How to Buy NXT (NXT) - A Beginner’s Guide

Buying cryptocurrencies with brokerage platforms has become quite popular. However, the first step to becoming a successful NXT investor is to choose a reputable crypto broker. Due to the massive growth of the crypto market over the past few years, several companies are now offering cryptocurrency brokerage services. 

Some of them are operating without any regulatory oversight, which means you could potentially lose your funds if you trade with them. We advise trading with reputable crypto brokers. Find out the regulatory status of a broker before you register with them. Before investing in NXT with a broker, ensure you get more information about their platform, including liquidity, security, UI, and more.

1. Register with the Broker

To buy NXT with a broker, you need to get an account with a cryptocurrency brokerage platform. Most brokers offer a swift registration process as they usually require a username, password, and email address. We advise using a password containing 6-20 characters with at least one capital letter, number, or symbol for security. The brokers differ in their demands during registration. For instance, Pepperstone allows you to start by submitting your email address before completing your application in the next stage. eToro also has the same policy and requires only a username and an email address to set up an account.

2. Verify your Identity (KYC Process)

These cryptocurrency brokers are highly regulated, and they comply with the rules stipulated by regulatory bodies. This is why they require traders and investors to verify their accounts before accessing their services.

The brokers will need you to complete the standard KYC (Know Your Customer) process. This involves submitting an official ID like a driving license or a passport, proof of residence, and sometimes proof of earnings. The verification process is designed to provide you with greater protection in terms of your data and funds. The account verification process usually takes less than 24 hours, depending on the broker.

With the AML and KYC regulations, the cryptocurrency space becomes a more professional market. Crypto companies are encouraged to implement the policies as it provides better protection to them and their customers.

3.      Deposit Funds with your Preferred Payment Method

Once the verification step is over, you can fund your brokerage account and buy the NXT coin. The brokers offer a wide range of payment methods to choose from. However, it would help if you considered a few things when selecting a payment method offered by a broker:

• Speed
•  Cost
• Availability

The payment methods have varying conditions in terms of the transaction fees, speed, and more. PayPal is the most widely used thanks to its low fees. However, not all brokers support this payment method. Credit and debit cards are widely used, but their transaction fees are quite high. The brokers also support bank deposits, but it takes longer to reflect in your account. The deposited funds need to reflect in your account before you move forward to the next step.

4. Open a Position to Long/Short NXT

There is a difference between long and short positions in the cryptocurrency space. Knowing what each one stands for will allow you to become a successful cryptocurrency investor. If you believe in the value of the NXT coin and are convinced that it will rise over time, you will buy the coins and earn profits in the long run. This means you are opening long positions on the coin, and you are bullish on its price.

On the other hand, if you believe NXT's price will dip in the coming weeks or months, you can short the cryptocurrency. This means you are betting on the price to fall, and if it does, you earn a profit. In this case, you are bearish about the cryptocurrency. Understanding the two and how they work can even allow you to open both short and long positions on NXT and make profits.

As an NXT investor or trader, you have to implement risk management techniques by applying your trading limits. The risk management limits are usually stop loss and take profit orders, designed to help you take profit or stop a loss on a trade automatically.

5. Close your Position

Finally, you can close your position as soon as your trade hits the desired profit level. Setting the stop loss and take profit limits allows you to close your trades automatically. We recommend setting up the stop loss and take profit limits because of the nature of the crypto market. The crypto market operates 24/7, and setting up these milestones allows you to take your profits or limit your losses even while you are away. We advise learning everything about closing positions via the educational resources available on the platform or this website.

How to Buy NXT with an Exchange

Cryptocurrency exchanges offer an excellent avenue for users to buy NXT coins. Unlike crypto brokers, exchanges allow you to buy and hold the actual coins. If your goal is to hold the coin for a long time and make money in the process, then it is best if you find a crypto exchange that is reliable and reputable to use.

You need to ensure that the crypto exchange you choose offers you competitive rates for deposits and withdrawals, charting features, and more. Exchanges don't offer similar trading fees because some of them have better features and tighter security than the others.

With crypto exchanges, we also recommend using regulated ones to ensure the safety of your funds. Some exchanges don't comply with regulatory measures instituted by financial regulators, which means they lack proper oversight. We advise you to avoid those types of exchanges and use only those that are regulatorily compliant due to their high level of security.

1. Set up an NXT wallet

NXT is a regular cryptocurrency that operates on its own blockchain. Setting up an NXT wallet is easy and takes users a few minutes to do so. Once you carry out the necessary steps, you will be ready to use your NXT wallet in no time. You can set up your NXT wallet in various ways.  

• Exchange/Online wallets: The wallets offered by crypto exchanges are easy to use. However, we don't recommend storing your coins in those wallets due to the security issues of most exchanges. Digital currency exchanges have lost billions of dollars to hackers since Bitcoin was invented. Hence, we only advise you to use them if you intend to trade the NXT coin and not hold it for the long term.
• Desktop wallets: They are software applications on your computer that allow you to store your NXT coins. Ensure that the wallet you choose supports NXT coins.
• Cold wallets: These are the most popular and secure wallets currently available. They offer you secure and safe ways to store your NXT coins and hold them for the long term. The wallets are hardware devices that come in varying shapes. They implement security features like protocols, hardware chips, and certifications to keep your funds safe at all times. Some of the popular ones include Ledger and Trezor.

The safety of your funds is your number one responsibility as a cryptocurrency investor. Hence, ensure you adequately protect your crypto wallet by adding other security measures, 2FA, strong passwords, and more. You can learn more about how to protect your cryptocurrency hardware wallets here.

2. Choose and Join an Exchange that Offers NXT

The cryptocurrency market comprises nearly 10,000 cryptocurrencies. Hence, crypto exchanges can't list all the coins available. The question of where to buy NXT coins should be in your mind by now. However, NXT is a popular coin and is available on some of the leading cryptocurrency exchanges such as Poloniex, Bittrex, HitBTC, and Indodax. Check the features of the crypto exchanges and select the one that fits your investment needs.

Crypto exchanges and brokers don't operate the same way. Furthermore, crypto exchanges also don't operate the same way. Some of the exchanges comply with AML and KYC regulations, while others don't. We recommend trading with regulated exchanges.

3. Choose Your Payment Method for Buying NXT

After opening an account with a crypto exchange, you can move to the next step and deposit funds into the account. Credit and debit cards are available on virtually all crypto exchanges, and the funds should be available in your account within minutes. If this is your first time utilising a card to deposit funds in a crypto exchange, you might get a call from your bank notifying you of a pending transaction and if it was intentional.

Depositing the funds using a bank transfer is another method. However, this payment method takes days before the funds reflect in your account. You can use the deposited funds to purchase the leading cryptocurrencies such as ETH, BTC, and USDT. You can then swap these coins for NXT.

It doesn't matter the payment method you are using: you must ensure that the crypto exchange you are buying with is regulatorily compliant. This way, you can be sure that your deposited funds are safe with them.

4. Place an Order to Buy NXT

NXT is a smaller cryptocurrency, which means you might have to initially purchase BTC, ETH, or USDT before converting them to NXT. You can buy ETH, BTC or USDT from the cryptocurrency exchanges and then swap them for the NXT coin. Check the NXT trading pairs on the exchange to know the leading coin you would need to buy.

5. Safely Storing your NXT

The final step is for you to store the NXT coins you bought. After buying the coins from a crypto exchange, you can transfer them to your private wallet. Transferring the coins to a private wallet is easy and doesn't cost much. However, we recommend moving them to a cold storage wallet rather than the others, especially if you intend to hold the coins for the long term. However, if you want to trade the coins to earn daily profit, there is no need to transfer the coins.

After transferring the coins to a cold storage wallet and you need to move them to an exchange wallet for a transaction, you need to use your public key. Input the public key into the 'recipient address' field of the withdrawal request and choose the amount of the NXT coins you wish to transfer. Also, we recommend enabling the 2FA on your wallet to give you an extra layer of security.

Should you Buy or Trade NXT?

There is a difference between purchasing and trading NXT coins. Also, when you trade a coin on an exchange differs from when you do so on a brokerage platform. Knowing the difference between trading and investing will help you become a successful trader. Buying suits long term investors, and protects against short-term price volatility. Trading enables you to profit quickly, but is a very involved (and often stressful) operation.

What's the Difference between an NXT Exchange and a Broker?

Crypto exchanges and brokers have some major differences. However, they both serve crypto investors and traders. With exchanges, users can trade cryptocurrencies against each other. This means that you can trade NXT against some of the leading cryptos such as BTC, ETH and USDT. Crypto exchanges also offer the best rates when you want to buy NXT coins.

However, crypto brokers are for those who don't wish to hold the NXT coins directly. Instead, they earn money by trading crypto CFDs and betting on the price performance of the NXT coin. This way, people can gain exposure to cryptocurrency and avoid holding the coins in their private wallets. When buying with exchanges, you are holding the actual NXT coins.

NXT: Long vs. Short Term Investment

Differentiating between long and short-term investments could be the key to becoming a successful crypto investor. As a long-term investor, you will purchase the NXT coins and hold them for a long period. You could hold the coins for months or years. If you intend to do so, you should consider buying NXT from cryptocurrency exchanges and storing the coins on a cold storage wallet that supports them.

However, you can also decide to hold the NXT coin for a while and make money from the short-term price appreciation. If that is what you want, then it is best to use the service of a cryptocurrency broker. You will get to bet on the NXT coin's price movement. With brokers, you don't have to worry about storing the coins in an external wallet.

3 Tips to Buy NXT

Although we have discussed the various ways to buy the NXT coin, there are tips to help you in buying and trading the tokens.

1. Choose the Right Time and Do Your Own Research on the NXT coin  

Carrying out your own research is a key part of cryptocurrency investment. You need to take the time to conduct extensive research into the project you are investing in. We don't advise you to rely on the information you obtained from a single source. Rather, you should read the analysis of several experts and follow the latest news about the coin. With the information at hand, you can easily search for favourable opportunities within the market and take advantage of them. If you are interested in becoming a successful crypto trader, then it is important to learn how to use technical indicators, charts and other crucial tools to determine trends and key levels to buy and sell NXT.

2. Comparing Costs to Buy NXT

The transaction costs differ on crypto exchanges. To get the best deal, you need to compare the rates between exchanges and brokers and trade with those that offer the best rates. Ensure you know the selling rates of the NXT coin on various crypto exchanges and brokerage platforms. You should also consider the trading fees and other commissions before choosing the exchange or broker to use.

Safety and Security when Buying NXT

As an investor, the security of your crypto investment should be the first thing you consider before you get started. You need to check the security measures implemented by the trading platform you intend to use. These platforms have lost billions of dollars to hackers over the past few years, which is why you need to take the security of your funds seriously. We have mentioned this several times in this guide to show how important it is. Ensure that the exchange or broker has adequate security measures in place before you deposit any money with them.

3. What is the Best Payment Method to Purchase NXT?

• Buy NXT with cash: You can deposit fiat currencies such as USD, EUR or GBP into your crypto exchange or brokerage account and use the cash to buy NXT. 
• Buy NXT with Credit Card: Buying ETH or BTC and swapping it for NXT.
• Buy NXT with Bank Transfer: Depositing funds to buy ETH or BTC and swapping it for NXT.
• Buy NXT with Bitcoin: For those who want to buy NXT coins by using major cryptos such as Bitcoin.
• Buy NXT with PayPal: Buying ETH or BTC and swapping it for NXT. The PayPal payment feature is not available in all countries and not on all platforms.

Other Ways to Buy NXT

The four methods above are the most popular ways of buying and trading the NXT coin. However, you have other alternatives, and they include:

• P2P (Peer to Peer) exchanges are designed to allow users to deal directly with each other. The platforms connect the buyers and sellers and allow them to negotiate the best price for the cryptocurrency. The transaction fees on P2P platforms are the lowest. However, the fees vary based on the network congestion at the transaction time.

Although P2P is not as popular as some of the options mentioned above, it is an excellent way to buy NXT tokens.

Thanks to the information in this guide, you are ready to start buying, trading and investing in NXT. To make it easy for you, we have chosen a few crypto exchanges and brokers that support NXT tokens. The chosen platforms are highly secure and very reliable.