News | September 20, 2022, 1:02 PM | The content is supplied by a Guest author
You know all about cryptocurrencies such as Bitcoin and Dogecoin. Perhaps you are even a well-versed crypto investor. But what do you know of NFT trading? Here are the differences between cryptocurrency and NFT, so you will know which one to invest in.
Cryptocurrency and NFT both have a lot in common. They are both digital assets. To know which kind of investment appeals to you the most, we must take a look at their differences.
An investment in digital art
Although NFT and cryptocurrency aren’t the same, they do share some similarities. Both rely on the same blockchain technology, both are alternative forms of investment, and both entered the public consciousness around the same time. In fact, a lot of people buy NFTs using cryptocurrency, so the two are very much linked. Still, they are not the same. An NFT is a Non-Fungible Token. In other words, an NFT can’t be traded the way cryptocurrency can be traded.
While cryptocurrencies are exchangeable, NFTs are unique assets with individual value. It is more equivalent to art investment, except purely digital. When you buy an NFT you buy a digital image. You are now the owner of this image. If anyone wants to use it, they will have to ask you or even pay you. Still, anyone can go on the internet and look at the image you have bought. Owning an NFT is not about putting a pretty picture on your wall, but about owning an image that you can sell, when it rises in value.
Although NFTs are widely considered to be digital images, not all NFTs fit into this category. Check out upcoming NFT projects right here to get a better understanding of the NFT market.
Alternative NFT projects
NFTs are all unique, this means that not all of them are images. According to theguardian.com, the rock band Muse made history by releasing their album Will of the People in the form of a limited edition NFT. The album was sold in the traditional forms of CDs and vinyl records as well. Out of the 51.500 copies sold during the first week, only a limited 1000 copies were sold as NFTs. Still, it is a completely new way of looking at NFTs. The future will have a lot of new and exciting developments in store for the world of NFTs.
In comparison, cryptocurrencies are all widely the same. They are not all equally popular, and they can rise and fall in value, but they are all digital currencies. If you are not interested in exploring new territory every time you invest, cryptocurrency is the right choice for you. If, however, you get excited by the many possibilities of digital art, NFT is what you should invest in.
The crypto community
Whether you want to invest in cryptocurrencies or NFTs there is plenty of help to be found. In October, for instance, the Crypto Assets Conference will be held at the Frankfurt School of Finance and Management in Germany. Over 300 guests will attend the event physically, while it is also possible to join the event online meaning that you will have more than enough time to learn more about both NFTs and crypto if you’re interested in investing in either or both.
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