10 Best Neo Exchanges in 2024

What is a Neo Exchange?

In the context of cryptocurrencies, a Neo exchange can be termed as an online platform where buyers and sellers can get together and freely exchange Neo and its tokens, against fiat currencies or other cryptos.

The platform functions as a mediator between buyers and sellers and is usually paid a commission for its services.

How do Neo Exchanges work?

While different Neo exchanges might have different interfaces and processes, when it comes to using the platform, there’s a basic procedure that must be followed by all traders. This involves registering with the platform, making a deposit, indulging in trades, and making withdrawals whenever needed.

Let’s go through these steps below.

Registration

You will need to first register with the Neo exchange and complete all its account-opening formalities, before starting to trade Neo coin on it.

The process may involve uploading a government-issued ID, an address proof as well as providing various personal details like name, email ID, residential address, contact number, etc., depending upon the KYC (Know Your Customer) measures taken by the exchange.

On the other hand, some may ask for nothing more than a simple email verification. Please note, trading on a KYC compliant crypto exchange can help you steer clear of antisocial elements, as these platforms normally have strict AML (Anti-Money Laundering) and CFT (Combating the Financing of Terrorism) processes in place.

Making a deposit

Once your account is opened, you will need to deposit funds through fiat and/or cryptocurrency accepted by the exchange.

These exchanges usually permit deposits via multiple payment methods including crypto wallet transfers, credit/debit cards, PayPal, e-wallets and bank transfers. You can begin trading once you have funds in your account.

Trading on the Neo

Like a conventional stock exchange, you can trade on a crypto or Neo exchange through ‘Buy’ or ‘Sell’ orders. The prices are normally matched with the help of software used by the exchange. You are also allowed to place ‘Market Orders’ and ‘Limit Orders’ that can enable you to get the best possible deal.

Withdrawals

You can place a withdrawal request and easily withdraw your holdings to a preferred fiat currency or cryptocurrency of your choice (so long as it’s offered by the platform). The good crypto exchanges provide a lot of options in this regard.

Using an Exchange Vs a Broker

A crypto exchange is normally a platform where you trade Neo coin and other cryptocurrencies with multiple buyers/sellers. Functioning as an intermediary between the two parties, the exchange charges a commission for this work.

A crypto broker on the other hand functions as an intermediary between the trader and the crypto market. It’s the broker who sets the price and may earn through multiple revenue channels like spreads, premium etc. In a broker’s case, an exchange happens between the trader and the broker.

Where these two such platforms fundamentally differ from each other is the types of trades they facilitate.

Whilst crypto exchanges allow for unleveraged trading, wherein you must exchange actual ownership of the cryptocurrencies to complete trades, broker platforms make leveraged trading possible by offering crypto derivative products such as Contracts for Difference (CFDs), Options and Futures.

There is no exchange of ownership in the latter and you can get the same exposure level as on a crypto exchange, without tying up large amounts of capital.

Should I Buy or Trade Cryptocurrency?

The answer to this question lies in your objectives. Trading is short term while investing is long term. If your goal is investing, you can make small investments over time and watch as your portfolio grows.

Trading is for people who want to make regular trades within the market and require adequate market knowledge.

Thanks to various derivatives platforms, you don’t have to own the real asset to trade. Such platforms allow the user to trade different trading instruments derived around NEO, such as futures, options, CFDs, and trade them without having to own NEO itself.

Futures allow the user to set a predetermined price at which a trade will be executed on a specific date in the future. They are quite risky due to high price fluctuations within the crypto market but can lead to high returns.

Crypto options allow the trader the right to buy/sell the underlying asset at a predetermined price on a specific future date.

CFDs are “Contract for differences” and allow the trader to speculate on the Neo price movements by taking long/short positions. If done well, they can lead to great profits, and the good thing about them is you don’t have to own the underlying asset.

Types of Exchanges

Crypto exchanges can be of different kinds depending upon the traders they cater to. Let’s go over the four popular types seen in the market nowadays:

Centralised Exchanges (CEX)

These are crypto exchanges where a central authority holds the entire control over the exchange’s operations.

If looked at closely, a centralised exchange’s concept is quite contrary to the whole idea of cryptocurrency, which was to eliminate the need for any such singular entity from the financial world.

In such exchanges, it’s the platform that holds the traders’ funds, and the provided trades can be fiat-crypto, crypto-crypto, or both.

Decentralised Exchanges (DEX)

Decentralised crypto exchanges make it possible for traders to indulge in peer-to-peer trading.

Almost every single operation of the exchange, including order matching, capital deposits, exchange of currencies, and order book maintenance is decentralised, just what the blockchain technology was meant to achieve. There is no possibility of a single-point failure.

Local Exchanges

These online entities work more on the lines of a local dealer who buy/sell cryptocurrencies from/to you, and offer/accept the local currency. Although you can place buy/sell orders with such exchanges, there’s no hard-core trading facility on offer.

Fiat vs Pure Exchanges

While Fiat-Crypto Exchanges are the kinds where you can easily buy crypto using fiat money, a pure exchange is one where you can indulge in only crypto-crypto trades. As can be guessed, the former is quite popular amongst the new crypto investors/traders and make a purchase of cryptocurrencies possible for the general population.

Key Things to Consider when Choosing the Best Neo Exchanges

Anyone who wishes to trade Neo coin via an exchange should ensure that they opt for the right crypto or Neo Exchange, based on their unique requirements. It is very important to go through all the features offered by the shortlisted portals and refer to their various terms and conditions.

In general, there are certain key points you can keep in mind to make the best pick. Some of these are:

• Security – This should be the most important aspect when you go looking for a crypto exchange. An insecure exchange may have low fees but can be high risk. The exchange should offer all updated security features, including two-factor authentication (2FA), and should protect your private key.
• Fees – The commission charged by the trading platform for your trades shouldn’t be higher than other cryptocurrency exchanges. Furthermore, the fee structure should be transparent. Cryptocurrency exchanges don’t only make money from transaction fees and can charge for deposits or withdrawals among other things.
• Payment methods – There would be no point in signing up with an exchange if it doesn’t accept your preferred deposit/withdrawal method. All reputed crypto exchanges offer a good variety of payment methods such as credit/debit cards, wallet transfers, bank transfers, etc. to the traders.
• Privacy – If anonymity is high on your priority list, you must opt for a crypto exchange that asks for minimum personal details.
• Customer service – The exchange should preferably offer round-the-clock customer service via all popular mediums like live chat, phone, email, and social media.
• Ease of use – The platform should have a simple and easy-to-understand user interface, making it suitable even for beginners.

Final Thoughts

Users should carry out trading only on a reliable Neo exchange where you can be sure of the security of your funds.

In view of all this, we shared with you some important details related to Neo exchanges in this article, such as the meaning of a Neo exchange, how it works & differs from a broker platform, key points to remember while selecting one and the pros & cons of such portals.

For more on the best cryptocurrency platforms check out our full best crypto exchanges page.