Step-by-Step Guide: How to Mine NXT
What is NXT?
NXT is a blockchain platform which has the aim of improving on pioneering blockchains such as Bitcoin. Through the use of their cryptocurrency called NXT, they aim to change the way financial technology, crowdfunding, and governance work.
As it is a fully pre-mined cryptocurrency, many wonder how can you actually mine NXT the “miners” actually receive the block rewards derived from the total sum collected by the platform (generated from fees).
The process of “forging” NXT, as it is called, charges a certain fee for every transaction that is carried out. The minimal fee is usually under 1 NXT.
All your transactions will have to be registered in order for you to receive the coins you earn through mining. When mining consistent with a Proof of Stake protocol, this means that you make coins by staking the ones that you already own.
Step 1: Create an NXT Wallet
Before you start mining, you first need to register an NXT wallet. In for this, you should access the NXT official website, state what operating system your PC runs on and download the latest software version available for your system.
Step 2: Install the software in the language and folder of your choice. The process shouldn’t last long. Wait for the installation process to reach completion.
Step 3: Now you must open the NXT server and create your account. The NXT software will create a seed that you’ll be able to use to backup your account if necessary as well as use it to log in on a different device. Be sure to save this special key in a safe place. When you click next you will also be asked to provide the seed.
If you followed these steps accordingly, you should now have your very own NXT account. The platform has several useful features aside from those needed for forging, and when you have the time you should definitely go explore them.
Step 4: Fund your account. Since this crypto uses a Proof of Stake algorithm, the more coins you have in your wallet, the more cons you will generate.
To send coins from your wallet address to your account on the NXT server you can use either Shapeshift or any other exchange you prefer.
The funds should be credited to your account after this, but you still won’t be able to mine coins yet. Before you can stake your NXT, you have to meet a few requirements:
- You must have at least a total of 1000 NXT in your account.
- You have to wait for 1,400 blocks from your initial deposit before you will be allowed to stake your coins.
- You have to own a public key.
To be able to mine you actually have to meet just two of the three requirements. The first one that has to be followed is that you have to wait for 1400 blocks. This requirement cannot be avoided, all that you can do is wait. Once this is fulfilled, you can start creating a public address. This can be done easily by sending an outgoing transaction.
Keep in mind that there is a fee to pay for each transaction that you make. One NXT will suffice for the creation of a public address.
Step 5: Start an outgoing transaction so that it will generate a public key. Hit the “Send NXT” button and provide the required information. Since we do not want to be wasteful with our NXT tokens, we will send 1 NXT along with 1 NXT for the transactional fee to the exchange account used for our wallet’s funding.
Step 6: Send your NXT and wait for the transaction to be finished. Before you can begin mining your coins, you will have to receive 1440 confirmations (on your first incoming transaction executed in order to generate the public key and the most recent outgoing transaction).
Step 7: Once the transaction has been confirmed, click on the “Not Forging” button. Now enter your passphrase and click on the “Start Forging” button. That is all that you need to start the mining process.
If you do not know if the process was successful or not, then just run it, check the button in the upper left corner of your server and see if its green or red.
To see just how many coins you’ve forged, go to the Account Ledger section that can be found under the Dashboard.
For those that do not have a lot of mining resources at their disposal, they can join mining pools, which combines and uses the individual hash power of more computers to generate coins.
There are several pools for mining NXT which you can join:
- org- can be used by scrypt miners and uses SHA- 256.
- org- Scrypt and SHA-256 NxtCoin mining pool.
If you want to calculate just how many NXT you can forge with your specific resources, there are a number of sites that you can use:
At the time of writing, NXT is traded at $0.067760 USD and has a market cap of $67,692,505 USD, according to data provided by CoinMarketCap.
If you’ve followed our simple instructions, you should be already on your way to forging NXT coins. If you have more coins in your portfolio that you can dispose of, why not put them to good use and make more NXT tokens. You can mine on a brand-new computer or an old PC, the only requirement is that you have your NXT server open.