NEM’s XEM is a peer-to-peer cryptocurrency that’s garnered some interest as of late due to a six-month upwards trend. This guide shows you how to buy and trade XEM in 2020.
Where to buy NEM
Read on to find out more about XEM and how it works or skip ahead to our step-by-step buyers guide if you’re up to speed and ready to invest.
What is NEM?
Launched in 2015 and built from the ground up rather than forked from another coin, NEM cryptocurrency, known as XEM, is a P2P cryptocurrency. NEM itself is a customisable blockchain platform that can be used by developers to create distributed apps (DApps).
In the past, XEM wasn’t accepted by many traders and even today it’s not typically used like other cryptocurrencies, but that doesn’t mean it’s not worth trading. The value of XEM has increased since its inception and it has a high cap compared to a lot of other coins.
How does NEM work?
The NEM platform features an encrypted messaging system and multisignature user accounts. The applications for the platform include enabling the easy transfer of digital assets such as cash, documents and files. One of the main USPs of NEM is that it can interface between private and public blockchains.
The importance of NEM users is based on the number of coins they have in their wallet as well as the volume of transactions they make.
How to buy NEM (XEM) online – step-by-step guide
Step 1. Get a suitable wallet
There aren’t many wallets that support XEM at the moment, but it’s still worth checking a few out before you commit. Here are a few of our favourites:
- NEM Desktop wallet: The original is still the best in our opinion. Compatible with macOS, Windows and Linux, the only downside to the NEM proprietary wallet is that there is currently no mobile version.
- TREZOR Wallet: Hardware wallets such as the TREAZOR wallet offer maximum security, but at a price that may put beginners and casual traders off.
- Coinomi Wallet: If you want an XEM compatible wallet that will work on your phone, look no further than the Coinomi Wallet. This multi-coin wallet supports iOS, Andriod phones and there’s also a Mac/Windows/Linux desktop client.
Step 2. Find an XEM exchange
You won’t struggle to find an XEM exchange these days – there are more than ever – so your main concern is finding the best one. We’ve had a look around and while we encourage you to do your own research, we’ve listed the exchanges we prefer for buying XEM:
- Binance: You won’t go too far wrong heading to Binance for your cryptocurrency needs. It’s one of the most popular places to source anything from BTC to XEM, but as Binance is a crypto-to-crypto exchange, they don’t let you buy cryptocurrencies with fiat money, so make sure you have some BTC before you start.
- HitBTC: If you’re looking for a simple, easy to use platform then head on over to HitBTC. We’ve found this exchange to be one of the best alternatives to Binance for buying XEM.
Step 3. Withdraw your XEM
Once you’ve bought your XEM, you might be tempted to keep it in the exchange. However, due to the higher risk of storing funds on an exchange, we recommend you withdraw your XEM and keep it in a software or hardware wallet
How to trade XEM – step-by-step guide
If you’re only thinking about trading rather than outright owning XEM, you don’t need to bother with a wallet as you’ll only be speculating on the rise and fall of its value within a set period of time.
Step 1. Find a broker
The reason traders are excited about trading cryptocurrencies their tendency towards volatility. One minute they’re hitting all-time highs, the next, they’ve come crashing down to an all-time low, or so it can seem. There are lots of brokers out there to get you started, but it’s a good idea to check some out before you sign up as they can differ in terms of what they offer. Our advice is to go for one of the more reputable and established brokers like eToro or Plus500.
Step 2. Deposit money
Whether your broker accepts fiat money or crypto only, you’ll need to pony up a deposit before you can start trading. Most brokers don’t have a huge minimum deposit requirement.
Step 3. Decide how you’d like to trade
The two options for trading cryptocurrencies are Spread Betting and CFDs (Contract For Difference). These are not wildly different as whichever you choose, you’ll essentially be trying to predict whether the value of your chosen cryptocurrency will increase or decrease. However, if you’re not sure what differentiates Spreads and CFDs, it’s worth doing some further research.
Step 4. Start trading
Before you jump into the world of Spreads and CFDs, it’s worth setting up a demo account with your broker. Doing this before you open a live account will give you a good idea of how everything works, without any risk to your funds. Traders love a volatile coin, but be warned, money can be won and lost very quickly when trading on cryptocurrencies.
The idea behind both Spreads and CFDs is that traders take a position on whether they think the price of a given cryptocurrency will rise or fall. If they think it will rise, they take a long (buy) position and if they think it will fall, they take a short (sell) position.