The acronym NFT stands for “non-fungible token.” Similar to cryptocurrencies like Bitcoin, NFTs are digital assets that can be purchased, sold, and traded at will, just as you could anything else you owned. As you might surmise from the word “token,” NFTs are indeed tokenized. This means that each one is unique and unlike any other, including other versions of the asset the NFT is based on. When something is tokenized, it’s attached to a digital certificate of ownership that proves as much. However, to truly grasp NFTs, you also need to understand what the term “fungible” means. If something is fungible, it can easily be exchanged for something similar or equal to it in value. (Bitcoin is an excellent example of a fungible digital asset, as each Bitcoin is equal in value to every other.) A non-fungible asset, on the other hand, is one of a kind and has no equivalent.