How to Buy NXT - Where to Purchase NXT?
Nxt is a blockchain-based project that offers an ecosystem of decentralised features. In order to use these features, you need to have the NXT currency. Unlike many other altcoins that modified the Bitcoin source code, Nxt creators wrote their own code using Java.
Just like any other blockchain project, Nxt also has an eponymous native token (NXT). At the time of writing this guide, NXT is trading around $0.04841 per token with a market capitalisation in excess of $48.3 million.
Since NXT tokens have outperformed many other coins in terms of price in the last couple of months, we have prepared this comprehensive guide for you. Here we will provide all the details of how you can invest in and trade NXT.
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Why Trade rather than Buy Nxt for Cheap and Fast Returns?
You Don’t Need a Crypto Wallet:
When you are trading NXT coins, you don’t actually need to buy the cryptocurrency. You can trade it by simply speculating on its price.
Pay Using Your Preferred Payment Mode:
Crypto trading is done through broker websites which are always regulated and offer support for a wide variety of payment modes including debit and credit card.
Easy and Quick Trades:
With trading NXT, you don't need to go through a long process and you can begin trading within minutes of signing up.
What is the Easiest and Best Way to Buy? Compare the Top Nxt Brokers
If you are looking to buy or trade NXT tokens, the first thing that you need to do is evaluate different broker websites as they provide the most straightforward and intuitive ways to trade cryptocurrencies. With broker services, you can open and close your trades quickly, pocketing the difference. However, we suggest that you assess a variety of brokers and identify the one that caters to your needs in the best manner possible.
5 Things to Consider if you Want to Buy NXT
You cannot just go out there and buy NXT without doing any research. If you are serious about trading, it is recommended that you evaluate a multitude of factors to minimise transaction risk.
1. Carefully choose your preferred secure payment method
The first thing that you need to keep in mind is that offered payment methods differ from one country to another. Since there are dozens of payment modes, it is not viable for us to talk about every payment method. That being said, some of the key factors that you need to take into account include transaction speed, security, and reliability.
2. Will you need to set up your own wallet?
If your investment strategy is long-term, i.e. you want to hold onto your NXT tokens for a while then it's recommended that you securely store your coins in a cryptocurrency wallet. Although the web wallets that are built into your exchange or broker account are reasonably secure, they are still vulnerable to security breaches. That's why it is a smart idea to minimise your risk by setting up a wallet. If you don't want to manage a crypto wallet, the best way to invest in Nxt is through trading.
3. Comparing costs
Before you invest in NXT or any other cryptocurrency for that matter, we suggest that you compare the cost of trading NXT coins. There are different types of fees that you will have to pay including network charges, transaction fee, deposit and withdrawal charges, and more. These expenses can reduce your profit margin. On the other hand, you can also use cryptocurrencies to trade NXT tokens as this particular payment mode is relatively cheaper.
4. Safety and security
If you are going to invest in NXT or any other cryptocurrency project, you need to ensure that it's secure. Unlike many other altcoins, Nxt developers have written the code for its blockchain from scratch ensuring high-level security. It means that all the transactions that occur on the Nxt blockchain are not only decentralised but fully secure as well.
Some other key security features of the blockchain include encrypted public and private keys, peer-to-peer networking, and decentralisation. What it means for the project is that no single individual or organisation has undue influence over the cryptocurrency or its blockchain. All the decisions concerning the project are made through a democratic process.
5. Can you understand and navigate the platform?
Since NXT isn't just another cryptocurrency on the market but an innovative project that offers multiple decentralised features to its users, the worth of its coin has been witnessing a substantial surge over the course of the last few months. This bodes well for the project as enhanced usability can continue to drive the price of the coin.
Another option that traders have is to use a cryptocurrency exchange or a brokerage website to buy NXT coins. It is recommended that you make yourself familiar with your preferred platform so you don't have any trouble in terms of trading NXT coins. Being aware of all the relevant options can help you enhance your overall profitability.
Ultimate Beginner’s Guide to Trading NXT
What is an NXT Broker?
Broker or trading websites are services that enable you to speculate on the price of Nxt without purchasing and holding tokens. As cryptocurrency trading continues to rise in popularity, broker services are used almost in every country to invest in NXT tokens and other digital currencies.
Since NXT is relatively a new platform, currently there are only a handful of broker services that allow you to trade NXT tokens. Before you choose a brokerage service, make sure they have NXT listed on their platform.
What is an NXT CFD?
Contracts for Difference, commonly known as CFDs, are investment vehicles that allow traders to open and close trade orders without actually purchasing digital currencies. With NXT CFDs, you have the option to bet on the price movement of the coin using buy and sell orders.
Probably the best advantage of trading CFDs is that they allow you to generate profit whether the market is surging or taking a nosedive. If you actually buy NXT coins, you will have no option but to wait for the moment when the price is high enough to make substantial gains. That's not the situation when you invest in NXT through CFDs, as profits are tied to the accuracy of your speculation and not the price movement: you can even profit during a bear market
What is the Benefit of NXT Regulation?
Now that digital currency trading, including buying and selling of NXT tokens, is gaining global popularity, governments and regulatory bodies all across the world are implementing regulations to ensure consumer safety. While these regulations add a couple of more steps to the trading process, they also ensure the security of your personal data and funds. Online brokers and cryptocurrency exchanges that comply with regulations are inherently safer than the platforms that are non-compliant.
What is the Best Payment Method for Buying NXT?
If you want to buy NXT tokens, you can select from a diverse variety of payment modes. The accessibility to different payment methods is dependent on your country of residence and your preferred trading platform. This is why it is essential for you to identify and evaluate different options.
Buying NXT with Cash: While you don't have to pay any transaction charges if you buy NXT with cash, it is almost impossible to do so. The only way you can purchase NXT tokens this way is if you can find a seller who is willing to sell NXT coins at the price you want. Since this method is quite risky, it is recommended that you take a look at other payment methods which are more secure.
Buying NXT with Bank Transfer: If you are looking to minimise your transaction cost, buying NXT coins through bank transfer is your best option. You can also use this payment method to send and receive funds to and from a cryptocurrency platform. The only con of using a bank transfer is that it is relatively slow when compared to other payment methods.
Buying NXT with Credit Cards or Debit Cards: If you don't have to worry about transaction cost and simply want to purchase NXT coins as quickly as possible, then you can use your debit or credit card. While the transaction fee will be higher when compared to other payment methods but your transactions will be processed right away.
The Verification Process for Trading NXT
When you sign up on an exchange or a broker website, you will need to go through an identity verification process. Cryptocurrency platforms have to do this to ensure compliance with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations. To verify your identity, you can use any government-issued documentation such as your driver's license or passport. Although this takes more of your time, the initiative also ensures the security of your personal data as well as digital funds.
NXT: Long vs Short Term Investment
Short term trading is when you capitalise on the price volatility of NXT tokens and try to make the most of momentary surges and declines. This way you can earn quick profits but the method is also riskier. The benefit is that you don't necessarily need to purchase NXT coins as you can simply bet on the price movements of NXT tokens through CFDs. You are also not required to get and set up a cryptocurrency wallet.
Long term investment strategy involves purchasing NXT tokens through an exchange and waiting for a while, from a few weeks to a few years, to realise substantial gains. Long term investment generally requires a complete understanding of the crypto project and the trading market. The upside of going for a long-term trading strategy is that you actually own the coins and aren't affected by momentary price declines.
Why Buy NXT rather than Trade?
There are thousands of traders who wonder whether it is more profitable to buy NXT coins or trade them. You need to bear in mind that both trading strategies can be potentially profitable, however, there are a few upsides of buying NXT coins that trading doesn't offer.
One of the major benefits of buying NXT is that you are the actual owner of the coins. This means that you can spend, store, and sell the cryptocurrency the way you desire. This particular trading strategy is often used by long-term traders who want to enhance profitability over the course of a few months to a few years.
Apart from that, when you buy NXT or any other crypto coin for that matter, you are engaging in a far less risky venture. As profitable as trading is, sudden surges, as well as reductions, can completely wipe out your investment capital. That's not the case when you actually buy NXT tokens as you can always wait for the price to bounce back.
Another major advantage of buying NXT tokens is that you can exercise complete control over your digital funds. Although brokerage websites and exchanges have become increasingly secure over the years, they are still vulnerable to data breaches and cyberattacks. Not to mention they are also affected by market sentiment and bearish patterns which can make it quite difficult for you to access your funds. But if your funds are stored in your own wallet, you neither have to incur storage charges nor do you have to face any trouble accessing your tokens.
What Fees are involved in Buying NXT?
If you are looking to buy or trade Nxt, you will incur a variety of costs that you need to take into account when determining the profitability of your trades. Some of the costs include network fees, transaction charges, commissions, deposit and withdrawal fees, and more. If you are holding NXT tokens in your own wallet, then you won't have to pay the storage fee. Some of the major expenses that you need to consider include the following.
Transaction Fees: Since Nxt transactions occur on a blockchain network, the verification process of these transactions costs money so the users who have invested their resources to validate transactions can be rewarded. Generally, transaction charges range between 0.1% and 0.3% of the total amount. These charges will also depend on your preferred broker or exchange. That's why it is essential to find one that enables you to keep your transactional costs at a minimal level.
Deposit Fees: While most of the brokers and exchanges do not charge any deposit fee anymore, there are some platforms that still do. When you are assessing different crypto platforms, ensure you find one that doesn't charge a deposit fee.
Withdrawal Fees: Just like the deposit fee, withdrawal charges also depend on your selected crypto platform. There are many brokers and exchanges that will not deduct any fee for withdrawing your funds. Most of the services that don’t charge any deposit fee won’t also charge you any withdrawal fee.
Safely Storing Your NXT
If you are looking to hold your NXT coins in a secure way, you will require a cryptocurrency wallet to do so. Crypto wallets can be found in different forms including the following.
Web Wallet: The wallets that already exist in your broker or exchange account are called web wallets. They provide the best accessibility to your funds but also are the most vulnerable to hacks and cyberattacks. Coinbase is one of the most popular web wallets for storing NXT coins.
Mobile Wallet: If you want to trade NXT tokens from anywhere, then the best option for you is a mobile wallet. These wallets are specially made for your smartphone and offer a variety of security features along with versatile functionality. You can use the mobile version of Atomic Wallet to store your NXT coins.
Desktop Wallet: These wallets are fundamentally software applications that you can install on your computer. Although they don't offer the quick accessibility and user-friendliness of mobile or web wallets, they are more robust and secure. You can find features like two-factor authentication and passphrase protection in desktop wallets. Atomic Wallet is one of the most widely used desktop wallets for storing Nxt.
Hardware Wallet: If you want the highest level of security to store your NXT coins, then the best option for you is cold or hardware wallets. They are called cold wallets because they don't have any hardware on board that can connect them with a network. You basically store your private keys on a physical device that has no connectivity options until plugged into a computer. It also means that you have to ensure the safety of your device as you can only access your coins if you have the device. Some of the top hardware wallets include Ledger Nano devices and various models from Trezor.
What Other Coins Can I Trade or Use to Buy NXT?
If you don't want to use conventional money to purchase NXT tokens, you can use other cryptocurrencies like Bitcoin and Ethereum to do so. Some of the most popular cryptocurrencies to buy NXT include ETH, ADA, BTC, XRP, and more. Since you are already using a digital currency, you don't have to pay the exchange fees which can eat into your profits.
What’s the Smallest and Largest Amount of NXT I Can Buy?
Since cryptocurrencies are volatile in terms of price, many traders want to know the minimum quantity or fraction of coins they would have to buy for their investment. Since there are 1 billion NXT tokens, the price of the coin will likely never be more than $1. This means that there is technically no lower limit on how much NXT you can buy. In terms of an upper limit, you are limited only by how much capital you have to invest.
Can I Buy NXT Anonymously with no ID? Is it Safe and Legal to Buy Nxt?
Having said that, if you still want to purchase NXT anonymously through a certain platform, ensure that you have researched about it and take all the measures that are required to keep your funds secure as your transactions will not be traceable if you buy anonymously.
That being said, if you are sure about purchasing NXT token anonymously through a particular broker, make sure that you know everything there is to know about the platform. This will ensure the security of your personal data and funds. Keep in mind that anonymous transactions cannot be traced so if you lose your assets, there's no way of getting them back.
Will Buying NXT Make Me Money?
Making money with trading NXT coins or any other cryptocurrency totally depends on your strategy. This is a question that you will need to answer yourself. Some of the key factors that can minimise your risk include the following:
- Make yourself familiar with your selected crypto platform and learn about the features
- Learn about the cryptocurrencies and the projects you are going to invest in
- Never invest more than you can afford to lose
- Only invest a certain percentage of your profits back into cryptocurrencies
- Read analyses and opinions of market leaders and analysts
- Learn how to read charts and graphs.
How to Spend your NXT
The primary objective of the NXT blockchain is to provide decentralised services and features to its users. That's why it cannot be spent in a conventional manner to buy things on the internet. What you can do is purchase more popular currencies like Bitcoin with your NXT tokens and then make your purchase.
How to Sell your NXT
Selling NXT coins through a broker service is comparatively straightforward and simple. The best way to sell your NXT tokens is through a broker or exchange service. If you have NXT CFDs, you can sell them quicker through a broker service as compared to the real tokens.
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Frequently Asked Questions
Nxt was developed by a team of developers who wrote their code from scratch in Java instead of using Bitcoin’s source code.
Nxt offers a wide range of decentralised features and apps which can become mainstream in the coming years.
Almost all of the NXT tokens are now in circulation so it’s not possible for you to mine Nxt.
Nxt is controlled by people who have invested in the project and own NXT coins. No central authority or figure has control over the project or its cryptocurrency.
This depends on the country you reside in. Before investing in NXT coins or any other cryptocurrency, make sure that it’s legal to trade digital currencies in your country.
Just like any other digital currency, Nxt also responds to market factors including supply and demand dynamics.
The primary objective of the Nxt network is to provide decentralised services and features. Becoming a major payment network isn’t the end goal of the blockchain.
This also depends on the country you live in and its tax laws.