Are you confused about NFTs and Cryptos? What are NFTs and what about the Cryptos? Are these both the same? What is the difference between the two? Which of these two is the best? If these questions are in your mind, then here is the post for you which will clear your mind from all doubts between NFTs and Cryptos i.e NFTs Vs Cryptos.
NFTs stand for Non-Fungible Tokens which was launched in August 2015. The first-ever NFT minted on the blockchain was Terra Nullius. But the craze of NFT started recently in 2021 which disrupted the art world and the industries associated with it. In contrast to it, Crypto, or the cryptocurrency was invented in 2008. Crypto is a digital currency that uses cryptography to secure transactions. This is a decentralized system to record transactions and issue new units.
NFTs are regarded as the new cryptos. In this post, we will be looking into the similarities and dissimilarities of the two under NFTs vs Cryptos. Also, you will get to know which one between the two will be best for future investment. Before stepping straight to NFTs Vs Cryptos, let’s see about each individually.
What Are NFTs?
NFTs are unique tokens that can’t be replaced with something else. NFTs are unique cryptographic tokens that are available on the blockchain. NFTs represent real-world items like artwork and real estate. Most NFTs are part of the Ethereum blockchain. Ethereum is a cryptocurrency. NFTs on blockchain have unique identification codes and metadata that make them unique.
Also Read, How To Create An NFT In Decentraland | Points To Keep In Mind
NFTs are the evolution of cryptocurrencies. Here are some of the benefits of NFTs.
- NFTs made possible the digital representation of physical assets.
- NFTs increased the market efficiency by representing artwork on the blockchain without the need for agents. It also improved the business process.
- NFTs made identity management easy. By minting easy artwork, it makes it unique.
- NFTs led to the creation of new markets and new forms of investment.
- NFTs made it possible to sell tokenized pieces of land and other physical assets like the real world.
Here are some famous NFTs collections.
- Bored Ape Yacht Club
- Mutant Ape Yacht Club
- Axie Infinity
- Cool Cats
What Are Cryptos?
Cryptos are digital currencies or virtual currencies that are secured by cryptography which makes it impossible to counterfeit or double spend. There are different types of cryptos, many of which are decentralized based on Blockchain technology. There are different types of cryptos. Some of them are listed in the table along with the market value.
|Cryptos||Total Market Value|
|Ethereum||$ 390 billion|
|Binance Coin||$ 79.5 billion|
|Cardano||$ 66.3 billion|
|Dogecoin||$ 63.4 billion|
|Tether||$ 58.2 billion|
|XRP||$ 51.8 billion|
|Polkadot||$ 30.5 billion|
|Internet Computer||$ 25.6 billion|
|Bitcoin Cash||$ 20.1billion|
Here are some advantages of using Cryptos.
- Easy transactions
- Incredible Security
- Short Settlement times and fewer fees
- Exponential industry growth
- Outsized returns
- More private transactions
- Inflation hedge
- Cross border payments
- Transactional freedom
Also Read, How To Get NFT for Free? 5 Proven Money-Saving Tricks
How Are NFTs Different From Cryptos?
Firstly, crypto is a currency just like any other currency in the world. You cannot take crypto as an asset. This is the currency from which you can buy assets like NFTs. Cryptos have economic value and are fungible. Within a particular cryptocurrency, every crypto token has the same value.
NFT is not currency. NFTs prove ownership of a piece of artwork or any digital object, allowing users to put them in the marketplace for sale. NFTs are limited in number, this makes their value and demand rise in the market. One needs to mint an NFT or create one on the blockchain before putting them for sale.
How Are NFTs Vs Cryptos Similar?
NFTs are mostly a part of the Ethereum blockchain. As Ethereum is a cryptocurrency, this makes NFTs the most secure assets in the market. NFTs are therefore the most secure way of trading your artworks.
If you are an artist and want to sell your artwork in the blockchain, then NFTs are the most secure way. You have to mint your artwork before putting it on sale in the NFT marketplace where the buyer purchases your artwork in Cryptos. Dealing in Cryptos provides you with all the benefits of Cryptocurrency. Once you have earned cryptos, you can also convert them into USD on crypto exchange platforms like WazirX, CoinDCX, etc.
Apart from this, you can also invest in NFTs like buying land in Decentraland which will also help you to earn huge profits.
Also Read, How To Sell Upland Property For Cash? Earn Profit With Upland!
In this post, we have seen the similarities and differences between NFTs vs Cryptos. We hope all your doubts are cleared now.
NFTs are digital assets that can be purchased using cryptos. With the use of cryptocurrency, NFTs became more secure and the best marketplace for artists to sell their art. We can say that NFTs are dependent on Cryptos but Cryptos are not dependent on NFTs.
Below is the table that lists features of NFTs vs Cryptos.
|Infrastructure||Decentralized||Decentralized and Distributed|
If you want to know more, leave a comment below.
Frequently Asked Questions
Q1. Are Cryptos And NFTs The same?
NFTs are digital tokens of different artworks, most of them using Ethereum blockchain to record digital transactions. Cryptos is a currency just like any other currency like bitcoin or cash. Cryptos are fungible while NFTs are non-fungible.
Q2. What Is NFTs crypto?
NFTs – Non Fungible Tokens are blockchain-based tokens that represent a unique artwork, digital content, or media. NFTs are digital certificates of ownership and authenticity for a given asset.
Q3. How To Buy NFTs?
You can buy NFTs from the marketplace like OpenSea. But you have to follow the complete process of buying an NFT so that you can complete your purchase.
Q4. How Are NFTs Stored On The Blockchain?
NFTs are stored in digital wallets. You have to mint an NFT before selling it. And if you want to purchase it or bid for it, you need a wallet to do the payment. In both cases, you have to pay the gas fees.
Q5. Are NFTs Worth Buying?
Yes, NFTs can be a good investment if you are investing in good NFT collections which include.