What is the difference between an NFT and a cryptocurrency?

NFTs and cryptocurrencies are both digital assets that use blockchain technology, but they have some key differences.

NFT stands for non-fungible token. This means that each NFT is unique and cannot be replaced with another NFT. For example, you could have two NFTs that are both images of cats, but each NFT would be a different image and would have its own unique value.

Cryptocurrency, on the other hand, is fungible. This means that each cryptocurrency is identical to every other cryptocurrency of the same type. For example, one Bitcoin is worth the same as any other Bitcoin.

Another difference between NFTs and cryptocurrencies is their use cases. NFTs are often used to represent digital assets, such as art, music, and videos. Cryptocurrencies, on the other hand, are often used as a form of payment or as an investment.

Here is a table that summarizes the key differences between NFTs and cryptocurrencies:

Use casesDigital assets, such as art, music, and videosPayment, investment
ExamplesCryptoKitties, NBA Top Shot, Beeple’s EverydaysBitcoin, Ethereum, Litecoin