If you have heard of cryptocurrency, you have most likely heard of NEM. You may not be very familiar with what it is about, but this article will serve as a guide to its history, as well as why you should invest in it if you can.
What is NEM?
This is a cryptocurrency – this means that it makes use of cryptography to regulate its management instead of relying on central banks for regulation. Written in Java script, it wants to have a model of distribution that covers wide areas.
It uses blockchain technology, though it has modified it with several new features like encryption of messages, POI algorithms, Eigentrust++ reputation system and multi-signature accounts.
It began with the aim of ensuring the fair and wide distribution of cryptocurrency. Even though there were problems in its distribution initially, but it is now among the coins with the most distribution.
Why is NEM different?
The world of cryptocurrency can confuse new users because you will hear all sorts of investment advice. With all the information lying around, you may wonder what makes NEM different from other currencies. It is one of the unique currencies today because of:
POI (Proof of Importance) – this is a concept that largely borrows from page rankings and clustering of networks. The primary inputs are net transfers (how many transactions you have made in the previous one month), cluster nodes and vested amounts of coins.
Node reputation system – NEM uses Eigentrust++ to verify its reputation. This also relates to blockchain health; previous behaviour of nodes is considered, and it makes the quality of the transactions to be very high.
Message services – you can include messages in transactions. There is no need to worry about security either because there is encryption of messages. You can communicate securely to any blockchain applications or XEM address using either encrypted or unencrypted messages.
Multi-signature feature – a certain number of people must sign each transaction before put on broadcast on the blockchains. This also means that in case one person loses their wallet, they cannot spend unless two other wallets sign it. It also safeguards community wallets because before any money is spent they must approve it.
Harvesting – this is similar to mining but it relates to blocks. For you to harvest, you must have a minimum of 10,000XEM in your account. Once you harvest a block, new blocks will add to your chain and all subsequent fees will go into your account.
Alternative coins to use
NEM is a trendsetter indeed – with the massive growth it has great potential to succeed greatly among cryptocurrencies. However, other coins work equally as well if not better, and we have compiled a list of several of them.
Ethereum/ETH – a very recent one from 2015, it enables distribution of applications and running of smart contracts without interference from third parties.
Litecoin/LTC – launched in 2011, it has a distinction of being a highly sought after currency together with Bitcoins. Formed based on promoting open source payments without control from central authorities. For proof of work, there is generation “scrypts”, which are then decoded by CPUs.
Dash – markets itself as a “more secretive version” of Bitcoins. Formed in 2014, it works on a master-code network that enables transactions to be untraceable.
Ripple/XRP – this currency offers you immediate and affordable international payments. Another distinguishing feature is that you do not need to mine it, and therefore reduces computing power.
Zcash/ZEC – a 2016 product, which offers uses additional privacy and optional transparency in transactions.
Monero/XMR – 2014 was the launch year for this currency and its development is unique – it uses donations as well as the power of the community to improve its features. It allows for complete privacy as well through a technique called “ring signatures”.
Technology behind NEM
The high status of Bitcoin means that many currencies are coming up to overtake its position, with each offering several unique aspects to help them stand out. NEM has done the same thing, and it uses certain technology not present in other coins.
How it works
The design of the system revolves around two components:
The NCC is a client, which includes wallet software, though it has decreased in value and the NanoWallet has replaced it. Both NanoWallets and NCC give users security in transactions using airgaps.
Trading NEM currency
You can acquire NEM in several ways, like getting payments in NEM, or donations, though the simplest way is buying the currency. Before you begin trading in the currency, it (along with all other cryptocurrencies currencies) is very volatile, and prices are subject to very quick changes.
Similar to other currencies, NEM only exists within the blockchain network. This means that you cannot buy or store them outside digital wallets. That also means you must get a digital wallet before you begin trading the currency, so here are some places you can acquire the currency.
The main issue with XEM (the NEM currency) is its low supply. Because of this issue, it is better to get Bitcoin or Ethereum initially, and then use them to get XEM coins at currency exchange points. Here are some ways you can get XEM coins.
Unlike exchange services, this will enable you purchase NEM directly, and the price is not driven by market forces. The firm, based on profits that they want, will therefore make Price adjustments.
This is the main platform you can use to trade cryptocurrencies in general. They work the same way as forex markets, only difference being they allow you to trade in crypto assets. Purely market forces drive the price that you get.
Before you decide on an exchange provider, ensure you examine its effectiveness thoroughly. You should only use exchanges that are widely trusted, and this can include CEX.io and Poloniex.
These are individual groups where people can access support, as well as direct purchases of the currency.
Similar to normal ATM machines, cryptocurrency ATMs deal with crypto coins. The main drawback is many only enable Bitcoin use, so it adds the job of purchasing Bitcoin and converting it to NEM at an exchange provider.
NEM prices and trading history
The currency is newer than most, so it does not have an extensive history of data in price changes. However, it has set itself as a potentially leading cryptocurrency, as evidenced by its wide adoption by businesses of various types. However, it is important to remember that all cryptocurrencies are volatile in nature, and price changes may be very significant.
In the 2017 first quarter, (January to March) there was a high point of $0.29, followed by a decrease to $0.09. The second quarter had highs of $0.34 and another decrease. In fact, the currency currently hovers between $0.20 and $0.21.
Is it worth trading in the coin?
This is a complicated question, because several authorities do not approve of investing in cryptocurrency in general. The reasons they usually give range from the highly volatile nature of these currencies, and the fact that their value is unpredictable. Because of this, they point to cryptocurrency as having too many danger signs.
Other voices point out the increasing value of NEM investments – and that if you do not take a chance now, you will regret missed opportunities in the future. We have compiled a list of various facts that make this currency so exciting in potential:
The efficiency – it is ten times better than Bitcoin in particular because of the maintenance cost.
The currency has led to many investors becoming rich within a few months.
User-friendly, especially for non-crypto programmers
It is not widely known so does not have a saturation in supply
Has more possible applications compared to Bitcoin.
The risks are great, for example the uncertainty in value as well as lack of liquidity. However, if you are prepared to shoulder losses as a probable cost, then you can invest in it.
The rise of NEM is synonymous with the rise of digital cash. People want to spend money faster without reliance on institutions like banks that require long protocols and time to approve transactions. The potential benefits are immense if you invest well, but it is best to be careful and not rely on it too much.