single entity can own this network of blocks. Unlike the centralized system where decisions are made via consensus.
  4. Immutable: Its records are immutable which means their records cannot be changed or destroyed. For Example, Bitcoin has never been hacked in recent times. So it is a secure way to maintain digital assets.
  5. Lower Cost: In the traditional system, users have to pay financial and banking charges. So it helps to reduce the high transaction cost.
  6. peer-to-peer transaction: In blockchain technology, it is possible to send money directly around the globe. There will be no third party like central banks, or the government in the middle of the transaction.
  7. Transparent: It is an open source. So anyone in the world can access the transaction codes used in the blockchain. So it increases reliability and trust among the public.
  8. Universal Banking: There are 2 billion people in the world who don’t have any access to the banking system. With the emergence of blockchain technology, these people can have a universal blockchain account to maintain their money.

Key Difference b/w NFTs and cryptocurrency

FeaturesNFTsCryptos
Token typeNon-fungibleFungible
SecurityHighHigh
MarketplaceDigital artworkCurrency
InfrastructureDecentralizedDecentralized and Distributed

How are NFTs different from crypto?

Both NFTs and cryptocurrency are based on blockchain technology. Thus, the technology and the same principles remain the same. In broader terms, NFTs can be considered as a subset of the crypto culture. Generally, you should have the needed cryptocurrency to buy and sell NFTs assets. 

However, the key difference is the indication of the name itself. Cryptocurrency is a virtual currency and is fungible. Similar to other currencies, it has some intrinsic economic value. Additionally, it has signed the same value as the next one, 1$ETH = 1$ETH. Consequently, NFTs are non-fungible in nature and their value goes way beyond the economies. 

How Are NFTs Vs Cryptos Similar?

NFTs and Cryptocurrency look similar but they have different usages. NFTs use the Ethereum cryptocurrency for a secure marketplace across the world. Thus, it is therefore considered to be the most secure way of trading your artwork. 

However, if you are an artist and want to sell your artwork on the blockchain platform, NFTs are a great choice for you. It allows investors to mint your artwork in the NFT marketplace where buyers across the world can purchase your artwork in crypto. Thus, it provides you with all the benefits of cryptocurrency. Also, you can convert your earned cryptos into USD on the available crypto exchange platforms like WazirX, COinDCX, etc. 

What can NFTs do?

Wrapping Up

In this post, we have covered all the similarities and key differences between NFTs and cryptocurrency. We hope all your doubts are cleared now.

In short, NFTs is a digital asset that can be bought using cryptos. NFTs use cryptocurrency technology for providing the best marketplace for artists to sell their art. 

Below is the table that lists all the key features of NFTs vs Cryptos. 

FeaturesNFTsCryptos
Token typeNon-fungibleFungible
SecurityHighHigh
MarketplaceDigital artworkCurrency
InfrastructureDecentralizedDecentralized and Distributed

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