3 Interesting Investments Using the NXT Asset Exchange

The NXT Asset Exchange is a peer to peer trading environment built on the 'Bitcoin 2.0' crypto currency and payment protocol called NXT. The Asset Exchange itself, or AE for short, can be accessed from the NXT wallet. If you would like to explore and take advantage of the investment opportunities available to traders on the AE, then you will need to get yourself some NXT coins to use for purchasing assets and paying the 1 NXT transaction fee that must be paid whenever you place or fill an offer.

Assets traded on the AE can vary greatly from financial instruments designed to track the value of external assets such as precious metals or even popular stocks, to virtual shares in businesses which are being set up to use NXT in some way (and even some other types of business just looking for funding) to prediction markets and investment funds. If you are completely new to using the AE then please take a few moments to take a look through this beginner's guide to the NXT AE to familiarize yourself with how to use this innovating trading platform.

When you are looking at the various different assets available on the AE you must be very careful to research the background of the person or company issuing that asset as well as the asset itself. Some things to look for include an individual with an established reputation within the NXT community – you can check for this by visiting the official NXT forum, and a good quality professional website with full contact details and information about where the company behind it is registered. This is very important because all you need to do in order to issue an asset through the AE is to pay a fee – meaning that it is easy for scammers to use this platform for conning people out of their money.

In this article I will introduce you to three interesting investment opportunities which are currently available through the Asset Exchange. I've tried to pick three quite different opportunities so as to be able to appeal to the widest possible range of investors. Although I have done my own research and am confident that these are genuine opportunities, I would still advise you to do the same before parting with any of your hard earned money.

1 – A Low Risk Investment Using Hedging

OK, so if I am being entirely honest then I have to say it is impossible to described any investment which has anything at all to do with crypto currency as being 'low risk'. But relatively speaking, this is certainly one of the lowest risk investment opportunities within this space because it offers a strong hedge to owning NXT coins.

The asset itself is named NxtBTC001N, which I know doesn't sound very catchy but please bear with me. NxtBTC001N is part of a prediction market run by WhatsNXT, who also run other prediction markets. The idea is that for each market two assets are issued, in this case NxtBTC001Y and NxtBTC001N. These two assets reflect investors' opinions on whether the price of NXT coins will hit 0.001 BTC at any time prior to December 1st. Each one of the two is priced between 0 and 100 and the two prices are inversely correlated. Anyone who thinks that the price will reach the target level during the specified time period will buy the asset ending in Y, driving up its price and the price of the N asset down. Of course the opposite is also the case. When the time period expires the 'winning' side will be paid bought out by the issuer at 100 per unit, whilst the losing side will see their assets drop to a value of 0.

The target price of 0.001 BTC is not all that far off 10 times the current price, and the cost of purchasing the N asset to bet that the target price will not be met is 67.5. That means that you will get almost 50% profit of the target price is not met. This presents an excellent opportunity to buy NXT coins and then bet against this dramatic price rise using this financial instrument to hedge your position. If you spent 80% of your purchased coins on this hedging tool you would still almost double your investment if the target price was met by simply selling your remaining 20% at that high price. On the other side of the equation, if win on the hedge you will end up with around 20% more coins, meaning that a stagnant price or even a drop in value of up to around 18% would still leave you in profit. And then of course there is the best case scenario – the price could rise, but not by enough for you to loose your hedge, meaning that you could enjoy a double profit on your initial investment!

The asset ID which you will need to use to trade this instrument from within your wallet is 5751857328117139918.

2 - Lith: Investing in an Interesting Venture

In my opinion one of the most enjoyable ways to invest your money using the AE is to buy virtual shares in upcoming projects and start up companies within the NXT ecosystem which require capital to get started or to take their business to the next level. Unlike traditional shares these virtual shares do not confer any kind of ownership over the business itself, but they do confer the rights to a certain proportion of the company's profits, which are paid out to shareholders in the form of regular dividends. If you want to take this approach then it is important to recognize that you are making a long term investment; Most of the projects that you can choose to help finance like this will not see any revenue for at least a few months if not a year or longer, and in some cases may not start paying out dividends for even longer. Having said that, there is plenty of opportunity for a healthy return on your investment. The cost of listing these shares through the AE is much lower than other forms of finance meaning that a greater share of the profits can be passed on. If you own NXT coins as an investment too, then this kind of thing is also a great way to help boost the ecosystem of services surrounding the coin which ultimately helps to improve its value.

One of my favourite projects with an Asset on the AE is DORCS. The DORCS company is currently developing a massive multiplayer online (MMO) game called Lith. Lith will be the first MMO game to fully integrate crypto currency into its in-game economy. That means that not only will you be able to buy in-game items using NXT coins, you will also be able to sell items or services and earn NXT coins by playing the game. The game itself is described as a 'sandbox' style game, meaning that players will have a great deal of control over the direction of gameplay as well as over creating the game environment. Lith will feature a 'player driven economy' in which resources and items are traded for an in-game currency which can always be converted back to NXT coins, and players will be able to choose between roles such as trader, farmer, warrior, con artists, adventurer and more to develop their character and its attributes. The style of the game is described as 'rural fantasy'.

Some artwork and fragments of story lines have already been released through a dedicated section of the NXT forum, and have generated a good amount of interest from both potential players and investors.

The AE id for this asset is 2318361924203311027

3 - Trading Bot Dividends

Perhaps less interesting but potentially more profitable is the STORMWIND asset, which has been launched by a company called Hybrid Assets. This company specialises in creating trading bots for decentralized exchanges such as the NXT AE, Counterparty, and others.

The asset promises monthly dividends and constantly increasing range of assets traded by its intelligent bots.

The AE ID you need for this one is 2112610727280991058.

Categories: Investing | E-Currency | Cryptocurrency

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