NEO is a blockchain platform and cryptocurrency. It is similar, in concept and inspiration, to Ethereum. The project was launched in 2014 by Erik Zhang and da HongFei and was branded as ‘China’s first open-source blockchain platform’. The project was initially known as ‘Antshares’, and the platform utilized ‘Antcoins’ on its network. It was only in 2017 that the project rebranded to ‘NEO’. The NEO project also outlined its vision of creating a far-reaching smart economy, where digital assets would be automated using smart contracts.
The NEO project has always attracted special attention in the crypto investing community due to its novel vision. NEO has also been touted as being regulatory friendly, bypassing a major bottleneck that other crypto projects face. Unlike other crypto networks that use a Proof of Work technology, NEO utilizes a consensus mechanism known as Delegated Byzantine Fault Tolerance (dBFT) that is energy efficient and allows for infinite scalability. All this bodes well for NEO’s ultimate endgame, which is to become a platform for the new smart economy. The project has a bright future and enjoys massive political and economic support from its native Chinese home.
Why Buy NEO?
The most important reason to buy any cryptocurrency should be a belief in the underlying project. In this regard, NEO offers a strong and compelling case. By concentrating on solutions of a smart economy, NEO is building a future proof product that sets it up nicely to be an important cryptocurrency for the future.
As mentioned above, NEO has always enjoyed political and economic goodwill from China. But the biggest opportunity will be the Chinese market potential, with the country home to over 1.4 billion people. NEO will have no shortage of bankable opportunities in a vibrant market that will be keen to edge ahead towards implementing a fully smart economy.
The compelling project has also managed to attract some notable backers, who are keen to partner with the genius and hardworking team at NEO. Microsoft China stands out as the biggest NEO partner, with the two companies keen on building the most developer-friendly blockchain platform. This will ensure that smart economy projects are accelerated on the platform. As well, NEO was also the first Chinese company to join Hyperledger, a crypto network that seeks to help businesses integrate blockchain solutions into their systems.
The current price of NEO is also interesting for investors. At around $10, it is much higher than its 2015 introductory price of $0.032, but also much lower than its 2018 high of just above $196.
Buy NEO from Crypto Brokers
Crypto brokers are companies that allow investors to trade crypto CFDs (contracts for difference) through an OTC (over the counter) market. A CFD contract is an agreement between the broker and an investor to pay the difference in price between the open and close of a position. If an investor’s price prediction is right, the broker pays up; if the investor is wrong, he pays the broker or simply incurs a loss. When you buy a crypto CFD contract, you do not own the underlying coin or token; you simply trade its price movement. This means that investors can make money whether prices rise or fall.
Choosing the Right Broker to Trade NEO
There are numerous brokers that offer crypto CFDs, but not all of them will be the best fit for your trading needs. It is important to understand that a good broker will immensely tilt the odds of trading success to your favor, no matter your level of trading knowledge or skill.
Here is what to consider when choosing the right broker to trade NEO with:
Regulation is a sign of trustworthiness and honesty in a broker. It implies that they offer transparent services and they will always be answerable to an independent body protecting investor interests.
- Trading Platform
A good broker will have a user-friendly, stable and efficient trading platform that is in tandem with the latest technological advancements in the industry. It will feature a good charting package as well as comprehensive analysis tools.
A good broker will be as invested in your success as yourself. In that regard, your preferred broker should be able to offer resources such as the economic calendar, market analysis or even trading signals so that you can trade NEO and other financial assets effectively.
- Customer Support
NEO is available for trading round the clock. A good broker should have a responsive and professional customer support team that is available during market hours should you need any assistance.
Pros and Cons of Buying NEO from Brokers
Buy NEO from Crypto Exchanges
Crypto exchanges are very similar to traditional stock exchanges. They are essentially marketplaces that pair up buyers and sellers of crypto coins and tokens. When you buy NEO from a crypto exchange, you get to own and store the coin. The NEO community have their own dedicated crypto wallet for storing NEO coins, but there are other online and offline wallet alternatives offered by exchanges and other third parties. Investors are always advised to secure their crypto wallets using strong passwords.
Most exchanges do not allow the purchase of NEO coins using regular fiat. This means that you will have to first purchase Bitcoins or Ethereum so as to convert them for an equivalent of NEO coins. Even so, it is important to note that unlike other cryptocurrencies, the NEO coin is indivisible. You cannot own fractional values of the NEO coin – the smallest denomination is 1 NEO coin. If, for instance, you ever exchange your Bitcoins for say 6.2 NEO coins, you will only ever be able to transfer to your wallet 6 NEO coins, and the remaining 0.2 will remain held by the exchange. For investors, the potential downside to this will be the inability to invest in the NEO coin if its value becomes so expensive.
Because you will own NEO coins when you buy them through an exchange, you will only earn profits if the value of the coin appreciates and you decide your holdings. If you sell them when prices tumble, you will incur losses.
Pros and Cons of Buying NEO from Exchanges
Broker Fees vs Exchange Fees
When trading NEO at broker platforms, the only trading fees are spreads, which represents the difference between the bid and ask prices in the market. In most cases, spreads are usually less than 0.1% of the trade position. In contrast, trading fees at exchanges are not straightforward. Most exchanges have a tiered fee structure designed to encourage high volume trading. This means that less capitalized investors pay high fees to trade their favorite coins. Furthermore, in the case of buying NEO coins, investors may incur charges if they first have to buy Bitcoins or Ethereum.
The Future of NEO
The launch of NEO was billed as China’s response to Ethereum. Cryptocurrencies are here to stay, and the future in that space has always been Ethereum. Second, only to Bitcoin, Ethereum serves as both a cryptocurrency and a platform for launching decentralized applications (dApps). NEO comes in as a direct competitor to Ethereum, but with very strong credentials. Both platforms support smart contracts and dApps, but Ethereum already has a great head start and hosts a majority of the top 20 crypto coins and token. Still, it utilizes its own programming language (Solidity); but NEO supports all the popular existing languages such as C#, python and java, which will inevitably attract more developers going forward.
NEO also has the edge in speed, supporting over 1000 transactions per second compared to Ethereum’s 15 transactions per second. And while Ethereum leads the way in market dominance, its underlying security has always raised concern. NEO’s dBFT protocol has ensured security is never a concern on its network. NEO is also far much cheaper than Ethereum, with the bulk of small transactions completed without any charges. Fundamentally, NEO has the qualities to guarantee a bright future and currently stands as the crypto coin most likely to lead the global charge for a smart economy. If you are ready for the future, you are ready to buy NEO!