What Is Neo?
Neo is an open-source blockchain token that was written to support new cryptocurrency features like smart contracts. Sometimes known as “Chinese Ethereum,” Neo has many capabilities that are similar to Ethereum’s, and the two cryptocurrencies share several design concepts. While it has been rumored that Neo is based on Ethereum and that Neo is literally a version of Ethereum, it is important to be aware that they are fundamentally different tokens, said to be are as different as Amazon and Alibaba.
Neo was originally developed under the name of AntShares by Chinese company Onchain. In June 2017, it was renamed Neo and rapidly gained in popularity. It is designed to support easy scalability. Analysts say that the NEO network can support up to 10,000 transactions per second.
Why Buy Neo?
Most people by Neo because they believe it will appreciate in value. Neo has many factors supporting this view, such as its strong developer base and support for a wide variety of programming languages through neoVM. Developers can write smart contracts for Neo without learning new programming languages.
In addition, owners of Neo tokens accumulate GAS tokens, which might be seen as dividends for Neo. GAS can be used as a cryptocurrency. It derives a fundamental value from the Neo network, where GAS can be used to pay fees.
Neo has navigated the Chinese regulatory framework more successfully than many of its competitors. For this reason, it is often seen has supported by the Chinese government. While the future can be hard to predict, there is little doubt that Neo has fared through Chinese crackdowns on cryptocurrencies better than most. It has a solid reputation, and if you believe in the future of cryptocurrencies and smart contracts, Neo is a token that you should consider.
How Do I Buy Neo?
Neo is easy to buy, but right now it is harder to buy than Bitcoin, Litecoin, or Ethereum. It is not usually sold for fiat currency; instead, people who want to purchase Neo buy other cryptotokens and then exchange them for Neo. Most people buying Neo will take the following steps:
- Get a Neo wallet.
- Buy a common cryptocurrency.
- Transfer cryptocurrency to an exchange.
- Exchange common cryptocurrency for Neo.
- Transfer Neo to the wallet.
Some steps can be omitted. Many people choose to store Neo tokens on an exchange without transferring them to a private wallet. Also, a small but growing number of exchanges will allow you to trade Neo for fiat directly. Let’s take a look at each step in detail.
1. Get a Neo Wallet
The first step that most people take when buying Neo is to obtain a Neo wallet. Many prefer the safety, flexibility, and security of storing cryptocurrencies away from the exchanges in private wallets. Others prefer the convenience of web-based wallets. Offline paper wallets offer the utmost in protection from hackers.
When making your decision, keep in mind that Neo stored in paper wallets is unable to accumulate GAS tokens. Also, a digital wallet can be no more secure than the computer on which it is stored. Web-based wallets are sometimes vulnerable to hackers. Reputable exchanges employ full-time personnel who take strong measures to safeguard against data breaches. Exchanges also keep detailed logs, which are never deleted.
A few of the most popular wallets include:
The Official Neo Wallet
One of the most popular Neo wallets is the Neo Project’s GUI wallet. It is one of the best-supported wallets, but it runs only on Windows. Linux users will need to use the command line version. The official wallets support both Neo and GAS and have critical features like backup and restore.
Neo Tracker Wallet
The Neon wallet is a very popular Neo wallet developed by developer group City of Zion. Neon that runs on Macintosh, Windows, and Linux. It is a full-featured Neo wallet. It is user-friendly and stores the wallet keys on the local machine. While the Neon wallet was not released by the official Neo development team, many consider it the best Neo wallet.
Neo Paper Wallet
It is actually possible to store Neo offline in a paper wallet using an open source project developed by Ansy. While an offline paper wallet may be the most secure way to store your Neo tokens, Ansy’s wallet does not allow users to collect GAS dividends on their Neo tokens.
For users looking for a simple web-based wallet, the one hosted by NeoWallet.cn is easy to use. It is based on source code developed by the official Neo development team. Like most reputable web-based neo wallets, it does not store wallet data on external servers.
2. Buy Ethereum or Bitcoin
Coinbase is the most popular platforms for purchasing cryptocurrency in the United States, and it is usually considered the best choice for new users. Getting started with it is easy:
- Go to https://www.coinbase.com/ and click the “Signup” button.
- Check your email for a verification email.
- Set up your account. Most people will want a personal account.
- Enter a payment method. Usually, this means connecting your bank account to your Coinbase account.
- Verify your identity. You’ll have to upload a photo ID.
- Verify your bank account. Coinbase will make two small deposits or charges. Check to see how much these transactions are, enter the last two digits into the verification section, and click on “Verify Charge Numbers.”
- Voila! You are now a Coinbase user.
Once you have a Coinbase account set up, verified, and connected to your bank account, you can easily transfer funds into it. For transferring funds out if it, use GDAX, Coinbase’s exchange, to avoid fees. You can login to GDAX using your Coinbase credentials, but you may be required to enter additional verification information.
Once you have successfully logged into GDAX, purchase some Bitcoin or Ethereum. In the next step, you’ll use the Bitcoin or Ethereum to buy Neo.
Some people prefer to use Coinmama to purchase Bitcoin or Ethereum. If you use Coinmama, be aware that you will be required to have your own Bitcoin or Ethereum wallet to hold the coins that you purchase. If you don’t have a wallet yet, you can get one at https://blockchain.info/wallet/.
Once you have a wallet, take note of the address, and navigate to Coinmama. Register for an account, and choose whether you want to buy Bitcoin or Ethereum. Enter the amount you wish to purchase and click the “Buy Now” button. Enter your credit card information, then enter your wallet address. Presto! The coins will be deposited into your wallet.
Note: Coinmama requires verification in many countries. This will usually consist of a selfie of you holding your ID.
3. Transfer Cryptocurrency to an Exchange
Once you have obtained some cryptocurrency, it’s time to transfer your tokens to an exchange that carries Neo. Some exchanges that do carry it include:
- Bittrex (with BTC only)
To do the transfer, you’ll first have to create an account at the exchange and take note of your exchange deposit address. Then you’ll deposit the Bitcoin or Ethereum into your exchange account. Once the cryptocurrency has landed in your exchange account, it’s time to buy some Neo!
4. Buy Neo
The procedure varies wildly by exchange, but the process is fairly straightforward. Don’t spend a lot of time trying to time your purchase to get the best possible deal on Neo; exchange rates fluctuate unpredictably, and even the experts are about as equally likely to lose money as to make money when trying to time trades. Just log in to your exchange account and make the trade.
5. Transfer Neo to Your Wallet
While most exchanges will gladly store Neo tokens for you, with newer cryptocurrencies like neo, it is often a better idea to store your tokens in a private wallet. After you’ve placed your trade for Neo, navigate over to the transfers area of your exchange, enter your wallet address, and transfer the Neo to your own wallet. You now own some Neo!
Neo’s price went careening upward in 2017, appreciating from $0.14 to $22.00 over the course of the year. While it is unlikely to repeat such remarkable performance again anytime soon, its solid developer base and the ability to accumulate GAS tokens do set it apart from other cryptocurrencies. Among cryptocurrencies, it is well-respected, and its Smart Economy concepts do show some promise for the future. If you are thinking about investing in crypto, Neo is definitely worthy of your consideration.