Fungible refers to the property of an asset that allows it to be easily exchanged for another asset of the same type and value. In the case of cryptocurrency, this means that individual coins or tokens are interchangeable with one another.For example, one Bitcoin is always equal to another Bitcoin. This interchangeable nature makes it convenient for transactions, as users can buy, sell, or trade without worrying about differences in value.Fungibility is crucial for establishing a standard of value and facilitating trade. It allows for efficiency in marketplaces, where various amounts of the same currency can easily be exchanged. In contrast, non-fungible assets, like collectibles or real estate, have unique values and characteristics that differentiate them. This is why cryptocurrencies like Bitcoin and Ethereum are considered fungible, while tokens representing unique assets, such as digital art or virtual land, are non-fungible. Overall, fungibility in cryptocurrencies supports liquidity and smooth financial transactions.