What Is NEO Cryptocurrency?
The apt way to answer the question “What is NEO cryptocurrency (NEO coin)?” is to call it a hybrid blockchain cryptocurrency. Unlike Bitcoin (BTC) and Ethereum (ETH), which rely on the proof-of-work consensus algorithm, NEO coin (NEO) uses a delegated Byzantine Fault Tolerance (dBFT) consensus mechanism, which ensures finality of transactions and supports more transactions at any given time.
Based in China, NEO coin is often thought of as China’s answer to Ethereum, and some even call it “Chinese Ethereum.”
In the following sections, we’ll discuss the different options for buying NEO, including how to buy NEO coin on exchanges, how to buy NEO on Binance, how to buy NEO with fiat/USD, how to buy NEO with Bitcoin, and how to buy NEO with a credit card).
How to Buy NEO Coin: Step-By-Step Guide
As with most cryptocurrencies, buying NEO coin involves three basic steps.
1. Get a NEO Wallet
The official NEO wallet, NEO-GUI, is only available for Windows desktop users. Mac or Linux users can get NEON wallet, which is a desktop wallet that has all the necessary features to store, send, and receive NEO and NeoGas (GAS) tokens.
Many NEO users consider NEON wallet to be the best option. However, there are other popular Web-based wallets, like NEOWallet.Net, NEOWallet.CN, and NEO Tracker. Then there is the mobile wallet, 03 NEO Wallet, and the paper wallet, Ansy.
2. Find the Right Exchange
NEO can be traded on a number of exchanges. However, not all of the exchanges offer all the buying pairs. Some exchanges will only allow you to buy with Bitcoin. And if you want to buy with a credit card, not all exchanges have credit card processing.
So, select your exchange based on your location, method of buying, and liquidity. Liquidity is important because the exchanges that do a lot of transactions usually have lower transaction fees.
3. Withdraw the Funds From the Exchange
For security, once you have purchased the NEO coins, it’s a good idea to withdraw them into a personal wallet that you control with private keys. This ensures that you, and only you, have full ownership of your coins.
Withdrawing the NEO coins into your wallet completes the process. (Source: “How to Buy NEO in 3 Simple Steps: A Beginner’s Guide,” 99 Bitcoins, January 2, 2018.)
List of Exchanges for Buying NEO Coin
Given the rising popularity of NEO coin, many cryptocurrency exchanges are adding it to their portfolios. At last count, 24 exchanges across the world were allowing NEO coin trading.
The NEO coin exchange list includes the following:
(Source: “NEO Markets,” CoinMarketCap, last accessed February 13, 2018.)
How to Buy NEO Coin on Exchanges
Since all the exchanges have their own trading protocols, the buying experience can vary from one exchange to another. So, it’s best to see how to buy NEO coin on exchanges that not only have a high volume of trading, but are very popular in the cryptocurrency world (e.g. Binance).
How to Buy NEO on Binance Exchange
To buy NEO coin on the Binance exchange, you need to create an account.
- Go to the Binance Exchange official Web site, click the “Register” link in the top-right corner.
- Fill in your registration information.
- You will then receive an e-mail with a link. Click on the the link to verify your account with Binance.
- The next step is to send funds (e.g. Bitcoin, Ethereum) to your Binance account, so you will have the currency with which to buy NEO coin. For the following steps, let’s assume that you are buying with Ethereum.
- Log in to Binance, click on the “Funds” link, and click on “Deposits Withdrawals.”
- On the “Deposits & Withdrawals” page, select the “Deposit” button in front of “ETH.” This will generate a wallet address for transferring your coins to the Binance exchange.
- Copy the wallet address and go to your ETH wallet to send some coins to your Binance account. Your Ethereum will be credited to Binance within a few minutes.
- Purchase NEO coin with the ETH in your Binance account. Right in front of “ETH,” the total balance should reflect the value of Ethereum that you have on Binance.
- Click on “Exchange” right beside the Binance logo, and select the “Basic” option.
- On the “Exchange” page.
- In the top-right corner of the page, above “Trade history,” you will find the market pairs section. Search in this section for NEO/ETH and click on it.
- The page will load the NEO/ETH pairing chart. Beneath the chart, locate the “Buy NEO” section.
- In the “Amount” box, enter the amount of NEO you want to buy. The “Total” box will show how much ETH you will be paying to buy your entered NEO amount.
- Click the “Buy NEO” button. Within a few seconds, the NEO will be credited to your NEO wallet on the Binance platform.
- You can now send this NEO out of the exchange to your personal wallet.
Note: To Earn GAS on your NEO, it is best to hold your NEO coins in a NEON wallet. As long as your NEOs stay in your NEON wallet, you will earn GAS for the value of NEOs you are holding. (Source: “Guide: How to buy NEO (NEO) from Binance,” Use The Bitcoin, November 23, 2017.)
Other Ways to Buy NEO Coin
While Binance allows cryptocurrency trading, people might want to know of other ways of buying NEO coin. In this section, we’ll cover how to buy NEO with Bitcoin, how to buy NEO with credit cards or debit cards, how to buy NEO with a bank account, how to buy NEO with PayPal, and how to buy NEO with fiat/USD.
How to Buy NEO Coin With Bitcoin
The earlier section on buying NEO on exchanges explains how to buy NEO with Ethereum. To buy NEO with Bitcoin, follow the same steps and, instead of selecting “ETH,” select “BTC.”
How to Buy NEO Coin With Credit Card or Debit Card
As of now, there is no direct way to buy NEO coin with a credit card or debit card. The best bet is to first buy BTC with your credit card on a popular exchange like Coinbase.
Once you have Bitcoin, you can use Binance (see above) to convert your Bitcoin into NEO. The entire process should take less than half an hour.
How to Buy NEO Coin With a Bank Account
People living in the United States, Europe, or Australia can buy Bitcoin with a bank account, using exchanges that allow bank account trading (e.g. Coinbase).
Once you get the Bitcoin, you know the drill. Go to Binance and trade your Bitcoin for NEO in a matter of minutes.
How to Buy NEO Coin With PayPal
There is no direct way of buying NEO with PayPal. You have to first buy Bitcoin or Ethereum on a different exchange and then trade these coins for NEO coin on Binance or any other exchange that allows NEO trading for those two cryptocurrencies.
How to Buy NEO Coin With Fiat/USD
There is no way to directly purchase NEO with cash. And, unlike Bitcoin, there are no ATMS that support the purchase of NEO. Your best bet is to buy BTC or ETH with U.S. dollars (USD) and then trade them for NEO on the Changelly or Binance exchanges.
Frankly speaking, since all of the best ways to buy NEO coin involve buying Bitcoin, it really does not matter which method one chooses. If you already have Bitcoin or Ethereum, you can directly trade them for NEO, since it will save time and transaction fees.
I believe that the important question is not which is the best way to buy NEO coin, but rather which is the best way to store NEO coin. And for that, I have a clear favorite. I’d store my NEO coin in a NEON wallet, because, as long as I held my NEO coins there, I’d be able to generate GAS and increase the value of my stored funds.