Alternative cryptocurrencies are emerging all over the place at the moment, and one of those with many eager eyes in its direction is NEO. For a few years now, this currency has been around and gained recognition in 2021 for a significant value increase.
While the value of 1 NEO to USD has since dropped a bit, it’s still managed to gauge the interest of many. In this guide, we’ll talk about the best way to invest in the currency – along with the pros and cons, and whether it’s safe to do so.
Best Way to Invest in NEO in 2023
Many altcoins are difficult to find online, but this is not the case with NEO. You can purchase the currency on several platforms, and we’ve outlined our favourites to help save you the time looking.
What Is NEO - Quick Overview
Name and ticker NEO (NEO)
Date launched February 2014; rebranded in 2017
Circulating supply | max supply: 100,000,000 | Maximum supply is in circulation
Blockchain network NEO Blockchain
Creators Da Hongfei, Eric Zhan
Use-cases Payments, investing, smart contracts, staking, etc.
Social media Twitter | Facebook | Reddit
What Is NEO – Explained
NEO is a cryptocurrency that operates on the namesake blockchain. It was created in 2014 by Chinese duo Eric Zhan and Da Hongfei. In its early days, it was known as Antshares – before rebranding to NEO in 2017.
Since it came onto the market, NEO has become one of the world's best-known cryptocurrencies. Its market share might not seem significant at first glance; at the time of writing in February 2023, it was the 62nd-largest cryptocurrency when looking at this metric.
In addition to the above, it takes up a 0.09% market share at the moment. NEO's market capitalisation surpasses $1.7 billion, and the current price on 10th February 2022 is just over $24.
NEO has had a few significant price spikes during its existence. In the summer of 2018, the currency's value compared to 1 USD rose beyond $180. Meanwhile, in 2021, it again surpassed the $100 mark.
Since that most recent price increase, NEO's value has receded a little. Nonetheless, many people believe it has a bright future.
What's the Purpose of NEO?
NEO encourages decentralisation in several ways. The project is designed to offer a suite of services that enable people to build decentralised apps (dApps), while it can also be used with the Bitcoin and Ethereum blockchains.
The NEO blockchain also enables you to write smart contracts using several programming languages.
As a cryptocurrency, NEO has several other purposes. One of the most common is to hold the currency or trade it in the hope of making a profit later down the line – we'll talk more about this later.
With NEO, you can also use cryptocurrency to buy products and services in places that allow you to do so. Similarly, you can send the money to your friends and family; transactions are borderless and much quicker than doing so with fiat currency, along with having lower fees on the side.
What Are NEO's Use Cases?
NEO has several use cases. We've already discussed how it can help you create smart contracts and dApps, but it's also used for voting on things related to the system and protocols.
One of the most unique things about NEO is that it's primarily driven by its community. The project is open-source, which provides transparency and means that anyone can contribute.
Does NEO Have a Large Social Media Following?
Social media is one of the best ways for cryptocurrency projects to get their name out there and begin gaining awareness from all corners of the internet. Many of the larger ones are present on numerous platforms, while many smaller projects also have fiercely loyal followings.
NEO has a wide presence on social media, and you can use its channels to discover news about both the currency itself and the overall project. It has significant followership on Twitter, where over 400,000 people follow the official account as of February 2022.
Twitter isn't the only place you can learn more about NEO and engage with other community members, though. Perhaps the most interactive place to participate in conversations about the project is Reddit, where over 110,000 people have joined the official subreddit.
Facebook is still a popular platform for cryptocurrency projects, and NEO also has a presence there. It's following on this channel is smaller than the others, with 25,000 people liking the page.
Elsewhere, NEO is present on various messaging platforms.
Does NEO Have Any Famous Backers?
Cryptocurrencies have grown significantly online over the past few years. As a result, many celebrities have taken a more active interest. Some have been very public with their opinions about certain currencies, while others are known to have held some in their wallets.
Some celebrities have even gone as far as launching their own cryptocurrency projects as something they can work on in the long run.
At the time of writing, NEO doesn't have the same level of backing as – say – Bitcoin. It does, however, have a pretty loyal community.
How to Buy NEO
If you want to buy NEO online, you can do so in several places. One of the most common platform types to choose from is a cryptocurrency exchange, and you'll find this token on some of the world's largest.
To buy NEO from a cryptocurrency exchange, you'll first need to sign up for an account. Once you've done so and your identity is verified, you can deposit fiat money and choose how much NEO you'd like to purchase.
Once you've bought your coins from a cryptocurrency exchange, we recommend storing them in a dedicated cryptocurrency wallet. Doing so will help keep them safe from potential threats, such as hackers.
If you're a beginner to cryptocurrency investing, using a brokerage to buy NEO derivatives is perhaps your easiest choice. You can still potentially make a profit on the coin, but you won't need to worry about the technicalities of owning a cryptocurrency wallet.
When you buy derivatives from a brokerage, it's important to remember that you won't own the coins outright. Instead, you'll seek to profit on the value of the derivatives you bought.
One of the most popular brokerages you can use to purchase NEO derivatives is eToro. To do so, you'll need to follow the steps we've listed below:
Step 1: Create an Account
Step 2: Verify Your Identity
Step 3: Click ‘Buy’
Step 4: Finalise Your Transaction
How to Sell NEO
Selling your NEO coins is a pretty straightforward process. If you bought your tokens from a cryptocurrency exchange, you'd need to transfer them from your wallet before signing into your account.
Once you've signed into your account, submit a selling order and enter how many NEO you'd like to sell.
If you purchased derivatives via a brokerage instead, you don't need to transfer anything from a wallet. We'll show you the full steps below, and we'll again use eToro as an example.
Step 1: Sign in to your eToro account.
Step 2: Go to the NEO page before clicking on ‘Sell’.
Step 3: Choose the amount of NEO you'd like to sell.
Step 4: Confirm the sale.
Alternative Ways to Invest in NEO
Although cryptocurrency exchanges and brokers are two of the most common places to invest in NEO, they aren't the only places you can do so. Some of the alternatives are arguably even easier, and they can be just as effective.
Below, we'll outline the best alternative ways you can invest in NEO.
Cryptocurrency Wallets and Apps:
If you want to buy NEO, you might not even need to use a cryptocurrency exchange. Many wallets will have built-in exchanges where you can purchase them for another cryptocurrency.
Buying From a Friend:
If you've got a friend with NEO coins, you can potentially ask them if they'd like to sell you. Once you've got your coins, you can store them until you see an opportunity for selling.
ETFs:
ETFs are a unique way to invest in NEO, but they take a lot of the manual work out. You'll put your money into a shared fund that someone else will manage for you. Usually, you'll need to pay an annual maintenance fee.
Staking:
Staking is another way to invest in NEO; with this method, you'll put your coins out there to help the blockchain. Staking gives you access to certain permissions, such as voting.
Is It Safe to Invest in NEO Right Now?
Before we go any further, you must remember that cryptocurrency markets are extremely volatile. Buying any coin carries significant risks, and you could lose a lot of money in a short space of time. Never invest more than you can afford, and always research before buying a particular token.
In terms of making a profit, the price of 1 NEO to USD is still relatively low compared to Bitcoin and Ethereum. It solves a unique problem that few other projects can, meaning that it's likely to increase in value over the long run. If you believe in the project, we think that this is a coin you should consider investing in.
Now, let's look at things from a safety perspective. The best way to keep yourself safe is to use a reputable source to purchase your coins, such as the platforms we've listed in this article. But even then, nothing is guaranteed; hackers have breached these platforms in the past, and the onus is on you to ensure that you keep your coins safe.
Below are a few extra things you can do to ensure this:
Always enable two-factor authentication (2FA) on your accounts and wallets.
Never ask for help away from official websites and forums.
Never pass on more documents than are necessary for the KYC checks.
Always keep your login details safe. If you suspect that someone else has them, change them immediately.
Where possible, use a cold wallet. These require offline verification, which adds another layer of security.
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