As the stock market reaches a peak in public interest, some developers will utilize blockchain technology to predict market movements. Enter Numeraire (NMR), a cryptocurrency project that provides developers with access to hedge fund-level data to bet on the market.
Thinking about adding NMR to your portfolio? Read our guide for beginners before investing.
What is Numeraire?
Numeraire (NMR) is an ERC-20 token. ERC-20 tokens are projects built on the Ethereum network which use Ethereum’s blockchain technology to execute operations. Similar to other cryptocurrency projects operating on their own blockchain (like Bitcoin and Litecoin), ERC-20 tokens represent value and can trade on major exchanges like Coinbase and Kraken. You can store ERC-20 tokens nearly anywhere you can store Ether. Other examples of ERC-20 tokens include Chainlink (LINK), Uniswap (UNI), Basic Attention Token (BAT) and countless other projects.
Brief History of Numeraire
Numeraire (NMR) is a cryptocurrency project from the hedge fund company Numerai that encourages programmers to create artificial intelligence programs that can invest in worldwide stock market exchanges based on pre-set parameters. To build these programs, Numerai offers users access to hedge fund-quality data. Users can stake their Numeraire tokens on weekly stock market outcomes. If predictions and AI programs are successful, the developers gain back more NMR tokens as a reward. These tokens can then convert back to fiat currency or a stablecoin of your choice.
NMR was introduced to the market in June 2017. The NMR token currently has a total market capitalization of more than $127 million and it’s currently the 129th cryptocurrency project when measured by total market cap.
How to Buy Numeraire (NMR)
- Open an online account.
The easiest way to invest in most types of cryptocurrency is to create a brokerage account with a crypto broker that supports NMR trading. It’s now easier than ever before to get started with a crypto broker. Some of the factors you might want to consider when you choose a broker might include:
Pricing: Most cryptocurrency brokers charge a per-trade or percentage commission each time you place a buy or sell order. These fees can quickly cut into your profits, especially if you’re a frequent investor. Check the commission and fee rates of each broker you’re thinking about working with before you sign up for an account.
Trading platform: Your cryptocurrency broker will provide you with a trading platform that you can use to place buy and sell orders, learn more about the market and explore investment opportunities. The type of trading platform that you’ll have access to will vary depending on the broker you choose. Some brokers focus on offering simple platforms for new investors, while others appeal to more advanced users with a wider range of analysis tools. Choose a broker with a trading platform that’s in line with your skill level and needs.
Other cryptocurrencies available to trade: If you’re only interested in buying and selling Numeraire, other cryptocurrencies might not be a high priority on your list of needs. However, if you’re looking to invest in multiple crypto projects, you’ll want to find a broker that offers inclusive access to the investments that you’re interested in. Check each broker’s list of supported coins and tokens before you choose where to open your account.
- Buy a wallet (optional).
If you plan on holding your NMR for a long period of time, you should open an off-chain crypto wallet. A private cryptocurrency wallet keeps your investment safer by ensuring that hackers won’t gain access to your coins or tokens in the event that your broker is targeted for theft. There are 2 major types of cryptocurrency wallets: online software wallets and offline hardware wallets. Both wallet options offer their own unique benefits and drawbacks.
- Make your purchase.
Once your account is open and you know how you want to store your tokens, you can place your order to purchase NMR. Though the specific process you’ll go through will vary by broker, here are the general steps you can expect to go through when you buy any cryptocurrency.
Step 1: Fund your account. Before you can place an order, be sure that your account is funded or that you’ve linked an accepted payment method.
Step 2: Take a look at the current price of NMR. Look at the current market price of NMR before you place your order. You might want to monitor how the price of NMR changes over time to decide on the best time to buy in.
Step 3: Place your order. Choose an entry point and place your order using your brokerage platform. After you have an idea of how much you’re willing to pay for each NMR you invest in, you can select your order type. The types of orders offered will vary depending on your broker. You might want to research some of the most common order types before you place your buy order.
Step 4: Execute your order. After submitting your order, your broker will fill the order according to your specifications. When your order is filled, your broker will deduct any fees or commissions and deposit the remainder of your investment into your exchange wallet.
Best Cryptocurrency Exchanges
If you aren’t sure where to start your search, consider a few of our favorite crypto brokers using the table below.
Best Crypto Wallets
Consider our favorite hardware and software wallet options compatible with the NMR token.
Best Hardware Wallet: SafePal S1
The SafePal S1 cryptocurrency wallet is an affordable yet comprehensive offline wallet that safely stores your tokens where hackers can’t access them. You can add and manage up to 10,000 individual cryptocurrencies, including all types of ERC-20 tokens. The SafePal S1 is embedded with EAL 5+ secure elements, which ensures that only you have access to your investments. In addition to offline storage, you can also connect to the SafePal app to view and manage your tokens on the go. With a sub-$50 price point and complete compatibility, the SafePal S1 offers investors an easy choice for ERC-20 storage.
Best Software Wallet: Coinbase Wallet
Though you might already be familiar with Coinbase, one of the largest online cryptocurrency exchanges based in the United States, you may not yet be using Coinbase’s off-exchange wallet.
Use the Coinbase Wallet to quickly transfer coins and tokens from your wallet and to other users with only their Coinbase Wallet username.
This allows you to pay your friends and split bills almost instantly using cryptocurrency. You can even access decentralized exchanges like Uniswap directly through your wallet.
The Coinbase Wallet supports Bitcoin, Ethereum and all ERC-20 tokens. The app is available as a free download for both Android and iOS devices.
The intersection of blockchain technology and stock market modeling may raise the price of Numeraire as the market undergoes intense volatility. Numeraire may gain more attention as investors recover from the current stock frenzy.
Trade or Sell Your Cryptocurrency
Once your broker fills your order, you’ll need to decide how you want to earn a return on your NMR investment. While you can stake NMR, you don’t need to be a programmer to see a profit on your trade. Most investors who don’t stake their NMR become day traders (selling your cryptocurrency in accordance with daily price movements) or long-term holders (holding your NMR and selling it only once when you’ve earned a significant profit). The best investing strategy for you will vary depending on your personal preferences and the amount of time that you want to spend each day doing research.
Current Crypto Prices
The cryptocurrency market is exceptionally volatile, and the price you’ll pay for each NMR can vary depending on the price of how major cryptocurrencies like Bitcoin and Ethereum move. Browse today’s top crypto market movers with our table below.
Should You Invest in NMR?
The realm of cryptocurrency investing is coming to the forefront of a number of industries, ranging from banking to gaming. If a project like Numeraire stands out to you and you believe in the team’s potential, don’t be afraid to invest for the future. However, it’s important to remember that the cryptocurrency market is still highly unregulated and the price of any asset can drop by a large percentage at any moment. View cryptocurrencies as a complement to long-term, safe investments — not a replacement for your 401(k) or Roth IRA.
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