Buying Numeraire: how to invest in Numeraire (NMR)?
Cryptocurrencies are, as you probably know, extremely popular among investors. Therefore, many people find it a nice asset to invest in themselves. This is especially due to the fact that many projects offer high returns. One of the lesser known projects at the moment is Numeraire. Because of the potential of this project, more and more investors are choosing to invest in this digital currency. Are you also curious what Numeraire is and whether it is useful to invest in it? Be sure to read this article, because below you’ll find the most important information you could possibly need.
Where can you buy Numeraire (NMR)?
Numeraire is a promising cryptocurrency with an original approach. The coin is used to make scientific financial models available. The cryptocurrency should encourage scientists to share their findings, as they can now be financially rewarded for doing so. But how can you actually invest in Numeraire yourself?
Do you want to buy Numeraire for the long term and do you like to keep full control over the cryptocurrency? Then Bitvavo is a good option! At Bitvavo, you can buy crypto coins at unprecedentedly low transaction costs: you will never pay more than 0.25%. Moreover, you will not pay any fees at all on the first €1000. Use the button below to immediately open an account with Bitvavo:
How can you actively invest in Numeraire?
Cryptocurrencies such as Numeraire are constantly fluctuating in value. You can capitalize on this by opening CFD positions on both falling and rising prices. At Plus500, you can actively trade crypto coins using CFDs. The great thing is that you can try Plus500 with a demo, completely free & risk-free. Use the button below to open an instant account at Plus500:
What is Numeraire? – goal of the project
Before you can just start investing you need to know where you are putting your money. This is why it is important to look at the goal of the project behind Numeraire. Numeraire is a special type of digital currency created by the well-known hedge fund Numeraire. This project was created to encourage scientists to predict financial models using encrypted data provided to them. The company uses a mix of data science, machine learning, artificial intelligence and cryptography to achieve their goal. This is one of the few projects that really manages to address science.
Numeraire allows scientists to encrypt their data at all times, making it safer to download from another device. The data is then used by the scientists to create models that predict market movements. The models are created using a mix of machine learning algorithms and artificial intelligence. Numeraire pays the scientists with the top models in Bitcoin. However, they also pay out in the native ERC20 token Numeraire (NMR). This is the currency used on the platform itself. NMR is used by scientists to shape their models. Therefore, the token NMR actually has two different functions on the platform.
Establishment of the project
The special thing about this project is that it was created by a hedge fund company. The inventor behind the project is CEO Richard Craib. Together with Georey Bradway and Xander Dunn, he is part of the Board of Directors of the project. The cryptocurrency was launched about a year after the hedge fund. The goal was to overcome the challenges the project faced when operating on the Bitcoin network.
Craib came up with the idea while working as an asset manager in South Africa. While working there, he realized how the secrecy of companies with their data affected the quality of the financial models they made. He wanted to create a hedge fund that would distribute data to users who would use it to create different models. These models would then enable the company to draw up the best investment strategies.
How does Numeraire work?
The project behind Numeraire can certainly experience growth if it can help the different types of hedge funds to create strategies. But how exactly does Numeraire work? Numeraire holds a competition every week in which scientists gain access to updated data. They then use this to create their financial models and upload them onto the platform. The models are then tested on real-world markets for three weeks. The scientists who have done the best work are rewarded for their services. Since they are paid in Bitcoin, this can quickly add up.
The scientists are expected to stake a number of Numerical Tokens (NMR) on their models to prevent anyone from unfairly taking the prize. The scientists with the successful models get their NMR tokens back, as well as an additional Bitcoin pay-out. So, this can actually be seen as a kind of collateral placed to enter the contest. The Numeraire tokens placed on losing models are burned. Since there are only a limited number of Numeraire tokens, the price will increase by burning these coins. This way you can make a nice return on your investments in Numeraire.
Invest in Numeraire through an exchange
If you would like to invest in Numeraire, this is certainly possible as a beginner. Perhaps you will be able to book a nice return. Where can you go now to invest in Numeraire, you might wonder? The easiest way to invest in Numeraire yourself is via an exchange. This is a place that can be compared to a regular stock exchange, only then it concerns the trading of cryptocurrencies. Think of it as a place where supply and demand come together.
There are many crypto exchanges out there at the moment. If you choose a well-known exchange like Bitvavo, you too will be able to invest safely. After the purchase, it is possible to store your tokens or transfer them to your wallet.
Conclusion – should you invest in Numerical?
If, after reading this article, you think that Numeraire will experience a lot of growth, it may not be a bad idea to invest in the project yourself. The special technique certainly makes it a project to keep an eye on.
Now that there are many specialists who think that Numeraire could play an important role, it is certainly a good option to take. Of course, whether you should buy Numeraire is entirely dependent on your own personal attitude about the future of the crypto market. In any case, the information in this article has given you a better idea of the advantages Numeraire has to offer.