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HNT has grown quite popular nowadays, but there are still lots of questions surrounding it. Check out this article to know what HNT is and how you can buy them.
In the next five years, around 75 billion devices will be connected wirelessly via the internet. Right now, connecting all of them is a challenge. It is either very expensive to afford cellular data plans or too power prohibitive. This is where Helium comes in.
Helium offers wireless technology and secured blockchain to connect to the Internet of Things (IoT). Helium is considered as “The People’s Network” because it can be built and owned by anyone. You can create your own network with a helium hotspot or open store software and off-the-shelf hardware. These hotspots send low-bandwidth internet connections over a wide range using “Long-fi”; a wireless technology.
In exchange for creating this network and providing connectivity as a service, hotspots mine HNT, which is a new cryptocurrency on the helium blockchain. The Helium network is very lucrative for companies looking to hook up their devices over the Internet of Things.
What is HNT and How to Earn It?
The Helium Blockchain enables a two-sided market. On the supply side, the hotspot owners are given incentives for sharing a global wireless network. On the demand side, there are businesses and developers who want affordable and uninterrupted connectivity for their IoT devices.
In exchange for connectivity, the network providers are paid HNT. You can mine HNT using miners or buy a Bobcat HNT Miner.
HNT is the newest cryptocurrency on the Helium blockchain. Hotspots can earn HNT by transferring data to nearby devices. The more data they can transfer, the larger the reward they will receive.
Hotspots can earn HNT in another way as well. All it has to do is build a network and take part in the Proof of Coverage or POC. The Proof of Coverage is an algorithm that verifies all the hotspots’ availability and location.
There are potentially thousands of uses for the Helium network, such as vehicle and pet tracking, health care monitoring.
How to Buy HNT?
To set up your cryptocurrency exchange account, comply with the regulations of the Security and Exchange Commission (SEC). You will have to submit your photo, some personal documents, and social security number.
After that, you have to do the following steps to purchase HNT
1. Create an Account
You will have to open an account that supports the exchange. Now, if your IP address is based in the U.S. you can only use FTX Exchange or Binance.US to create your online account.
2. Purchase a Digital Wallet
Wallets are secure places to store cryptocurrency, and whether you are a long-term or a short-term investor, you should have your own wallet.
A cold storage wallet also gives you complete authority over your investments. However, hardware wallets are expensive and if you are not willing to pay that much money, try using a software wallet to protect your assets.
3. Start Buying
Once your account and wallet are up and running, you will have to link your bank account with your given exchange. Fund your account and head to the Helium page to place your order.
Currently, there are two types of orders, a market order, and a limit order. A market order is basically the order to buy or sell the currency at the current price at that moment. And in the limit order, you can set a price limit and if the asset reaches that limit, your orders will be filled.
Things to Consider When Buying HNT
They say cryptocurrency is the future, but there are still quite a few questions lurking about the authenticity of cryptocurrencies. Bitcoin seems to be the only one to gain worldwide recognition. Compared to that, HNT is completely new to the market, which increases the chances of risk and default. That is why it is necessary to consider some important factors before investing in them.
1. Continuous Supply
According to Helium’s website, the current maximum supply of HNT tokens is 223 million. The tokens were initially mined at 5 million each month, which would later be halved every two years.
Just now, in August 2021, Helium stated the net issuance of the HNT will be halved to 2.5 million tokens each month. The standard circulating supply of any cryptocurrency tokens is 60 to 150 million.
2. Hotspot Hosting
You have to host a hotspot and provide wireless connections to IoT devices in order to earn HNT tokens. The cost of hosting a hotspot is fairly cheap. According to Helium’s website, the cost of running a hotspot for one year is just about $5. And it only takes 10 minutes to deploy one.
Staking cryptocurrency enables holders to earn a higher annual percentage yield than money market funds or traditional savings. However, the HNT token currently cannot be staked. But analysts speculate that Helium will introduce staking to its validators soon.
3. Data Credits
To send data over the networks, devices must use data credits. These Data Credits are created by burning HNT and reducing the total supply. This results in a burn and mint equilibrium to balance the supply. The current price of Data Credit is fixed at a rate of $0.00001 USD. Data Credits are only to be used by the owners, as they are non-transferrable.
How to Sell HNT?
To sell your HNT tokens, you can simply go to Coingecko.com and type in HNT in the search bar. There you can check the current dollar value of HNT. If you scroll down, you will find exchanges that can trade HNT tokens.
If you are not in the U.S., you use “Binance” and if you are a resident of the U.S., use “Binance.US”. For selling, you will again have to go through a verification step. After that, go look up HNT on the site and enter it.
Now, click deposit and it will give you a link. Copy the link and go to the Helium app to paste the link and type in the number of tokens you want to sell.
Once you click okay, the amount will go through their blockchain into your digital wallet
There are two other things you can do with your HNT tokens instead of just selling them for cash. For instance, you can use your HNT tokens to buy another hotspot. You can also save them till Helium releases its validators notes.
Helium is targeting the wireless network market, which is very lucrative. The current dollar value of HNT stands at $21.81, which is great. Helium also has a first-mover advantage in the market, but that doesn’t mean it will survive in the long run. So, just like other investments, weigh down the pros and cons, gain market information and only then buy HNT tokens.