Are there alternatives to Bitcoin? It may be the first cryptocoin to break the ice, but Bitcoin is not the most efficient form of digital currency when it comes to the speed of transactions and maintenance costs in energy.
Let’s take a look at the potential alternative – Nano.
Bitcoin has become the stablecoin of the digital market, but there are several glaring issues that get put under the carpet in order to preserve its exponential growth in value.
Since it relies on the “proof of work” system, it is atrociously slow in processing transactions and requires vast amounts of energy to sustain its blockchain.
This adds unnecessary costs as fees keep rising for the general users.
Not only that, but the collective input of electricity required to power the transactions has become sort of an environmental issue on its own.
The alternative, Nano, is the solution to these two issues.
Nano is based on a digital protocol that simplifies complex transaction verification procedures, drastically quickening transactions and preserving a substantial amount of energy in the process.
However, as an alternative to the mainstream options, Nano is not yet readily available to everyone. This guide is aimed to fix this and to show you how to buy Nano, so let’s dive in together, shall we?
What is Nano?
Nano represents a digital currency, just like Bitcoin, except for one fundamental difference.
Rather than using a single, convoluted blockchain system as Bitcoin and Ethereum do, Nano uses a blockchain called Block Lattice.
Block Lattice localizes all transactions, enabling each user to upload transactions for verification by themselves, which reduces the processing time to a fraction of the time it takes to verify the upload across all network nodes.
As each transaction involves two parties, both the receiver and the sender add blocks to their individual chains, with the copies allowing for simple and easy verification.
Nano claims, and rightfully so, to be accessible and lightweight, especially when compared to traditional stablecoins, as it requires much less energy to handle and record transactions.
This presents two major advantages over competing cryptocurrencies. The first is reduced fees related to processing transactions, and the second is reduced total energy needed to maintain and support the crypto network.
This is precisely where Nano beats Bitcoin, Ethereum, and similar solutions as their energy expenditures go several magnitudes above what it takes Nano to be fully functional.
The end result? A stable and economical network that scales well as it grows.
Secured by a “delegated proof of stake” system (DPoS) rather than “proof of work” (POW), Nano does not rely on computational power but “votes” from network end nodes.
This type of security system is thought to be more efficient with a similar degree of security.
After all, malevolent actors of the hacking community would need to control 51% of total Nano tokens in order to successfully forge a transaction and thus trick anyone of their well-earned coins.
Quick Overview of Nano’s History
Originally called Raiblocks, Nano was designed and launched by an ex AMD programmer back in 2014.
The main premise was using the Block Lattice chain in order to diminish the costs and the amount of energy used, as well as to increase the speed of transaction processes regardless of the size of the order.
Aiming to profit on the 2017 surge of crypto, the freshly renamed Nano promised no-fee transactions and surged in popularity.
Bitcoin’s success story in 2017 didn’t come anywhere near Nano back in the day.
After spending most of the year camping around the price tag of 1 penny per token, Nano started climbing in value and reached $0.16 in late November.
Not bad, huh? Things were just getting started, though. From late November to January next year, Nano surged to reach the stardom of wealth. On the 1st of January 2018, Nano rose above $37 in value per token.
No jokes, no typos. Not $0.37, but $37. This is an increase of 3700% in value in just a few months.
Whoever had invested $100 in Nano in November had $370,000 worth of Nano on New Year’s Day. A pretty good profit, don’t you say?
The surge was short-lived, though, and Nano was back to $10 per token by early February and all the way back to less than $1 by late November 2018.
Quite a ride in one year’s time as Nano went from rags to riches then back to rags, figuratively speaking of course.
What happened? Well, Nano was hacked in February 2018 via BitGrail, a local Italian exchange.
More than $170 million in Nano tokens was syphoned from a breach in the exchange then and most of it has vanished without any trace, never to be recovered.
The hack naturally induced a plunge in the value of Nano and turned away users from investing in the altcoin. Who do you think the police ultimately pointed the accusing finger at? The operator of the exchange in the flesh. A sad state of affairs.
This hasn’t been the end of Nano, though. It still shows great potential as a low-energy, accessible, and flexible alternative to the bulky stablecoin blockchains, and there are people still who cheer its existence on.
However, the dust that has risen from the hack has not settled down yet and the volatility puts a shade on Nano’s future.
Does that prevent crypto traders from investing into Nano?
Of course not! Its great potential still inspires hope and people around the world expect this coin to resurrect its glorious past of riches that used to parallel Bitcoin.
Interested in trying your trader fortune with Nano? Excellent, since now we’re going to show you how to do it.
How to Buy Nano – Step by Step
Open an Online Account.
It is the first step in many online processes and buying Nano isn’t any different, duh. To open a user account in the first place, though, you will have to pick a cryptocurrency exchange that supports Nano.
Going with the usual candidates such as Coinbase or Gemini won’t help you here since they do not offer Nano for trade.
Look towards more prospective exchanges such as Kraken and Crypto.com instead.
Crypto exchanges of this type have a much larger arsenal of offers but vary in fee structures, although these tend to be lower than those of the major exchanges, e.g. Coinbase, in general.
Bear in mind that fees and taxes get charged based on the geolocation of a crypto exchange when you purchase Nano from a company that does not come from the U.S. Besides Crypto.com and Kraken, you can also opt for Binance US and Wirex.
Buy a Crypto Wallet (Optional, but Useful).
To properly handle cryptocoins you will need a crypto wallet. Any serious crypto day trader has a crypto wallet on them since you can’t carry digital currency in your pockets, sadly.
Crypto wallets grant users an additional layer of security, and the more cryptocurrency you handle, the more security will be desired for comfort and untroubled sleep.
Wallets also increase the accessibility of your funds as they are not tied to a specific broker or exchange.
Besides cryptocoins, most wallets allow storing NFTs (non-fungible tokens) and thus come in as a handy digital accessory regardless of your crypto trading intentions. Get one ASAP!
Make the Purchase.
When you’re all done with picking an exchange, creating an account, and (most likely) obtaining a crypto wallet, you are ready to go and get some Nano.
Measure out the amount of capital that you’re willing to allocate to this particular altcoin, and remember not to put all your eggs into one basket, especially with altcoins.
Seasoned veterans of crypto trade don’t trust even stablecoins entirely and mix their portfolio to make their crypto funds that bit more safe from unpredicted plunges in price.
Depending on the broker, you can buy Nano with a bank account, a credit card, or some other cryptocurrency supported by the exchange.
That’s it. Congrats, you’re now a proud owner of Nano!
Best Crypto Exchanges for Nano
Apart from Nano, Kraken offers more than 50 types of staking capabilities, futures trading, altcoins and tokens.
This crypto exchange relies on a maker-taker fee difference, which is good news as it results in generally lower average fees when compared to flat exchange rates.
On top of the wide variety of crypto goodies, Kraken goes out of the way to provide customizability in ordering platforms and mobile apps.
This increased integration with its digital surroundings and day traders indicates that Kraken caters both to seasoned veterans and fresh traders who are just learning the ropes in the crypto market.
Crypto.com is almost a standalone crypto industry on its own with its full-suite offer that includes every little service that the average day trader can think of.
This company has at its (and your) disposal a dedicated app, Visa Card, DeFi Wallet, DeFi Swap, DeFi Earn, staking, lending, price checking… and many other features.
But this is not the primary thing it is known for.
What sets Crypto.com apart is its praise-winning combination of very low fees and attractive rewards programs for users who sign up as well as the “old faces” on the exchange.
A classic on the crypto exchange scene, Binance is already a well-known contender on the “top exchanges” lists.
It boasts lower exchange fees than most of its contenders and high liquidity rates which means that the chances that you will end up stuck with no way to cash in your funds are pretty unlikely.
While buying Nano in the U.S. can sometimes get tricky, Binance is the crypto exchange that is recommended as the one to be used by U.S. residents to buy Nano.
Best Crypto Wallets for Nano
Hardware Version – Ledger
We have mentioned that buying a crypto wallet is an optional but recommended step in the whole process of buying Nano.
Without a crypto wallet, your digital funds’ liquidity will be greatly reduced. But what’s with the hardware wallet thing?
Well, hardware crypto wallets come in a physical shape and form and represent a much more secure option as the funds are stored offline and would require a physical breach, rendering hackers unable to commit harm to your portfolio as long as the wallet is with you.
Ledger Nano X, the newest edition of Ledger hardware crypto wallets, is the best hardware wallet for storing Nano cryptocoins.
The Ledger company has a legacy of relying on innovative technology and striving towards universal accessibility for a great number of cryptocurrencies.
This reputation still remains, and this is recognized by the big and loyal community that has formed around it. There should be no mistakes if you decide to opt for Ledger.
Software Version – Trust Wallet
Unlike hardware wallets, software wallets depend on the cloud storage system and remain more vulnerable to hackers due to being online 24/7, but that makes them a bit more accessible as far as carrying the hardware wallet with you requires, well, that you carry the hardware wallet with you, duh.
As with the exchanges, a lot of conventional “top-tier” wallets do not yet support Nano. Trust Wallet, on the other hand, can hold multiple cryptocurrencies, has a simple and quick setup process, and even allows staking the funds at profitable interest rates.
Trust Wallet is available for both Android and iOS.
Trading and/or Selling Nano
If you’re looking to exchange Nano for other cryptocurrencies at this moment, it has to be said that this process requires some thinking in advance and maneuvering in order to be successfully achieved.
As Nano still lacks widespread listing on some of the more popular exchanges, transferring Nano most of the time requires exchanging it through another digital currency first, e.g. Uniswap or Ethereum.
Buying Nano through normal means is allowed by some brokerages, but selling it requires additional transfers and transformations almost as a rule of thumb.
Beware of additional fees and exchange rates!
Finally, what can the final verdict be for such a conflicted cryptocurrency such as Nano?
On one hand, it shows every symptom of being the cryptocurrency of the future with low energy maintenance costs and a much more efficient and quicker transaction process.
On the other hand, its muddy past and bad memories in the minds of many who invested in it before the big hacking attack ensure that this potential has a hard time coming to the surface.
It is, as always, up to you as the day trader to decide what’s your guess on the future of Nano.