5 Ways To Invest In NEO In 2021
Popularly referred to as the Chinese version of Ethereum, Neo is essentially an open-source and community-driven blockchain platform, which was originally launched as ‘Antshares’ in 2014 by Da Hongfei and Erik Zhang. The project was initiated with the idea of creating a global community of developers, responsible for consistently improving the network and reducing its entry barriers.
The coin was trading at around $90 at the time of writing this piece, with a total market cap just over $6 billion. Here in this article, we will explain how to invest in Neo.
1. Trade Neo
Trading Neo at a regulated broker website, by either exchanging its actual ownership or using financial derivative products like Options, Future and Contracts for Difference (CFDs), can help you significantly in exploiting its volatile market value. Resultantly, you can also potentially create a second income stream for yourself. The majority of broker platforms facilitate speculative trading on Neo and other cryptocurrencies, involving no actual exchange of the coins. You simply take long/short positions on the currency, based on your due diligence and hope for the market to move in the direction you had expected. As a result, there’s no need of storing any coins in a hardware or software wallet too.
Please note, though trading this way seems very exciting, as you can often benefit from the leverage facility provided by the brokers too, you should indulge in it only if you know how to effectively use complex analytical tools and have some short-term crypto trading experience under your belt. New crypto investors are advised to first learn the ropes of the trade, before going all in.
Where to trade Neo
If trading Neo on a broker website seems like your calling, you will have to begin by locating a reputed and reliable broker to trade with, and then follow its account-opening process to get started. It may involve submitting your personal details and uploading some government-issued identity documents, to comply with the broker’s AML and KYC procedures. You’d be able to deposit funds and place trades post the account verification process.
Cryptocurrencies have come a long way ever since the launch of Bitcoin in 2009. Today there are many online cryptocurrency broker platforms that facilitate the trading of hundreds of digital assets, in an easy and user-friendly manner. To pick the right broker service for your needs, you must compare the best ones based on some critical factors including regulation, customer care, payment options, security protocols and charges. As evident, it can take a lot of effort and time. Please find below the recommended broker platform we unearthed after carrying out a detailed comparative analysis on all the top-rated ones.
2. Buy and HODL
What began as a misspelling in an online chatroom, by a drunk Bitcoin investor, back in 2013, has today taken the shape of a very frequently-used cryptocurrency investment strategy. HODL can actually be perceived as an acronym of ‘Hold on for Dear Life’ and is an integral part of the ‘Buy and Hold’ investment strategy.
As per this approach, you buy Neo and then hold onto your coins in the hope of their price appreciating notably in the long term. However, effectively using this approach is easier said than done, especially considering the frequent price fluctuations witnessed in the crypto market. What also sets it apart is that you don’t necessarily require any prior trading experience or knowledge to make it work.
To be able to hold on to your Neo tokens for the long term, you will need to first procure them from somewhere. The ideal places to buy them are cryptocurrency exchanges and broker platforms (which permit the actual sale/purchase of Neo).
You can buy Neo using multiple payment options on the Internet. To make things easier for you, our team carried out a detailed research and created some dedicated web pages for the purchase of Neo, using well-known payment methods such as debit card, credit card and PayPal. The links to each one of these pages are provided below. We’d like to mention here that you may need to check your local crypto laws to ascertain if these options are indeed available in your state/country of residence, or not. Furthermore, they may have some charges associated with them too.
- Buy Neo
- Buy Neo with PayPal
- Buy Neo with Credit Card
- Buy Neo with Debit Card
3. Invest in Cryptocurrency and Blockchain Companies
This particular investment approach is about buying/trading the shares of a company either directly invested in Neo or using the Neo blockchain technology as an integral part of its business. It’s worth noting that there are many businesses out there built around Neo. To give you an example, TechFund is an entity that partnered with Neo for the cultivation of tech-based start-ups. Then there is Switcheo, a decentralised crypto exchange that runs on Neo. In fact, you can pay the trading fees on this platform using GAS (One of Neo’s two native tokens). When you buy shares of any such company, you indirectly invest in Neo and can possibly benefit from both the appreciation in the digital currency’s value as well as that company’s market performance.
Where to invest in Neo shares
Please note, you’d once again need to use the services of a dependable broker, to buy the shares of any such organisation. A broker may assist you in either purchasing the actual ownership of the company’s shares or in trading those shares using financial derivatives like Futures, Options and CFDs. While the former involves actually owning the shares, the latter is essentially about betting on the shares’ price movements in the market.
With the brokerage service playing a very important role in this entire activity, it must be chosen with great caution. An ideal way to shortlist the best broker websites is by comparing them on various parameters including customer service, security protocols, regulatory compliance and payment options. We have done all of this on your behalf and have also listed the recommended broker below.
4. Become a Staker
Neo has a maximum possible supply of 100 million tokens, and as mentioned earlier, one of the best ways to acquire it is by purchasing it on an exchange/broker platform. Another possible way you can acquire Neo is by staking your holding, to enable others to validate its blockchain’s transactions.
Neo makes use of something called Delegated Byzantine Fault Tolerance (dBFT) as its consensus mechanism. It works quite like the Delegated Proof of Stake (dPoS) mechanism, allowing the Neo token holders to vote for delegates who shoulder the responsibility of processing Neo transactions. Owing to the efficiency of this system, the Neo blockchain can process thousands of transactions per second. At the time of writing this piece, Neo staking rewards stood at around 5% per year. However, this figure may change from time to time.
Where to store Neo
Regardless of the route, you take to acquire Neo, whether through trading, buying or staking your Neo holding, you will require an efficient wallet to store your Neo keys. The market is inundated with all kinds of cryptocurrency wallets today, broadly categorised into hardware and software types. While the former is more secure and ideal for holding your Neo coins for the long term, the software wallets make Neo readily available for any offline/online transactions. Considering the huge variety of wallets being offered in the market, locating the best one for your needs can be a very difficult task. We compared and studied a large number of such crypto wallets, and have recommended a wallet below.
5. Become a Neo Developer to Make Money
Becoming a Neo developer can open up a world of opportunities for you. You can then also use your income earned through Neo development, to acquire Neo coins and then perhaps even stake them to increase your holdings.
Expert Tip on When and How to Invest in Neo“ We delved into 5 distinct ways of directly/indirectly investing in Neo. The investment approaches we covered included trading Neo on a broker platform, buying and holding Neo tokens, investing into the stock of a Neo-based company, staking Neo and lastly becoming a Neo developer. Irrespective of the route you take for Neo acquisition, it would benefit you immensely if you learn more about cryptocurrency trading and investments. Learning how to carry out fundamental and technical analysis, using various types of charts and indicators can give you a lot of edge over other investors/traders. Furthermore, please note, there’s no correct or incorrect time to invest in Neo. It all boils down to your personal research and gut feeling. Most of the traders/investors do well as long as they stay open to learning from their mistakes and getting better as they go along. ”- Ashish Sood