How to Buy NEO - Where to Purchase NEO?
Neo is the non-divisible base asset of the NEO blockchain. A digital ecosystem, NEO has seen incredible growth in its tech infrastructure and decentralized apps recently.
Often referred to as the ‘Chinese Ethereum’, NEO appears to be nearing its goal of supporting large-scale, commercial applications with blockchain technology.
In the third quarter of 2020, NEO 3.0 arrives - a robust upgrade of the blockchain, it offers high throughput, improved stability, and security along with an optimized smart contract system.
With digital economies looking like a custom fit for a post-pandemic world, NEO looks well-positioned. So, how to buy NEO?
Our team of experts have prepared this guide to lay out the best ways to purchase NEO and also the fastest and at the best value.
We will provide necessary steps that can be taken to buy NEO through PayPal, credit, or debit card and other known payment systems. If you are new to cryptocurrency, we will inform you on what is the easiest way to purchase NEO for beginners of all budgets.
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Why Trade Rather Than Buy NEO?
You Don’t Need a Wallet
You trade on the price movement of the coin without having to buy and store it.
You Can Use Standard Payment Methods
All regulated brokers accept popular methods of payment such as credit/debit card and bank transfers.
Trades Are Fast and Withdrawals Are Easy
Trades are executed within seconds and withdrawals will reflect instantly in your account.
What is the Easiest Way and Best Way to Buy? Compare the Top NEO Brokers
To determine the easiest way to buy NEO, and the best place to purchase NEO, you first need to understand your level of tech proficiency. Cryptocurrency exchanges can be complex for the uninitiated and it’s a good idea to learn how to use an exchange before depositing funds. If you aren’t comfortable navigating a cryptocurrency exchange, the easiest way to buy NEO for trading purposes is through a broker. Brokerage platforms differ from cryptocurrency exchanges as they offer a wider range of payment methods and when regulated, better security and peace of mind for the user. Just make sure you choose a reputable, recommended broker.
5 Things to Consider If You Want to Buy NEO
Before identifying a place to purchase NEO, there are several other factors to consider that will ultimately affect your decision. Follow this guide step-by-step to ensure you are ready before risking funds.
Carefully choose your preferred secure payment method
In determining the payment method you need to think about what your priorities are in relation to speed, convenience, and cost. You also need to be aware that different locations have varying payment methods available.
Some of the more popular methods globally are bank transfer, PayPal, and credit and debit cards. We will help you identify which of these options suits you best.
Will you need to set up your own wallet?
If you want to buy NEO and hold it, you’ll have to find a safe place to store your new digital assets. Generally speaking, the more convenient the storage method, the riskier it is. Leaving your coins on an exchange, for instance, has proven to be a slightly precarious option.
In the past exchanges have been hacked, gone bankrupt, and in worst-case scenarios, exit scammed with client’s coins.
It is widely accepted that a far safer option is to store your coins in a dedicated cryptocurrency wallet. There are several different types of these, which we will discuss in a moment.
If you prefer to purchase NEO for the purpose of trading and you are happy to merely gain exposure to NEO price movements, without the stress of managing your coins, buying NEO through a recommended broker is a great option.
When you purchase with a broker, you are not actually buying NEO the cryptocurrency, you are entering into a ‘Contract for Difference’ or CFD, which gives you hassle-free exposure to NEO price movements.
The base asset of the NEO blockchain is the non-divisible NEO token, which generates a second token known as GAS. These GAS tokens are a separate asset on the network and can be used to pay your transaction fees.
Network fees vary but you will rarely if ever, pay NEO to send NEO. Most user interactions with the NEO network and smart contracts are free as there is a system fee discount of 10 GAS for each transaction.
NEO has designed the network to be affordable to use to encourage users. For businesses, Neo smart contracts cost certain system fees and these are collected and distributed to all NEO holders.
Safety and security
NEO uses an improved version of the Proof-of-Stake (PoS) mechanism called a delegated Byzantine Fault Tolerant (dBFT) consensus mechanism. It’s a mouthful, but it basically means NEO is a network that is secure by design. Sending and receiving is encrypted within the network.
Most traders and investors are more concerned with the level of security of the trading platform or exchange where they intend to buy NEO.
If you choose an exchange make sure to research it thoroughly. If you prefer to acquire NEO for trading purposes only, it is a good idea to choose ones that use market leading trading platforms like MetaTrader 4 (MT4) and MetaTrader 5(MT5).
These platforms have the latest security systems; professional assistance and flexible automated trading systems.
Two-factor authentication (2FA) – is another system designed to keep you safe. 2FA demands you submit two pieces of digital information before you can verify your identity.
Can you understand and navigate the platform?
One important aspect that is often overlooked by those not familiar with buying cryptocurrency is how comfortable you are navigating a cryptocurrency exchange.
Failure to understand how to set buy and sell orders can result in lost funds and heartbreak.
You’ll need to research the exchange in question thoroughly to learn how to deposit funds, place a buy order, place a sell order, and move your coins from the exchange. Brokers are typically easier to use than exchanges.
Ultimate Beginner’s Guide to Trading NEO
What is a NEO Broker?
If you are new to trading, a broker is a way of gaining access to price movements without actually owning the underlying asset. It is essentially an agreement between you and the broker to exchange the difference in the price of NEO from the time you enter the contract until the time you exit.
With a cryptocurrency broker, you are not actually buying the coins, only speculating on NEO’s value. For people too daunted to buy coins on an exchange, Cryptocurrency brokers offer a fast and easy way to buy NEO for trading purposes only.
What is a NEO CFD?
When you buy with a broker you are actually entering an agreement called a ‘Contract for Difference’ (CFD). This is the agreement that demands that the difference between the value of NEO now and when the contract ends is settled between you and the broker.
The process can be faster and have fewer fees than trading on a cryptocurrency platform enabling you to gain cryptocurrency exposure quickly and without hassle. CFDs don’t incur any fees from the NEO system or blockchain, only brokerage fees.
What is the Benefit of Regulation?
As the cryptocurrency market matures, increasing regulatory clarity is providing more confidence to the market that cryptocurrency is here to stay.
These regulations provide investors with peace of mind that they are not going to get ripped off by a fraudulent exchange or broker.
If you choose to purchase NEO through a broker, it's important to select one that has been regulated by a global authority.
What is the Best Payment Method for Buying NEO?
With NEO increasing in popularity, it is appearing as a digital asset on more and more exchanges and brokerage platforms.
Fortunately, there are generally numerous payment methods available depending on your location. You’ll need to select a payment method that suits you as some of them come with a cost that could impact your investment decision.
Buying NEO with PayPal
PayPal is a trusted payment provider worldwide and a payment method that offers great convenience with fees that aren’t the cheapest but they aren’t the most expensive either.
Unfortunately, if you wish to purchase through an exchange, you may struggle to identify one that accepts PayPal as a payment option.
Cryptocurrency brokers are more likely to offer PayPal as they are more often regulated by global authorities.
While PayPal fees are normally low for bulk purchases, it is a good idea to calculate the exact fee beforehand as they do vary.
Buying NEO with Cash
It isn’t really possible to buy NEO with cash, as you would have to arrange the purchase on a peer-to-peer platform. This can be a way of buying Bitcoin or Ethereum but NEO isn’t usually offered as an option on these markets.
Via Bank Transfer
Buying NEO with a bank transfer remains one of the most popular methods, as it is generally more affordable than other methods on this list. If your bank account is linked to an exchange or broker it is also convenient to transfer funds back and forth.
Bank transfers can take time to process and they are not always smooth sailing. Make sure you confirm with your exchange or broker that you can link your bank account first.
Buying Neo With Credit Cards or Debit Cards
Everyone knows the convenience that credit cards offer over other payment methods. You can purchase NEO near-instantly with a credit card or debit card. However, the fees are some of the highest available when compared to other payment methods.
Credit cards are also only offered as a payment option at the more established global exchanges. Generally speaking, brokers are more likely to offer credit cards and debit cards as a payment option.
The Verification Process for Trading
It doesn’t matter where you buy NEO, you will likely be asked to provide some proof of your identity when you sign up.
This is normally a straightforward two-step process designed to ensure your security.
Step 1 - Confirm your phone number
The first thing you will need to do is confirm your phone number. You’ll likely be sent a text message and you’ll need to enter the code in their security system.
Step 2 - Provide Personal ID
The next thing you will need to provide is a photo ID that proves you are who you say you are. Sometimes you will be asked to upload a photo with the document to ensure it is yours and not stolen.
This practice is to ensure your own security and help the broker comply with ‘Know Your Customer’ KYC guidelines, designed to prevent money laundering.
If you are living in a region with strict regulatory requirements, you may need to prove your address via a recent utility bill.
Long vs Short Term Investment
It is entirely possible to turn a good profit with both a long term and short-term approach to investing. With NEO 3.0 launching later this year, there will likely be upward pressure on the token’s value. Increasing usage of the network is another bullish driver of NEO’s token price.
You just have to decide if investing in NEO for the long term is a better strategy than looking to profit over a shorter time frame. A saying in cryptocurrency is that it is never a bad time to take profits.
Why Buy, Rather Than Trade?
The advantage of owning NEO, the native currency of the NEO ecosystem, is that you are exposed to the increased usage of the network, both in terms of the value of the NEO token and the distribution of system fees to NEO token holders.
Taking the long-term approach through an exchange is a little more involved than trading through a broker, however. It is advisable to collect your coins and transfer them into a secure wallet, which you have selected after detailed research.
Probably the fastest way to buy NEO coin is via a recommended broker. With a broker, you can purchase instantly for trading without having to own the underlying asset.
What Fees are Involved?
There are generally different types of fees to consider when you set out to buy a cryptocurrency.
These include the fees charged by the blockchain itself and the fees charged by the exchanges or brokers where you choose to buy your NEO.
Fortunately, the NEO blockchain is designed to incentivize users to make use of the platform, and as a result network fees – the fees charged when you send a cryptocurrency from one address to another – are negligible or non-existent for most users’ transactions.
For exchanges and brokers to stay in business they need to charge fees, as maintaining a high degree of security comes with a cost.
Most cryptocurrency exchanges will charge you a small fee when you deposit regardless of whether you are depositing coins or fiat currency. Brokers often don’t have deposit fees in a bid to encourage clients to join.
When you want to take your cryptocurrency or fiat currency off an exchange or brokerage platform you may be charged a fixed or variable fee. The amount of fees you will be charged also depends on your payment method.
Safely Storing Your NEO
When you purchase cryptocurrency from an exchange you will need to think about how to store it securely depending on your requirements. There are several different types of wallets for you to do this.
Web wallets are the wallets located on the servers of the exchange you are using. The main benefit of leaving your coins in this wallet is convenience.
It is not safe practice however as you need to ‘trust’ the exchange to keep your digital assets safe. In some instances, exchanges have been hacked, gone bankrupt, or worse. As a result, it is generally a good idea to get your coins off the exchange as soon as possible.
Mobile wallets are a far better option than leaving your coins and private keys with an exchange. The main advantage of mobile wallets is that your NEO will be fairly secure and readily accessible.
The downside is that being a ‘hot wallet’, connected to the Internet and therefore vulnerable to hacks. Your mobile wallet is only as good as the security system and encryption employed. Make sure you employ added measures like pin codes or fingerprint identification if possible. Some popular NEO wallets include Atomic Wallet, Guarda Wallet, and Coinomi.
Desktop wallets are another type of ‘hot wallet’ that lives on the desktop of your computer. In some ways, these are more secure than mobile wallets, which can be subject to unique attacks like SIM swaps.
However, your desktop wallet is only as secure as the security features you have installed on your desktop. It’s a good idea to utilize best-practice security measures like 2FA to further safeguard your digital assets if choosing this wallet. Some popular desktop wallets for storing your NEO include Electrum Wallet, Jaxx Liberty, and Exodus Wallet.
Hardware wallets are the most secure method of storing your cryptocurrency. These are often referred to as a ‘cold wallet’ as they are not connected to the Internet and therefore nearly impossible for hackers to penetrate.
The main drawback with hardware wallets is accessibility, as you will have to connect to the Internet, often through a USB port, to move your assets. The most established hardware wallets for storing NEO are the Ledger Nano X and Trezor.
Sometimes the best approach is to spread your investment over several different wallets to remove a central point of failure.
An example of this would be to store your long-term investment in a hardware wallet, mid-short term investment in a hot wallet and if you are short term trading, it makes sense to leave the coins on an exchange or trade NEO via a broker.
What Other Coins Can I Trade or Use to Buy NEO?
If you wish to buy NEO with Bitcoin, you only have to visit a Bitcoin exchange that offers the BTC/NEO market pair. These market pairs are increasing as the crypto market matures and there are more and more coin-to-coin markets appearing on exchanges.
Buying NEO with Ethereum is also sometimes available but for other market pairs, you may need to shop around.
What’s the Smallest and Largest Amount of NEO I Can Buy?
What’s the minimum purchase? NEO is unlike Bitcoin, Ethereum, and other cryptocurrencies as its token is non-divisible, meaning in order to own it you have to buy a whole NEO.
Fortunately, due to supply, the price of NEO is generally accessible for most people when compared to a whole Bitcoin or others. You can purchase NEO without limit and the maximum amount is only limited to your budget and the supply available on the exchange.
Can I Buy Anonymously with no ID? Is it Safe and Legal?
Unfortunately, it is currently quite difficult to buy anonymously and safely at the same time. With regulations becoming clearer and more effective, fewer exchanges and brokers will allow you to purchase NEO with no ID verification.
With Bitcoin, it is still possible to use a peer-to-peer marketplace and arrange to meet someone to transfer Bitcoin for cash anonymously or you can purchase through a dedicated ATM.
These methods aren’t typically offered with NEO. It is generally not a good idea to do this anyway and we recommend using an exchange or broker where ID verification is required.
So, is buying NEO illegal? Different locations in the world have varying regulatory stances on cryptocurrency.
For most countries, it is legal and safe to buy NEO coin. Just make sure to choose a NEO exchange or broker that enables additional levels of security like 2FA.
Will Buying NEO Make Me Money?
So is it as simple as ‘buy NEO get rich?’ Not quite. NEO has a bold vision to become the foundation for the next-generation Internet. With increasing partners and projects, it is no doubt growing in influence and network usage.
When you look at the smart money and who is buying NEO it may seem that it is certain to rise in value but anything can happen and it is not without competition from other digital currencies.
What is certain is that NEO will continue to attract investor interest and if you identify the best price to purchase NEO and execute effectively, you can make money.
You may be asking yourself “how much does it cost to buy NEO”? Check out our NEO price page for more information on this exciting coin’s price history and important news events.
How to Spend Your NEO
While NEO is a cryptocurrency, it isn’t expressly trying to be used for everyday payments like buying your coffee. Rather, it is the base asset of the NEO blockchain and the place to spend the tokens is on the blockchain itself and within decentralized applications (DApps).
With NEO 3.0 arriving later this year, expect more businesses and commercial DApps on the NEO blockchain, where you can use your NEO tokens.
NEO is an open-source blockchain and anyone can build DApps. Check out the NEO Dapp List for a list of current DApps built by the community.
How to Sell Your NEO
Selling NEO on a cryptocurrency exchange can be daunting for the uninitiated. It is very important you can read the chart and understand the way to set orders. You will also need to understand the difference between market and limit orders and how to place them.
If you hold NEO for trading purposes through an exchange, the process of selling your NEO for fiat is far more straightforward. CFDs simplify the process of trading NEO and provide a level of flexibility and security exchanges cannot. This is because you are trading a contract rather than NEO tokens themselves.
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Frequently Asked Questions
Da Hongfei and Erik Zhang founded Neo in 2014. Initially, it was known as Antshares, before being rebranded to NEO in 2017.
NEO has recently invested USD $100 million via its EcoBoost program, to accelerate the realization of large-scale commercial blockchain solutions.
The NEO network is one of the most developer-friendly platforms, with a comprehensive suite of tools and resources for anyone in the world to build within Neo’s vision of a smart economy.
The price of NEO and other cryptocurrencies looks to be recovering from the recent bear market. With the Bitcoin halving driving bullish momentum across the market, it is likely NEO will follow the direction the market leader takes.
Trading on a broker is the same as trading real NEO; only you won’t have to manage your coins. If the price of NEO doubles while you hold a NEO CFD, you will double the value of your investment. Brokers also typically charge fewer fees.
Exchanges vary greatly in terms of security and some of the lesser ones have been hacked in the past with users' coins stolen. Brokers don’t often have that problem as they don’t store any coins on their servers.
Yes. Regardless of whether you are depositing fiat currency or cryptocurrency, most platforms have a minimum deposit. Brokers have a minimum fiat currency deposit before you can start trading.
In determining whether NEO is a good investment, you need to analyze the roadmap and price history. With higher throughputs, improved stability, and enhanced security coming with NEO 3.0, it’s likely there will be upward price pressure if everything goes smoothly.