Near protocol is a distributed application platform designed to make applications available on the web. The network operates on a proof of equity (POS) consensus mechanism called nightshade, which aims to provide scalability and stable fees.
Near’s goal is to make open finance accessible to all and promote the future of open networks through a fast, cheap, and user-friendly blockchain. The local utility token NEAR protocol (NEAR) is an integral part of the platform. This guide will show you how to purchase NEAR protocol (NEAR) for yourself.
Want more than just to buy NEAR? Access dozens of different cryptocurrencies buying guides 2022 here.
What is NEAR Protocol (NEAR)?
A Delegated Proof-of-Stake layer one blockchain, NEAR Protocol, is on a mission to create an ecosystem that is usable, scalable, and accessible to society at large. It was designed as a community-run cloud computing platform and has developed a number of features in an attempt to solve the problems which plague most blockchains: low transaction speeds, blockchain bloat, poor interoperability, inaccessible interfaces, and low throughput.
NEAR Protocol uses a type of sharding called Nightshade which, according to the company’s literature, can process 100,000 transactions per second (tps). Compared to Ethereum 1.0, which can only process 15tps, and blockchains like Bitcoin, which can only process 5tps-7tps, NEAR Protocol’s technology, if able to deliver in the long term, could be a gamechanger.
Unlike most blockchains, user experience appears to be a core part of NEAR Protocol’s strategy. Instead of having an opaque wallet address, participants have a human-readable name. This feature could make blockchain and crypto more accessible, and less confusing to non-tech people who want to get involved.
The mission of the NEAR Collective, as stated on the project’s website, is to create an ecosystem that is “secure enough to manage high-value assets like money or identity, and performant enough to make them useful for everyday people”.
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How Does NEAR Protocol (NEAR) Work?
Decentralized applications have boomed in the crypto community, with DApps that run the gamut from games to financial services. However, it has also become apparent that scalability remains a problem in most blockchains.
The issue of scalability is common among blockchains, especially among older ones such as Bitcoin and Ethereum. The challenges are mainly brought about by blockchains’ difficulty in handling large numbers of transactions at fast speeds and manageable costs.
Projects such as Near seek to address this issue by building an entirely new blockchain using a different architecture. Near’s solution to the problem was implementing sharding.
By using the sharding strategy, Near is able to break up the blockchain into smaller more manageable segments. This reduces the burden on the network by reducing computational load, resulting in an increased throughput of transactions.
As mentioned earlier, the Near protocol uses a PoS system. Nodes interested in becoming transaction validators stake their NEAR tokens to be considered for participation. Token holders may also delegate their stake to their chosen validator if they do not wish to operate a node.
Generally, validators with larger stakes hold more influence in the consensus process. Validators on Near are chosen via an auction system and are chosen at every epoch, typically a 12-hour interval.
Meanwhile, DApps can be built on Near, just like on Ethereum. This is made possible by Near’s cloud infrastructure, which combines serverless computing and decentralized data storage. Nea operates using hundreds of globally-located servers.
Why Buy NEAR Protocol (NEAR)?
It is important, when looking at predictions, to remember that while they can be helpful as an indicator of which direction the price may move, they should be viewed as possibilities rather than absolutes. This is especially the case when looking at long-term forecasts, as these can sometimes be completely off the mark, due to the inherent volatility of the crypto market and the many unknowns which could affect future prices.
NEAR’s mission is to give people control of their data, money, and the tools of governance. By purchasing NEAR tokens you can participate in the network as a validator, delegating your tokens to earn rewards via proof-of-stake, or by voting on network decisions through governance.
How to Buy NEAR Protocol (NEAR) in 4 Simple Steps
- Step 1: Decide where to buy NEAR Protocol (NEAR).
- Step 2: Think about how to store your NEAR Protocol (NEAR).
- Step 3: Make your purchase.
- Step 4: Manage your investment.
How to Buy NEAR Protocol (NEAR) on a Crypto Exchange
1. Coinbase
- Step 1. Create a Coinbase account
Download the Coinbase app and start the signup process. You will need a valid ID and may be asked for proof of address in order to transact, so be sure to have those ready. Verifying your ID may take longer than a few minutes, depending on where you live.
- Step 2. Add a payment method
Tap on the payment method box and connect a payment method. You can use a bank account, debit card or initiate a wire.
- Step 3. Start a trade
Press the button then select “Buy” from the list of options.
- Step 4. Select NEAR Protocol (NEAR) from the list of assets
Search for NEAR Protocol (NEAR) by typing “NEAR Protocol (NEAR)” into the search bar. When you see NEAR Protocol (NEAR) show up in the results, tap it to open up the purchase screen.
- Step 5. Enter the amount you want to buy
Use the number pad to input the amount you want to spend in your local currency. The app will automatically convert that into a NEAR Protocol (NEAR) amount.
- Step 6. Finalize your purchase
Tap “Preview buy” when ready. You’ll be shown the details of your purchase. Make sure everything looks good and then confirm your purchase. That’s it, you’ve bought NEAR Protocol (NEAR).
2. eToro
- Step 1: Find a crypto exchange or trading platform that offers NEAR Protocol (NEAR)
There are a number of exchanges that will let you trade your funds for NEAR Protocol (NEAR). One of them is the eToro trading platform.
- Step 2: Sign up
If you’d like to buy NEAR Protocol (NEAR) through eToro, all you need to do is sign up, verify your account and make a deposit. From there, you’ll be able to buy and sell NEAR Protocol (NEAR) easily.
- Step 3: Buy NEAR Protocol (NEAR)
NEAR Protocol (NEAR) can be purchased fractionally, so you don’t need to buy a full NEAR Protocol (NEAR) to own some. For example, if NEAR Protocol (NEAR)’s price is $10,000, you can purchase 0.1 NEAR Protocol (NEAR) for $1,000.
3. Bitfinex
- Step 1. Log in to your account or sign up to Bitfinex.
- Step 2. Go to Deposit, and choose Payment Cards.
- Step 3. Select the payment processors.
- Step 4. Choose the crypto and enter the amount.
- Step 5. Select the destination wallet and proceed to payment.
4. Binance
- Step 1: Create your Binance Account
Sign up with your email address or mobile phone number, and choose a strong password. Or, download the Binance crypto trading app from the App Store or Google Play store and open an account there.
- Step 2: Start Buying NEAR Protocol (NEAR)
There are two main ways to buy NEAR Protocol (NEAR) on Binance using cash: you can link your debit/credit card or bank account, or buy crypto directly from other users on Binance P2P.
Linking your debit card, credit card, or bank account (available in many regions) is one of the easiest ways to buy NEAR Protocol (NEAR). Through this method, you can buy NEAR Protocol (NEAR) for a minimum. (This amount varies depending on the currency you use.)
Buy NEAR Protocol (NEAR) directly from other Binance users with your local fiat currency via Binance P2P. Browse a variety of NEAR Protocol (NEAR) listings to shop the best offers on NEAR Protocol (NEAR) from other users. With thousands of merchants and hundreds of payment methods available, Binance P2P caters to many regions in the world right now.
5. KuCoin
- Step 1. Sign Up for KuCoin Account
- Step 2. Secure Your KuCoin Account
- Step 3. Verify Your Identity
- Step 4. Connect Your Account to Funds Fund Your Account
- Step 5. Start Trading on KuCoin
How to Buy NEAR Protocol (NEAR) With PayPal
- Step 1. Login to Paypal and Select Cryptocurrency
In Paypal website, you should see the option for cryptocurrency in the top right of the dashboard, next to ‘Send’ and ‘Request’.
- Step 2. Select ‘NEAR Protocol (NEAR)’
Or choose any of the other coins listed.
- Step 3. Select ‘Buy’
- Step 4. Choose How Much You Want to Buy
Enter a number of dollars you want to spend on NEAR Protocol (NEAR) or choose a pre-set amount below.
- Step 5. Select Payment Method
You likely already have your bank account linked to your Paypal account, but you can also hook up another method if you don’t want to use your bank account.
- Step 6. Hit the ‘Buy’ button
After finalizing your purchase, you will be taken to a confirmation screen and you should see your coins reflected in your Paypal account dashboard.
How to Buy NEAR Protocol (NEAR) With a Credit Card
Not all platforms will allow you to use a credit card to make your cryptocurrency purchases. If you do choose a platform allowing such transactions, keep in mind that there may be extra fees associated with the purchase. Many credit card companies process cryptocurrency purchases via credit card as cash advances, which can incur high interest rates, among other fees.
Some credit card companies allowing cardholders to make crypto purchases treat the purchases as a cash advance (cash advances usually involve a cardholder using a credit card to withdraw money from an ATM). This has several critical disadvantages.
- Cash Advance Fees: Some cards treat a cryptocurrency purchase as a cash advance. This means each crypto purchase is subject to a cash advance fee. A typical fee of either $10 or 5% (whichever is greater) would be charged. These fees are in addition to fees charged by the vendor or exchange.
- Cash Advance Interest Rates: Most cards have a higher Annual Percentage Rate (APR) for cash advances—often over 25%. This is a variable interest that changes with the market. Interest will start to accrue on the day the purchase is made and will continue to accrue until the credit is paid off. By comparison, cardholders have up to 25 days to pay off a regular credit card charge before accruing any interest.
- No Credit Toward Rewards or bonuses: Credit used to Purchase Crypto (and thus make a cash advance) typically doesn’t qualify for any purchase rewards nor toward spending that would normally apply to a welcome bonus.
- Lower Credit Limits: Cash advances often have a lower credit limit than the cardholder’s overall credit limit that applies to the card itself. Cardholders hoping to make big crypto buys may find themselves limited by the cash advance terms and limitations.
Read More: How to Sell NEAR Protocol (NEAR)?
Buying NEAR Protocol (NEAR) FAQs
What is a NEAR Protocol (NEAR) Wallet?
NEAR can be held in a wallet as a store of value, as a governance token, or for securing the network while earning staking rewards. NEAR can also be used in the protocol’s expanding ecosystem that includes some of the most exciting projects in crypto and Defi, such as Mintbase and Ref Finance.
Developers at the NEAR Protocol have developed a convenient wallet application for NEAR tokens. The wallet is an in-browser and web-based wallet that users can use the NEAR wallet to create and interact with other NEAR accounts. The wallet is also required to interact with the NEAR Protocol. The wallet is used to store the NEAR tokens and NEP21 token standards, which are supported on the NEAR blockchain. The wallet allows users to send or receive NEP21 and NEAR tokens and interact with applications on the protocol. While using the NEAR wallet, it is essential to remember the following information.
A key differentiator for NEAR accounts is that NEAR uses human readable accounts, and not a hash. So an account on NEAR would not read as 0x71C7656EC7ab88b098defB751B7401B5f6d8976F but as alice.near or bob.near. NEAR accounts can also create sub-accounts, but only the root account can create them. Another critical differentiator is that most blockchains have one public/private key pair for each account. On NEAR, accounts can have multiple key pairs associated with them. These are called “access keys.” Access keys are of two types, a full access key, and a functional call. A full access key grants the user complete control of their NEAR account. On the other hand, Functional call allows for non-monetary transaction signing.
Can You Sell NEAR Protocol (NEAR)?
You can sell NEAR Protocol (NEAR) on a cryptocurrency exchange like FTX. These specialised marketplaces that allow you to buy and sell cryptocurrencies, and work similar to stock trading platforms. Near is a smart contract blockchain platform, which competes with Ethereum 2.0 and is designed to be compatible with many of its features (including existing tokens and solidity contracts).
What is a NEAR Protocol (NEAR) Address?
The wallet address is essentially a sequence of characters or numbers or both that are used to send or receive tokens using the NEAR wallet.
As cryptocurrencies and blockchain technology became more popular, Bitcoin, Ethereum, and other networks started facing scalability challenges due to increased demand. The growing interest in decentralized applications and non-fungible tokens (NFTs) make these challenges particularly noticeable on the Ethereum blockchain. The network often faces increased gas prices and transaction costs due to heavy traffic, which can be discouraging for many users and developers.
While there are several teams exploring different scaling solutions for blockchain networks, the NEAR Protocol (NEAR) team is focused on addressing the limitations through sharding.
How to Accept NEAR Protocol (NEAR) Payments?
Near allows users to securely hire freelancers from all over the world without any worry about their ID or if they are safe due to blockchain technology being able to verify every transaction. On top of that, it offers up-front payment so that people can be sure they are hiring reliable individuals when there is low downtime between projects and emergencies will not interfere with payment methods.
The problems with the current system in the freelance industry are plentiful. These include censorship, a lack of professionalism, and fraud. The Near Protocol is a DApp platform that does not rely on centralized servers to function, which means no censorship and no data breaches. Furthermore, because the system is decentralized and hence not under the control of any institution, Near Protocol provides a better level of professionalism than traditional freelancing platforms. Additionally, the transaction cost in Near Protocol is low, which eliminates unnecessary fees and enables both clients and freelancers to get more value for their money.
