Cryptocurrencies are digital assets designed to function as a medium of exchange for various goods and services. They operate on decentralized blockchain technology that enables users to transfer value to one another without the need for intermediaries like banks or payment processors. The value of cryptocurrencies is determined by market demand and supply, just like traditional currencies.
On the other hand, Non-Fungible Tokens (NFTs) are unique digital assets that represent ownership of a specific item like artwork, music, or virtual real estate. Unlike cryptocurrencies, NFTs are not interchangeable, meaning that each one is unique, and their value is determined by how much someone is willing to pay for them based on their uniqueness and rarity.
In summary, cryptocurrencies are designed to be used as a medium of exchange, while NFTs are unique digital assets that represent ownership of specific items.
