NEM (XEM) Complete Guide - Everything You Need to Know Before Investing
1. Introducing NEM (XEM) - The Beginning of a New Economic Movement
Upbit is one of the largest cryptocurrency exchanges in Korea, and is a platform where you can trade various coins. Among them, NEM (XEM) is a coin with unique features that is attracting attention from many investors. NEM is an abbreviation for 'NEM', which means 'New Economy Movement'.
💡 Good to know: Unlike existing cryptocurrencies, NEM is a blockchain platform developed from scratch and is an independent system that is not based on the code of Bitcoin or Ethereum. This has enabled NEM's unique technical features.
The biggest appeal of NEM is that it provides various business solutions beyond just a payment method. Many companies are using NEM's technology to build their own blockchain services, which is a good example of NEM's practicality and scalability.
2. History and development of NEM (XEM)
NEM was first launched in 2015 and is a decentralized platform based on blockchain technology. The biggest feature of NEM is that it uses a new consensus algorithm called 'POI (Proof of Importance)'. This is a method of generating blocks by evaluating the user's contribution, which is a different approach from the existing POW (Proof of Work) or POS (Proof of Stake).
NEM's development team is based in Japan and has a particularly strong influence in the Asian market. In 2018, a hacking incident occurred at Coincheck, a large Japanese exchange, but this was a security issue with the exchange and not a problem with the NEM blockchain itself. Rather, through this incident, the NEM Foundation presented more strengthened security guidelines.
📈 Development Status: NEM launched a new blockchain, Symbol, through the Symbol (XYM) hard fork in 2021. This is an advanced version of the existing NEM technology, providing faster speed and improved security.
3. Operating Principles and Technical Features of NEM
NEM's operating principle goes beyond simply processing transactions, and is a system that evaluates the importance of users within the blockchain ecosystem and provides rewards accordingly. The more users contribute to the NEM network, the more XEM they receive, because their activities contribute to increasing the safety and reliability of the network.
The core of the POI system is that it gives preferential treatment to those who actively trade and contribute to the network, not just those who simply hold a lot of coins. This is determined by comprehensively considering the 'Vesting' score, 'Transaction Volume', 'Network Connectivity', etc., and this enables more fair and decentralized network operation.
🔧 Technological Innovation: NEM uses a unique mining method called 'Harvesting'. Unlike the existing energy-consuming mining methods, this is environmentally friendly and can be participated in with a regular personal computer. Anyone who holds more than 10,000 XEM can participate in harvesting.
4. Various uses and fields of application of NEM (XEM)
NEM can be utilized in various fields. In particular, it can provide blockchain solutions that companies can operate directly by supporting smart contract functions. For example, NEM's technology is being applied in various fields such as supply chain management, asset management, and the gaming industry. In addition, NEM has the advantage of being able to issue new assets through its own function called 'Mosaic'.
In fact, several local governments and companies in Japan are carrying out projects utilizing NEM technology. For example, Miyazaki Prefecture has introduced a NEM-based local currency system to revitalize the local economy, and many retailers are accepting it as a means of payment.
NEM's 'Namespace' function also allows individuals and businesses to create their own domains, which can be used to protect their brands or manage digital assets. This is similar to traditional domain systems, but offers the additional advantage of blockchain transparency and immutability.
5. NEM (XEM) Exchange Usage Guide
NEM can be traded on several exchanges. Upbit is famous for its platform that allows easy trading of NEM (XEM). It is chosen by many investors due to its user-friendly interface and various trading options. To purchase XEM on an exchange, you must first sign up for Upbit and go through the verification process.
📱 Exchange Usage Tips: In addition to Upbit, you can also trade XEM on overseas exchanges such as Binance, Huobi, and Poloniex. However, when using overseas exchanges, there are additional considerations such as VPN use and tax reporting, so please do your research and use them.
When trading NEM on Upbit, you can trade on both the KRW market and the Bitcoin (BTC) market. If you are a beginner, it will be more intuitive and easier to understand using the KRW market. Upbit also provides chart analysis tools and an order book, so you can use them to trade more strategically.
6. Sharing Information with the NEM (XEM) Community
NEM's community is very active. Users are sharing information, sharing their experiences, and exchanging opinions on investments on various forums and social media. In particular, a lot of information about NEM is being shared in Korea, so those interested in investing can receive a lot of help through the community.
You can check the latest news and technology updates related to NEM in real time on the official NEM Telegram channel, Reddit's r/nem community, and domestic cryptocurrency communities. In particular, partnerships or technology development news officially announced by the NEM Foundation can have a significant impact on the price, so we recommend that you check them regularly.
🤝 How to use the community: The NEM community provides in-depth discussions on technical analysis, fundamental analysis, and actual use cases, as well as simple price predictions. Even beginners are encouraged to actively participate, as they are kindly provided with answers to their questions.
7. Choosing a NEM (XEM) Wallet and Security Management
A wallet is essential to safely store NEM. If you download the NEM-only wallet, 'NEM Wallet', you can safely store XEM. Also, you can secure higher security by using a hardware wallet, so if you have a large investment amount, be sure to consider it.
The biggest feature of the NEM wallet is that it supports the 'Multisig' function. This is a system that requires multiple signatures to execute transactions in a single wallet, and can be used for safe asset management not only by individual users but also by companies.
⚠️ Security Precautions: Never share your wallet's private key with anyone else. Also, back up your wallet file and password separately in a safe place, and be careful of downloading fake wallets through phishing sites. Please download only from the official site.
For mobile users, the 'NEM Mobile Wallet' app is also provided, and it is available for both iOS and Android. Mobile wallets are convenient, but they are better used for everyday small transactions rather than storing large amounts of coins.
8. Things to keep in mind and risk management when investing in NEM (XEM)
Lastly, there are some things to keep in mind when investing in NEM. Since cryptocurrencies are highly volatile, sufficient information gathering and analysis are necessary. Also, you should start with an investment amount that you can afford, and it is important to always closely monitor market changes.
Since NEM is particularly closely related to the Japanese market, it can react sensitively to changes in Japan's cryptocurrency regulation policy or economic situation. Also, since the Symbol(XYM) hard fork has forced investors to choose between the two coins, it is important to compare and analyze the features and prospects of each.
💰 Investment Principles:
1. Limit your cryptocurrency investment to 5-10% of your total investment assets
2. Invest only the amount you can afford to lose
3. Approach from a long-term perspective rather than short-term profit
4. Consider diversifying your investments across various coins
5. Regularly review and rebalance your portfolio
When analyzing the market, it is recommended to consider both technical analysis (chart analysis) and fundamental analysis (technology development, partnerships, adoption rates, etc.). In the case of NEM, real-world use cases and enterprise adoption rates have a significant impact on the price, so we recommend monitoring these news periodically.
So today, we learned about Upbit and NEM (XEM). I hope your understanding of cryptocurrencies has deepened, and always invest carefully and safely! We emphasize once again that investments should be made at your own discretion and responsibility.