What’s the Difference Between Cryptocurrency and NFTs?

Don’t they both use blockchains?

Blockchains verify that you are the unique owner of an asset. That asset can be either a cryptocurrency or an NFT. Cryptocurrencies are similar to money. You can use a cryptocurrency to pay for a good or service. NFTs (or non fungible tokens) are digital goods that you can use cryptocurrency to buy.

They both use blockchain technology to verify that you are the owner. The key difference you need to understand is how owning each of these items means very different things for you. Owning an NFT unlocks many more possibilities for you! So let’s dive into it.

Owning a cryptocurrency can mean one of two things for you:

1. You want to buy something with that cryptocurrency, therefore, you own it so you can make purchases.
2. You want to make an investment in cryptocurrency and hold it for some time like you would a stock.

Owning an NFT has many more possibilities. Owning an NFT can mean anyone, or all, of the following:

1. You want to invest in a virtual product/property (art, GIFs, gaming assets, digital tickets, or any digital collectible). Check out how you can earn money from NFTs.
2. You get access to games that your NFTs work in. The current games only allow NFT holders to participate.
3. You want to buy something that brings you happiness! Money doesn’t give you happiness, what you buy with it does! The NFTs can be cool art or a silly badge you minted to the blockchain and distributed to friends. A lot of people ask, why would I own art that I could look at for free? Well, it comes down to how it feels. It feels much different to look at the Mona Lisa for free than it does to own it!
4. You found a cool project earlier than others and can now prove it because you have a non fungible token with a low token id. The low token id represents that you bought one of the first ever minted non fungible tokens from that project. This is the equivalent to bragging rights.
5. You get to join fun communities. Even though you don’t technically need to own an NFT to join a community, you likely will buy an NFT for a project you have found a great community from. The people in the community all bought in because they believe in the project and they like to talk about it!

The “New to NFTs” project will take you through all the projects we bought from so you can understand what it’s like to get into each of the projects, including what it feels like to actually own the NFT! We will also cover how difficult/easy it is to get into the project so that, hopefully, you don’t feel alone in your quest to buy an NFT!