The craze around cryptos could not settle when NFTs start to rage into the market. Both these digital assets tend to confuse people who really have less idea about cryptos in the first place. Along with artificial intelligence, NFTs happen to be one of the hottest topics around. As cryptos and NFTs, both are digital assets, it is necessary to understand the difference between them.
Real-world money, crypto, and NFTs
If we really look carefully, cryptos are closer to real-world money than NFTs. The two kinds of digital assets have only one match- they both use blockchain technology. But differences are vast between these two. NFTs stands for non-fungible tokens. Being fungible means the capability of getting traded. So, the name itself implies that the NFTs cannot be traded, and this is what makes them unique- one of a kind.
On the other hand, cryptos are fungible just like real-world currencies. They can be traded for another and are of same value. Bitcoins of the same value as any other Bitcoin just like a dollar is similar in value with another dollar. So, one can exchange a Bitcoin for another and change one dollar for another.
One can use our real-world money in order to buy NFTs and cryptos. These can also be sold for money as well. These digital assets have made their way into comics and gaming world as well. Many gaming verse offers cryptos and NFTs as rewards. These assets can be converted into real money to use. Playing these games and giving your time to it can be considered as an investment as you get the cryptos as rewards. But some games have kept it for purely entertainment purpose likeBattleSpecieswhere you play in a Virtual world. Here, the coins can be minted and used within the game but not outside of it. These coins cannot be converted to real money, it fuels the multiverse only and not your car.
Every player must properly learn how the game works before entering it with some expectations. While some will reward you with usable cryptos, some will not. Make sure to read your way through every detail before diving deep.