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Cryptocurrency is gaining popularity in the financial markets with new services and products with an already breathtaking decentralised model of Blockchain technology. The cryptocurrency was propounded by Satoshi Nakamoto in 2009 after the global financial crisis with the aim to provide an alternative of fiat currency without any interference of central entities. With over five thousands of cryptocurrencies and more than a hundred of exchanges, crypto space is getting diversified worldwide. With peer-to-peer exchange and consensus mechanism, cryptocurrency is gaining strength as the medium of exchange in everyday life. In this article, we are going to discuss one of the innovative digital currencies, Primecoin and will learn the way to buy and sell them.
Primecoin | Overview | Buy Primecoin
Primecoin is the digital currency but with a twist as it is based on the consensus mechanism of proof-of-work managed by scientific computing to verify, validate and update the transaction in Blockchain. Proof of work mechanism in Primecoin is dependent on the search of primary members contrary to other cryptocurrencies where participants connected to the network solve the complex algorithm as the consensus. But a slightly different technique deployed by Primecoin makes it more secure than other currencies and less prone to attacks like 51% attack, which results in manipulating the transaction. Similar to Bitcoins, it offers instant payments all across the world.
Features Of Primecoin | Buy Primecoin
Cunningham chain and bi-twin chains combine to make prime chains used in the scientific computing based Primecoin,which in a way improves the consensus mechanism. Some prime features of Primecoin are:
- Undefined supply of coins: unlike many altcoins like Ripple which have already announced the maximum supply of their coins, Primecoin have not announced it yet as the number of coins released per block equates to a quotient of 999 divided by the square of the difficulty. Thus, the number of coins depends on coins mined by the community and the adoption by the crypto community.
- Generally, the transaction takes 8-10 minutes to get verified and completed. The team behind Primecoin claims that it is faster than the transaction time of other cryptocurrencies as it is based on scientific computing.
- Pre-defined values in the source code of cryptocurrencies define their scarcity but in case of Primecoin, mathematical property governed by natural occurrence of prime chains in the set of whole numbers and simple function decides the scarcity of coins.
- It is a well-known fact that Bitcoin reassures the difficulty of algorithms after two weeks or mining of approximately 2016 blocks. But in the case of Primecoin, after the mining of each block, the difficulty level is adjusted to minimize the probabilities of the manipulation.
Guide To Buy Primecoin (XPM)
Unlike other cryptocurrencies, you cannot exchange your fiat directly on the crypto exchange to purchase Primecoin. Either you are using credit/debit cards, Paypal, known fiat currencies or bank transfers, you have to buy the other cryptocurrencies (BTC, ETH preferably) to ultimately add the Primecoin into your crypto wallet.
To own the Primecoin, you have to follow a process of two steps:
- Purchase the popular cryptocurrency like BTC or ETH from a known crypto exchange
- Transfer the bought cryptocurrency to the exchange where XPM is listed and can be easily swapped, which can be Poloniex, NovaExchange, Cryptopia, etc.
Step 1
To purchase cryptocurrency, you can either create your account or fiat to crypto (like Coinbase) or crypto to crypto (like Binance) crypto exchange. You can also purchase the coins from decentralised exchanges like Changelly, Shapeshift, etc or can buy the coins by peer-to-peer exchange with the help of platforms like Localbitcoins, etc.
In case, you choose the platform of crypto exchange, which is the most common one, you can find the option of “Deposit” on their site or app and can transfer the amount of funds you wish to invest in Primecoins. Then you need to mention the relevant public address of your crypto wallet and the number of coins will be added to it after you press the “send” button. Depending upon the platform, transaction fees, mode of transfer, and the few procedural steps can vary with the speed of transaction.
Step 2
Check your crypto wallet by verifying the transactional history if the coins have been transferred by the exchange. Then, you need to create the account where Primecoin has been mentioned in the list. You have to create the account on that platform by mentioning the few details and then proceed to the Deposit option.
Fill the amount or number of Primecoin you wish to purchase and mention the public address of your crypto wallet (preferably hardware wallet like Trezor, Ledger Nano, etc). Now complete the process by pressing the Send button. Wait for a few minutes, and then you can check your wallet if you have received the amount you have entered.
Guide To Sell Primecoin (XPM)
If you wish to sell Primecoin, you just need to reverse the buying process. XPM or Primecoin can be exchanged with another digital currency and to convert into fiat, it can further be exchanged against that fiat currency that supports the withdrawal of the cryptocurrency. Simply, you need to convert to a known currency like BTC, ETH, etc and send it to fiat-crypto exchange to convert into fiat cryptocurrency. Then, you can just swipe your card in the ATM and can receive the physical notes in your hand.
Summing Up
So, if you are planning to make your first investment to buy Primecoin and going to diversify your portfolio with this innovative cryptocurrency, you must take a note that you need to track your investment just like other cryptocurrencies in your portfolio. Though is based on scientific computing for consensus mechanism but ultimately meant for the mass adoption of digital assets.
Blockchain-based cryptocurrencies are meant to revolutionise the financial system and if some better techniques and methods are aiding them to successfully change the way the system works, then they will always be welcomed by the people all across the world. Thus, we should be ready with other innovations in crypto space which would be responsible for the acceleration of the crypto movement.
