Non-Fungible Token

NFT stands for Non-Fungible Token. These are digital tokens that are, as the name suggests, non-fungible. In short, they can be exchanged or traded in digital markets and they have a real monetary value. They are not physical goods but digital assets you can use to buy or sell on just about anything from websites like eBay to games like CryptoKitties.

In layman's language: a NFT is a token that is based on the Ethereum blockchain and has an inherent value within its ecosystem... and it is not interchangeable with any other token. In fact, there are two types of digital tokens: fungible and non-fungible. However, most people refer to all digital tokens as being cryptocurrency.

Cryptocurrency

Cryptocurrency is a digital representation of something tradable such as paper or gold. Whether or not a token is fungible or non-fungible, these two classifications exist in the world of digital assets just as they do in the real world. A "fungible" asset can be exchanged for another identical asset without any loss to either the seller or the buyer.

You can trade your old, beat-up couch for a new one without any loss in value on either side. That's what we mean by fungible. When it comes to digital assets, you can buy most cryptocurrencies with other cryptocurrencies and that is because the value of those currencies are not determined by an asset such as gold or some other tradable commodity... even if you don't know that cryptocurrency is a subcategory of blockchain technology, it's still an asset and therefore "fungible." A great example of a fungible token is bitcoin. It can be exchanged for ETH, for USDT, or for any other crypto (or fiat) currency.