Non-fungible tokens and Cryptocurrencies are both built on blockchain, yet they are different from each other. Non-fungible tokens are digital assets that address certifiable things like music, trading cards, and videos. It is a digital asset with advanced characters, distinctive media posts, and virtual land. Non-fungible means they cannot be mutually interchanged. So, every Non-fungible token is different and special. They stand separately in comparison to fungible tokens like Cryptocurrencies.
Cryptocurrencies can be traded for each other. Cryptocurrency can be traded on Crypto trading software like Crypto Genius, which aims to provide a user-friendly interface to allow investing to earn huge profits from the Crypto market. Providing qualities like authenticity, Non-fungible tokens cannot be traded with each other.
If you wish to know more about this, do not hesitate to go ahead. It is bound to provide immense help to you.
What Is Cryptocurrency?
Cryptocurrency is a digital currency that has secured transactions. Based on blockchain technology, manipulation and alteration of Cryptocurrencies are next to impossible. Even counterfeiting or double-spending of such currency is likely to be impossible work. As it is based on a decentralized network, it is not governed by any central authority. Cryptocurrencies stand free from any kind of government manipulation or interference.
The trading of Cryptocurrencies has several advantages associated with it. As it is becoming more and more popular, investors are showing more interest in investing in this digital asset. Investment in Cryptocurrencies brings about diversification in portfolio even when the stock market scenario is not in favor. So, Cryptocurrencies have become the most popular way of investing and transacting.
What Are Non-fungible Tokens?
Non-fungible tokens are virtual assets that cannot be directly interchanged or replaced. Unlike fungible digital assets like Cryptocurrencies, non-fungible tokens can be uniquely identified and are indivisible. The ownership and value of non-fungible tokens also differ in individual properties. As these virtual tokens are non-fungible, each unit possesses its own distinctive identity, which greatly impacts its valuation. Differences in utility and property affect their identity as an individual unit.
Why Are Non-Fungible Tokens Different From Cryptocurrencies?
Cryptocurrencies and non-fungible tokens are based on a decentralized network named blockchain technology. They have access to the same innovation and standards. Despite this, the characteristics and features of both these digital assets are different. The non-fungible tokens are a subset of the Cryptocurrency market. To trade non-fungible tokens, there is a need for large Cryptographic forms of money.
As suggested by the name, Cryptocurrency is a currency. It only possesses economic value and can be traded for each other. Unlike Cryptocurrencies, non-fungible tokens possess a value that is beyond Economics. They are indivisible and cannot be traded with each other.
The Bottom Line
Cryptocurrencies and non-fungible tokens are digital assets gaining popularity in digital monetization. As the world moves towards digitalization, these virtual assets have become a necessity. Despite being based on the same network, their features and characteristics are very different. That is why, their values are also at different levels.