NFTs Vs Tokens | How Are They Different?

No one is negligent with the NFTs vs Tokens battle. The craze for this is just touching the sky these days. It is an attraction for people. If you are a gamer, you must have heard of NFTs. But, this might be confusing for you. Is it so? If you are still not aware or have confusion, then here is something for you on NFTs vs Tokens that will help you to clear all your confusion!

Tokens are the digital assets that can be transferred. NFTs, the Non-Fungible Tokens, have unique attributes, because of which they can save you from identity theft. Do you know that there are various platforms through which you can create NFTs? If not, then we are here to tell you about NFTs vs Tokens and how to create them.  

Token was an old concept that was later modernized by digital tokens but NFTs came as an attraction in the 21st century. NFTs are going to rise in the near future. If you want to know more then in this post we will be discussing it but, let us first take a look at the types of tokens.

Types Of Tokens

There can be different tokens for different services and products. Mainly, we shall be discussing four types of tokens in this digital world.

1. Payment Tokens

These are the coins used for digital world transactions. The value of these tokens is based on the laws of demand and supply. Bitcoin or Litecoin can be examples of payment tokens.

2. Security Tokens

Just like shares and stocks, security tokens are traditional assets that have been converted into digital tokens on the blockchain. They provide ownership rights to the holder. 

Also Read, 7 Best NFT Marketplaces – To Sell And Buy NFTs

3. Utility Tokens

These are the tokens that provide the holder with holder access to the products or services that are blockchain-based. Like NEO network access can be gained through Gas coins.

4. Non-Fungible Tokens

These tokens digitally represent something different or unique. Every token has a representation of a specific asset and hence, the standard value is not there.  

Now, as we have discussed various types of tokens, let us move towards NFTs vs tokens.

Fungible Vs Non-Fungible Assets

Fungible assets are divisible or their units can be interchanged like two 50 USD notes have the same value as one 100 USD note. But, it is not so in the case of Non-Fungible assets. They are non-divisible. There cannot be the same value of two houses, or two flight tickets cannot be the same due to data as it is specific. So, NFTs are one of a kind. 

Fungible Tokens(FTs) are known for the value stored by them while Non-Fungible Tokens(NFTs) are known for storing data. Not just this, but there is also a difference between NFTs and cryptos. 

Well, let us move further and now it is time to discuss NFTs vs Tokens. So, let’s start with it.

NFTs Vs Tokens: History

The first NFTs attempt was in the colored coin era in 2012-13. During this time, people realized that there is high potential if they issue assets in the blockchain. Hence, somehow the rise of NFTs had started during this period. While tokens or digital tokens originated in the 1990s and became popular. 

Also Read, 8 Best NFT Wallets Of All Times | Choose Your Wallet Wisely

NFTs Vs Tokens: One Of Their Kinds

Non-Fungible Tokens are one of their kinds because they are known for storing data while tokens are known for storing value. In tokens, if you have three units of 10 bitcoins (BTC), it would be equal to 30 BTC. But there would be different prices or rates for apartments in the same locality. That is why NFTs are one of its kinds like tokens.  

NFTs Vs Tokens: Ownership Rights

If you buy NFT from a creator then it will become your property as NFTs are digital certificates of ownership and represent that purchase has taken place of a digital asset. Any other rights to work are not transferred. But it isn’t so in the case of tokens as the ownership rights as well as other rights which the tokens represent are transferred.

NFTs Vs Tokens: Interchangeability

NFTs are irreplaceable as there is a representation of distinctive value by each NFT but tokens can be replaced because no additional value is represented here. There would be no loss in the value if tokens are interchanged but it is not so in the case of NFTs.

NFTs Vs Tokens: Transparency

You can access NFTs through a digital ledger publicly and this makes the transactions through NFTs transparent but in the case of tokens, the transactions are not public and are confidential. We also have a list of the most popular NFTs.

Here is a list of the top ten most popular NFTs in terms of sales volume where you can invest. Have a look at them and decide if you want to invest here or not.

Also Read, 7 NFTs Like CryptoPunks | Why Are US Giants Stepping In?

So, this was the guide for NFTs vs Tokens, we hope you have understood the difference between the two. You can also make investments in NFTs and purchase digital tokens as well.


We hope that this post has helped you to get the answers to the questions that you had. NFTs and tokens can help you to keep your assets safe along with proper digitization. If you are thinking of being a part of these activities then, we suggest you do proper research before getting involved. 

Did you enjoy reading the post? If yes, then forward it to your friends and ask them to read it. Also, dropdown your queries in the comment section below. We would love to clear your doubts to the maximum limit. 

Frequently Asked Questions

Q. Why Are NFTs Expensive?

NFTs are known for verifying the authenticity of non-fungible assets. Hence they are unique. They can be considered huge investment tools and are valuable. 

Q. What Is An Example Of NFT?

Furniture NFTs, Nyan Cat, Taco Bell GIFs, Jack Dorsey’s First Tweet, William Shatner’s Memorabilia, and many more can be examples of NFT.

Q. Is NFT A Cryptocurrency?

NFT is a Non-Fungible Token and is a crypto asset, unlike other cryptocurrencies or Bitcoin. NFTs are the digital assets or items which are purchased or sold with the use of blockchain technology. 

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