How To Invest In Neo - Step-by-Step Guide
Neo is a quickly developing ecosystem that is building a foundation for the internet of the next generation that will facilitate digitized identities, payments, and assets. It is China's first public blockchain that was founded in February 2014 by Erik Zhang and Da Hongfei who also play the role of chairmen of the Neo Foundation. Neo aims to usher in the smart economy by leveraging the power of blockchain technology.
At the time of writing, NEO has a market capitalisation of over $3.3 billion and a total supply of 100 million tokens.
Table of Contents
Invest in Neo in 3 Steps
Get a Neo Wallet
At the point when you need to invest in Neo or some other digital money, you need to get a protected digital currency wallet. You can discover various sorts of wallets including cold wallets, software wallets, and paper wallets. These serve distinct kinds of financial traders relying upon their strategies and use. You need to consider several variables while getting a wallet including security, reliability, coin availability, client care and user-friendliness.
Join a Neo Exchange
Once you have a safe Neo wallet, the subsequent step is to join and validate your account on a brokerage website or crypto exchange. There are many exchanges like Coinbase, Binance, and Coinmama that sell Neo. You can't buy your NEO tokens right away and first, you will need to deposit funds and then you can purchase NEO coins at the going price.
Invest in Neo
Joining the exchange or broker website will also involve giving your personal data including name, contact number, country and email. You will have to set a solid password as well. Remember that each mainstream crypto broker or exchange will confirm your identity through documentation to ensure consistency with Anti-Money Laundering (AML) and Know Your Customer (KYC) guidelines which are implemented to prevent unlawful and deceitful actions on cryptocurrency websites and platforms.
Investing in Neo Explained
Before you begin to put your capital into Neo, your primary goal is to get a safe wallet. The main highlights for picking a wallet incorporate security, coin accessibility, authority over keys, backup option, extra security features like two-factor authentication and customer support. There are various sorts of wallets for different kinds of financial investors, pick a Neo wallet that goes with your venture objectives and targets.
For long haul financial investors who want to hold their Neo tokens for quite some time, security is the most essential concern. Such individuals should consider cold wallets that offer top tier security as they are not connected with the web. Hackers and cybercriminals can't breach these wallets making them ideal for long haul Neo holding.
If you are somebody who needs to invest in Neo coins in the short run like a day trader, you will be better off with a wallet that offers a mix of security and accessibility. That’s where mobile and desktop wallets can be very valuable. They offer a quick and convenient method to safely store your tokens and have security features like encryption and 2FA. The wallets are accessible for various mobile and desktop operating systems including macOS, Windows, Linux, Android and iOS.
When you simply need to save your Neo tokens for a couple of hours or a day, hot or web wallets that are incorporated into broker or exchange sites will take care of your business. They are not the best in terms of security but offer quick access to your coins for speedy investment and trading. You can also get Neo tokens through peer-to-peer services that permit buyers and crypto vendors to connect and arrange their own exchanges. This way you can negotiate the best value, payment option and the quantity of Neo coins you need.
Before investing in NEO, you will need to open an account on an exchange by providing basic information such as your name, email and residence address. Whatever platform you choose for investing in Neo, remember that a large number of services conform to KYC and AML guidelines to prevent criminal operations through their website. While this sort of reduces your privacy and may prove to be a bit of a hassle, it also guarantees that you are investing on a platform where your own data and funds are free from any risks.
Where Can You Invest In Neo?
To discover the most reasonable platforms for investing in NEO, we surveyed every mainstream platform. We checked every fundamental feature including expenses and charges, simplicity of the platform, ease of use, compliance with regulations and more to decide our top picks.
When you make your account on a crypto investment platform, you will see there are various payment alternatives including wire transfer, bank cards and digital payment modes. These are different depending on the country you live in and the platform you are on. If you are an amateur trader or investor, the best mode for you is a credit or debit card. This may add costs for you yet it is quick and far more convenient than other methods. You simply need to enter your credit card information and you are all set. Once you have deposited your initial capital, you can buy NEO tokens.
Some digital currency platforms will permit you to make your deposit through your bank. Using this option is very direct yet it might take two or three days for your money to appear in your account, especially if it's an international transaction. You should pick your bank and fiat currency and you will be taken to another web page where you will have to validate your account and afterwards you will be given the authorisation to move your funds.
Neo Investment Strategies
For Neo investment, you can consider numerous short and long haul trading methods. Let us discuss some of the well-known investment techniques and how and when you should execute them to procure optimum returns on your investment in NEO coins.
Buy and 'Hodl'
What is it?
When a disappointed crypto backer posted his tirade on a thread, he erroneously spelt 'hold' as 'hodl' which transformed into an inside joke in the cryptocurrency world. This technique means that you hold your Neo coins for a significant amount of time until the price has arrived at a point where you can sell your coins. Hodl strategy is good for newcomers as it doesn’t require a user to constantly monitor the market but relies on long term price appreciation. However, a user will need to learn to ignore minor price fluctuations and resits the urge to sell quickly in case of volatility to benefit from the Hodl strategy.
How to use this strategy
To put 'hodl' methodology into practice, you need to use an exchange. Join the website and confirm your identity and then store your seed capital before you begin trading. The success of this investment technique lies in your patience. There will be numerous events where you will be enticed to make an exit by selling your NEO coins yet you should continue to hold them if you want to enhance your chances of making potential long-term gains.
When to use this strategy
The ideal time to use the strategy is the point at which Neo tokens are witnessing a price decline. Purchase Neo tokens with the capital you have and store them in a protected wallet until the time comes when you can sell. Remember that the digital currency market will keep tempting you not once but rather continuously and you should not permit it to influence your decision-making. Try not to get carried away when you see a sudden value surge or get anxious when you see the price moving downwards.
Buy Neo ETF
What is it?
ETF means exchange-traded fund which is a monetary instrument that is used in the traditional stock exchange. It contains a mix of assets including stocks and may incorporate digital assets like Neo as well. ETFs are regularly used by stockbrokers to deal with their risk as they contain a wide scope of promising assets. For those financial traders who prefer not to worry about the complexities of blockchains or financial markets, monetary instruments like ETF present an extraordinary opportunity
How to use this strategy
For getting monetary instruments, you should join a platform that offers ETF trading and confirm your identity. Make sure to verify your identity as it permits the service to forestall any illicit or criminal activity on the site and also ensures that your assets stay secure.
When to use this strategy
If you are somebody who is more business-minded and doesn't have any desire to dig into the concepts of how technologies like blockchain and cryptocurrencies work, ETF and other monetary instruments are the most ideal choice for you to make a Neo investment. Many platforms offer ETF products where you can easily invest by opening and registering an account.
Long Position on Neo
What is it?
Long position alludes to an investment strategy where you wager that the Neo price will increase in the coming days. This is for the most part done through Contracts for Differences or CFDs as it permits you to just bet on the price surge or decline without actually buying the asset. Opening a long position through CFDs requires comprehensive market knowledge and high precision so you can open and close the order at the right time to secure your profits.
How to use this strategy
If you are certain that the price of Neo will witness a surge sooner rather than later, you can open a long position on Neo by signing up and verifying your identity on a crypto broker platform. You should enter the amount you need to wager on your trade and purchase a CFD reflecting your position. The site will ask you to specify the price you need to open your trade at. When that price is reached and keeps on surging, you can exit your position and keep the gains.
When to use this strategy
Investment through CFDs can be done easily by anyone as long as you are sure that the Neo price is going to rise. The right time to use this strategy is when there is a price rally. Long positions with leverage should just be used by educated and experienced users who know about the intricate details of the market. It takes a great deal of ability and attention to detail to execute successful long trades.
That is the reason that when you need to capitalise on your long positions, you need to find out about the market, blockchain innovation, digital currencies and price instability. You can gain proficiency with all that through reading guidance materials, listening to analysts, and understanding price charts. Remember that a leveraged trade can liquidate your holdings as well. In fact, the higher your leverage, the higher the possibility of liquidation even with a minor value decrease. New users should gain some experience before using leverage to amplify their investment capital.
Benefits of Investing in Neo
- Revolutionary Blockchain – Neo aims to become a foundation for the next generation of the internet and the smart economy.
- Continuous Development – Since Neo is backed by China and a large team of cryptocurrency developers and contributors, it is constantly updating to improve its adoption and technology.
- Accessibility – Since Neo coins are present on your device in digital form, you can access your currency from anywhere anytime.
- Autonomy – Neo blockchain is absolutely decentralised which means that no central authority has control over the blockchain’s matters.
- Anonymity – Purchasing Neo coins and trading on its blockchain ensures that your personal identity remains anonymous.
- Two Native Tokens – Unlike other crypto projects, Neo has a different token for network transaction fees called GAS which means the price of NEO tokens is completely dependent on supply and demand.
Disadvantages of Investing in Neo
- Price volatility – Because of the quick development of the blockchain, its price is continuously rising and falling.
- Beware of scams – As the cryptocurrency space is still quite new, there are a wide number of scams that attempt to rob people of their money. You need to minimise your risk and exercise immense caution when investing in NEO or any other cryptocurrencies.
Other Ways of Investing in Neo
If you need another method for your Neo investment, there are a couple of different alternatives for you. One route is to meet with a vendor in person and arrange your own transaction terms. Ensure that you are meeting in a public area where you will not put yourself at any risk. Many peer-to-peer platforms allow people to carry out such transactions. Some platforms even allow escrow services to make the transaction safe for both parties. One more strategy to get Neo is through a Neo ATM if there is one in your locale. You can depend on the ATM Radar site to see if there are any genuine Neo ATMs in your vicinity.
Trade Neo on Leverage
Leveraged trades are for experienced financial traders who can recognise a bullish pattern. It permits you to put more than you have in your account by leveraging your capital. The base leverage begins at 2X and can go up to 500X contingent upon the site you are trading on. The amount of leverage is decided by the platform depending on the net worth of the user and the value of total assets in the trading account. You should be incredibly careful however as minor value decreases can wipe out all of your capital. This trading technique is generally executed through a brokerage site like eToro or Plus500.
Frequently Asked Questions
You can purchase a hardware wallet or use a paper/hot wallet depending on your requirement. Hardware wallets are ideal for users who wish to store their tokens safely for the long term.
Depending on your strategy, the best way to dilute your financial risk is to invest your capital across different cryptocurrencies and only invest what you can afford to lose.
You may or may not have to pay taxes on capital gains depending on the tax laws in your country. Check with your local tax authorities before investing.
You cannot mine NEO. It has a limited supply of 100 million tokens which are distributed depending on the Proof of Stake protocol instead of the Proof of Work mechanism.
Cryptocurrency platforms can be a place where fraudulent and illegal financial activities like money laundering can occur. In order to prevent that from happening and provide you with a safe environment for trading, most cryptocurrency platforms comply with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations.