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How to buy, sell and trade NXT in Canada
A beginner’s guide to buying, selling and storing NXT assets.
Launched in 2013, Nxt is an open-source blockchain platform that offers a long list of decentralized features to users. These include an asset exchange, marketplace, voting system and data cloud.
NXT is the native currency of the Nxt platform and is used as a payment system for all of the platform’s features. Conventionally, the currency is written all in uppercase (NXT) but the platform is not (Nxt). So, how does the Nxt platform work and how can you buy NXT in Canada? Let’s take a closer look.
Where to buy NXT
NXT is available from a selection of popular cryptocurrency exchanges, including:
A step-by-step guide to buying NXT
If you want to buy NXT, all you need to do is follow three simple steps.
Step 1. Register for an account with an exchange that lists NXT
- NXT is only available on a limited range of crypto exchanges, so check out some of the exchanges that allow you to trade this currency in the comparison table above.
- Choose a platform that meets your needs and sign up for an account by providing your email address and creating a password.
- Depending on the exchange you choose, you may also need to supply your full personal details and proof of ID to satisfy Know Your Customer and anti-money laundering (KYC/AML) requirements.
- Once you’ve created an account, remember to enable 2-factor authentication (if supported by the exchange) to provide increased security for your funds.
Step 2. Deposit funds into your account
- Many exchanges only allow you to buy NXT with cryptocurrency, not with fiat currency. If this is the case, you’ll need to acquire a crypto listed in a currency pair alongside NXT, such as bitcoin (BTC) or Ether (ETH), before you can purchase any NXT.
Step 3. Buy NXT
- The final part of the process is to click through to the “Exchange” or “Markets” section of your chosen platform. You can then search for your desired currency pair, such as NXT/ETH, and enter the amount of NXT you want to buy or the total amount of ETH you want to spend.
How to sell NXT
The selling process is essentially the same as the buying process described in step 3, with the obvious difference that you’ll need to look for the “Sell NXT” link. Also, don’t forget that NXT is only available in a limited range of currency pairs, so you may not be able to immediately exchange it for the currency you desire.
Which wallets can I use to hold NXT?
Storing digital coins and tokens in an exchange wallet for an extended period exposes you to the risk of hacking and theft, so it’s generally recommended that you move your NXT coins into a private wallet.
The Nxt client allows you to store your NXT coins and manage your transactions. It’s available for download from the Nxt website and works on Windows, Mac, Linux and Android operating systems.
How Nxt works
Created in 2013, Nxt is a blockchain platform that offers several core-level features. Developed in the Java programming language, its decentralized features include:
- Assets and asset exchange. Nxt offers a peer-to-peer asset exchange to allow fast and secure trading without the need to trust a third party. You can trade assets to represent everything from equities, bonds and commodities to movie tickets, restaurant reservations and copyrights.
- Monetary System. This allows users to create their own cryptocurrency and trade it on Nxt or through any platform that supports the Nxt Monetary System.
- Marketplace. The Nxt Marketplace lets you list and sell items on the blockchain, with no need to trust a third party.
- Messaging. The messaging system allows Nxt account holders to send and receive data on the blockchain to communicate directly with one another.
- Voting. Nxt Voting allows users to create simple polls, and also allows transactions to be approved or rejected by a group of users as part of the platform’s Account Control system.
- Account control. By making your Nxt account subject to the Nxt Voting System, you can provide multi-signature security for your account.
- Coin shuffling. This feature lets users mix their funds with other users’ funds to anonymize their balance or transaction details.
- Data cloud. The Nxt Data Cloud offers a decentralized data storage system.
- Alias system. This simple system allows a long and complicated string of data to be replaced by a shorter one. For example, you could use this system to create an alias for your Nxt account number.
Originally released by an anonymous software developer, the Nxt platform and NXT are now managed by parent company Jelurida.
What to consider when buying NXT
Cryptocurrencies are complicated and highly volatile, so it’s essential that you do your own research into any project before deciding whether to purchase a particular currency. If you’re thinking of buying NXT, make sure to take the following factors into account:
- Supply. According to CoinMarketCap, at time of writing in MY 2018, the circulating supply of coins is 998,999,942. The total supply of 1 billion coins was created in 2013 and, as Nxt uses a proof of stake (PoS) system, no new coins will ever be created or mined.
- Use. NXT is the currency that fuels the Nxt platform. Coins can be used to pay transaction fees when transferring NXT between users, for creating assets, for developing blockchain-based polls and for storing data on the blockchain.
- Established platform. Having been launched back in 2013, Nxt is one of the older players still going strong in the crypto world. This early-mover advantage has seen it establish a strong foothold and build a community of followers.
- Ardor. In early 2018, Nxt’s parent company, Jelurida, launched Ardor. This new blockchain platform is based on Nxt but offers a number of enhanced features, including the ability to support child chains. Ardor is designed to deal with scalability, so it’s worth considering whether there are any scaling problems that may face the Nxt platform before deciding whether to buy any NXT.
- Competitors. As well as its Ardor sibling, Nxt also faces competition from other dapps platforms such as Ethereum and New Economy Movement (NEM). In fact, this is quite a crowded corner of the cryptocurrency world, so you’ll need to consider the effect this could have on the adoption of Nxt and its native currency.
Examining these and other factors will help you decide whether you should consider buying any NXT coins, or whether you should instead move on to the next big thing.
Image source: Shutterstock
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