Although cryptocurrency trading has been the hot trend for quite some time, NFTs, or Non-fungible Tokens, have now become the latest talk of the town. And with Christie’s auction house selling original NFT artwork, consisting of a collage by the digital artist Beeple, for a massive $69.3 million, NFTs have suddenly garnered global attention.
So, what exactly are NFTs? And how are they different from cryptocurrencies?
- What are NFTs?
Graphical illustration of NFT concept
Non-fungible Tokens, or NFTs, are digital content that is linked to the blockchain. An object that is “non-fungible” is unique and can’t be replaced with anything else.
This simply means that NFTs hold a unique value that can’t be replaced by something else of the same value. Usually, NFTs are used to buy and sell digital artwork in various forms like tweets, GIFs, virtual trading cards, video game skins, virtual real estate, and more.
- NFTs and Cryptocurrencies
NFTs and cryptocurrencies are similar in the sense that both have digital records stored on a blockchain. And similarly, both of these are decentralized and unregulated by governments and central banks.
Likewise, both NFTs and cryptocurrencies are highly unstable. Moreover, both of them are transparent, meaning that any user can easily view another user’s transactions because all transactions are stored in a public blockchain network.
The critical difference between NFTs and cryptocurrencies is that an NFTs’ value purely depends on the underlying asset value. In contrast, the value of a crypto coin is dependent on market movements.
Therefore, you cannot trade NFTs for other NFTs since their value is unique. In contrast, crypto can be exchanged for other crypto coins.
NFT blockchain network
- Which option is better for newbies?
Now that you know both of these, along with their key similarities and differences, you might be wondering which approach is suitable for beginner traders. As stated earlier, both NFTs and cryptocurrencies are highly volatile, which means that both markets are equally risky. And so, it entirely depends on the trader’s interest, preference, and risk appetite.
There are various platforms for you to invest in NFTs and crypto, and one such broker is Coinrise. This is a crypto trading platform that has been making its mark in the market for over 15 years. The established broker offers a wide variety of trading and investment options. With Coinrise, you can trade on tens of different cryptocurrencies. Furthermore, you receive customized news and notifications to stay on top of the latest market developments.
The broker also offers six different account types: Mini, Silver, Gold, Platinum, Diamond, and VIP. Once you sign up with the broker, you can trade via their WebTrader, MetaTrader 4, or MetaTrader 5 platforms. Coinrise support staff operates 24 hours a day, six days a week and is reachable via live chat, WhatsApp, email, and phone.
The crypto world is overflowing with innovation; NFTs are certainly a unique type of investment. Investing in crypto depends on the trader or investor’s financial goals, and there are plenty of options to choose from. Coinrise offers professional services, suitable to both new and experienced traders. They also provide more than the usual exchange platform, and their investment options are a unique innovation on their part.