Given the name ‘China’s Ethereum killer’ at the height of its popularity, NEO is a community-driven project with the objective to create a distributed network for the smart economy.
The Neo platform aims to offer smart contracts and decentralized payment systems, making it possible for people to carry out everyday transactions on the blockchain. NEO coin is used to add new blocks to its blockchain and manage the network as a whole.
By utilizing blockchain technology and combining it with digital identities and smart contracts, the NEO ecosystem ensures digital assets that are transparent, decentralized, and most of all, free of control by 3rd-parties.
Here is a short guide for how to buy NEO if you already have a Binance account:
- Set up a NEO-supported wallet (NEON for example)
- Copy your wallet address
- Visit Binance
- Purchase bitcoin (the only available trading pair is NEO/BTC)
- Search for the NEO/BTC pair
- Create a market order for a custom amount of NEO
- Withdraw NEO to your copied wallet address
Purchasing NEO coins
NEO, formerly known as Antshares, is one of the most significant projects in the industry. While some parts of the crypto community had an ill view of the project, early investors managed to profit from one of the most successful investments in the famous 2017 bull run.
According to data from CoinMarketCap, NEO hit an all-time low of $0.07 in October 2016 and reached an all-time high of $196 in January 2018.
Knowing how to buy NEO is as easy as acquiring any other cryptocurrency. However, as NEO lacks a fiat pair, you will require a custom amount of crypto that can be exchanged for NEO.
If you’re new to cryptocurrencies and haven’t previously used an exchange, we have prepared a more detailed guide below.
Detailed NEO buying guide
Newcomers to the cryptocurrency space may be turned away by the constant and massive flow of new information. For users who haven’t held digital assets before, we created a guide that explains how & where to buy NEO straightforwardly.
Step 1 – Create a wallet
While NEO doesn’t have the most active trading activity, several developers keep working on NEO wallets. If you’re looking for a wallet created by the official developer team, you can find their product on the team’s main website. There are other options available as well, such as:
NEON is an excellent hot wallet option for users who want to allocate their assets on their PC. All assets are stored directly on your computer, instead of the NEON servers. By choosing this option, you only have to rely on yourself when it comes to storing cryptocurrencies safely as part of knowing how to buy NEO.
However, note that hot wallets are wallets that are connected to the internet. If you’re looking to purchase a more substantial amount of crypto, we recommend that you get a cold wallet. They are offline and keep the assets on a device designed specifically to store crypto.
NEON allows you to set both the amount of NEO and GAS tokens sent in a transaction. The wallet is available on Windows, Mac, and Linux, and has been officially reviewed by NEO’s development team.
While others prefer the autonomous use of personal wallets, others may want to use an exchange wallet. As the name implies, exchange wallets are wallets that are controlled by officially regulated cryptocurrency exchanges.
Binance is at the moment the most popular and safest exchange available. While storing your assets, Binance also allows you to trade them on their public exchange. However, note that the only available trading pair for NEO is NEO/BTC
In the case of a hack, Binance’s SAFU (Secure Asset Fund for Users) system will retrieve your assets if they got stolen. The system is an emergency insurance fund introduced on the 3rd of July 2018.
A more expensive option for cryptocurrency holders is a cold wallet, often referred to as hardware wallets. Ledger produces one of the most bought hardware wallets. Their most popular models are Ledger Nano S and Ledger Nano X.
Both of them can store NEO coins and can more safely store your crypto compared to hot wallets. However, note that hardware wallets can cost up to $200 depending on the model.
For experienced and technical users, paper wallets are a free and safe alternative. They can be printed at home with the help of third parties such as ‘Ansy,’ who generate your private keys, address, and password.
After printing, the paper wallet is stored in a safe and secure place in your home. The downside to this option is that you can’t generate additional GAS tokens.
Step 2 – Locate your wallet address
After carefully selecting your wallet and following the necessary steps for creating one, you will receive your wallet address. Wallet addresses are used for making transactions. A NEO wallet address starts with an A and contains a string of combination of 34 numbers and letters.
For example, I got the following address after creating a wallet:
Step 3 – Buy NEO through an exchange
In order to purchase NEO, you will have to use an intermediary like a crypto ATM or an exchange. For this guide, we will use the Binance exchange as it is simple to use and secure.
Before registering on Binance, make sure that the platform supports the country in which you are located. Registering on Binance is as easy as registering on a social media platform.
After you have fully set up your account, you can buy cryptocurrencies by depositing fiat money. Binance allows you to buy crypto via credit cards, which is easy to do for newcomers. Both Visa and MasterCard are accepted, and the exchange only charges a fee of 3.5% per transaction.
The process is powered by Simplex and takes between 10 and 30 minutes for the transaction to complete.
After you have successfully completed the transaction, head over to the exchange page, and type NEO in the search bar, click on the NEO/BTC trading pair, and you will get the option to make a limit or market order.
While limit orders allow you to set the price at which you buy, market orders are easier and take less time to complete.
Phase 3 – Transfer NEO to your personal wallet
Congratulations! Now that you have finally acquired NEO, you can withdraw the coins by using your wallet address.
While exchanges like Binance are generally safe, we still recommend that you have a personal wallet, as it grants you the freedom to do what you want, without fearing that your account may get closed.
After completing the transfer to your selected wallet, you have successfully finished purchasing NEO. See? Buying cryptocurrencies isn’t complicated.
How does NEO work?
Launched in 2014 under the name Antshares (ANS) and developed by Da Hongfei and Erik Zhang, NEO is China’s first open-source blockchain project. After a mass influx of interest by domestic companies, Da Hongfei and Erik Zhang went on to create ‘Onchain’ in the same year.
NEO’s parent company, Onchain, is a blockchain technology company that developed the Decentralized Network Architecture (DNA). The technology in question paved the way for creating both private and public blockchain networks.
While Onchain is a private company that works closely with the Chinese government and other international companies, NEO is a community-driven platform that focuses on creating an innovative and functional smart economy on which decentralized applications (dApps) can thrive.
In a move to improve its brand and become more appealing to companies outside China, Antshares was officially rebranded into NEO in June 2017. The change occurred during a conference at Microsoft’s HQ in Beijing. With a new name, based on the Greek prefix, the company attempted to provide a new modern look.
At the time, the leading developer Erik Zhang announced that NEO is open to all developers. Referring to Ethereum’s limited number of supported programming languages (Solidity), Zhang announced that NEO supports most programming languages, including:
According to the project’s whitepaper, the economic model consists out of NEO (a coin based on its own native blockchain) and NeoGAS (a token abbreviated as GAS).
The NEO coin allows participants to manage the blockchain network. NEO allows voting, consensus agreements, and other mechanisms for managing the blockchain. In April 2016, the project released an original new consensus algorithm named ‘delegated Byzantine Fault Tolerance’ (dBFT)
The dBFT model introduced a new system for managing blockchain networks. At the time, most projects used Proof-of-Stake (PoS) or Proof-of-Work (PoW) models for consensus. However, dBFT established a system where unreliable participants can be removed from the network.
With NEO coins, holders can vote for specific groups of ‘bookkeepers,’ generally called nodes in other projects. By electing a bookkeeper group, participants can use the consensus-reaching algorithm to create blocks and make changes. Another notable feature of dBFT is that all decisions are immutable.
NEO’s innovative piece of technology was praised in the industry. However, a part of the crypto community was discouraged by the algorithm because of the finality of the decisions. At the time of introducing dBFT, the network only had seven working nodes (bookkeepers).
For NEO to remain a truly decentralized project, it would require far more nodes in order to maintain that aspect.
Similar to Ethereum’s fueling mechanism, NEO also has a fueling token used for resource control. The maximum number of GAS tokens is 100 million tokens. Users pay transactions and create contracts with the help of the token. In return, the network can automatically allocate resources and set priorities for transactions. The minimum unit of the token is 0.00000001.
GAS tokens are not pre-mined. The original genesis block, the founding block of blockchain networks, contained 100 million NEO coins. Corresponding to the set amount of NEO coins, GAS tokens are generated over the years using a decay algorithm.
Benefits of NEO
- Neo’s ‘smart economy’, which combines digital assets, digital identities, and smart contracts, has a lot to offer users.
- Faster than Ethereum with transaction speeds comparable to Visa, Neo could ease up traffic common to other networks.
- Neo is more easily programmed than other smart contract platforms and translated into ten languages.
- The network uses a Delegated Byzantine Fault Tolerance consensus mechanism as opposed to Proof-of-Work or Proof-of-Stake.
- $NEO and NEP-5 token has been integrated into its S1 hardware wallet.
- Neo3 preview explorer, COZ (@coz_official) allows users to view contract manifests, and notifications, and dynamically convert between types for events.
Risks of NEO
- NEO asset holders should beware of a new scam website that aims to mislead token holders into submitting their private keys to a phishing wallet on the premise of a NEO 3.0 token swap. .
Should you invest in NEO?
While NEO had a successful price movement historically, the project’s future is still uncertain. Here are tips:
- The idea to deliver fast, secure, and anonymous transactions between users, without the help of a 3rd-party, promises an optimistic future.
- The network can be potentially utilized both at an individual and enterprise level.
- We remind you not to follow financial advice and to do your own research instead.
- If you’re interested in investing, make sure to further research the project’s whitepaper, potential use cases, and token economy.