Smart contract platforms may have the most game-changing potential out of all projects in the crypto sphere. Blockchain is dubbed by many as the “new internet”, and everyone knows how much the internet has changed the world.
Ethereum has long been the market leader for blockchain development platforms. But they are starting to see significant competition, from projects such as EOS, Cardano and NEO. The latter, NEO, has the most passionate and dedicated community out of all of them (including Ethereum). For that reason, it warrants consideration from any crypto enthusiast.
What is NEO?
As mentioned earlier, NEO is a smart contract development platform. NEO was launched in 2014, originally as Antshares, later rebranding to NEO in 2017. The community, governed by the NEO council, is trying to create the framework for a digital economy. Their platform supports concepts like digital identity and industrial use of blockchain, as well as ICOs and decentralized applications. A list of dApps under development on the NEO blockchain can be found here.
The big difference between NEO and other smart contract platforms is the token model. The NEO token is not meant to be used for transactions and is non-divisible (meaning you can’t send 0.5 or 0.25 NEO. It has to be a whole token). Instead, the platform uses GAS as the currency for fees and service on the NEO platform. By holding NEO in your wallet you will steadily earn GAS tokens from transaction fees. Making NEO a smart way to earn a passive income.
With Ethereum going through serious struggles in 2018, this may be NEO’s time to shine. We’re going to tell you how you can invest in NEO and be a part of one of the most active communities in crypto today.
At the same time, NEO is considered to be the “Chinese Ethereum” for being located in China and having many partnerships with local companies. This is also one of the reasons why this blockchain network is considered to be centralized.
Currently, NEO is the 18th largest digital currency in the market with a market cap of $708 million and a price per coin of $10.05.
Step 1: Register on Binance
Binance is one of the largest cryptocurrency exchanges in the market. According to data provided by CoinMarketCap, this digital currency platform is the second largest with a trading volume in the last 24 hours of $927 million.
One of the main benefits of buying NEO on the Binance exchange is that the platform has one of the highest liquidity for altcoins. For example, in the last 24 hours, the trading pair NEO/USDT registered $2.24 million in trading volume on Binance, equal to 0.24% of the total trading volume on Binance.
Other trading pairs that can be found on Binance include NEO/USDC, NEO/TUSD, NEO/PAX, NEO/ETH, NEO/BTC and NEO/BNB. All the NEO pairs account for 0.42% of the total trading volume on Binance.
Binance also has a new service that allows users and investors to purchase some digital currencies using a credit card. Although NEO is not currently included in this service, it may be possible for this digital asset to be added in the future.
We’ll look at Binance for this guide. Despite being one of the top 20 largest cryptocurrencies for a long time, there are few places that allow you to buy NEO directly with Fiat currencies such as USD or EUR. So your best option is to buy Bitcoin or Ethereum first and exchange it for NEO on a trusted exchange like Binance.
Your first step is to, if you haven’t already, register an account on Binance.
Step 2: Verify your account
Before you can start trading, you will need to submit several KYC (know your customer) documents to verify your identity. Additionally, set up secure 2-Factor Authentication to protect your account.
Step 3: Send BTC, ETH, TUSD, PAX, USDT or BNB to Your Binance Account
Once your verification has been approved, send Bitcoin or Ethereum to your Binance account. If you don’t already hold one of these coins, people from almost anywhere in the world can buy with a credit card from Coinmama or Changelly.
To make a BTC, ETH, TUSD, PAX, USDT or BNB deposit, click “Funds” then “Deposit”. Choose the coin you wish to send from the dropdown menu. This will give you a wallet address to send your funds to. Make sure that any coins you send to this address are only in that currency – if you send your funds to an incorrect address, your coins may be lost.
Step 4: Wait for confirmation
Depending on the network load, you may have to wait a short time for your deposit to be confirmed. Make sure the deposit has gone through before navigating away from the page.
Step 5: Locate the BTC, ETH, TUSD, PAX, USDT or BNB Pair
Once you have deposited your Bitcoin or Ethereum, it’s time to move to the Exchange. Click on “Exchange” on the top navigation bar, then “Basic”.
Once you are in the Exchange, find the NEO pair for the coin you deposited earlier. To do this, go to the search bar near the top right, and search for NEO. This will bring up pairs for Bitcoin, Ethereum, TrueUSD, Paxos Standard, Tether or Binance Coin, Binance’s native cryptocurrency.
Click on your desired pair, and it will bring up the trading screen for NEO.
Optional: Use Binance’s advanced tools to buy at the right time
Binance offers a number of tools and data to help you buy low, and sell high. On the trading screen, you will be able to view price and order history for the pair you selected. You can also set limits for buying or selling. This means you can set a price at which you want to buy or sell, and once NEO’s price hits this point, Binance will execute your trade.
With the different tools available on the advanced exchange provided by Binance, users will be able to have a better control over the funds they manage. Binance is an exchange created for beginners and also for professional traders that require many other tools to take better decisions while trading.
Step 6: Choose how much NEO you want to buy
Select the price you wish to buy at, or else click the “Market” tab and buy for the price it is right now.
You can choose to buy a certain amount of NEO, or to spend 25%, 50%, 75% or 100% of the coins you deposited earlier.
Step 7: Buy NEO!
Click “Buy NEO” to complete your order.
Step 8: Move your coins to a secure NEO wallet
When not trading, it is best practice to keep your coins in your own, secure wallet, separate from an Exchange. This is even more important for NEO, as you want a wallet which is able to generate GAS from your NEO holdings.
For the highest security, you can hold your NEO in the Ledger Nano S hardware wallet. Alternatively, the NEON desktop wallet is a popular wallet, with the ability to store both NEO and GAS.
Once your order has been completed and your NEO tokens have shown up in your Binance wallet, head to “Funds” then “Withdrawals”. Select NEO from the dropdown menu. Enter the withdrawal address (the address from your NEO wallet), as well as the amount of NEO you wish to move.
Although the Binance exchange offers an account to deal with virtual currencies, the best thing to do is to withdraw the funds to another wallet. The most secure way of holding NEO coins is by depositing them in a hardware or offline wallet.
The best hardware wallet for NEO is the Ledger Nano S device. Binance was affected by a hack a few months ago that resulted in the loss of over 7,000 BTC from their wallets. Using a hardware wallet is the best thing to do for long-term investors.
Click “Submit” to complete the process.
Purchasing NEO on the Binance platform is one of the fastest ways to acquire the digital asset. In this way, you will gain exposure to the NEO ecosystem and to the entire crypto space by diversifying your portfolio.
There are also other exchanges that would allow you to have access to the NEO ecosystem. Each of these platforms has its own features specs. You should pay close attention to the exchange that offers the best solutions for your needs.
Now you know how to begin investing in NEO, you can join one of the most passionate communities in crypto today.