What is an NFT (Non-Fungible Token)?
The short answer
A token representing unique ownership of a specific digital (or sometimes physical) item, unlike a coin where every unit is identical.
“Non-fungible” means not interchangeable — one Bitcoin is identical to any other, but each NFT is distinct. Their value is highly speculative and driven by demand for that specific item.
Related terms
Full glossaryHot Wallet
A wallet connected to the internet, like a phone app — convenient, but more exposed than a cold…
Proof of Work
A consensus method (used by Bitcoin) where network security comes from competing computing power.
DCA (Dollar-Cost Averaging)
Buying a fixed amount on a regular schedule, regardless of price, instead of trying to time the market.
KYC (Know Your Customer)
The identity verification process required by regulated exchanges before you can trade.
Circulating Supply
The number of coins currently in public circulation and available to trade.
Airdrop
Free distribution of a new token to existing holders of another crypto or to early users of a…
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