Fungible Vs Non-Fungible Tokens: All You Need To Know

What is an NFT?

NFT is an abbreviated form of non-fungible token. This is a unique token that contains information such as media files, audio, videos, or artwork.  NFTs are exclusive tokens that are interchangeable with other NFTs.

It is important to note that fungible tokens are also digital currencies where one unit can be substituted for another coin without making any impact on the value and design of the entity.

NFTs have introduced the concept of digital propriety in the blockchain sector. It means that an NFT holder or publisher can claim legal ownership of digital data or information present in the form of an NFT.

Cypher Mind HQ

Fungible Vs Non-Fungible Tokens

Here are some factors that are associated with NFTs and fungible tokens:


When it comes to the design and structure of fungible tokens, they can contain features such as divisibility, interchangeability, and streamlined structure. On the other hand, NFTs have defining components such as indivisibility, uniqueness, and irreplaceability.


Fungible tokens are often listed on spot trading platforms where investors can purchase them via centralized or decentralized exchanges. At the same time, fungible tokens can also partake in various functions such as mode of payment and store of value.

Meanwhile, NFTs offer unique features such as intellectual proprietorship, artwork trade, music distribution, gaming, legal records, exclusive bonuses, resale value, academic titles, and more.


Cypher Mind HQ

Fungible tokens are issued from a native blockchain network or DLT. In some cases, fungible tokens are also issued by Web 3.0 projects, DAOs, or decentralized applications. In contrast, NFTs are issued by a foreign blockchain network.

Content Storage

In terms of content stored in a fungible token, it carries around value based on the forces of market and economic tenets. On the other side, NFTs have the ability to contain data in different formats such as mp3, mp4, jpg, pdfs, png, or others.

Trading Value

Fungible tokens are more like stocks or commodities and their prices are dictated by various factors such as investment demand and practical utility of a given project. Meanwhile, NFTs operate as luxury products meaning that their value can undergo massive increment on account of the content such as artwork and collectibles.

How to make an NFT?

NFTs can be generated and minted on a blockchain network. The main benefit of an NFT is that the real minter of the product can remain anonymous but it can monetize the data it holds.

NFT issuers can use smart contract to mint an NFT that makes it immutable and ready for trading. The minting process of an NFT may include a few steps such as making an account, connecting digital wallet, and transferring minting fee etc.

Once an NFT has been minted, the data it contains is recorded on the blockchain network and ensures that it cannot be tempered or edited later. NFTs can be stored in digital wallet that has support for a given NFT unit based on its underlying infrastructure and design.

At the same time, there are also various dedicated trading platforms where investors can list and sell NFT collections. Additionally, various traditional e-commerce websites such as eBay, Shopify, and Christie’s also list and sell NFTs.

NFT publishers may also hold a digital auction on online forums that allow investors to participate digitally in real-time to make a bid. NFTs are also popular in the Web3 gaming community.

Gamers can create NFTs in the form of skins, avatars, themes, weapons, and other in-game items. In this manner, gamers can purchase or sell digital entities using digital currencies.   

Advantages of NFTs

NFTs support indie artists by removing the middlemen and directing the funds from sales directly to the original content creators.

NFTs have introduced the concept of digital propriety and reliable recording of all NFT transactions. In this manner, the original NFT publisher can continue to receive a fraction of the amount from every sale in the same manner as a royalty fee.

NFTs add a lot of utility to the blockchain sector such as exclusive access, bonus yields, resale value, and verification of participants in a digital event, etc.


Fungible tokens and NFTs are two different types of cryptocurrencies that contribute to the development and progress of the blockchain sector. Investors can generate considerable profits by diversifying their portfolios with different variants of NFTs and fungible tokens.  

Author: Isacco Genovesi

Isacco writes news articles, reviews and guides about cryptocurrencies including technical analysis, blockchain events, coin prices marketcap and detailed reviews on crypto exchanges and trading platforms.

Leave a Reply

Your email address will not be published. Required fields are marked *