- NFT and Cryptocurrency build on the same technology but both have differences.
- NFT and Cryptocurrency are different based on trade value, transaction, ownership and uses.
Let’s try to understand NFT and Cryptocurrency differences in simple words to get the answer to your question.
Is NFT a Cryptocurrency?
NFT builds on the same blockchain technology that powers cryptocurrencies, but NFT is not currency as like cryptocurrency.
These NFTs are non-fungible tokens which are unique digital assets. NFTs represent ownership of real world items.
For example, art, music, video, utility and more.
NFT and Cryptocurrency differences
Following are things which makes NFT and cryptocurrencies different.
Trade value: Each NFT can have different values based on their metadata(properties). While each same type of cryptocurrency has the same value, e.g., 1 eth. = 1 eth.
Ownership: Owning the NFT means, you own the NFT along with its metadata(properties). But, here intellectual property of the item remains to the original artist or creator. While owning a cryptocurrency is like holding money. It just yours.
Uses: NFTs are used as collectible items like – digital art, music, utility, virtual worlds and more. While cryptocurrencies are used to buy or sell things, store of value, investment and more.
Hope you find your questions (Is NFT a Cryptocurrency?) answer from above NFT vs Cryptocurrency explanation.