Learn Where & How to Buy NEO (NEO) - A Beginner's Guide
NEO enjoys a huge marketplace reputation among the leading cryptocurrencies. Buying and selling NEO is possible in many countries around the world. Before you consider buying NEO, you should also be sure that you have a secure means for its storage. Several crypto experts recommend using a digital wallet that is easily accessible. Online wallets are offered by trading platforms at no extra cost to the user. If you decide on using specialised storage, trusted brands are available that offer a range of physical devices in addition to online options.
A lot of NEO trading platforms are available that an investor can choose from to start the crypto investment journey. NEO as an investment is boosted by its regular distribution of rewards to active NEO wallets and the increasing visibility of the brand across the globe as a blockchain and digital asset. Users can buy NEO on many cryptocurrency exchanges either directly through fiat currencies such as the US dollar or through other cryptocurrencies.
3 Things to Consider Before Buying NEO
NEO emerged first as an Asian answer to Ethereum, as it mirrored several possibilities of the second most capitalised cryptocurrency. A few years down the line, NEO has shed its Chinese Ethereum image with its adoption by several governments in Asia and its appreciable inroads in real-time applications in a wide variety of efficient distributed networks. As a blockchain platform, NEO is growing its ecosystem and its R & D effort is creditably reported in the financial press.
NEO has a total supply cap of 100 million with 70 million in circulation. Unlike Bitcoin, NEO is not mined as all the tokens are already generated. The distribution pattern adopted by the platform split the tokens in two with half going to developers and for platform development while the other half were sold during its ICO. Its limited supply means that NEO will not have its value diluted disproportionately, and the potential for its value growth is an incentive to prospective investors.
Loyal & Dedicated Community
NEO has a robust community that comprises developers, investors, traders, developers, network security experts and cryptographers. In the true spirit of decentralisation, NEO utilises active peer-to-peer (P2P) networks in the development and sustenance of its ecosystem. Its trusted and highly trained developers are motivated to help make the blockchain the go-to option when choosing a framework for a smart economy.
Where to Buy NEO in 2021?
To buy NEO as a secure investment, you should be at home with the recommended practices that an investor needs to know. While a credible platform will insist on vigilance and account integrity, you also need to know how to avoid the pitfalls inherent in crypto ownership. Despite price volatility, the NEO market price chart shows a steady rise in price that is noticeable. Owning NEO can be profitable if you learn how to secure your digital wallets and commit to the best online security practices.
Price predictions seem to be on the upswing for many cryptocurrencies as their market capitalisation soars. You can make money with trading NEO to earn some more income just by keeping an eye on price predictions and following the market. Once you have set up your trading account, you can fund it and start trading. What you must not forget is risk management: take your profits as they come, do not trade more than you can afford to lose and keep building your knowledge on how the market works.
NEO is traded as CFDs and futures on several marketplaces. A NEO CFD is a prediction of its future price for a specific time frame, which requires that the investor be paid the difference between the spot price and the contract price at maturity or the investor pays the broker the shortfall in the contract. Futures are like CFDs but they require higher commitment in transaction value.
Our Tutorial to Buy NEO in 5 Steps
The common pathway to trading NEO is the use of brokers and cryptocurrency exchanges. To get started with how to buy NEO, the following steps we have provided here will enable you to understand what you need to do and how the process works.
Step 1: Find an Appropriate Platform to Buy Neo
Before you choose a platform to buy and trade NEO, you need to know the leading tokens available and its target market. Every platform comes with strengths and weaknesses that must be of interest to a potential user. Each platform is tallied to the needs of specific groups. Before you choose a platform, make sure you have the experience to use its trading features.
Many traders take to Coinbase and Binance when starting out in NEO trading. Binance offers props that reduce your trading fees if you choose BNB as a settlement token. Coinbase, on the other hand, has a simple interface but charges higher fees. When trading huge volumes, low Binance fees can give you great savings on charges that Coinbase might not offer. For futures and CFDs, eToro, Pepperstone and Binance are highly-rated.
Step 2: Registration / Create a New Account
After you decide on the platform you are using, the next step is to sign up. This often requires providing an email address, choosing a password and confirming your new account creation by clicking on a link sent to your inbox. While the requirements of most platforms look alike, there are areas of differences that could vary depending on where you live.
In an era when KYC and AML requirements are the norm, you should be ready to provide at least your driving licence, national ID or international passport to authenticate your account. In some countries, you will find unregulated platforms that advertise KYC-free trading, these expose the investor to greater risks. An unregulated platform operates with more loopholes and a rather high risk of losses.
Step 3: Deposit Funds
Your trading account needs to be funded to get it going. You will need to securely make a deposit to get started. The charges that may apply vary from one platform to another. There are platforms that expect a minimum deposit of $250 while others have no minimum limit. If you register on Pepperstone, you are free to trade with no lower limits. On Skilling, you only need a minimum of $100 to make a deposit. You will be able to use a variety of payment methods on several platforms such as bank deposit, wire transfer, credit card, debit card and PayPal payments.
Step 4: Start Trading or Buying NEO
The reason to buy NEO can be narrowed down to two leading motivations. One way to look at this is to consider the growing popularity of cryptocurrencies and the fact that major global economies have settled for regulating the market instead of shutting it down. In this light, NEO with its growing reputation is expected to soar in market price in the future. The other talking point is that NEO investment could be a way to earn trading profits by exploring its price volatility. To choose either course of action requires that you determine your goals and follow through.
To begin trading, exchanges are the first port of call for most investors, with the availability of a free wallet to use for storage. For traders who use brokers, they have the added advantage of CFDs and Futures contracts on offer. The expanding reach of the crypto market has opened the door for brokers like eToro, which also allows investors to do direct trading.
Specialised trading in crypto loans, margins and leveraged trading make the likes of Binance attractive as they provide trading tools and investors academies that you can use. Sophisticated trade in margins and futures require further learning that you should explore to avoid huge losses. These high-risk trades are also supported by eToro and Pepperstone.
Step 5: Optional Steps
There are other notable trading steps you will find useful in addition to what is described above. These are:
- NEO Staking
NEO staking is available on several platforms. It simply allows you to earn on your deposited tokens at a fixed rate of return. This is a passive income, which will be credited to your wallet weekly or monthly, depending on the platform.
- Buy the dip
To explore the NEO market further, you need to watch the price so that when it drops, you can buy and wait for a price surge to sell. You can use this to trade actively and earn a premium each time you do so. This is a feature that many crypto traders are actively exploring.
Available Payment Methods for Buying NEO
There are several payment methods that you can use to buy NEO. Although the platform you are using might determine the option you can use, all or most of the following are available:
- Buy NEO with Cash
Buying NEO with cash is possible if you are able to do so privately. Only open marketplaces like LocalBitcoins or similar P2P platforms can make this possible.
- Buy NEO with Credit / Debit Card
Using credit and debit cards make it easier to buy NEO. eToro and Coinbase are some of the trading platforms that support debit and credit card payments.
- Buy NEO with Bank Transfer
To buy NEO with bank transfer, you need to be sure that your country is on the list of supported countries. You can make bank deposits and buy NEO on Coinbase and eToro.
- Buy NEO with Cryptocurrency
Many platforms allow payment with cryptocurrencies if you are buying NEO. This is fast and commonly available.
- Buy NEO with PayPal
PayPal announced support for cryptocurrency purchases on its platform recently. Some platforms also support making the payment with your PayPal account, although it is not widely available.
What Are the Fees for Buying NEO?
Most crypto trading platforms charge fees for buying NEO, and this is expected as it is the case with other cryptocurrencies too. The cost of running each platform will be unbearable if there are no fees charged for transactions. While the fees payable are low, the platform is able to collate this from several users and stay afloat. Transaction fees include the cost incurred to process your deposits as well as network fees charged by the blockchain to transfer your tokens into your wallet.
Since buying and selling NEO attract fees, it is better to use a low-fee platform like Binance if you choose to be a day trader.
Expert Tip to Buy and Sell NEO
Experienced traders will always point out that your emotions should be in check to make money in your trades. No one person can always utilise all opportunities, so let go of the one you cannot use and look forward to the next one. Remember to act beyond the spur of the moment and adhere to the best practices in risk management.
How to Find the Best Time to Buy NEO
There is no specific time to make an investment in NEO. What you need to know is to be abreast of happenings around you. Listen to business news, look up the reports and review what the experts are saying. In-between all the points of interest, you will be able to find tips that you can use. Trends are important in all markets, study some more and look out for patterns that you learn and pounce on when they appear again.
What Drives the Coin’s Price?
The price of NEO is affected by the general performance of Bitcoin. However, beyond this point, reports of new adoption, partnerships with multinationals and government institutions all lead to price rallies. When you are within earshot of these happenings, it could be a sign to acquire some more and await a price leap. When negativity also clouds the market, you should also know when best to reduce your buy and stick to what you can afford to lose.
The recent surge in staking across crypto trading platforms has also created added demand for NEO, thereby leading to an upward price push. With DeFi still riding the waves of popularity, many investors are staking NEO for passive income, leading to better volume numbers.
How to Sell NEO
It is always risky to sell your NEO to a stranger who offers you cash. This can be costly and lead to loss of your sales proceeds. The best options are to use a P2P platform, an exchange or a broker. With a broker, you have nothing to fear as your proceeds will be available for you to withdraw when the sale is completed. On an exchange, the sale might be immediate, and you can bank your proceeds and withdraw the same as you deem fit. Sometimes, you might have to sell your NEO because you desire to buy another crypto. If this is the case, you need to check if your platform has an instant conversion functionality, which will make this simple and seamless.
The experience with CFDs is quite different as there is no sale actually made. Your broker will pay you the difference in spot price at the time of maturity of the contract. This is easier since it does not involve any actual token movement.
Frequently Asked Questions
There is no central authority that controls NEO. It operates as a decentralised community where decisions are reached based on consensus.
Yes. Many users trade with NEO and use it for settlement of bills daily.
NEO is safe and has credible safeguards in its blockchain against fraud and interlopers.
NEO welcomes new users each day and offers good trading profitability.
NEO price is volatile like other cryptocurrencies, and this creates room for profit-taking when there is a spike in price. How much you make will depend on how much you can trade with.
Many countries are developing a framework for crypto taxes and other digital assets. You will likely pay taxes on your NEO trading profits.
NEO price responds to the forces of demand and supply. Economic and business reports also affect price levels.
While there are no guarantees when it comes to cryptocurrencies, the chances of NEO disappearing are rather slim. NEO has an underlying value as its smart contract facility is used to drive some local economies around the world.