common-close-0
BYDFi
Trade wherever you are!

What is the meaning of fungible tokens in the world of cryptocurrency?

avatarMaksym MalanchukDec 26, 2021 · 3 years ago1 answers

Can you explain the concept of fungible tokens in the context of cryptocurrency? What makes a token fungible and how does it differ from non-fungible tokens?

What is the meaning of fungible tokens in the world of cryptocurrency?

1 answers

  • avatarDec 26, 2021 · 3 years ago
    Fungible tokens are the bread and butter of the cryptocurrency world. They are tokens that can be easily exchanged for one another, just like traditional currencies. Each unit of a fungible token holds the same value as any other unit of the same token. This makes fungible tokens highly liquid and easy to use for transactions. Non-fungible tokens, on the other hand, are more like rare collectibles. Each non-fungible token is unique and cannot be exchanged on a one-to-one basis. They are often used to represent ownership of digital assets that have distinct characteristics and value, such as virtual artwork or virtual real estate.