Previously saddled with the less than catchy brand name RaiBlocks, the now aptly named Nano, a Delegated Proof of Stake coin has plenty to recommend it in 2020. With a team behind it, more usage and a growing community – the ‘Chinese bitcoin’ has a lot going for it. Let’s dive straight in.
Compare where to buy Nano Coin, and open an account
Read on to find out about Nano and how it works or jump ahead to our step-by-step buyers guide if you’re ready to buy Nano.
What is Nano?
Since its 2015 launch as RaiBlocks, the currency now known as Nano has targeted a problem associated with so many blockchain-based cryptocurrencies – scalability. It does this by utilising a set of non-shared asynchronous ledgers, called a block-lattice, instead of a shared global ledger.
Using a block-lattice helps to address issues associated with the original Bitcoin blockchain model, reducing the potential for bottlenecks and speeding up transaction times. In theory, this makes Nano far better equipped than Bitcoin to take on established global payment systems.
How does Nano work?
Nano’s architecture grants every account its own blockchain (referred to as account-chains), collectively this network is known as a block-lattice. Each complete transaction requires two blocks, one to send and another to receive.
Unlike conventional blockchains, there’s no global ledger, meaning accounts are able to update the status of their independent ledgers asynchronously, thus speeding up the whole process.
Nano’s Delegated Proof of Stake (DPoS) consensus algorithm adds further efficiency by removing the need for mining. Instead ‘validators’ stake digital NANO (Nano’s native coin) to participate in the validation of transactions. DPoS introduces ‘delegates’, who confrm transactions when there’s an issue, to the Proof of Stake model.
How to buy Nano online – step-by-step guide
Step 1. Get a suitable wallet
There are loads of NANO-compatible wallets to choose from. You should find a wallet before you go and buy Nano tokens. We’ve picked two of our favourites to help narrow down your search:
- Ledger Nano X: One of the safest options for storing your NANO coins is the Nano X hardware wallet from Ledger. It’s not the cheapest wallet out there, but if you’re serious about security, it’s one of the best. The Nano X may share its name with the crypto in question but it’s actually a non-affiliated multi-currency wallet that will store most crypto coins and tokens.
- NanoWallet: This is the official Nano wallet. A light open-source wallet that gives you sole access to your encryption keys.
Step 2. Find a Nano exchange
The next step to securing NANO funds is to find an exchange to buy Nano. There are plenty to choose from, so to narrow your search and save you some time, we’ve picked out a couple of our favourite places to buy NANO coins:
- Binance: Binance is the world’s biggest crypto exchange. But, while it offers a huge crypto marketplace with competitive fees, you won’t be able to buy Nano using Fiat currency, so you’ll have to acquire Bitcoin or Ethereum in order to exchange it for NANO.
- KuCoin: KuCoin has five-million worldwide users and is one of the more advanced trading platforms out there, but don’t let that put you off if you’re new to the game as it’s simple to use, safe and can be accessed via a desktop computer or via Android and iOS phones.
Step 3. Withdraw your Nano
It’s a good idea to withdraw your NANO funds from the exchange as soon as you’ve acquired them – it’s much safer to keep cryptocurrencies in a digital wallet than on an exchange.
How to trade Nano – step-by-step guide
If you’re only interested in trading rather than buying NANO, then there’s no need to set up a wallet as you’ll simply be predicting whether the price of NANO will go up or down.
Step 1. Find a broker
In our experience you may struggle to find a trading platform that offers NANO, but that situation may change. Plus500 and eToro are two of the most popular crypto trading platforms, so make sure you check them out.
Step 2. Deposit money
Once you’ve chosen a broker, you’ll need to put some cash down as a deposit. The process is fairly straightforward and minimum deposit requirements are usually pretty low, so you can start with a relatively small bankroll.
Step 3. Decide how you’d like to trade
There are two main ways to trade cryptocurrencies: spread betting or CFDs (contracts for difference). While there are some differences, both methods require you to take a position on whether you think the price of your chosen cryptocurrency will rise or fall over a set period of time. If you’re just starting out, it might be worth doing some research on spreads and CFDs using our cryptocurrency courses before you jump in.
Step 4. Start trading
Once you’ve put down a deposit, you’ll no doubt be raring to go, but we recommend you set up a demo account with your crypto broker before you start trading for real. It’s easy to win and lose money very quickly when trading, so it makes sense to get a feel for the platform you’ve chosen as well as the ebb and flow of the cryptocurrency market.
Essentially, all you need to do is take a position on whether the price of your cryptocurrency will increase or decrease. If you think it will increase take a long position (buy) and if you think it will decrease, take a short position (sell).
You may opt to take advantage of leveraged betting, which is a feature of most trading platforms. Leverage enables you to put down a fraction of your trade’s total value as a type of deposit called a ‘margin’. However, this is a high-risk strategy, so it’s probably not for beginners. Experienced traders understand this and use stop loss orders to mitigate risk.
- Nano is refreshingly straightforward in its objectives. Simple aim to be a fast, accessible crypto payment system is easy to grasp
- Removes scalability issues
- No transaction fees
- Scalability and speed may come at the expense of security
- Nano is not alone in offering a scalable alternative to blockchain