If you are interested in buying Neo, knowing more about the cryptocurrency will help you to determine your investment strategy. In the trading world, it pays to do a little homework!
By learning about the history of Neo, how it works, its future ambitions and what the likely price targets are over the coming years, you will give yourself an edge in the trading arena. The type of investment you make may also offer up more options than you anticipated. Equally you may want to keep things simple and purchase NEO coins. Either way, finding the right online broker is the final step in giving you the best possible chance of trading success.
Neo, previously called “Antshares,” is the biggest competitor to Ethereum, and it very quickly rose up the cryptocurrency rankings after its release in 2016. Note that “Neo” is the blockchain platform while “NEO” refers to the digital token used on the network. The price of NEO has shot up from its initial price of $0.20 to around $35 over five years. It also reached a staggering all-time high of $190.30 within its first two years of trading (although this did coincide with the very bullish cryptocurrency market of early 2018). Many cryptocurrencies, such as Bitcoin, have implemented their blockchain technology to host their decentralized currency. However, Neo went the same way as Ethereum, creating a blockchain platform compatible with other layers of technology. Think of it as a digital store.
That being said, Neo has two cryptocurrencies. The first is “NEO,” which is the main currency associated with the company. Similar to Bitcoin, ownership of NEO implies voting rights on the open-source blockchain, and it can be traded directly for fiat money. GAS is the second of NEO’s cryptocurrencies, and it is the token used to pay for the blockchain’s service fees. People who own NEO are rewarded (a bit like dividends) in GAS, even if they are not mining themselves or keeping their NEO in an offline wallet. This is made possible because Neo uses consensus nodes to authorize transactions instead of the less eco solution of running individual “nodes” (computers) worldwide. Unlike NEO, GAS can only be exchanged for other cryptocurrencies.
Neo wants to create what is known as a “smart economy.” In essence, a smart economy supports the digitalization of society – using smartphones, smart contracts, and digital identities. By bridging the traditional with the digital, NEO wants to create a more innovative and efficient way for people to manage their finances. How does it do this?
Essentially, Neo uses smart contracts to transfer digital assets across a decentralized blockchain network. This year, Neo launched the latest upgrade to its network: N3. Now, Neo can communicate with other cryptocurrency blockchains such as Bitcoin and Ethereum through their new “Poly Network.” Developers were abuzz about the addition of “Oracles” to the Neo network, making it easier for external data sources to use the smart contracts.
Many cryptocurrencies struggle with expansion or “scalability.” The more users join, the busier the network. Think of a busy motorway at rush hour – the more traffic there is on the roads, the slower your journey and the bigger your gas bill. Neo decided to move its storage offline by introducing “aNeoFS,”: where users are rewarded for giving up their spare disk space and enabling decentralized storage.
The more time we spend online, the more cluttered our presence is with various accounts, logins, and passwords. The “digital identity” proposed by Neo would combine our online presence into a single footprint. Instead of multiple accounts for various purposes (Twitter, Facebook, banking apps), we would have a sole on-chain identity.
Dual Token System
Another key feature of the NEO platform is its dual token system: NEO and Gas.
- NEO: These are the tokens used to create blocks on the network. The more NEO you own, the more of the network you represent and control.
- GAS: Like the liquid that powers your car, GAS is the fuel for transactions on the NEO network. Holders of NEO tokens are rewarded with GAS.
Neo is often referred to as the “Chinese Ethereum,” but how accurate is that, and will it win the race for mass adoption?
While NEO is often described as the Chinese Ethereum, it could be much more than that. What does the future hold for the “Ether of the East”? Just look at its recent price trajectory: the price of a NEO token jumped from $7.20 last April to $67.70 in April 2021, increasing +840%. Many of the more successful altcoins, such as Litecoin, have forked from Bitcoin and closely mirror the inaugural cryptocurrency’s underlying tech. This makes their market trajectory vulnerable as they are simply piggybacking off Bitcoin’s success.
Most trading experts and analysts have confidence that the price of NEO will continue to rise. Some, such as the Gov Capital Investor Blog, believe NEO will reach a maximum price of $55.7 by May 2022. WalletInvestor doubles this, predicting that NEO could hit $111 by the same time. Another good harbinger of the future of a cryptocurrency is how governments and corporations view it. NEO has a strong position in this aspect, backed by some big Chinese businesses, including the behemoth online marketplace Alibaba. If Neo continues to earn the trust of the Chinese government, then it could become the go-to cryptocurrency for the Asia markets – no small feat.
NEO is one of the most popular coins among cryptocurrency investors and traders alike.
If you are looking for a long-term investment in the Neo project, your best bet would be to buy NEO or GAS tokens from a cryptocurrency exchange platform. There are plenty of sites out there that will let you use your credit or debit card to exchange fiat currency (your dollars, euros, pounds, etc.) for a share of NEO. If you have already invested in another cryptocurrency and want to make the leap to NEO, most crypto exchanges will also let you do a direct swap.
If you go down this road, your financial security is your responsibility. Cryptocurrency exchanges are not like a bank. Most are unregulated, and your assets will not be protected in the same way (although some would argue that banks aren’t much better, hence the rise of cryptocurrency in the first place!) Should you have a significant holding of NEO, you should consider moving your coins to an offline or “hardware” wallet. You can then choose to keep it on a hard drive, USB stick, or even a CD – which will be safe from online cyberattacks. Another tip: the key to the safe is your wallet password. Don’t share this access key – but don’t forget it either!
If that all sounds like too much fuss and bother, there are other ways to capitalize on Neo. Many short-term investors choose to trade derivatives with NEO, for example, CFDs. By opening a CFD (“Contract for Difference”), you can speculate on the frequent price movements of NEO across the markets without ever having to own the coin itself. With CFD trading, you open a contract with your broker and “go long” (buy) and “go short” (sell) your assets to time with the value changing. Whichever strategy you choose to deploy, having a trading plan in place, and using risk mitigation techniques such as stop loss and limit orders, is highly advisable.
The cryptocurrency market is highly volatile, which can be both exciting and daunting to beginner traders. Not all brokers are alike, and finding a trading platform with the right features could make or break your trades. Here at TradeOr, we offer a suite of tools to arm you for the markets, including access to TradingView –one of the top charting programs in the industry. You can analyze the markets, open positions, and monitor your trades all within the charts and on the go. There are no hidden fees: TradeOr charges 0% commission but offers 100% support, with a customer support team available 24/7. This is a highly recommended route for beginners and experts alike, where you can familiarize yourself with the markets or practice a new trading strategy.