Overview, Preparations, and Precautions
This overview is to help you find your way through the crypto-currency exchange process. This overview only provides you with the main landmarks, as well as comments on how to maintain the security of your data. Remember that there is a lot of current information available via search from the many forums on these subjects.
Nxt uses a concept called “brain wallet”. The user gains control of their account by using a passphrase. This passphrase must be memorized, but when signing up to Nxt, we recommend that you use a pencil and paper to write down exactly the passphrase until you memorize it. It may be possible to create your own passphrase but then you have to be ready to use it when you sign up for the first time. You’ll also get an account number. Don’t forget the passphrase or the account number. If you do, your account will be lost forever!
Install app on your computer
Nxt will run on Windows, MacOS, Linux and Android. Once you’ve installed Nxt client on your computer, double click it to start it running. The video below runs through a Windows installation but in principal the other install procedures should be similar.
Running the Nxt client
The Nxt client is a very smooth interface but it may take a moment to start up – especially the first time you run the program. When it comes up, there will be a checkbox that indicates use the light version. For performance sake, you want to be sure the checkbox is checked so you will use the light version (it doesn’t download the entire blockchain onto your computer).
Next step is to go through the passphrase generation part of the installation. When it gives you the passphrase, write it down and don’t show it to anybody – it is the key to your account. After your passphrase is determined, you can go to the main Nxt interface.
You will be issued an account number – be sure to write this number down. The account number identifies the system as you, but without a passphrase, you can only look at the user interface. You need the passphrase to transfer funds.
Using the Nxt client is easy. If you are familiar with on-line banking, using Nxt is a similar experience – except you are working with different currencies. Nxt has an exchange platform that allows you to exchange your TreeCoins or Nxt, into Bitcoin or other crypto currency. You can of course exchange your crypto currency into cash sent to your bank or Paypal account.
Working with Nxt
The next phase is to learn how to buy Nxt, and how to transfer or exchange Nxt to different accounts on the Nxt system. Buying Nxt means going to a 3rd party exchange website to purchase the Nxt. Then, from within the ESI client, you buy TreeCoins with Nxt.
It is likely that you will have to generate a private key before you can transfer funds. Go through the steps to create on from the Nxt interface. Once it is generated, it is, like the passphrase – private. Your passphrase and your private key are ultimately the two items you need to keep safe and private.
Also, you will be given a public key. The public key is a string of symbols that identify to others that they are dealing with YOU. The public key can and should be published as freely as necessary.
Buying Nxt using the Exchanges
The most convenient way to buy NXT coin starting is from Bitcoin or USD/fiat. The following is a partial list of exchange sites. At these sites, you can purchase Nxt using a credit card, PayPal, or Bitcoin. LiteBit accepts Euros. Of course, we are unable to vouch for the reliability or quality of these 3rd party exchanges.
Once you have finished using the exchange website to purchase Nxt, to go to the second part of this tutorial, the post named, How to buy Tree Coins with Nxt.