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 and become a NEO holder, 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 separate assets 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 tokens 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 are 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.
What Fees are Involved when you buy NEO?
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 purchased 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 NEO 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 type of digital wallet and are a far better option than leaving your coins and private keys with an exchange. The main advantage of mobile NEO wallets is that your coins 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 trading pairs. 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 NEO 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 coins. Just make sure to choose a NEO exchange or broker that enables additional levels of security like 2FA.
Will Buying NEO tokens 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 tokens?
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 NEO tokens?
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 to sell 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.
If you're selling directly to another person then you will need their NEO wallet Address.