What is NEO coin, how different is it from Bitcoin, and how can you buy Neo (NEO) in 2021? Read on to get the answers to these questions and more. We will also introduce you to the top platforms to buy NEO coins globally and give you a step-by-step guide that you can always use to invest in Neo.
Neo (NEO) is the native crypto coin of the NEO Network. The NEO network is a software system that supports its cryptocurrency and also provides a platform for people to create decentralized products and services and transact.
Despite NEO providing users with various features, including identity and file storage systems, its price is relatively low compared to other networks with many similar features like Ethereum. As of this writing, Neo’s value stood at $27.38, ranking the 43rd cryptocurrency according to CoinMarketCap. It is a massive drop from the January 2018 ATH of $196.85.
As China’s first-ever public blockchain, NEO could survive the Chinese authorities’ crackdown on cryptocurrencies. Our view is based on the fact that there are only 100 million Neo coins in existence, and no mining that could potentially disrupt the environment occurs. Besides, transaction validation happens under the proof of stake consensus algorithm.
Additionally, you get to learn Neo coin’s price history and the factors that influence its prices, not forgetting the pros and cons of the cryptocurrency.
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78.77% of retail cfd accounts lose money
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Find a reputable crypto exchange platform that can guarantee the safe custody of your coins. Confirm that the platform lists Neo and proceed to create a trader account. You don’t have to worry about the simple identity verification procedure the eToro will require. Comfortably provide the details for account verification.
Ideally, you need a platform that not only lists your coin but also provides real-time updates about the coin’s trends using advanced analysis tools. Here, eToro is highly recommended.
After successfully creating your trader account, you need to deposit some funds to acquire Neo coins. You can make a direct deposit using a cryptocurrency or use other methods like eWallets, such as Neteller, PayPal, Google Pay, Apple Pay, Skrill, Credit/Debit cards, or Bank transfers. Make sure your names appearing on the payment option you choose are similar to those on your trading account for the transaction to be successful.
Later in this article, we will be discussing the most popular payment methods, although the options available to you will primarily depend on the exchange you choose and your country of residence.
Most crypto exchanges support numerous crypto coins, so you need to find Neo from the list of supported coins and select the BUY option. Next, specify the amount you want to commit from your wallet to buying Neo coins.
The nature of the trade will mostly depend on your preferred trading platform. When buying NEO coins at an exchange, you will mostly only have access to actual coins. However, when trading through brokerages like eToro, you will have a chance to buy NEO CFDs with leverage (borrowed funds). In such a case, you can use relatively small trading capital to open significantly large trades.
The margin available to you will depend on the preferred exchange and country of residence. On eToro, this leverage starts from 2X the trading capital.
Neo is the native cryptocurrency of the NEO network, a blockchain project born in China in 2014. It was initially founded as AntShares by Chinese entrepreneurs Da Hongfei and Erik Zhang before rebranding to NEO in 2017.
After rebranding, the project’s focus shifted to creating a Smart Economy, and it was when Neo coin reached its all-time high in 2018. The network is often regarded as the Chinese Ethereum due to its similarities with the second-largest crypto, such as allowing users to create dApps using smart contracts.
Both the NEO blockchain project and the Neo token have often been used interchangeably because they share the name NEO. To some extent, this confuses readers.
According to the NEO official website, NEO is a non-profit community-based blockchain project running on the Neo blockchain. It leverages blockchain technology and digital identity to digitize traditional assets and automate their management using smart contracts. Its main goal is to provide a distributed network for a ‘Smart Economy.’
On the other hand, the Neo coin is one of the two cryptocurrencies supported by the NEO network. It is used for the network’s management purposes and can also be exchanged for other cryptocurrencies on exchanges. However, Neo has no significant use cases outside the NEO network. The other token on the network, Gas, is only used to pay for transactions within the Neo ecosystem.
Neo is designed to provide users with a ‘Smart Economy,’ and has set the programs to achieve this goal. The smart economy is a combination of digital assets, digital identity, and smart contracts. Simply put, it serves as a distributed network for the smart economy.
NEO blockchain allows the creation of digital alternatives of traditional assets by giving them digital identities. The assets become decentralized, and their management and transfers are automated via smart contracts. The smart contract technology also enables the Neo platform to support all kinds of decentralized applications. Users don’t need to learn a new coding language. The platform allows multiple programming languages, allowing it to accommodate developers across the industry.
The network offsets the need for intermediaries and their associated costs altogether, replacing them with trustless transactions at lower fees. Although transactions attract a fee in GAS, users may only have to incur the initial charges since Neo coins generate the platform’s utility token. Furthermore, once you acquire your Neo from an exchange, your coin holdings start generating GAS, covering your future transaction costs.
Neo coins, on their part, represent a share of the NEO network. Holders play a role in the network’s governance, and each coin depicts one vote on the ecosystem.
Both Neo and Bitcoin are cryptocurrencies based on blockchain technology and competing in the highly volatile crypto market. However, each has a set of features that set them apart and make the two appear to be complete opposites of each other.
From running on distinct blockchains with different functionalities, serving uncommon purposes, and varying transaction throughput, Neo and Bitcoin have no more similarities than just being cryptocurrencies. Here is a sneak peek into their key differences.
Both Bitcoin and Neo are powered by the popular blockchain technology, the decentralized public ledger network. However, there are different versions of blockchain technology, and each of these cryptocurrencies is powered by its blockchain version. For example, the Bitcoin network runs on the Bitcoin blockchain, while Neo exists on the NEO blockchain.
Transactions are usually verified and added to a block once a network of computers reaches an agreement about the transaction. Bitcoin uses the proof of work consensus algorithm, and its network of computers, the verifiers, are known as nodes. The nodes are responsible for Bitcoin transaction verification and the mining of new Bitcoins by solving complex mathematical puzzles. Transactions are verified once all the nodes are in agreement with the initiated transaction.
Neo, on the other hand, uses the Delegated Byzantine Fault Tolerance consensus algorithm to verify transactions. In this algorithm, the network of nodes is known as bookkeepers. They are responsible for transaction verification but do not mine Neo coins. Unlike Bitcoin, Neo has a fixed supply of 100 million coins, and no more will ever be created. Transactions on the NEO network are verified and broadcasted on the block when two-thirds of the bookkeepers agree.
Bitcoin faces scalability issues due to its mass adoption plus limited block size. As a result, there are more transactions than the network can comfortably handle and maintain the speed. As a result, users have to pay high fees and still experience slower transaction speeds. Today, the Bitcoin network accommodates about seven transactions per second.
As for Neo, the Delegated Byzantine Fault Tolerance (dBFT) algorithm guarantees the speed to handle up to 1000 transactions per second. It takes about 15 to 20 seconds to generate a block on the NEO blockchain but takes 10 minutes for Bitcoin. With the proper optimization in Neo’s upgrade, the network could hit up to 10,000 transactions per second.
Bitcoin is the native cryptocurrency of the Bitcoin network. It is the only token running on the Bitcoin blockchain and is the network’s utility token. The coin is divisible, which means a user can hold a denomination of less than 1 Bitcoin. The holders constitute the Bitcoin community, and each has one vote regardless of their coin holdings.
On the contrary, NEO blockchain supports two cryptocurrencies, Neo and GAS. Neo is the principal cryptocurrency powering the network, while GAS is mainly used as a utility token to pay for Neo transaction fees. Unlike Bitcoin, Neo is indivisible. It is meant to serve as one share in the NEO blockchain, carrying one vote. Each coin, therefore, represents one vote and thus cannot be broken down into smaller units.
Neo began life back in 2014 as AntShares. However, nothing much happened until the official release of its whitepaper in April 2016. According to CoinMarketCap, Neo traded for the first time on September 9, 2016, with an opening value of $0.18.
The coin was gaining in value for the following months but at a relatively slow pace. Its price remained below $10 until the first half of 2017. Then, in June, it officially rebranded to NEO, marking a new beginning for the former AntShares. It slightly crossed the $10 mark and hit a record $11.81 before reverting to less than $10 for a while.
Neo began gaining traction again in August 2017 to reach new highs. The coin maintained its prices above $20 for the remaining part of the year, ultimately reaching an ATH of $78 in December 2017 during the crypto market rally. The bullish trend extended to 2018, hitting Neo coin’s all-time high to date of $196.85 on January 15.
The prices dropped in the following months and even fell below $100 in early March 2018 as the bullish market came to an end. However, the volatility of cryptocurrencies remained in play, Neo’s value falling and rising by significant margins. By December 2018, the coin was trading below $10. The price lows proceeded to 2019, with the price only going slightly above $10 between May and August and again in October and November.
The year 2020 was no better. Neo’s highest price for the year was slightly above $25. The coin was valued below $10 for the most prolonged period but made slight improvements towards the end of the year.
In 2021, Neo maintained its value moderately above $40 for the better part of the first and second quarters. It even crossed $100 in April and May, according to CoinMarketCap. However, the prices have gradually fallen through the months to about $30 by July. At the time of this writing, Neo coin trades at $30.75 with a market cap of 2 billion and a 24hr trading volume of 255 million.
Investments are all about analyzing the potential and taking the risk. So it’s about time you know the different investment strategies you might resort to when dealing Neo coin.
Buying and Holding a cryptocurrency is commonly known as HODLing among the crypto community. It involves acquiring a certain amount of coins and keeping it in a compatible wallet for the long term. The HODLer holds to the premise that the value of the coin will eventually rise.
The essential advantage of this method is that it requires little effort. The strategy can work for Neo that has recorded impressive growth since its launch. An investor who bought a Neo coin when it first traded in September 2016 would have made over 100,000% profit by January 2018.
Did you know that you can trade cryptocurrencies like Neo without actually owning the underlying coins? All you have to do is look for a reputable crypto brokerage supporting contracts for difference (CFDs).
A contract for difference is an agreement between an investor and a crypto brokerage, allowing the investor to speculate the price movements of assets. The investor predicts the price movement in any direction and receives earnings based on the actual price change. Investors can trade with just some bit of capital since they do not buy the underlying assets. Additionally, they have multiple options, including going short or long, hedging, leveraging, and margin trading.
Don’t feel like CFD trading or HODLing Neo? You can opt to go for day trading. Day trading is the exact opposite of the HOLD strategy. You buy and hold Neo coins for the shortest time possible. Once the coin’s value starts to appreciate, you sell the coins.
A trader can also dispose of the coins if they start depreciating to avoid further loss. You can buy and sell Neo coins multiple times within a day. The premise is not to have any Neo by the close of day. It’s a lucrative trading strategy for traders who can actively monitor price movements.
By now, you know a lot about NEO, including the different ways you can use to trade in the ‘Chinese Ethereum’. However, most trades require investors to own the Neo coins they use in trading, so you need to acquire some from an exchange like eToro. This section will take you through the payment options you can use to pay for Neo on popular crypto exchange platforms.
Credit/debit cards have also become one of the most popular ways to buy cryptocurrencies like Neo. It is preferred because card transactions are instantaneous and carry negligible transaction fees. On eToro for instance, you won’t be charged a deposit transaction fee when you fund your account with credit/debit cards. The minimum deposit is $200 ($50 for eToro.US users) and the maximum is capped at $40,000.
PayPal is a widely accepted deposit method by a few exchanges around the world, including eToro. However, there are countries where PayPal services are not available, so residents may not have this option yet.
The upside to buying Neo with PayPal on platforms like PayPal is that transaction processing is near-instant and transactions fees quite low. Further, eToro doesnt charge a deposit processing fee for PayPal deposits. The minimum you can deposit with PayPal here is $200 ($50 for Us clients) and the maximum is capped at $10,000.
Crypto exchanges and brokerages are continuously striving to make it possible for crypto enthusiasts to acquire and invest in cryptocurrencies. Today, eWallets have become a popular way to deposit funds on exchanges like eToro. Some of the reasons most eToro users prefer using eWallets (Skrill, Neteller) to buy NEO on the platform is because the deposit process is straightforward and almost instantaneous. Plus, eToro accepts deposits as low as $100 or as high as $10,000 and doesn’t maintain a deposit processing fee.
Bank Wire is another excellent alternative for making deposits on eToro, provided the exchange is supported in your country. Depositing is free, but the minimum deposit amount of $500, which is slightly higher than eWallets and cards.
The upside to funding your eToro trader account with a bank wire is that there is no upper limit to how much money you can channel into the account. The biggest downside nevertheless is that payment processing takes longer and you might have to wait for up to 7 business days before the funds reflect in your account.
People in select countries can buy Neo coins on eToro anonymously (without ID Verification). However, this capability comes with a limitation on the deposits they can make. They can only deposit a maximum of $2250
Before buying your first Neo coin, you will want to first conduct thorough research about the coin and ensure that its mission, vision, and price direction align with your crypto investment goals. If they do, here are the three most crucial things you will need to start your Beo investing journey.
When buying cryptocurrencies, the general rule is to invest what you can afford to lose. But this rule doesn’t operate in isolation. It is complemented by several other factors. For instance, crypto exchanges and brokerages set minimum deposit and trading amounts, meaning you cannot start buying Neo without depositing a specified minimum amount. US residents, for instance, need at least $50 to get started on eToro.
Neo’s price at the moment is also a critical determining factor. Unlike other coins, it is not divisible into smaller units. A Neo coin is the smallest you can buy, so you need to have an equivalent amount of a Neo coin at the time you buy.
Other factors that you need to consider when deciding on how much to invest in NEO include your disposable income, risk tolerance, and trading experience. Inexperienced traders are especially advised to start small for a beginner and gradually increase their investment capital as they gain experience, or consider engaging a crypto expert to help them manage their trades and monitor risk.
Neo is less than a decade old. It’s barely five years since its rebrand, and despite the short life, there is no shortage of exchanges that list the coin. You can find Neo on most of the reputable crypto exchanges and brokerages across the world. A lot of peer-to-peer crypto trading platforms have also cropped up around the world and they provide users with a rostrum on which one could buy Neo coins with local currencies and alternative payment options.
The Coinmarketcap recognizes about 384 exchanges, not to mention the peer-to-peer trading platforms and highly localized crypto trading platforms. This says that you can never fall short of crypto trading platform options.
This then begs the question, how do you narrow down these options when looking for the best place to buy Neo today? What are some must-haves that a Neo trading platform should have before you register an account with them? We have highlighted four considerations below.
There are hundreds of platforms where you can buy Neo today. While most of them have similar features, there can be significant differences in transaction fees, user-friendliness, and security. Trying each of them out can be a daunting task. To help you ease the process of finding the good Ne trading platform we have vetted numerous exchanges and brokerages and came up with what we consider to be the best places to buy Neo today. Read on to understand how they work and go through the step-by-step guide on how to buy your first NEO token on the platform.
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eToro Launched in 2007 and currently tops our list of the best platforms to buy Neo. We love it not just because of its user-friendliness but also because of its support for novice traders as it provides them with a free demo account for practice trading.
It is a crypto brokerage that integrates social and copy-trading tools for digital currencies and traditional investments. It is also one of the few crypto trading platforms that let you buy real NEO tokens and trade Neo CFDs. The derivatives are, however, not available in all countries. In the UK and US where CFD trading is banned, for instance, users only have the option of buying Neo coins.
eToro users across the globe have access to a wide range of payment options, including cards, PayPal, Skrill, Neteller, and bank transfer. Other methods like online banking, Klarna Banking, Rapid Transfer, and iDEAL are also available in a few select countries.
The brokerage doesn’t charge deposit processing fees and the minimum deposit amount is $200 ($50 for eToro.US users and $500 if using bank wire). Users can also withdraw as low as $30 at a processing fee of $5.
Anyone can handle the simple account creation and identity verification process, which is mandatory in most countries. Unverified accounts, however, cannot make deposits of more than $2,250, cumulatively.
Note: Your Neo coins will remain on the platform’s inbuilt wallet. You can transfer them to the eToro wallet to send them to other exchanges or wallets.
78.77% of retail cfd accounts lose money
Capital.com is an award-winning platform that lets users trade shares, commodities, indices, and cryptocurrencies such as Neo. The platform stands out because it only supports crypto derivatives, unlike eToro, which supports both crypto derivatives and real coins. Therefore, you can only trade Neo coin derivatives like Neo CFDs with pairs like Neo/BTC. However, new traders have nothing to worry about as the platform allows users to create up to 10 demo accounts and the same number of live accounts using different currencies.
The platform is powered by AI, making the account creation, identity verification, and overall user experience seamless. You can complete all processes via web-based or mobile application, with cash deposits or margin trading options with up to 30:1 leverage for major currency pairs.
Capital.com provides users with three different accounts, including Standard, Plus, and Premier. The minimum deposit amount for all accounts is $20, while the maximum for Standard and Plus accounts is $3,000. The maximum for the Premier account is set at $10,000. In addition, there is a host of supported payment and withdrawal methods like credit/debit cards, Webmoney, Wire Transfer, Bank Transfers, iDeal, Giropay, and popular eWallets like Skrill and Neteller.
It is a legit platform, audited by Deloitte and authorized by the Financial Conduct Authority and CySEC. Your digital assets are stored in the user account and cannot be moved since you do not own the underlying asset but the contract.
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Coinbase is a leading cryptocurrency exchange platform launched in 2012. It became the first exchange to go public through a direct listing. Over the years, the platform has carved out a niche for itself in the crypto markets as it became one of the most reputable platforms in the world today. The cryptocurrency exchange listing over 50 crypto coins provides users with different trading options depending on their level. Beginner traders have the Coinbase main exchange, while institutional and professional traders can use Coinbase PRO.
The platform has a straightforward user interface that allows anyone to create and verify their trader account easily. But the identity verification process is mandatory because Coinbase is a fiat-to-crypto exchange. Additionally, the minimum deposit limits on the platform are set at $50, with multiple payment methods such as Bank Wire Transfer, eWallets, PayPal, Cards, iDeal, SEPA, and Faster Payments for UK users, and Bank ACH for US users.
The platform does not charge a fee for deposits but has varying transaction fees starting from 0.5%, depending on your country. It is a fully regulated exchange that is licensed in all US states except Hawaii. In addition, it provides users with a free Coinbase wallet app where you can securely hold your Neo coin purchases to be stored in offline vaults.
Note: The purchased Neo coins will be delivered to your Coinbase wallet account that stores 98% of client digital assets in offline vaults. You can however move these to the non-custodial Coinbase wallet app for outward transfer to third-party wallets and exchanges.
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Binance qualifies as the largest exchange globally by trading volume with over 200 supporting countries. The platform supports real coins, so you can only buy and trade actual Neo. In addition, Binance recently unveiled peer-to-peer trading, plus you can also trade Neo derivatives such as Neo futures contracts. The peer-to-peer trading platform allows you to buy and sell cryptocurrencies like Neo while dictating your preferred payment method.
You can easily create a trader’s account on Binance by just following this straightforward process. You do not have to verify your account if you do not plan to trade above 2BTC monthly. The platform is a crypto-to-crypto exchange, so you can only make deposits in crypto, and the deposits are free. However, you can still buy Neo using the standard payment methods like eWallets, PayPal, and cards, but you will have to use the peer-to-peer platform or third-party exchanges first.
Transaction processing fees are low but still vary among exchanges, starting as low as 0.02%. However, Binance integrated exchanges are preferable as they will charge reasonable fees.
Users can also buy Neo anonymously, although anonymous purchases have a limit of up to the equivalent of 0.6 Bitcoins per month. The exchange will store the coins on an inbuilt wallet, from where you can then transfer them to other digital wallets or exchanges. According to recent reports, Binance is currently applying for licenses across different jurisdictions in its effort to become a regulated financial service provider.
Note: The purchased Neo coins will be delivered on the Binance inbuilt wallet. From here, you can send move them to Binance’s non-custodial Trust mobile wallet app or to other third-party wallets and exchanges.
Our previous sections have detailed how you can acquire Neo coins from exchange platforms and start trading. However, we acknowledge that those are not the only ways through which you can get some Neo. Other common ways include:
The growing popularity of cryptocurrencies and their use in cross-border transactions has made them come at the top of online gifts. Given the current Neo coin’s price of about $30 a coin, it is not surprising to receive it as a gift or tip from family, friends, or acquaintances. You can also receive Neo as a donation or tip for a job well done.
Neo faucets are websites that reward participants for completing simple tasks. The task can be as simple as clicking a link or an image, watching a video, or completing online surveys. Initially, faucets were paid out using fiat currency, but crypto coins are now preferable. Some Neo faucets even pay directly into your Neo wallet.
You can earn Neo coins from providing a product or service. All you need is to provide a wallet address and instruct clients to pay for the service in Neo. Content creators, for instance, are earning different crypto coins by providing content on various platforms.
You now know how to buy and alternative ways to acquire Neo coins. The various ways through which you can acquire your first Neo coins, including how to buy on popular exchanges and brokerages. It’s time to see the various ways you can put your Neo coins into use.
HODLing is one of the simplest and most popular crypto investment strategies. Investors hold on to the premise that the price of a crypto coin will rise in the long run. You can choose to join into this adage and HODL your Neo. At $32 currently, Neo coin is way up from its first price of $0.18.
Trading in cryptocurrencies is one of the most lucrative arts in the crypto industry if you have the skill. You can take advantage of the price volatility of cryptocurrencies like Neo and make fortunes from day trading.
Many merchants and individual service providers accept Neo coin as payment for their goods and services. As a Neo coin holder, you can choose to use your digital assets to pay for goods and services from these merchant stores and service providers.
Charitable and non-governmental organizations now accept cryptocurrencies as donations. So you can offer Neo coins the next time you will be donating to charity.
Content creators on social platforms like YouTube will gladly accept donations in cryptocurrencies like Neo. Crypto coins are generally gaining mainstream adoption, so you could even tip or gift a friend with some Neo for a job well done or on important occasions.
Neo has always been a topic of debate among Reddit users. Currently, the Reddit community seems to be all about the expected launch of the NEO N3 MainNet. Some of the Reddit users express their love for the Neo project and its expected launch. However, the fact that the coin is gaining in value remains a puzzle.
The coin is not without some criticism. Some users are even mocking the decision to buy Neo, creating the impression that real estate investment would be more worth it.
Majorly, Neo discussions on Reddit focus on the advancements on the NEO network and the expected launch of N3. Also, many seem concerned about Neo coin’s prices in the future and the applications of the NEO network, such as the creation of new tokens on the NEO blockchain.
There has not been much debate about Neo coin on Quora lately. However, past discussions show some of the Quora community members are concerned about investing in Neo. Should I buy a 150 Neo at this time or not? How long should I hold on to Neo coin? These are some of the questions about Neo coin posed by users.
They want to know whether Neo coin is worth investing in, and like the Reddit community, they are concerned about the price of Neo in the future and want to know if holding on to it is worthwhile.
There has never been a better time to invest in Neo than now. Today, platforms supporting Neo coin are in their hundreds, each providing an array of payment options. They range from crypto exchanges to brokerages, some even providing alternatives to actual Neo coins, the Neo derivatives like Neo futures, and Neo CFDs.
In this guide, we listed our top picks of the best platforms for trading Neo. Notably, some of them support both real Neo coins and Neo derivatives. Our focus was on their supported payment options, regulation, trading minimums, and wallet storage and gave guides on investing in Neo via these platforms.
Any Neo coin and the NEO network enthusiast can go over them and identify the most appealing exchange and make it the starting point of your journey with Neo. Choose one and proceed with the steps from the account creation and verification.
Looking at Neo from an investment point of view, it is a coin worth buying. Whether you are a day trader or planning to HODL, there is no doubt about Neo. The coin is highly volatile like other cryptocurrencies, and this is the feature you benefit from as a day trader. Also, the coin has significantly grown in value since its launch, making it a great crypto coin for HOLDers. It has been up from less than a penny to over $100.
Yes, many exchange platforms today support anonymous purchases. You create your user account with the platform, and they do not require you to verify your identity. However, most of them set conditions for anonymous users, such as the maximum deposit amounts that the account can make on the exchange.
Note that there is no Neo mining, and you cannot mine Neo coins. Neo has a fixed supply of 100 million coins. It operates under the proof of stake consensus algorithm, eliminating the energy-intensive computation of mathematical puzzles associated with cryptocurrency mining.
Buying Neo using cryptocurrencies is the simplest way to go if you have a wallet with coins like Bitcoin or Ethereum. However, you can still buy Neo coins using fiat currency like the US dollar. You will need to choose a reputable crypto exchange that supports Neo and deposit funds using supported payment options. It could be PayPal, credit/debit cards, or eWallets. The options available depend on the exchange and your country of residence.
Neo traded for the first time on an exchange in September 2016 at less than $1. About a year later, the coin almost hit $200. The rally was over 1000 times the initial price of Neo, which means the $1,000 value is only five times higher than Neo’s ATH. If Neo would follow its past trends and the expected launch of NEO N3, it could reach new highs, but there is no guarantee Neo will hit $1,000.