CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Between 54-87% of retail CFD accounts lose money. Based on 69 brokers who display this data. *Availability subject to regulation.
Introduced on March 31st, 2015, the New Economy Movement or NEM is a peer-to-peer cryptocurrency platform, with its associated cryptocurrency wallet known as the NanoWallet.
NEM’s blockchain was designed for scalability and high transaction speeds to correspond with its wide distribution model goal. This technology also lets multiple ledgers coexist on a single blockchain.
The native currency of the NEM blockchain is XEM. XEM is largely used to make payments on the NEM blockchain for transactions and services. However, instead of mining, NEM uses the process called “harvesting” to keep the NEM network online and make transaction confirmations. A consensus algorithm known as “proof of importance” (POI) is used to govern who gets to compute or harvest the next block in the platform’s blockchain.
The POI algorithm determines an account’s importance based on how many transactions it has made and how many coins it has. This prioritisation was intended to promote the active use of the NEM platform.
The backbone of the NEM blockchain network consists of Supernodes. If an account on the network has a minimum of 3 million XEM, then it can operate a Supernode. This is done using either a local computer or a cloud-based server.
The Singapore-based NEM Foundation was created in 2016 and expects to release its Catapult blockchain engine in 2019 as the new core engine of the NEM platform. Catapult has smart contract plugins that provide various helpful features, and it can power both public and private networks.
Note that , when making transactions in the XEM cryptocurrency it is generally safer when using a regulated online broker.
Many people trade cryptocurrencies through exchanges, but these rather poorly regulated enterprises can be subject to hacking potentially resulting in huge losses. A recent example involving the XEM cryptocurrency was at the Tokyo-based Coincheck exchange, which saw a hack of $534 million of XEM coins in 2018.
Mt. Gox was another major crypto exchange that had 850,000 bitcoins taken by hackers in 2014. Furthermore, South Korean cryptocurrency exchange Youbit filed for bankruptcy after being hacked twice in 2017.
Additionally, with online cryptocurrency trading there are a number of scams to look out for. Essentially, watch out for firms that ask for an initial fee to exchange XEM for cash or for investment programs that promise to multiply assets quickly. Remember, if it seems too good to be true, it most probably is.
Another common fraudulent activity is phishing, often seen on social media and through emails. This involves someone impersonating a business to get into an account or even a currency wallet. Avoid making financial arrangements or accessing accounts using links contained in direct messages. Additional scams include fake crypto exchanges and cloud mining cons, so keep a sharp eye out for fraudsters.
In general, the safest way to trade XEM is through a regulated broker. Regulated brokers typically provide cryptocurrency traders with greater peace of mind. The process of trading XEM coins through these firms is also quite straightforward.
Good examples of regulated brokers include Dublin, Ireland based AvaTrade, which is part of a large publicly traded firm with $17 billion in market capitalisation. Another regulated broker registered in Europe that also supports social cryptocurrency trading is eToro . Both of these brokers have to operate under the EU’s Markets in Financial Instruments Directive (MiFID) and its revision the MiFIR.
Among the various regulated online brokers, AvaTrade lets traders use the popular and user friendly trading interface called MetaTrader 4 (MT4) which is suitable for traders of all experience levels. This free software from MetaQuotes has a web-based version and can also be operated on desktop, tablets and smartphones.
A major plus of MT4 is its advanced charting features that allows traders to perform technical analysis. The platform’s look can also be personalised by setting different colours and display styles.
AvaTrade and similar platforms makes it easy to sign up to trade cryptocurrencies like XEM. The broker also gives traders access to markets in thousands of other tradable instruments.
Nevertheless, trading in all financial markets involves taking risks, so it generally pays to understand the fundamental forces that drive the value of an asset like XEM before getting involved in its trading.
XEM’s value is influence by various factors. As with many other free-floating cryptocurrencies, supply and demand plays a substantial part in its market valuation.
For example, when governments step in to regulate digital currencies, especially if they ban their use or ownership, it tends to adversely affect the value of cryptocurrencies like XEM. Events like the Cyprus banking crisis in 2013 can also have an impact. In this case, the Cyprus crisis was seen to boost the value of bitcoin as people looked for ways to store their wealth outside of the jurisdictions of their local governments.
Another key fundamental influence on the currencies’ evaluation is how usable a cryptocurrency is. XEM has a native use among those operating on the NEM platform, so that gives it some tangible value. However, if other firms start to accept XEM, then that should potentially boost its value.
Moreover, exchange hacks can depress the value of cryptocurrencies as the public loses confidence in their safety. In contrast with the development and introduction of new technology, such as the upcoming Catapult engine that will provide smart contract plugins, can also have a positive impact on XEM’s value.
NEM (XEM) Quick facts:
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