What is NEM?
NEM is a rather new cryptocurrency that is huge in Japan, Malaysia and other Asian countries.
NEM was launched in 2015, NEM uses a proprietary Blockchain software called Mijin. Private companies as well as Japanese institutions are researching and testing the Mijin software to use in commercial applications.
Like Bitcoin and other cryptocurrencies, NEM has a fixed amount of coins available which will provide higher values as coins become more difficult to mine. That fixed amount is 8,999,999,999.
NEM did take a strong plunge just recently when the Japanese crypto exchange Coincheck was hacked and a plethora of NEM coins were stolen. But NEM developers are fighting back by using the blockchain to tag any, and all who sell, trade or receive any of these stolen coins.
Who is behind NEM?
There is no absolute on who is behind the development of NEM. All we know is the lead agent was a Bitcoin Talk forum personality who carries the pseudonym UtopianFuture. He/she or they based the NEM system off the cryptocurrency Nxt. And originally, NEM was going to become a fork from Nxt. But the decision was made to create an original codebase.
How does NEM Work?
UtopianFuture called for open participation in the building of NEM in the Bitcoin Talk forum. So unlike many other cryptos, NEM is administered as an open source system.
Many would say that open source creates many possibilities of inaccurate or false logs in the blockchain, but the NEM system uses a proof of importance algorithm instead of a proof of work algorithm. And it is based on the Eigentrust reputation system.
A good example of this system used in a non-crypto setting would be Wikipedia. As individuals enter information in the online encyclopedia, they either build or lose trust as other users declare their entries to be either true, false or questionable.
- NEM Client is the open source system
- NIS is the NEM server and is closed source
It runs in a joint fashion with the NCC and NanoWallets to hold NEM coins being non-internet which creates extreme security using Airgap security measures.
How can I buy NEM?
Buying NEM is a process but there are many who predict a substantial gain in value of this newer cryptocurrency. Let me take you through the process:
- You will first want to install a NEM wallet to store your coins. The best bet is to download the official NEM wallet from the NEM website. Keep in mind your antivirus may battle this download. You may need to pause your antivirus for the file download.
- Once the wallet is downloaded, unzip it and run it. When it is running, you will click sign up and simple wallet. Select Mainnet Network and hit enter.
- Name your wallet.
- Create a private key. During the process, move your cursor which will create entropy(energy).
- Download your wallet and back it up on an external drive.
- Now press “show my private key.” Save that key as well as your password somewhere safe and secure.
- Now log in and click account. You will now see your wallet’s public address. Copy and paste it in a note file because you will need it.
- You will need Ethereum to purchase NEM so you will need to go to a crypto exchange such as Coinbase and purchase Ethereum.
- Keep the exchange open where you purchased Ethereum and open a new tab. Now you will exchange your Ethereum for NEM. Many do so at Livecoin.
- Go to coin balance and find Ethereum. Get your Livecoin Ethereum address by following directions. Now go back to Coinbase or any other exchange you purchased your Ethereum and transfer them to the Livecoin address using the public key. It will take 30-60 minutes to transfer.
- Now, you can trade your Ethereum for NEM there at Livecoin.
- You can leave the NEM in the Livecoin wallet or pay the fee to transfer them to your more secure wallet.
That is all there is to it.
How can I trade NEM?
The same system applies to trading as buying NEM. If you want to trade your NEM for a different cryptocurrency, you can use the Livecoin site to do so. Just follow similar steps as above to trade.
How to choose an NEM Exchange?
Choosing an NEM exchange is not difficult as not many exchanges carry NEM.
Keep abreast of all our reviews here which can help you choose. But there are 2 properties you should consider when choosing a NEM exchange:
- Where you are – Regulations on cryptocurrency exchanges are still being developed. But some exchanges will not accept investors from certain areas.
- Payment method and fees – Some exchanges may accept pay systems like Paypal, Neteller and others. And others may only accept credit or debit cards. Plus, you want to look at fees incurred such as miner fees and conversion fees
Overall, NEM is not as difficult to buy and trade as it may seem.
If you have any questions, feel free to contact us and we can help you proceed. And research Investing Online as your questions may have an answer on our pages.