Are you confused about NFT vs Cryptocurrency? Since NFTs and Cryptocurrency are similar to each other. That’s why most people are confused about these two terms.
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Key Differences: NFT Vs Cryptocurrency
This post will answer all your doubts and give you the best direction so you can smartly invest your money.
Before learning about the significant Difference between NFTs and Cryptocurrency, let’s discover some fundamental differences.
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What are NFTs?
NFTs are the evolution of cryptocurrencies.
- NFTs have the potential to create the digital representation of physical assets.
- NFTs have improved market efficiency by representing artwork on the blockchain without the agent’s needs.
- NFTs use the minting process for identity management, and thus, that makes it unique.
- NFTs led the new market creation and generated new forms of investments.
- NFTs provide a marketplace for investors and creators to purchase and sell tokenized pieces of land and all the other real-world physical assets.
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Here are some famous NFT collections.
- CryptoPunks
- Bored Ape Yacht Club
- Mutant Ape Yacht Club
- Axie Infinity
- Cool Cats
- Decentraland
- Meebits
- Upland
Cryptocurrency
Cryptocurrencies are digital currencies or virtual currencies that use the concept of blockchain technology.
The most popular example of Cryptocurrency in the market is “Bitcoin.” Here’s the list of cryptocurrencies with their total market value.
Cryptos Total 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
- Trustless: A decentralized and immutable record helps build trust between business partners and users.
- Universal Banking: Two billion people worldwide without access to the banking system.
Key Difference B/W NFT and Cryptocurrency
Features NFTs Cryptos
Token type Non-fungible Fungible
Security High High
Marketplace Digital artwork Currency
Infrastructure Decentralized Decentralized and Distributed
How are NFT different from cryptocurrency?
The technology and the same principles remain the same. Generally, you should have the needed Cryptocurrency to buy and sell NFT assets.
However, the key Difference is the indication of the name itself.
Similar to other currencies, it has some intrinsic economic value. Consequently, NFTs are non-fungible, and their value goes far beyond economies.
How are NFT Vs Cryptocurrency 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 considered 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 an excellent choice for you. It allows the investors to mint your artwork in the NFT marketplace, where buyers worldwide can purchase it in Cryptos. 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 and CoinDCX.
Wrapping Up
In this post, we have covered all the similarities and the key differences between NFTs and Cryptocurrency.
NFTs use cryptocurrency technology to provide the best marketplace for artists to sell their art.
Features NFTs Cryptos
Token type Non-fungible Fungible
Security High High
Marketplace Digital artwork Currency
Infrastructure Decentralized Decentralized and Distributed
Narinder Sharma is a highly skilled Full Stack Developer with a deep passion for Web3 technology and blockchain innovations. With a strong background in Fintech API development, smart contracts, and decentralized applications (dApps), he is committed to building scalable and secure Web3 solutions. Narinder stays at the forefront of emerging tech trends, bridging the gap between traditional software development and the decentralized future.
🚀 Passionate about smart contract development, DeFi, NFTs, and Layer 2 scaling solutions.📈 Dedicated to pushing the boundaries of Web3 adoption and blockchain infrastructure.