NFTs, tokens, and coins are three types of cryptocurrencies that have been in the news a lot recently. While they have similarities, there are also many differences between them. All three types of currencies can be traded on exchanges or apps, but each one has its own strengths and weaknesses.
NFTs, formally known as Non-Fungible Tokens, are distinct from other tokens because they cannot be broken down into smaller digital assets.
NFTs, tokens, and coins are all important in the cryptocurrency space, but they do have different characteristics. Here is a quick breakdown of how they differ:
NFTs are most associated with decentralized games and collectibles like CryptoKitties or Pepecash. These NFTs represent digital assets that players can own within the game world.
NFTs, tokens, and coins are all a type of cryptocurrency. NFTs can be used to represent physical property such as a real estate listing or company shares. Tokens are more complicated than NFTs because they usually have many different utilities on the blockchain, such as using ETH to pay for transactions on Ethereum’s main network. Coins are the simplest type of token because they only have one function on their own blockchain.
Questions every week about Web3, NFTs, tokens, etc.
What is “Web3”?
What are NFTs?
What’s the difference between NFTs, tokens, and coins?
What tools do I need to actually buy and sell things?
What is a wallet?
Blockchains: Bitcoin vs. Ethereum vs. Solana…whew.
How can I do all of this safely?
Topics to Learn
What is Web3
NFTs, Tokens, & Coins
Technical steps to participate
Trends in how creators are using Web3
Security and pitfalls to avoid