What are two things that have dominated news headlines over the past few years that most people still don’t understand? Cryptocurrency and NFTs.
Crypto started it all back in 2009, when Bitcoin was first released. Since then, the cryptocurrency industry has exploded and is worth more than $3 trillion.
NFTs weren’t born until 2016 and 2017 when the true power of blockchain technology emerged. The average consumer is more interested in NFTs, which is, in turn, driving crypto adoption.
NFT vs. cryptocurrency, what do you need to know about each one, and what are the differences? Keep reading our NFT and cryptocurrency guide below to find out now.
What Is Cryptocurrency?
A cryptocurrency is a digital currency native to the internet (unlike fiat currency, which has been around for hundreds of years).
It exists on a financial network known as a blockchain. This digital blockchain is a ledger containing all transactions using a particular cryptocurrency.
So every Bitcoin transaction is recorded on the blockchain, forever storing those records. But unlike bank ledgers, crypto blockchains are open for all to see. Anyone can look into the log to verify transactions.
This creates a decentralized financial system. An entity does not own it, nor does a government control it. No one is in charge of it. It’s powered by computer code and smart contracts.
You can use cryptocurrency to buy things. You can send crypto to any person, regardless of their country. And you can invest in crypto like you would stocks to build wealth and beat inflation.
You can buy cryptocurrency online by linking your banking credentials to a crypto exchange. Or you can buy with cash using the best crypto ATMs.
NFT Guide; What are NFTs?
NFTs are tokenized assets that also live on the blockchain. But rather than currency, there are other investments, usually in collectible art.
You can think of NFTs as more like trading cards or fine art. An artist might create a collection of paintings to sell to the public. Each one is unique. They are not interchangeable, and they will have different values.
That’s like an NFT, but NFTs are digital-first.
NFT vs. Cryptocurrency
NFTs are similar to cryptocurrency. Like Bitcoin or Ethereum, NFTs are digital tokens that live on a blockchain.
But cryptocurrency is fungible. That means it’s interchangeable. One bitcoin is the same as another bitcoin.
But NFTs are non-fungible tokens (NFT). They can be bought, sold, or traded but cannot be swapped. Each one is unique, and they aren’t interchangeable like money is.
Cryptocurrency is the money of the internet and a store of value for investors. NFTs are collectibles, art, and how we will manage individual property rights.
Be an Early Adopter
Hopefully, you enjoyed our NFT and cryptocurrency tips. Both subjects take a little bit of time to understand.
But given that they both will disrupt entire industries and shape the future, you must learn the difference between NFT vs. cryptocurrency today to benefit from becoming an early adopter.
Are you looking for more crypto and NFT tips like this? Head over to our blog now to keep reading.
