How to buy the NEO coin – Trading tutorial for new beginners
NEO is a blockchain and smart contract system that is trying to bridge the digital and conventional asset gap through the development of a smarter ecosystem. The system makes use of two separate tokens: NEO for transfers and GAS for transaction fees. NEO was founded in China in 2013 and uses a token economy identical to Ethereum, earning it the moniker “Chinese Ethereum.”
Using smart contracts, NEO aims to be a digital, decentralized, and distributed network for non-digital resources, effectively transferring the operations of the daily market to the NEO blockchain. Travala.com, for instance, is a travel platform that uses NEO to keep track of reservations and accept cryptocurrency payments.
The NEO blockchain consists of three main elements
- Digital assets
- Smart contract
- Digital identity
NEO’s vision is to connect digital identities with real identities. This is a significant feature of the NEO blockchain. NEO will use a new type of digital identity protocol to expand its electronic identity capabilities.
The next significant feature of the blockchain is the variation between NEO and GAS tokens.
What is NEO?
NEO, formerly known as Antshares, is the first cryptocurrency opened in China in 2014. 100 million NEO coins have been issued. NEO changed its name at Antshares 2017. In some communities, NEO is also referred to as the Chinese assassins Ethereum and Ethereum.
It was created onchain as a way to combine smart contracts, digital identity systems and digital asset exchange. This new vision makes AntShares the first open source blockchain technology in China. NEO’s long-term vision is to fully engage in commerce by integrating the traditional and digital economies with what is known as a smart economy.
The smart new economy aims to unite digital assets, digital identities and smart contracts into one. These fiscal limits are uncertain and open to everyone and are not controlled by central authorities. In this way, the rules, policies and organizations of society will be transparent and fair to everyone.
The idea of
In addition to the NEO token, NEO also has another cryptocurrency called GAS, formerly known as ANC-Antcoins. A total of 100 million GAS tickets can be used for production, and each GAS ticket is generated every time a block is created.
The difference between NEO coin and GAS token is that NEO represents ownership of the NEO blockchain, while GAS grants permission to use the NEO blockchain. NEO token holders automatically receive GAS as more blocks are created on the blockchain.
NEO is a non-profit community-based blockchain project that uses blockchain technology and digital identities to digitize assets, automate digital asset management through smart contracts, and operate a smart economy through decentralized networks.
NEO can make millions of transactions every day through its decentralized decentralized ledger, so banks and companies need to rethink the way they do business. NEO also supports very popular programming languages
There are two tokens on the NEO platform: NEO and GAS (formerly ANC or AntCoin). Both tickets are limited to 100 million, but so far they are similar. Initially, 100 million NEO tickets were created. As part of the ICO, 50 million were sold to investors, and the remaining 50 million were pinned to smart contracts. The contract stipulates that up to 15 million coins will be issued annually for purposes such as financing NEO development and investing in other blockchain projects. NEO tickets cannot be divided into smaller parts.
NEO holders get the right to vote in the NEO ecosystem and the right to receive dividends in the form of GAS. The NEO network charges GAS as a service charge for the use of the blockchain (just like Ethereum). GAS is created every time a new NEO block is added to the NEO blockchain (currently 5 tokens per block). GAS production will decrease by 1 ticket for every 2 million blocks produced until all tokens have been produced around 2046. Unlike the NEO token, the GAS token can be divided into smaller units. GAS generated from successful blocks is distributed to NEO holders, and GAS generated from transaction fees is provided to target keeper (i.e. NEO miners who add blocks to blocks).
Comparing NEO Token and NEO GAS
When investigating how to purchase NEO coins, you will probably see two options: NEO token and GAS tokens. This structure is a bit different from the model utilized by the majorities of other coins.
NEO tokens are utilized for voting and governance right on the blockchain. GAS is a tool token used to pay transaction fees. GAS is also used to deploy and execute smart contracts.
Smart contracts are also deployed and executed using GAS. Smart contracts are digital contracts with configurable values that are used to create network solutions. This network is the NEO blockchain in this situation.
The gas was nearly lost with the NEO ticket in the case of NEO mining. The GAS tokens utilized in the blockchain will be allocated to all NEO shareholders in a standardised way. As a result, if you own NEO, you can obtain GAS on a monthly basis. This can be thought of as a payout (profit sharing) that appears in your digital wallet immediately.
GAS dividends are just one of the many economic tools that make up NEO’s smart economy.
How to buy NEO?
The first step in purchasing NEO is to open a digital wallet containing NEO and GAS.
NEO open digital wallet
Fortunately, finding a digital currency for NEO coins is not a difficult process. Here is a NEO wallet where you can store NEO tokens.
The NEO Official Wallet is the official wallet of the NEO community can be used on mobile devices, computers and the Internet.
Binance is an exchange and web wallet that has the advantage of trading and storing cryptocurrencies, although it is safer to transfer NEO to your personal digital wallet after making a purchase through Binance, also known as wallet for Ledger Nano S-cold wallet. The registry is the best way to protect your cryptocurrency.
NEO Tracker is a “lightweight” web wallet developed independently of NEO to allow NEO holders to interact with the NEO blockchain and navigate through the internet.
NEON Wallet-You can charge GAS, so it is convenient to store NEO in this wallet.
Buy NEO with credit card money and fiat money
Depending on the stock market, you can buy NEO with fiat or other cryptocurrencies such as Bitcoin, Ethereum or USDT. The number of exchanges supporting NEO purchases in fiat currency has increased over time.
These platforms include, but are not limited to, Binance, Bitfinex, Changelly and Crypto.com. However, to purchase in fiat currency, you must meet the platform certification requirements of each exchange.
Steps by step tip on how to purchase NEO Coin
Whatever method you use to purchase NEO coins, you’ll need Ether first (ETH). With Coinbase, we get ether. Thus , if you don’t already have a Coinbase account, you’ll have to build one.
Coinbase is a great place to buy Ethereum.
You will be required to enter your username, password, and cellphone number to access Coinbase (SMS authentication).
Go to the Buy/Sell section after signing into your Coinbase account.
If you want to purchase or sell on Coinbase, you must choose Eth. In the Dollars area, type the amount of USD that corresponds to the Ethereum you want to buy (you can find the equivalent Ethereum amount displayed in the ethereum section on the right-hand side).
Click on the “Buy Ethereum Immediately” tick box after you’ve listed the amount of ETH you want to buy. (To ensure that your mobile phone is enabled, you will be required to comfirm your sms.)
What is the best way to convert Ethereum to NEO?
You can only purchase bitcoin, ethereum, litecoin, and BTH with Coinbase. You must now send ETH to some other platform in order to purchase NEO coins. Because I use Binance, I’ll teach you how to utilize it to buy NEO coins with ether obtained from Coinbase.
Tap the Send button below your ethereum wallet in your Coinbase account.
Click Submit and a pop-up menu will appear. The pop-up menu has an input field where you need to enter an address. Keep this window open in one tab and get ready to open another.
Now you need to switch to Binance. Select “Funds” from the website and then “Deposits”. (You need a Binance account, so if you don’t have one, create one and return to this step.)
How to deposit NEO coins on Binance
On the “Deposit” screen, enter “ETH” to find Ethereum in the field. Then select “Copy Address” on the right side of the screen.
ETH deposit address
Once you’ve chosen an address, you’ll be taken back to another Coinbase tab. Paste the Binance ETH deposit address into the To field of the Coinbase menu. If you have a valid ETH address, you will see a green check icon next to the To field. Enter the amount to be sent to your Binance account in USD (or ETH). Pay attention to the effect of network fees on the amount. When satisfied, click the blue box labeled Continue.
Selecting “Continue” will bring up another pop-up menu to confirm the transaction. You need to have your phone ready. Enter the two-factor verification code in the verification app. After entering the code, select OK.
Another pop-up window will appear when the transaction is confirmed. This pop-up menu allows you to view the status of Etherscan transactions.
Now you can go back to the Binance tab and select Funds and then History from the drop-down menu. This allows you to view your deposit history, which is another way to check when the transaction is complete.
Binance transaction history
To trade at the market price, you need to select the coin you want to trade (e.g. NEO/ETH). You also need to make sure you have selected the correct “marketplace” indicated by the left arrow. The arrow to the right shows where you are indicating the amount of NEO you want to sell. You can specify the amount of NEO you want to purchase in the box next to it.
(Buying NEO coins with market options means buying or selling NEO at the currently offered market price. Cap options offer buy and sell options that sell more specifically, but are a bit more difficult for beginners.)
What is the mechanism behind NEO?
NEO updated the platform to N3 in 2021, which is the third version of the NEO blockchain. N3 is made up of many main features that support the NEO blockchain’s features and provides an estimate of what programmers might do with NEO going forward.
- Interoperability: NEO can interact and interact with other blockchains such as BTC, ETH, and Cosmos thanks to ITS FUNCTIONALITY REFERED to as Poly Network.
- Oracle: Oracles are a key feature of blockchains that enable smart contracts to communicate with external data sources. Allowing a smart contract on NEO to communicate with price information from the New York Stock Exchange ( nyse, for example. Unlike ETH, which utilizes dapps like Chainlink, N3 has its own inbuilt Oracle.
- Smart contracts: N3 also supports multiple-language smart contracts, allowing programmers to build apps in C#, Python, Go, TypeScript, and Java, among other languages.
- GAS FEES: On N3, average gas fees will be decreased by around 100 times, and device fees will be burned.
- Decentralized storage: Saving data on top of blockchain is costly, making it hard to manage video or image-based apps. N3 addresses this by implementing a decentralized storage model called NeoFS, which allows users to trade spare storage for incentives.
- Digital identity: Ever since inception in 2013, NEO has put a strong focus on on-chain identity, which allows users to connect with NEO using an unified digital identity rather than multiple identities for various apps (e.g., Facebook, Twitter) as is common today. Using a blockchain for identification often eliminates the need for users to share their identities with businesses, giving them more control and protection.
- Domain names: Domain names, also known as website addresses, are an important part of the web and make it easier to navigate. Several blockchains typically utilize long numerical addresses rather than user-friendly addresses. Domain names are now available on the NEO blockchain thanks to N3.
- Dual token model: NEO utilizes a double token model, with NEO used for network rights and governance and GAS utilized to pay for network gas payments, as the name suggests.
Each transaction entails the payment of a gas tax. A total of 100 million tokens are available. NEO tokens are not transferable.
What distinguishes NEO from the competition?
The NEO network, with its NEO and GAS tokens, differs significantly from cryptos. The following are three distinct characteristics that set it apart:
Indivisible NEO units
NEO’s simplest definition will only be one share, which cannot be split like other coins such as bitcoin. The main explanation for this is that, like stock or service shares, NEO couldn’t be broken into fractions. If the value of NEO rises, this could become an issue, but exchanges currently have their own strategies of splitting the coin.
How do exchanges handle fractions of coins?
Exchanges are presently attempting to find a solution to the unitary nature of NEO. The response they have isn’t perfect, but it’s the finest we have right now: you’ll be able to trade percentages of NEO in so far as they stay in your exchange pocket. If you add them to your NEO wallet, they will stay on the exchange and not be transferred to your private wallet.
You are not legally permitted to own 5.32 NEO, for instance. Either you have 5 or 6 NEO. But exchanges will let you exchange BTC for 5.32 NEO without issue.
The two-tiered structure of NEO and GAS is the most distinguishing characteristic. Users usually purchase NEO tokens, which reflect their position in the network’s future, rather than GAS, which can be purchased and sold on a few exchanges.
When you pass NEO to your NEO-compatible wallet, the advantage of the two-tier method kicks in.
As more blocks are formed by the blockchain’s development, you instantly start generating GAS while keeping NEO. Each time a new block is formed, 8 GAS is distributed to all 100 million NEO in circulation.
The value of GAS is decoupled from the value of NEO, comparable to Ethereum but somewhat different from bitcoin mining. In comparison, the value of a bitcoin mined is similar to the value of a bitcoin bought. GAS is utilized transaction payment on the NEO network.
NEO Wallet Options
A online wallet is a wallet that is stored on the exchange’s server. The most significant benefit of keeping coins in this wallet is its convenience.
However, this is a risky strategy because you must “trust” the stock market to safeguard your digital properties. The exchange can be hacked, go bankrupt, or experience worse attack in some situations. As a consequence, withdrawing coins from the marketplace as quickly as possible is usually a safe idea.
Using mobile wallets instead of trading coins and private keys is a far safer choice. The most significant benefit of mobile wallets is that NEO is relatively safe and simple to use.
The disadvantage is that it is a hot wallet which is linked to the Web and thus susceptible to hacks. The protection and encryption utilized in your mobile wallet are just as strong as the security and encryption you’ll obtain. Extra security steps, including a PIN or fingerprint recognition, should be used if necessary. Atomic Wallet, Guarda Wallet, and Coinomi are some of the most common NEO wallets.
Another form of “hot wallet” that can be seen on pc / laptop is the desktop wallet. It’s more stable in certain respects than a mobile wallet, which can be susceptible to specific attacks including SIM swaps.
The safety of a desktop wallet, on the other hand, is determined by the security mechanisms preinstalled. Should you decide to go with this wallet, we suggest enforcing enhanced security features such as two-factor authentication (2FA) to additionally safeguard your digital properties. Electrum Wallet, Jaxx Liberty, and Exodus Wallet are three common desktop wallets for storing NEO.
The best place to store crypto is in a hardware wallet. It’s known as a “cold wallet” because it’s not linked to the web and thus difficult for hackers to access.
The most significant disadvantage of hardware wallets is their lack of connectivity, as they must often link to the web via a USB port in order to transfer funds. Ledger Nano X and Trezor seem to be the most popular wallets for NEO storage.
Sometimes the best way is to spread your investment across multiple wallets to eliminate key failures.
Where can I buy NEO with Bitcoin, Ethereum or USDT?
If you want to buy NEO coins with cryptocurrency, buyers can buy BTC, ETH or USDT on supported exchanges and then transfer them to NEO supported exchanges.
Buying Bitcoin, Ethereum or USDT is especially easy with payment methods such as credit card and bank transfer. Here is a list of recommended exchanges:
- Coin base
When you purchase cryptocurrency, you can purchase NEO by transferring it to your wallet. Existing Bitcoin, Ethereum or USDT holders can transfer their wallet to their wallet and then buy NEO. (You only need to buy cryptocurrency from other exchanges if the platform does not support fiat purchase.)
NEO vs Ethereum: can NEO beat Ethereum?
Following the 2017 ICO boom, Ethereum is under threat from rivals with smart contracts. NEO currently has several advantages over Ethereum. These include:
Developers can create smart contracts in the more common NEO programming language. However, Ethereum uses a relatively new programming language.
NEO is ahead of Ethereum in terms of transactions per second. Ethereum is limited to 15 transactions per second, while NEO is limited to about 33 transactions per second (“TPS”).
But in reality, both are much lower than the “TPS” level required to become a definite leader. So, there is no doubt that NEO technology is excellent in some aspects of Ethereum technology. However, Ethereum is a more established and well-known platform. This is a difficult competition for NEO.
However, given the blockchain constraints Ethereum is currently facing as a result of the DeFi boom, the door for NEO is open.
Smart financial structure
The idea of a smart economy is at the heart of the NEO mission. This indicates that NEO aspires to build a viable market on the blockchain. The intellectual economy’s work enables thousands of participants to sign contracts without having to trust each other. This is due to the fact that the trading mechanism is automated and may not rely on the party to the contract or centralized system.
The NEO developers believe that financial apps would run on the NEO blockchain as smart contracts. The economic rules that the NEO framework will obey are governed by smart contracts.
Several real economic operations, including the NEO wallet, are available on the NEO blockchain and can be used to replace the current market economy. Transactions are quicker and easier with blockchain-based economic practices like the NEO platform than with traditional banking solutions.
When it comes to how to purchase NEO coins, you’ll notice that it’s a really popular project. There are hundreds of programmers all over the world. There are, however, a limited number of full-time programmers. Since some initiatives are scarcely created, the presence of programmers is a positive indicator! This isn’t a NEO issue.
Is this a good investment?
The coin was valued at $0.13 in January 2017. The coin hit a high rate of 196.85 USD on the same day after one year. Prices plummeted the next month, reaching a low of $45 in early April, which was a one-year low. Prices, on the other hand, have been steadily increasing for a few weeks.
From lowest to highest, NEO earned nearly 700,000%. If past earnings matter, this figure stands out! You’ll be able to purchase NEO coins right now. Here is a complete guidance on how to purchase NEO. You can also utilize this data to help you choose which exchange utilize. Before buying, nevertheless, you must still check with a financial advisor.
The Wrap UP
The NEO platform’s dual native tokens have different functions:
The possession of the NEO blockchain is represented by NEO tokens. They’re used to build blocks and control the platform, and you’ll obtain GAS tokens if you keep NEO in your wallet.
GAS tokens grant you access to the NEO blockchain. GAS is the fuel that drives payments in the NEO system, just as Ether is to the Ethereum blockchain.
What is the future of NEO?
NEO is starting to reappear in cryptocurrency news feeds. Since smart contracts are an important aspect of Decentralized Finance (“DeFi”), many protocols are already using NEO. However, the impact of Ethereum’s power leverage is significant. More importantly, there is exchange support for the NEO blockchain and protocol on DeFi. With little activity in the ICO market, the expected growth in the DeFi space puts NEO in a promising position.