An introduction to the NEX protocol and its features
Cryptocurrency is on all investors’ minds these days, and it’s easy to see why. The prices of many coins have heavily surged over the last years, making cryptocurrencies one of the best-performing asset classes of the previous decade. Cryptocurrencies are also more transparent than many other investments. The blockchain technology behind them allows anyone to look at every transaction made and see how much money was moved around, where it went, and who made it happen.
Now is a great time to get in on the action. However, knowing where to start can take a lot of work with so many coins available. Moreover, you will not be able to invest in cryptocurrency like you could with the stock market using ETF index funds.
If you have ever tried to make money by gambling, you will know that the odds are against you. If you are betting on something like stocks or bonds, then there is a chance that you can turn your investments into something valuable. When it comes to cryptocurrency, you are essentially investing in several assets at once: some might be worth money (or might not), and some might be worth less than nothing (or might not).
Furthermore, if you buy and hold some cryptocurrencies on the Centralized Exchange where you have bought them, you do not own these assets, as the saying goes: Not Your Keys, Not Your Coins. Letting someone else hold your crypto could turn out to be the worst investment decision of your life. Several Centralized Exchanges have been hacked or declared insolvent, making investors lose all their assets.
You might get discouraged by reading this article and start to think about not approaching the crypto market anymore.
But what if there was an opportunity to invest in the underbelly of cryptocurrencies easily and safely? What if you could invest in some of the most promising companies chasing blockchain technology rather than just trying to buy some tokens hoping they will work out?
That is what we are doing at NEX. The NEX protocol is creating a new way for amateur and experienced investors to approach the crypto market.
What is the NEX protocol?
NEX is the first exchange to give investors access to indices powered by in-house built oracles to invest in cryptocurrencies, commodities, combination of assets, and various other assets.
Every investor in the crypto world will be able to purchase and own, on their decentralized wallet, a wide variety of tradable indices. Examples include baskets of crypto categories, luxury assets, commodities, and economic forecasts.
Eventually, traders will be able to leverage these positions as well. Thus, NEX offers a safe and exciting environment for both beginner and advanced traders, with the added benefit of a unique, multi-tiered approach that sets us apart from other competitors in the crypto industry.
Every Smart contract is a “closed garden” requiring no external input to function as intended. Each Smart contract has restricted availability to be upgraded, limited rights to the owners, and limited capability to modify critical variables. Even if someone were to steal Nex Labs’ private key(s) and become the owner, they would only be able to earn protocol fees from a single pair until users decide to exit the contract. Additionally, various on-chain verifiable code has been added to guarantee that users’ funds are backed 1:1 and can be withdrawn at any time without any possibility of being controlled by anyone but the user themselves.
With this solution, users no longer need to worry about common obstacles such as low liquidity, high fees, and high purchase costs or spend time tracking the latest market developments and being exposed to high volatility. Users can easily access a wider range of investment opportunities without worrying about the costs or complexities typically associated with these types of assets. Instead, they can feel confident that their funds are safe, accessible, and well-protected against potential risks.
This first article serves as an introduction to the NEX exchange. The upcoming articles will dig more deeply into the protocol and its features.
