Tutorial Playlist

Blockchain Tutorial for Beginners

Overview

What is Blockchain Technology and Why is it Popular

Lesson - 1

What is Blockchain: Features and Use Case

Lesson - 2

Why is Blockchain Important and Why Does it Matter

Lesson - 3

Understanding Cryptocurrency and Its Benefits

Lesson - 4

What is Blockchain Wallet and How Does It Work?

Lesson - 5

What is Ethereum: Understanding Its Features and Applications

Lesson - 6

Ethereum vs Bitcoin: Which One is Better?

Lesson - 7

Understanding the Fundamentals of Ethereum Mining

Lesson - 8

What is a Smart Contract in Blockchain?

Lesson - 9

What Is Dogecoin? Understanding the Crypto-Star!

Lesson - 10

Dogecoin vs. Bitcoin : Understanding the World Of Cryptocurrency

Lesson - 11

Understanding the Fundamentals of Dogecoin Mining

Lesson - 12

A Look Into the Digital Dogecoin Wallet

Lesson - 13

5 Industries That Blockchain Will Disrupt in Future

Lesson - 14

Emerging Blockchain Applications Across Industries

Lesson - 15

How To Become a Blockchain Developer: A Step-by-Step Guide [Updated]

Lesson - 16

The Ultimate Guide to Understand What Is NFT

Lesson - 17

The Complete Guide On Solidity Programming

Lesson - 18

Exploring the Journey of the Shiba Inu Coin

Lesson - 19

Understanding the Fundamentals of Ethereum Classic

Lesson - 20

Understanding the Fundamentals of Merkle Tree in Blockchain

Lesson - 21

What Is Cardano?: The Complete Guide of Its Concepts

Lesson - 22

What Is Matic Network?: Exploring the Concepts of Matic

Lesson - 23

Top 30 Blockchain Interview Questions and Answers in 2021

Lesson - 24

What Is Tether? The Ultimate Guide

Lesson - 25

A Comprehensive Comparison of NFT Vs. Crypto

Lesson - 26
A Comprehensive Comparison of NFT Vs. Crypto

The world is gradually changing away from traditional ways of transaction and toward digital wallets that carry both money and cryptocurrencies. With so many possibilities, it's critical to understand the differences between various currencies. 

NFT vs. Cryptocurrency is a hot topic in the technology world. Both NFTs and Crypto are both based on Blockchain, both use the same technology and principles. As a result, they tend to draw the same types of people. But their identity and functioning are completely different from each other. 

And this tutorial on NFT vs. Crypto will give you an even closer look at how NFT and cryptocurrencies are two different identities based on various aspects.

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Definition

NFT: 

  • NFT is an acronym for non-fungible tokens. Something is considered to be non-fungible when "it is unique and cannot be substituted with something else".
  • Each NFT contains identifiable information such as "who owns the digital asset" and "who sold it," making them unique and easily verifiable because such a certificate cannot be forged.
  • NFT works by creating a blockchain-based digital certificate for your digital collectibles, such as games, music, and art. This certificate assigns a distinct identity to your work.

Cryptocurrency:

  • Cryptocurrency is a "virtual money that uses cryptography to safeguard and verify transactions, as well as regulate and control the creation of new currency units."
  • It's decentralized and unaffected by third-party interference. It is neither issued nor regulated by any government or central authority, unlike traditional payment systems managed by banks or governments.
  • Transaction costs are almost non-existent or very low in cryptocurrency, and there are no transaction limits.

Trading

NFT:

  • NFTs are bought and traded online and managed in a digital ledger; therefore, they cannot be traded. For example, instead of buying a tangible photograph of Monalisa to hang on the wall, the buyer instead gets an original digital file.

Cryptocurrency:

  • Cryptocurrencies can be traded or exchanged losing none of their value. Their peer-to-peer system, which works using blockchain technology, enables anyone to send and receive payments through any form of digital money or cryptocurrency.

Purpose

NFT:

  • Each non-fungible token acts as an authenticity certificate, showing that a digital asset is unique and cannot be swapped. 
  • An NFT can never be changed, amended, or stolen because of the blockchain's cryptographic principles.

Cryptocurrency:

  • Cryptocurrency, like traditional currencies like the US dollar, is a medium of trade designed to exchange digital information and circumvent the problems that existing currencies have.
  • It allows for quick, secure, and decentralized transactions and the purchase and payment of goods and services.

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Volatility

NFT:

  • In comparison to cryptocurrency, NFTs are said to be less volatile. NFT's creative, artistic aspect has attracted both artists and traders. 
  • But on the other hand, it may deter individuals who find the task of designing NFTs excessively difficult, complicated, or inconvenient.

Graph_of_NFT

Cryptocurrency-

  • Cryptocurrencies, in particular, are regarded as high-risk investments as crypto opponents and regulators have frequently stated in their condemnation of cryptocurrencies. 
  • However, certain cryptocurrencies have been created to be more stable than others like Tether.

Graph_of_Cryptocurrency

Uses and Market Places

NFT:

  • NFT is used for a variety of things, including digital content, gaming items, investments and collateral, domain names, and so on.
  • Currently, the largest NFT marketplaces are Rarible, OpenSea, and Foundation.

Cryptocurrency:

  • Cryptocurrency is used for low-cost money transfers, wealth management, ethical business practices, etc.
  • Binance, Coinbase, Kraken, and eToro are the largest cryptocurrency exchanges.

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The Bottom Line

NFTs are now a feasible choice for those who are artistically inclined and wish to gain money from their digital work. Artists and traders have been drawn to the market because of its creative, artistic component.

Crypto, on the other hand, is a little unexpected. Some cryptocurrencies were designed with the intention of being more stable than others. Stablecoins are cryptocurrencies that have lower volatility than other cryptocurrencies like Bitcoin and Ethereum. Stablecoins like Tether and USD Coin are two examples. The worth of the US dollar is determined by its value.

Therefore NFT vs. Crypto is quite a debatable topic. So, how do you choose between the two options? The drive and willingness to incur risks of the trader decide this.

Are you interested to learn about Blockchain, Bitcoin, and cryptocurrencies? Check out the Blockchain Certification Training and learn them today.

Conclusion

In this tutorial on NFT vs. Crypto, you explored and understood the comparison between NFT and other Cryptocurrencies and how they play their individual roles in the crypto market. 

So, whether you're an experienced Blockchain developer or just an aspiring enthusiast, or someone who wants to invest in them and play a long game, you can always explore and learn more about Cryptocurrencies and Blockchain by enrolling in Simplilearn's Blockchain Certification Training program that will help you with all levels of expertise to explore and learn more about cryptocurrencies, NFTs, Smart Contracts, Blockchain, and its technology.

Are there any questions you'd want to ask us? Please post your questions in the comments section of this tutorial, and one of our experts will respond as soon as possible.

About the Author

Kartik MenonKartik Menon

Kartik is an experienced content strategist and an accomplished technology marketing specialist passionate about designing engaging user experiences with integrated marketing and communication solutions.

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  • PMP, PMI, PMBOK, CAPM, PgMP, PfMP, ACP, PBA, RMP, SP, and OPM3 are registered marks of the Project Management Institute, Inc.