Difference between Cryptocurrency and NFT’s

By | February 8, 2022
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Difference between Cryptocurrency and NFT’s

Cryptocurrency

Cryptocurrency are digital assets created using computer networking software that enables secure trading and ownership. It is a digital payment system that doesn’t rely on banks to verify transactions. Cryptocurrencies run on a distributed public ledger called blockchain, a record of all transactions updated and held by currency holders.

A blockchain stores information electronically in digital form. Cryptocurrency are created through a process called mining, which involves using computer power to solve complicated mathematical problems that generate coins.

Advantages of Cryptocurrency

  1. Protection from inflation.
  2. Aims to cut out intermediaries.
  3. Cryptocurrency transaction is generally a quick and straightforward process.
  4. Every cryptocurrency transaction is recorded in a public list called the blockchain.
  5. Crypto trades around the clock

NFT’s

NFT(Non-Fungible Tokens) are cryptographic assets on a blockchain with unique identification codes and metadata that separate them from each other. It cannot trade or exchange at equivalency. NFT’s are unique cryptographic tokens that exist on a blockchain and cannot be replicated.

NFT’s can use to represent real-world items like artwork and real-estate. These enables built in royalties which brings much more financially rewarding for the creators. NFT can also used to represent individuals’ identities, property rights, and more.

Advantages of NFT’S

  1. NFTs Foster Marketplace Efficiency.
  2. They can use to Fractionalize Ownership of Physical Assets.
  3. The Blockchain Technology Behind NFTs Is Very Safe.
  4. NFTs Can Provide Diversification Benefit to an Investment Portfolio.
  5. Allows artists and content creators to retain their full copyright.

Difference between Cryptocurrency and NFT's

Difference between Cryptocurrency and NFT’s

Cryptocurrency NFT
Cryptocurrencies are fungible. Non Fungible Token.
It can be traded or replaced with one another. NFT’s unlike cryptocurrencies, can’t be traded or replaced with one another.
Cryptocurrency is a currency. NFT’s are one-of-a-kind digital assets that represent real-world items.
Value depends on market fluctuation. Value depends on asset.
You don’t need NFT’s to buy or sell crypto. You generally need cryptocurrency to buy and sell NFT’s.

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