Investors around the world are familiar with the term ‘Cryptocurrency and NFT’. But very less people know about these terms. Or we can say that very less people know the difference between cryptocurrency and NFT.
Also Read: What To Know Before Investing In Crypto
People nowadays are more interested in investing and buying digital assets. The people who are involved in investing are known for these two terms. Although we all somewhere hear about these terms.
But the question is ‘do we all know about these trending terms?’.
What is Cryptocurrency?
Cryptocurrency is the form of a digital asset that works as a medium of exchange between two computers. It is a digital currency that is tradable just like money. It is built on blockchain technology with encryption algorithms that make safe transactions and trading.
Also Read: Your Response Will Determine Your Business’s Growth.
Some of the famous cryptocurrencies are:
- Bitcoin
- Etherium
- Polkadot
- Dogecoin
What is NFT?
Non-Fungible Tokens are the type of digital ledger that can be sold and traded. It is a type of data that is non-interchangeable. That can be any form of digital files such as photos, videos, and audio. It is basically a unit of data which are stored in a blockchain. It can be created using blockchain and it cannot be replicated.
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Some of the Famous NFTs are:
- CryptoPunk #7804
- Beeple’s HUMAN ONE
- Clock
- Everyday: the First 5000 Days
What Is The Main Difference Between Them?
They have many similarities but have a lot of differences between them. If we talked about similarities they both are created using blockchain. Their main difference is that NFTs cannot be traded for each other. Meanwhile, cryptos can be traded for each other with the same value. Cryptos are handled by banks and NFTs are handled by the community which runs them. Crypto can change the world of finance but NFTs can change many things in life.
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