An NFT (Non-Fungible Token) differs from a cryptocurrency (like Bitcoin or Ethereum) in several key ways. . .

‎1. Fungibility

  1. ‎NFT: Non-fungible — each token is unique and cannot be exchanged on a one-to-one basis with another NFT.

  2. Cryptocurrency: Fungible — each unit (e.g., 1 BTC or 1 ETH) is identical in value and function to any other unit.

2. Purpose

  1. NFT: Represents ownership of unique assets like digital art, collectibles, music, virtual land, etc.

  2. Cryptocurrency: Primarily used as a medium of exchange, store of value, or utility token within ecosystems.

‎3. Structure

  1. NFT: Contains unique metadata and attributes, often pointing to digital content.

  2. Cryptocurrency: Has no distinguishing features between tokens; all are the same.

4. Interchangeability

  1. NFT: Not interchangeable; each has different value and significance.

  2. Cryptocurrency: Fully interchangeable; 1 ETH = 1 ETH, regardless of where it came from.

5. Standards

  1. NFT: Built on standards like ERC-721 or ERC-1155 (on Ethereum).

  2. Cryptocurrency: Typically follows ERC-20 (on Ethereum) or native blockchain protocols.

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