What is NEM?
New Economy Movements (NEM) is a relatively new decentralised peer-to-peer cryptocurrency that was launched in 2015. It allows you to perform instant money transfers globally at low costs.
Unlike the majority of other cryptocurrencies NEM does not use source code based on other cryptocurrencies. Where Litecoin has derived from Bitcoin, NEM has developed its own code, introducing brand new features and technologies into the blockchain community.
Walkthrough Video that Explains How to Buy NEM Online
What is so special about NEM?
What makes NEM so unique is it operates using a Proof of Importance (POI) algorithm rather than proof of work (POW) that Bitcoin uses. POI is used to time stamp transactions and helps to determine the user who is going to calculate the next block. It guarantees fair distribution of chances to create blocks and rewards those who make the biggest contribution to the currency development and distribution.
Creating blocks is called harvesting. The fees collected from the transactions in the block are transferred and rewarded to the harvester. To be a harvester you must have over 10,000 NEM coins (XEM), this helps protect from hackers.
In terms of transaction time it is one of the fastest cryptocurrencies on the market, often taking between 15 - 60 seconds. Which is comparably 10 times quicker than Bitcoin, which means NEM can run and validate more transactions in less time.
With the current script NEM can validate 3,000 transactions a second but as I write this they are developing a new version that will be able to process 4,000 a second. This shows the scalability potential of this currency.
- It has a message system, meaning you communicate with the person on the other side of the transaction.
- The nanowallet gives a private key and backup of the wallet.
- NEM is also one of the cheapest cryptocurrencies offering a 0.01% transaction fee, considerably cheaper than its competitors.
- ZERO inflation. All 8,999,999,999 XEM were issued at the coin launch.
Should I buy or trade NEM?
Given NEMs relatively short life it has managed to climb into the top 10 cryptocurrencies for market capitalisations, which is no mean feat. It currently does not have the largest trade volume but with its POI algorithm and willingness to reward people for higher transaction volume, it points to this increasing in time.
With cryptocurrencies that continually create new coins, based on supply and demand, their value should reduce as the supply is increasing. NEM does not have this problem, all 8,999,999,999 were issued at the coin launch and so NEM is not affected by inflation.
NEM has traceable transactions unlike other cryptocurrencies that offer anonymity. Should this technology ever be adopted by governments, central banks or other leading institutions, the chances of them taking on a technology that cannot be traced I would suggest is slim to be polite, but near enough zero. Again, pointing to a positive if you are looking to buy NEM.
When it comes to trading NEM, there is certainly profit to be made by the price fluctuations. As with all cryptocurrencies, price movements are very volatile due to the nature of such a new phenomenon. Unlike traditional currencies that have been around for hundreds of years, the recent introduction of cryptocurrencies into the world of trading is very exciting.
Brokers are now relaxing with regards to cryptocurrencies however because of the huge price swings they experience, costs can be increased, which is basically the broker protecting themselves.
There are many cryptocurrency exchanges nowadays, where it is very easy to trade NEM and other cryptocurrencies with the touch of a button.
How to buy NEM online - step by step guide:
Despite NEMs market share being in the top 10, it is still not available on all major exchanges. It is very difficult to buy it outright with your fiat currency (GBP, EUR, USD etc), but not impossible. I recommend however that you go through more familiar institutions who have a good reputation within the industry.
This will create an extra step in the process of buying NEM. The extra step is involves buying another more popular cryptocurrency that is easy to buy directly with your fiat currency. Once you have a cryptocurrency, it is very easy to exchange it for NEM, there are plenty of excellent exchanges to do so.
Before you can buy NEM, you must first get a NEM wallet. This is where your NEM will be stored, much the same as a cash wallet. This acts in the same way as your email, you will be given a wallet address where people can send NEM to you and a password that only you will know.
I will now take you through how to buy NEM.
- Firstly, you must buy another cryptocurrency in order to exchange it for NEM. I will use Bitcoin because it is the largest cryptocurrency. The easiest way to buy Bitcoin is through Coinbase, which is one of the largest and most trusted exchanges. You must set up and account, filling in your details.
- Once you set up an account, you must add a payment method. You can either directly link your bank account to the Coinbase account or use a credit / debit card. Click 'add payment' and select the method you wish to use. You will then have to wait for this to be verified by Coinbase, this may take a little time because of the huge upswing in popularity for Bitcoin and other cryptocurrencies.
- Once verification is complete, you will be able to fund your account with USD, EUR or GBP. Once you have funded your account, you can then buy as much Bitcoin as you choose.
- Once you own some Bitcoin, you must then find an exchange to transfer your Bitcoin into NEM. I recommend Changelly. Go to the site and set up an account using your email address.
- Exchange your Bitcoin (BTC) into NEM (XEM). Choose BTC for what you have and choose XEM for what you get. Enter the amount of BTC you bought on Coinbase and changelly will automatically calculate the exchange rate and fee. Hit next.
- Enter your NEM wallet address into the next section. This will have been provided to you when you opened your NEM wallet.
- Confirm you details. Select confirm and make payment.
- Last step, go back to Coinbase. Make a payment for the same amount to the address that you are provided with.
How to buy NEM with a credit card
There are no straight forward methods to buying NEM using a credit card. The methods that are available are untested and are done by very new agents that have a high probability of being a scam. Be careful if you are buying NEM directly using a credit card.
The safest method to buying NEM with a credit card, is to go through the process mentioned above and buy Bitcoin using a credit card and exchange for NEM.
How to buy NEM with Paypal
PayPal once embraced digital currencies and made it possible to buy things like Bitcoin through its payment platform, but recently it has withdrawn somewhat and only offers users of cryptocurrency the option of depositing money from the sale of Bitcoin into their PayPal accounts. This is again done through Coinbase, and because of that, only works with Bitcoin, Ethereum and Litecoin.
To use PayPal with NEM, there is not much opportunity, but it once again has to be linked back to Bitcoin, and is only useful when depositing money. A NEM holder could sell their NEM for Bitcoin, send it to Coinbase, and then withdraw that money into PayPal for fiat currency such as Dollars.
How to Trade NEM
There are various exchanges whereby you can actively trade NEM, Poloniex is one of the most trusted sites to trade XEM with other cryptocurrencies. Given the huge price swings NEM and other cryptocurrencies are experiencing there is no surprise at the increase of people wanting to trade these markets.
Brokers are now getting in on the act and allowing you to trade cryptocurrencies using CFDs, this opens up a huge market for speculators who want to profit from the price movement of markets like Bitcoin, Ethereum and NEM.
A popular broker that offers you access to trading cryptocurrencies is AVA Trade. Creating an account with AVA Trade is just as quick and easy as setting up an account with Coinbase.
- Go to AVATrade.com and sign up by providing basic details. Alternatively, you can sign up using Facebook or Google+.
- You will be asked to provide information on various topics, so AVA Trade can gage your experience and in turn the level of support they can offer you.
- When asked to select a trading platform, I would advise selecting 'Floating Spread Account' with MetaTrader4 (MT4). MT4 is a hugely popular trading platform thousands of people use across the world. This will give you access to all the cryptocurrencies they offer.
- You then must fund your account. Decide the method you with to do so with and similar to Coinbase you can make a direct deposit into your newly created account. Click web-trading or download MT4 and you can begin trading.
The future of NEM Trading
NEM, like other cryptocurrencies, has seen a huge rally in price in 2017. Bitcoin appears to be leading the way in this cryptocurrency rally, dragging lots of cryptocurrencies into the forefront of people attention. With popularity rising, and over 800 coins available, choosing which one will last the distance is the next problem.
With more and more progressive technology being created around blockchains, deciphering the next Bitcoin from the duds is where the profit is.
So, where does NEM fall?
The fact that NEM has developed its own unique source code has the potential to put NEM in both the 'Bitcoin' pile and 'duds' pile. Depending on how the code works and whether it is scalable. Because ultimately that is what you want, a cryptocurrency that can grow and grow quickly.
I think the future looks bright for NEM, the POI algorithm it uses is both clever and useful for security. The fact as well that they are currently in the process of developing an upgraded version to be able to handle a higher quantity of transactions per second suggest that they are excited by this and also that it is scalable.
It is one of the quickest and cheapest cryptocurrencies out there at the moment, which is certainly an attraction. It has a modern message system that lots of cryptocurrencies do not and it also does not get affected by inflation, which is a positive.
I do not see any major issues with NEM as a cryptocurrency, however for it to be sent out to the masses I would suggest it may be to complicated for everyone to understand how it works. When people don't understand they often don't like, this could stop people from warming to NEM.
The NEM website also needs refreshing, it should make it clear what NEM does and explain it in a clearer way.
The two points mentioned can certainly be worked on. If NEM can be easily explained then I think it has an excellent chance of growing.
I think NEM is an exciting prospect in the world of cryptocurrencies, its risks are similar to that of all the cryptocurrencies in that this bubble could burst. But if we see this continue, I think NEM could be a sleeping giant.
Enjoyed this NEM guide? Then see our other cryptocurrency guides:
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- How to buy and trade Dash
- How to buy and trade Dogecoin
- How to buy and trade Ethereum
- How to buy and trade Golem
- How to buy and trade Litecoin
- How to buy and trade Monero
- How to buy and trade NEM
- How to buy and trade NEO
- How to buy and trade Peercoin
- How to buy and trade Potcoin
- How to buy and trade Ripple
- How to buy and trade Stratis
- How to buy and trade Tezos
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