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How to Invest in NEO 2021

The Ultimate Beginner’s Guide to Investing in NEO

18 Min Read
Last Updated March 27th 2021

NEO is a popular cryptocurrency that has gone through many peaks and troughs since it was first launched in 2014 under its original name - AntShares. 

One of the main attractions of investing in NEO is that it is regulatory compliant with Chinese legislation. 

In other words, NEO only needs to partner with a single major Chinese institution for the chance to become mainstream. 

In this guide, we explore how to invest in NEO in the safest and most cost-effective way. We also present some useful information on what the future holds for NEO from an investment perspective.

How to Invest in NEO in 5 Easy Steps

Follow the steps outlined below to complete the end-to-end NEO investment process in less than 5 minutes!

Step 1: Open an account with a regulated exchange

Step 2: Deposit some funds with a debit/credit card, e-wallet, or bank transfer

Step 3: Choose how much NEO you want to buy 

Step 4: Confirm the investment

Step 5: Leave your NEO stored until you decide to cash out

 

What is NEO?

NEO is a digital currency project based in China. It was first launched in 2014 by Da Hongfei and Erik Zhan under the brand 'AntShares'. However, the cryptocurrency then became NEO in mid-2017. 

In its most basic form, NEO operates much like any other digital currency in the market. That is to say, it is backed by blockchain technology which in turn, allows users to send and receive funds digitally. 

With that said, NEO as both a blockchain protocol and cryptocurrency stands out for several reasons. Firstly, the technology allows users to create and deploy ‘smart contracts’ - much like Ethereum. 

However, the NEO blockchain is arguably superior to Ethereum, not least because it can handle up to 10,000 transactions per second.

In comparison, Ethereum is still stuck at an average of 15 per second - albeit, this will eventually improve once its second-generation blockchain is up and running. 

Nevertheless, As we uncover in more detail shortly, NEO also stands out because it recognizes traditional programming languages such as C++ and Java. 

This essentially means that its blockchain and smart contract technology is “Oven Ready” for seasoned developers. And of course, not only is NEO based in the huge marketplace of China, but its blockchain is compliant with domestic regulations. 

How Does the Invest in NEO Process Work?

On the one hand, it is notable that NEO possesses some highly innovative technology. However, most people invest in NEO because they want to make money. This is no different from investing in a young growth stock such as Square or Etsy. 

As such, the NEO investment process is focused on buying a number of coins and then selling them in the future at a higher price. 

In terms of how NEO coins are valued, this is centred on conventional demand and supply. For example, when NEO benefits from a positive news story (such as being mentioned by the Chinese government), then this will naturally result in more demand for its coins. 

In turn, this increased demand will see NEO rise in value. At the other end of the spectrum, if demand for NEO begins to wane, this will have a negative impact on the value of its coins. It is therefore your job to invest in NEO at the right price and subsequently - the right time. 

Here’s an example of how the NEO investment process works in practice:

  • You invest in NEO at a stake of $500
  • When you make the investment, the price of 1 NEO is $15
  • You hold on to your NEO coins for two years
  • When the time comes to cash out, 1 NEO is worth $40
  • This means that the cryptocurrency is now worth 166% more than you originally paid
  • You sell your NEO coins back to cash - and withdraw the funds out of the broker

As you can see from the above, the NEO investment process works much the same as any other asset class. You bought $500 worth of NEO, sold them for 166% more than you paid - which resulted in a profit of $830. 

Read More: Investing In NEO: What Will Drive the NEO Price In 2021?

Why Should you Invest in NEO?

Before you invest in NEO, you should make sure that you understand what you are risking your money on. 

After all, cryptocurrencies - whether that’s Bitcoin, Ethereum, or NEO - are highly speculative. This means that the value of your investment can go up or down very, very quickly. 

With this in mind, below we discuss some of the main reasons why you might decide to invest in NEO today. 

NEO has Turned Investors into Millionaires

The historical price action of NEO is nothing short of phenomenal. 

For example, when the cryptocurrency first hit public exchanges in 2016, it was worth in the region of $0.18 each. As such, had you invested just $1,800, you would have owned 10,000 NEO coins. 

Now let's fast forward to January 2018 - where NEO hit all-time highs of just over $191. This means that your 10,000 coins would have carried a realizable value of $1.91 million. Not bad for an investment period of fewer than two years. 

It should, however, be noted that since its all-time highs of 2018, the value of NEO  has dropped off considerably. In fact, at the time of writing in early 201, NEO is priced at around $15. 

Sure, this is significantly less than the aforementioned $191. But, in comparison to its 2014 price range, this still represents returns of over 8,000% in just over four years of trading. 

Read Also: Neo Price Prediction — How Much Will It Be Worth In 2021 And Beyond?

NEO the Superior Smart Contract Blockchain

Smart contracts are highly innovative, as they allow you to enter into an agreement online in a 100% trustless manner. This is because the technology can facilitate transactions autonomously-  based on pre-defined, agreed conditions. 

This could be something as simple as an insurance premium that pays out instantly when your flight is cancelled. Albeit, the potentialities are virtually endless. 

Nevertheless, Ethereum was the first and still is the de-facto smart contract blockchain. After all, it is the world’s second most valuable cryptocurrency in terms of market capitalization. 

However - and as we briefly covered earlier, NEO is superior - at least in terms of the technology. Once again, this is because NEO can facilitate up to 10,000 transactions each and every second, while Ethereum is still capped at just 15.

NEO Transactions are Free and Fast

Although much of the focus is on NEO's proprietary smart contract technology, it should be noted that the blockchain is also highly conducive as a payments network. 

We have already mentioned that it can facilitate up to 10,000 transactions per second. 

But, we should also note that transaction times stand at just 15 seconds. This is in stark contrast to sending funds overseas with your local bank - which can often take days. 

Additionally, NEO has built its infrastructure in a way that allows you to benefit from free transactions. This is because transaction fees are priced in GAS tokens. 

These GAS tokens are added to your NEO wallet for free. Although the amount is dependent on how many coins you hold, this is usually 1 GAS for each 100 NEO. 

NEO is a Chinese Project

It appears that the Chinese government has a love/hate relationship with digital currencies. After all, the Communist state outright banned ICOs in late 2017 and has since clamped down on cryptocurrency mining operations within its borders. 

However, NEO - as a Chinese project, is fully compliant with domestic regulations. This means that it is primed to grow its exposure in China - a country with a consumer-based population that far exceeds 1 billion people. 

In other words, if NEO is able to secure a partnership with a large-scale Chinese company for the purposes of facilitating transactions or smart contracts, this could be huge for investors. 

Put simply, if NEO is used by the masses in China, this will naturally drive demand for its coins northwards. And as we covered earlier, when demand for NEO is on the rise, as will the value of its coins. 

Would You Consider Investing In NEO?

How to Invest in NEO - Various Options Available

Access to Chinese financial instruments is often difficult for the average investor - unless of course, you live in the country. 

However, NEO is a cryptocurrency project that operates in a borderless manner. In turn, this means that it is super-easy to invest in NEO - no matter where you are located. 

Below we discuss some of the most popular ways to invest in NEO. 

NEO Cryptocurrency Exchanges

As a cryptocurrency with a multi-billion dollar market capitalization, it is now possible to invest in NEO at hundreds of third-party exchanges. 

For those unaware, cryptocurrency exchanges allow you to buy, sell, and trade digital coins in a burden-free manner. This is because, in the vast majority of cases, they operate without a license or any sort of regulatory approval. 

While this might appeal if you are looking to remain anonymous, using an unregulated exchange to invest in NEO comes with plenty of drawbacks. 

The obvious reason here is that you are entrusting your hard-earned money with a provider that does not answer to any regulatory body. In turn, your funds are at risk. 

Additionally, unregulated exchanges are not able to have any relationship with fiat currency. This means that in order to invest in NEO, you will need to deposit funds with another cryptocurrency like Bitcoin. Then, you will need to exchange this for NEO. 

For example:

  • You deposit Bitcoin into your chosen cryptocurrency exchange
  • You swap the Bitcoin for NEO at a fee
  • You then withdraw the NEO coins to a private wallet
  • When it comes to cashing out your profits, you will need to transfer the NEO coins back into the exchange
  • Finally, you will need to exchange NEO back to Bitcoin

As per the above, cryptocurrency exchanges should be avoided. If you’re wondering how to invest in NEO in a more favourable way, regulated cryptocurrency brokers are the best option on the table. 

NEO Broker

Although few and far between, there is a small selection of regulated brokers in the online space that allow you to buy cryptocurrencies. However, as NEO has slowly but surely drifted outside of the top 10 digital coins in terms of market capitalization, you might find it difficult to locate a suitable platform. 

With that said, eToro - a regulated broker with more than 13 million customers, does, in fact, allow you to invest in NEO. Not only this, but eToro is a 100% commission-free broker, so you won’t incur any fees to invest. 

We also like the fact that eToro allows you to invest from just $25 into NEO. This is great if you are on a budget, or you are looking to deploy a long-term dollar-cost average strategy. 

And of course, by using a regulated broker like eToro to invest in NEO, you can instantly deposit funds with your everyday debit or credit card. E-wallets are also supported for those of you that like to use Paypal. 

How to Choose a Platform to Invest in NEO

Although we would argue that eToro is the best online broker to invest in NEO, you might come across an alternative platform that takes your fancy. 

If you do, make sure that you research the broker from top to bottom before parting with your money. 

To help clear the mist, below we explain the most important metrics to tick off when finding a platform to invest in NEO. 

Licensing and Reputation

We mentioned just a moment ago that there are now hundreds of third-party cryptocurrency exchanges that allow you to invest in NEO. But, most of these operate without a license. Once again, you are asking for trouble by using an unregulated cryptocurrency platform.

Instead, you should only open an account with a broker if it is licensed by a reputable financial body.

For example, eToro holds regulatory licenses with three bodies - the FCA (UK), ASIC (Australia), and CySEC (Cyprus). It is also registered with FINRA, meaning that full support is offered to US investors. 

You don’t need to come from one of the aforementioned countries to benefit from the regulatory standing of eToro. After all, these reputable bodies will ensure that eToro remains honest and transparent at all times. 

Fees to Invest in NEO

Whether you are investing in traditional assets like stocks and bonds or looking to gain exposure to cryptocurrencies  - fees will always apply. This is because the respective platform needs to make money for the brokerage services that it offers. 

Brokerage fees can and will vary depending on your chosen provider. With that said, you will usually be charged a commission on every NEO investment that you make.

For example, this might be 2% of the investment amount. You will then need to pay this percentage-based commission when you cash your NEO coins out. At eToro, there is no commission to pay when you buy or sell NEO coins. 

You should also keep an eye out for other potential fees. For example, some brokers charge a deposit and withdrawal fee when you use a debit/credit card or e-wallet. You might also incur inactivity fees if you do not trade for a certain period of time. 

Minimum NEO Investment and Payments

We noted earlier that NEO went from $0.18 to $191 in just two years. It is now worth just $15 in early 2021. In turn, this means that by investing in NEO, you are backing a highly volatile and speculative asset class. 

With this in mind, you should keep your stakes low. This is why you need to check what the minimum NEO investment is at your chosen broker by signing up. At eToro, you can invest in NEO from just $25 upwards. 

You should also make sure that your chosen NEO broker supports your desired payment method. We prefer debit/credit cards and e-wallets, as the transaction will be processed instantly. 

Storage and Cashing Out

NEO coins need to be stored in a private cryptocurrency wallet. This requires an understanding of private keys, wallet addresses, and security controls. While this might suffice for experienced cryptocurrency users, this can be intimidating if you are a newbie. 

As such, it’s best to find a regulated broker that can store your NEO coins for you. As eToro is regulated by three leading financial bodies, it is required to keep your assets safe and secure. 

This is really beneficial in terms of convenience too, as you can instantly cash out your NEO coins without needing to transfer the funds externally from a private wallet. Instead, eToro simply requires you to hit that ‘Sell’ button from within your portfolio. 

Once you do - no matter what time of the day it is, the cash will be added to your balance - which you can withdraw out of the broker and back into your bank account. 

Ready To Invest In NEO?

How to Invest in NEO Today - Step-by-Step Walkthrough

If you’ve made it through our guide on how to invest in NEO this far - you should now have all the required information that you need. 

Nevertheless, if you want to be walked through the investment process - follow the steps outlined below. 

Step 1: Open an Account

Head over to regulated, commission-free broker eToro and open an account. You will need to enter some basic personal information (name, address, date of birth, etc.) and some contact details.  

Step 2: Upload Some ID

Upload some ID to get your eToro account verified. This includes a passport/driver’s license and proof of address. The latter can be a recently issued utility bill or bank account statement.

Note: If you are not depositing more than $2,250 right now, you can upload the above documents at a later date.

Step 3: Make a Deposit

You will need to deposit at least $200 into your eToro account. To do this instantly, opt for a credit/debit card, Paypal, Skrill, or Neteller.   

Step 4: Search for NEO

investing in NEO

eToro supports 16 cryptocurrencies and heaps of tradable markets. As such, you should enter ‘NEO’ into the search box and click on the result that loads up.  

Step 5: Complete NEO Investment

Finally, enter the amount that you wish to invest in NEO - ensuring you meet the $25 minimum. To confirm the investment, click on the ‘Open Trade’ button. 

Step 6: Cashout Your NEO Investment

eToro is not only commission-free, but it does not charge any monthly or annual maintenance fees. As such, you can keep your NEO investment at the broker for as long as you wish and not get hit with any charges.

When the time does arise for you to cash your investment out, simply head over to your eToro portfolio. Then, click on the ‘Sell’ button next to NEO. The cash will then be available for withdrawal out of your eToro account.

How to Invest in NEO - The Bottom Line

This guide on how to invest in NEO has explained everything there is to know about the end-to-end process. You should know how to choose a suitable platform and what steps are required to complete your NEO investment.

As we have discussed, eToro is the best option on the table in terms of fees, safety, and convenience. You can invest in NEO commission-free, the platform is regulated on three fronts, and you can easily deposit/withdraw funds with a debit/credit card or e-wallet.

eToro – Best Broker to Buy NEO

etoro broker

eToro have proven themselves trustworthy within the Crypto industry over many years – we recommend you try them out.

Virtual currencies are highly volatile. Your capital is at risk.

FAQs

How much should I invest in NEO?

NEO is a highly volatile digital asset, so keep your stakes modest. You might be better diversifying into several other cryptocurrencies so you are not overexposed to NEO. 

Is NEO a good investment in 2021?

NEO is up over 8,000% since it first hit a public exchange in 2016. While recent growth has been more conservative, there is still huge upside potential. Whether or not this will come to fruition in 2021 remains to be seen.  

How do I start investing in NEO?

To invest in NEO in less than 10 minutes, open an account with eToro and deposit funds with a debit/credit card or e-wallet. Then, decide how much you want to invest in NEO - meeting a $25 minimum, 

Can I invest $100 in NEO?

Yes, NEO is currently priced at around $15, you can obtain several coins for $100.

Can you lose money on NEO?

Yes, all financial assets come with the risk of loss. This is especially the case with cryptocurrencies like NEO. As such, just make sure you understand both the risks and potential rewards before taking the financial plunge.

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