Are NFTs a cryptocurrency?

No, NFTs are not a type of cryptocurrency. NFTs are a type of digital asset that can be bought with cryptocurrency, but they have many differences to popular cryptocurrencies such as Bitcoin or Ethereum.

Cryptocurrencies are fungible, interchangeable, and are generally a liquid currency. Cryptocurrency is the digital form of a real-world currency, such as USD or GBP.

NFTs are non-fungible, unique, and are generally illiquid. NFTs are the digital form of a physical item, such as a car or a house.

You’ll often see Ethereum and NFTs mentioned together. Ethereum is the most popular blockchain for NFTs, whilst NFTs are the individual digital tokens. $ETH, the currency of Ethereum, is the most common currency used to trade NFTs.