NEO is a Chinese blockchain-based platform with its own cryptocurrency that’s been attracting some attention from traders recently. This guide shows you how to buy and trade NEO in 2020.
Where to buy NEO
Read on to find out more about NEO and how it works or skip ahead to our step-by-step buyers guide if you’re up to speed and ready to invest.
What is NEO?
The NEO platform was designed to provide a network for China’s smart economy, meaning it is intended to help governments understand and recognise opportunities for job creation and business growth.
The NEO cryptocurrency is quite volatile, meaning it’s one to look out for when you start trading.
How does NEO work?
NEO allows users to develop smart contracts and digital assets and was created with scalability at its core. It has the ability to support a small range of programming languages and, where other platforms are primarily focusing on one native currency, NEO can integrate other cryptocurrencies into its network.
With security in mind, the NEO platform uses the most widely accepted digital insurance model. Identity verification is also a big factor and will likely take the form of facial recognition, fingerprints, voice and SMS.
How to buy NEO online – step-by-step guide
Step 1. Get a suitable wallet
There are quite a few wallets out there that are compatible with NEO, so we’ve pulled together a list of our top three:
Ledger Nano S: One of the safest ways to store your NEO is in a hardware wallet from Ledger. The Ledger Nano S is cheaper than the Nano X, so it’s ideal if you’re just starting out.
NEON Wallet: Developed by Neo developer community City of Zion, this wallet has everything you need to store your funds safely.
O3 Wallet: Developed by O3 Labs, the O3 Wallet supports macOS, Windows, Linux and Android.
Step 2. Find a NEO exchange
It shouldn’t be too difficult to find a suitable exchange for NEO these days, although most exchanges that sell NEO are crypto-to-crypto, so you might need to acquire some other form of cryptocurrency, such as BitCoin, before you begin. Here are three of the most popular exchanges for buying NEO:
- Coinbase: One of the most trusted places for buying and selling cryptocurrency on the web, Coinbase is a great place to start when looking for NEO.
- Changelly: We like Changelly for its simplicity and ease of use. We’ve always found NEO is priced fairly and our transactions have been quick and hassle-free.
- Binance: Another great place to buy NEO. Binance is one of the bigger exchanges and gives you access to many different cryptocurrencies, including NEO.
Step 3. Withdraw your NEO
We’ve said it before and we’ll say it again, your best bet is to withdraw your cryptocurrency as soon as you can. It’s much safer in your wallet than left on the exchange.
How to trade NEO – step-by-step guide
There’s no need for a wallet if you’re only trading NEO. Because you’ll be trying to predict whether its value will go up or down over a short timeframe, you won’t actually be acquiring any currency.
Step 1. Find a broker
Cryptocurrencies are great for traders because they’re so volatile. They can increase in value at the drop of a hat and then, seemingly without warning, come crashing back down to a record low. If you’ve been thinking about trading but don’t know where to start, you need to find a broker. It’s a good idea to shop around, but Plus500 and eToro are two of the most popular brokers out there.
Step 2. Deposit money
Once you’ve chosen a broker, you’ll need to make a deposit so you’ve got some capital to trade with. The minimum deposit requirement should be relatively low, so you don’t have to start off with a big deposit. Depending on the broker, you may need to pay in using Bitcoin or another popular cryptocurrency, but most platforms accept fiat currency deposits using Visa or MasterCard credit and debit cards.
Step 3. Decide how you’d like to trade
When you start trading, you can choose between Spread Betting or CFDs (contracts for difference), both of which entail predicting the way the value of your chosen cryptocurrency will swing. If you’re not sure what the difference is between Spread Betting and CFDs, you might want to do some more further research to ensure you’re fully informed before you begin trading.
Step 4. Start trading
Most reputable brokers allow you to set up a practice or demo account to test the water before you start trading for real. We recommend you start with a demo account so you can get a good feel for how it all works without risking your hard-earned cash. It’s good to remember that while volatile coins can bring big wins, you can also lose money very quickly, especially if you’re looking at one of the more unpredictable markets.
The idea behind both Spreads and CFDs is that traders take a position on whether they think the price of a given cryptocurrency will rise or fall. If they think it will rise, they take a long (buy) position and if they think it will fall they take a short (sell) position.
Brokers will also let you use leverage to enhance your trading power. With leveraged trading you’re essentially borrowing from your broker, meaning you only need to put up a small percentage of the total value of the trade. If you’re new to the game, we recommend you get some trading experience under your belt before you get involved as it can be a high-risk strategy. If you do go down the leveraged trading route it’s wise to use a stop-loss order to limit your exposure.
- The NEO platform is backed by the Chinese government
- Proven flexibility in the financial market
- NEO is a volatile currency making it interesting for traders
- Generally liked in the cryptocurrency community
- Yet to find many Western champions
- Ethereum is the main competitor
- Volatile nature makes it hard to predict