HFM information and reviews
HFM
96%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
XM information and reviews
XM
86%
Exness information and reviews
Exness
86%

NFTs vs. cryptocurrency vs. digital currency: What’s the difference?


As technology advances, so too do digital assets. Lots of fascinating ideas are materializing, changing the whole concept of money to the core. But to roam these corners of the unknown, we first need to understand the basics. So, we’ve got three different types of tradable items to consider and understand why exactly they’re not the same, and what the main idea of their use is. Let’s jump in.

Digital currency

Digital currency has many names. You can call it digital money, virtual currency, electronic currency or cybercash — whatever you prefer. Essentially, it is an electronic form of real-world money that allows you to conduct transactions within ecosystems of varying size and sometimes even to any part of the world, even though digital currency is invisible and intangible compared to crisp banknotes. Then you may be left with the question: Is there a solid difference between cryptocurrency and digital currency?

In short: yes and no. Digital currency is an umbrella term under which cryptocurrencies fall, and mostly facilitates the movement of fiat currency — money issued and backed by a government. You see, the main point here is that all cryptocurrencies are digital currencies, but not all digital currencies are cryptocurrencies, as cryptocurrencies can only be built on a blockchain. Central bank digital currencies, for example, are government-approved and, along with their alter-ego fiat currencies, form a centralized ecosystem regulated by a central point of authority, such as a central bank. Сryptocurrencies like   Bitcoin or   Litecoin are examples of decentralized digital currencies — they’ve got nothing to do with banks or governments, and they are not owned or controlled by a central source of authority.

So, when you think about “cryptocurrency vs. digital currency,” there should actually be no “vs.” since they don’t contradict each other, but are two sides of the same coin

Cryptocurrency

Crypto has added a whole new dimension to the concept of globally accepted money. It offers financial opportunities beyond any existing limits — including geographical and political limits — which has sighed a breath of fresh air to the aging financial systems and provided a glimmer of hope in our turbulent world. The decentralized nature of many cryptocurrencies and blockchains makes them absolutely independent of any centralized regulation and authority. The only price factor here is public demand triggered by world events, whether they may be new legislative measures to regulate cryptocurrencies, the need for a hedge against inflation, or increased mass adoption. Remember we told you that reading the news is very useful in trading of any kind? It’s still true!

Demand is hugely based on public opinion. Like in Billy Joel’s song “It’s a matter of trust,” if lots of users stop trusting a particular cryptocurrency, then it’s probably doomed (take a look at the most impressive collapse of the crypto epoch — the Terra Luna fall). Thanks to their underlying blockchain technology, all crypto transaction data is recorded on the ledger with no chance of being rewritten. However, “recorded” doesn’t necessarily mean “traceable” — the crypto concept is built upon an ideal of anonymity.

The Big Three of crypto,   Bitcoin,   Ethereum and   Litecoin, can all be traded on Olymp Trade. If you start trading with us, you’ll see how easy it is to dip your feet into the decentralized waters. With an investment entry as low as $1, a library of crypto assets to trade and diverse learning material, you’ll wonder what you ever did without us!

Non-fungible tokens

Non-fungible tokens, or NFTs, are rapidly evolving digital assets that can represent real, authentic items and can be in the form of music, fashion, art, sports and more. They are particularly useful for verifying ownership, since the cryptographic hash of each is unique. As such, they have found a solid place in the arts sector for protecting artwork from copyright infringement and providing a transparent and clear-cut way to purchase and sell art. Once produced, or “minted,” NFTs are recorded on a digital ledger and can be traded online. They are worth whatever someone is willing to pay for them. Anyone can mint their own NFTs — the trick is to make them desirable, which is not easy. Just like in the regular market.

If we’re talking about NFTs vs. cryptocurrency, a good way to think of it is that an NFT is more an asset that’s worth a subjective amount of money (such as how much someone is willing to pay for it) rather than being money itself, while cryptocurrency is more like fiat currency in that its inherent value means it can be used for purchases and exchanges of value. Moreover, each NFT is unique. Like custom-made dolls or vintage comic books, they can be categorized as collectibles that have potential to go up in value over time.

Thankfully, not all NFTs are just a sight for sore eyes but are actually quite practical. Check out these NFT sneakers — virtual running shoes that you can use to earn valuable tokens and improve your health as a bonus. All you need is to buy them and go for a run! Nice idea, right? This year, Olymp Trade hosted the Trading Premier League tournament and created an NFT collection for the occasion, opening a whole new dimension of digital-asset experiences for Olymp Trade’s users. Go check it out!

Similarities between digital currency, crypto and NFT

Differences between cryptocurrency, NFTs and digital currency

So, NFT vs. cryptocurrency vs. digital currency: Which is better?

As you can see, all these forms of assets are useful and promising. Each of them is an important milestone on the path of transition to the digital age: NFTs are a creative approach to digitizing things of value, Bitcoin is an exciting trading asset worth a million pizzas, and digital currency in general is the money of the new generation — some members of which have almost forgotten what paper bills look like.

We want to remind you that NFTs cannot be traded like digital currencies. So, if your main goal is to master trading, then you should probably look into crypto or regular currencies that can be successfully traded. But rest assured that whatever you choose, we will guide you through tricky trading techniques, explain how to make volatility work for you and even pick out the best technical indicators so that you don’t get lost in the woods. Learn, trade and grow on Olymp Trade, the platform designed to help you succeed!

#source


RELATED

Margin Call: What It Is & How to Avoid It

You have probably heard about an unpleasant surprise to traders: a margin call. And we hope you do not know how bad it might be for your money. A margin call is a broker’s demand...

ECN accounts: what are the advantages?

To start trading on Forex, a trader needs to open a trading account, which is now not a problem at all, as numerous forex brokers offer various accounts...

Short Selling vs. Puts: An In-depth Analysis of Market-Contrarian Strategies

Navigating the intricate landscape of the stock market can be overwhelming for newcomers. Amidst a sea of financial jargon, you may have come across terms like "short selling" and "puts" without a clear understanding...

Why Do Markets Fall?

No financial market, including Forex market, can grow without a recoil for a long time. Inevitably on the chart will be formed "waves" against the movement...

Why Live and Demo Forex Trading Show Differences

In practice - often because of the lack of a real money commitment - results achieved from trading in a demo account...

Stock trading: Advantages of trading shares

Start trading global shares through circus platform, which is a modern and well-developed platform that can assist you in navigating the whole trading process...

What is a Crypto Saving Account? How to Earn Interest on Crypto?

One of the best ways to earn when it comes to financial markets is through this steady return of interest. While most bond and stock traders understand the ability to benefit from interest accounts...

NEO Price Prediction: Invest or Skip?

NEO isn't the most popular cryptocurrency, especially when compared to Bitcoin, Ethereum, Tether and Ripple. Currently, it's ranked only 26th by CoinMarketCap in terms of market capitalisation...

Why trade futures?

In this article, we’ll be taking a deep dive into the future. We’ll touch on the types of assets that can be traded using futures, and the advantages and general why trade futures from the global traders...

How to stake Ethereum

Ethereum is switching into a proof-of-stake consensus to allow the network to achieve scalability. Ethereum staking is when people lock up Ether (ETH) for a given time...

The Guide to cryptocurrencies

Several years ago, say eight or nine, it would have been easy to write a short cryptocurrency list, because following Bitcoin's release in 2009, digital currencies...

What is the Metaverse? The future of the internet

When Mark Zuckerberg announced that he’s turning Facebook into a metaverse company and changed the company's name to Meta, the metaverse quickly became...

How "Stable" Really Are Stablecoins?

Over the past month, some major stablecoins completely lost their peg with the U.S. Dollar, raising concerns amongst investors about their safety. Stablecoins are designed...

Deep-Dive With Us: What Is Tron?

What comes to mind when you think of the word "Tron?" For some, it's a cheesy 80's movie. For others, it's a promising blockchain platform. In today's article, we'll take a look...

PAMM Account: Recovery Factor

One of the most important indicators of the reliability of the trading system used in the PAMM-account is the recovery factor. It is this factor that investors...

Deepen your Understanding of Crypto Trading

Cryptocurrency trading, or more briefly crypto trading, is simply the exchange of cryptocurrencies. Just like in Forex, you can buy and sell one cryptocurrency for a fiat currency...

Blockchain Beyond Cryptocurrencies

Blockchain has become one of the most influential technologies after being one of the key elements supporting digital currencies. It is the technology...

Bonds in 2023: Deep Dive into 7 Essential Bond Types for Investors

In the world of investment, bonds stand as one of the cornerstones, allowing entities, whether corporate or governmental, to secure funds over an agreed duration...

Secrets of trading in the Asian session

Practically every trader knows that the particular dynamics of the pricing of financial instruments depends not only on the selected asset, but also...

Trading GBP vs Euro Characteristics

After almost two decades of forex history, the GBP vs Euro pair is today one of the important major currency pairs in online trading. Both the Euro...

FP Markets information and reviews
FP Markets
81%
IronFX information and reviews
IronFX
77%
T4Trade information and reviews
T4Trade
76%
Just2Trade information and reviews
Just2Trade
76%
FXNovus information and reviews
FXNovus
75%
Riverquode information and reviews
Riverquode
75%

© 2006-2025 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.