Read our beginner’s guide to buying, selling and storing GXS tokens in Australia.
With a decentralised data exchange platform and a public blockchain for developers, GXChain is designed to allow the secure and anonymous exchange of data. Its platform supports the development of all kinds of apps and aims to offer the capability to process 100,000 transactions per second.
GXShares (GXS) is the name of GXChain’s utility token and is the only form of payment for using applications in the GXChain ecosystem. For more information on what GXS is, how it works and how to buy, keep reading.
Where to buy GXS
You can buy GXS on the following crypto exchanges:
Quick guide to buying GXChain (GXS)
Here’s an example of the process for purchasing GXS with BTC or ETH on the Binance exchange:
- Register for an account with Binance.
- Enable 2-factor authentication.
- Click on “Funds” and select “Deposits”.
- Select the currency you want to deposit.
- Copy the wallet address or scan the QR code.
- Transfer BTC or ETH into your account.
- Click “Exchange” and select “Basic”.
- Search for the pair you want to trade, such as “GXS/ETH”.
- Select a Limit, Market or Stop-Limit Order.
- Enter the amount of GXS you want to buy.
- Review transaction details.
- Click “Buy GXS”.
A step-by-step guide to buying GXS
For detailed instructions on how to buy GXS, check out the guide below:
Step 1. Register for an account on an exchange that lists GXS
Review and compare a range of exchanges that list GXS in one or more trading pairs. Once you’ve found a platform that’s right for you, register for an account by providing your email address and creating a password.
Depending on the exchange you choose, you may also need to supply a range of personal details and proof of ID before you’ll be allowed to trade. This information is required to satisfy Know Your Customer and Anti-Money Laundering (KYC/AML) regulations.
Don’t forget to also enable 2-factor authentication before depositing any funds into your account.
Step 2. Deposit funds into your account
As it’s currently not possible to buy GXS directly with Australian dollars, you’ll need to deposit another digital currency that’s listed in a trading pair with GXS – bitcoin (BTC) and ether (ETH) are the two most popular options. If you need advice on how to acquire either of these currencies, check out our how to buy BTC and how to buy ETH guides.
If you purchase BTC or ETH on the same exchange where you want to buy GXS, you’re ready to move on to step 3. If your BTC or ETH are stored in a separate wallet, you’ll need to transfer them into your exchange account. For example, if you’re using Binance, you’ll need to click on “Funds” and select “Deposits”, before selecting the currency you want to deposit. You can then copy the wallet address or scan the QR code before transferring your funds.
Step 3. Buy GXS
The final part of the process is to navigate through to the trading page on your chosen exchange, search for the currency pair you want to trade and enter the details of your transaction.
For example, Binance users will need to click “Exchange” from the menu at the top of screen and select either the “Basic” or “Advanced” view. Next, search for the pair you want to trade, such as “GXS/ETH”, and select whether you want to place a Limit, Market or Stop-Limit Order.
You can then enter the amount of GXS you want to buy or the amount of ETH you want to spend. Remember to review all the details of your transaction, including its total cost, before you click “Buy GXS”.
How to sell GXS
If you want to sell any GXS, the process you’ll need to follow is essentially the same as that outlined in step 3. However, make sure you enter your transaction details in the “Sell GXS” tab and that you once again review the specifics of your order before submitting.
Don’t forget that GXS is only listed in pairs alongside a handful of coins and tokens, so you may not be able to exchange it immediately for the currency you want.
Which wallets can I use to hold GXS?
While you can store your GXS in an exchange wallet if you wish, most crypto users recommend moving your tokens into a secure wallet that lets you control the private keys. This will help you avoid the security risks that plague online crypto exchanges.
The official GXChain wallet is available for download to Windows, Mac and Linux desktop operating systems, as well as Android and iOS smartphones and tablets. If you want an online wallet, you can find the official GXS web wallet.
Learn more about holding your cryptocurrency in our guide to wallets.
How GXChain works
Founded in 2016 by Chinese blockchain firm GXB (Hangzhou CunXin Data Technology Co., Ltd), GXChain is a public blockchain for data exchange. The aim of the project is to create a decentralised platform where data can circulate freely and efficiently, providing convenient real-time access to big data while at the same time protecting the privacy of individual users.
The platform is designed to meet the needs of governments, financial institutions, healthcare providers and any other business with a high level of demand for data exchange. GXChain also supports the development of decentralised apps, smart contracts and blockchain as a service applications.
There’s also a mobile app, Blockcity, based on GXChain. Designed to assist data management and sharing, the app provides a range of incentives to encourage users to authorise their identity and information, allowing them to take control of their data.
From a technical point of view, GXChain uses a delegated proof of stake (DPoS) consensus algorithm which allows it to process up to 100,000 transactions per second. Blocks are generated every 3 seconds. A proof of credit share(PoCS) algorithm, designed to solve imbalances during the exchange of data between big companies and small companies, is used for data exchange consensus.
What to consider if buying GXS
Cryptocurrencies aren’t just volatile, they’re also highly complicated and risky purchases. There are multiple factors that can play a part in determining the price of any coin or token, so it’s essential that you thoroughly consider all those factors before buying any digital currency.
With this in mind, if you’re thinking of buying any GXS, take the following into account:
- Supply. The maximum supply of GXShares is capped at 100 million. According to CoinMarketCap, as of June 2018 there are 60 million GXS in circulation.
- Distribution. The 100 million GXS tokens are distributed as follows:
- ICO: 24,510,000
- Private equity: 10,000,000
- Blockcity mining pool: 5,000,000
- Community developer support: 9,490,000
- GXS Foundation: 51,000,000
- GXS Foundation tokens. The 51 million tokens held by GXS Foundation Ltd were frozen at the time of the 2017 ICO, with 6 million to be unlocked after the first year. Starting from the second year, 5 million tokens will be unfrozen each year, with this reserve of funds used for hiring, consulting, business development and marketing activities.
- Use. A utility token, GXS is required to pay for using applications in the GXChain ecosystem. The GXChain whitepaper lists a number of uses for GXS, including:
- Mining rewards in the Blockcity dapp
- An incentive for users to finish quests and tasks in the Blockcity dapp
- A reward for contributions to the GXChain community, such as a bug bounty program
- The ballot for voting for witnesses, who are in charge of mining on GXChain
- Fees for peer-to-peer data transactions
- Fees for using services at Blockcity
- Fees for using GXChain blockchain as a service (BaaS)
- A payment method for using/buying applications on GXChain
- Fees for developer registration
- Whitepaper. For more information on the tech behind GXChain and what the platform is designed to provide, check out the GXChain whitepaper.
Consider these factors and do your own research to decide whether or not you should buy any GXS.
Image: Shutterstock
At the time of writing, the author holds IOTA and XLM.
