There’s no way you haven’t heard of Crypto NFT because, honestly, these are all so hyped in this era of social media and passive income. But are these worth the hype? Crypto is quite old, but NFTs are new in the trend.

These have gained popularity lately, and many people are unaware of them, so here’s a detailed description of these non-fungible tokens and how they correlate with cryptocurrency. So here we go.

An Introduction To NFTs And Crypto Tokens

So, what exactly is this NFT? NFT, or a non-fungible token is an interchangeable digital asset that can be bought and sold. Being one of its kind, these have succeeded in gaining the attention of a massive population in a short time.

And then there is a crypto token, too, that is basically a denomination of cryptocurrency that carries the assets or deeds. Don’t get confused between crypto coin and token, as tokens will eventually become coins when shifted to a new Blockchain. It is very risky to invest in tokens, though, so you got to be careful.

What Are The Similarities Between Crypto And NFTs?

NFTs are generally considered a subset of crypto, and you must have heard these names together somewhere. The thing that is common in both is that both are digital assets based on Blockchain technology and thus have the same principles.

The people who buy NFTs are mostly those who have invested in crypto before; hence, both have the same target audience. Furthermore, you need crypto to buy NFTs, so that’s another connection between both.

What’s The Difference Between The Both?

Don’t get confused between both, as crypto and NFTs are equally different from each other as much as they seem alike. If you think about it wisely, you’ll notice that the main difference lies in the names of both digital assets.

Cryptocurrency is a currency, and a currency is fungible; everyone has it, and everyone can have it. It’s the same for everyone. But that’s not the case for NFTs.

Just as the name suggests, NFTs are non-fungible, i.e., they are one of a kind. Every token is unique and has its own value.

Take It As An Example

Are you getting the point? Here’s an easy example for you to understand the concept in a better way. If you have ten bitcoins and your friend also has ten bitcoins, you both own the same amount of currency /money. Both have the same worth.

But if your friend has an NFT, you cannot have the same NFT until or unless you buy it from him. Similarly, your NFT has a different value that cannot be underestimated.

What’s The Take-Away?

To sum up the discussion, we can easily conclude that both NFTs and crypto have their own plus points and drawbacks. But these do not affect the importance of both.

The coming world is the world of NFTs and crypto, so you better prepare yourself for it. Now is your chance to invest in these digital assets to secure your future.