NEO, a “smart” blockchain cryptocurrency competitor to Bitcoin, can be purchased or exchanged in various ways. Traders can also speculate on its price changes via derivative instruments.
We’ll show you how to trade NEO and where to find a broker in .
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Reasons to Trade in NEO
- Chinese Ethereum Substitute
- Business-Friendly Programming Language Support
- Chinese Tech Company Support
Chinese Ethereum Substitute
There is no denying that the Chinese economy is a dominant and growing market that is primed for innovation in the financial-tech (FinTech) sector.
One of the key barriers in Ethereum penetrating the Chinese market is the language barrier as most of Ethereum development and market exposure has occurred in the west.
A Chinese homegrown ‘Ethereum like’ platform can gain explosive adoption within China, particularly if it develops within the established business norms, culture and regulations of the country and manages to stay on the right side of regulators.
Business-Friendly Programming Language Support
Unlike Ethereum, which has its own programming language and environment, developers can interact with the NEO network in programming languages they are already familiar with.
This means a potential reduction in development costs for businesses that are interested in launching services on the NEO network, bringing down the barriers to entry.
Important: This is not investment advice. We present a number of common arguments for and against investing in this commodity. Please seek professional advice before making investment decisions.
Chinese Tech Company Support
NEO has managed to spark the interests of large tech giants. Microsoft Azure has partnered with NEO on a competition, also known as developer bounties, designed to attract developers to the platform.
Any milestones that the NEO network achieves are likely to draw the attention of other tech giants within China who will find it easier to interface with the ‘local’ platform.
Reasons Not to Trade in NEO
- Jurisdictional Exposure
- Platform Development Lag
Being associated with the Chinese market, one of the pillars of the world economy would normally evoke positive associations for any business or trading venture, but with cryptocurrencies, this can be seen as a centralized point of failure.
Already spooked by the Chinese regulators closing down all Initial Coin Offerings (ICO) sales from operating in the country, and by closing down unregulated Cryptocurrency Exchanges in China, having a cryptocurrency where most of the development and use happens inside China leaves NEO particularly exposed.
Platform Development Lag
In terms of platform development, NEO is competing alongside other networks that are competing in the same space. Although NEO is making all the right moves in terms of open sourcing their platform and offering developer bounties, it is yet to be seen if it’s developers can compete with the huge Ethereum development community.
How to Buy NEO
So you’re convinced that NEO will be the next big thing? The next problem is figuring out how to buy NEO. It isn’t as simple as purchasing Bitcoin or Ethereum. The best way to acquire NEO is to first buy BTC and then exchange that for some NEO.
One of the most popular exchanges for purchasing Bitcoin is Coinbase. They are one of the oldest and most well-established exchanges. They allow users to purchase Bitcoin, Litecoin, and Ethereum using credit/debit cards or bank transfers. This makes coinbase the perfect choice for budding traders.
When you’re deciding how to buy NEO keep in mind that there is always a risk. Cryptocurrencies are volatile commodities and even if you use a more reputable exchange like Changelly or Coinbase you could still lose all your digital purchases. If the market moves against you and you don’t sell in time there’s a very real chance you could make a big loss.
You can also buy Bitcoins through a peer to peer Bitcoin Exchange without any ID. One of the best options is LocalBitcoins which allows users to buy Bitcoin with almost any currency. Once you have the Bitcoins you will then be able to trade these for Neo at another exchange.
If you choose to use LocalBitcoins make sure that you do your due diligence. Use the review function to check the profile and rating of the user. Some users have been known to scam new traders. If you see bad reviews it is generally best not to make the trade.
Managing Your NEO
Managing your own Neo is not easy. Not only do you have to negotiate the exchanges but you also need to take extra security measures. You need to be wary of phishing scams, viruses, and other risks. You also need to keep very careful track of your wallet’s access codes. If you lose them, your Neo coins could end up locked in a wallet that you can’t access.
On top of this added stress are the risks you can’t control. Your NEO coins could also be compromised by the exchange itself. If the owners prove to be incompetent or corrupt, then your digital currency is very much at risk.
Where to Trade in NEO
One preferred method is to not buy cryptocurrencies at all but instead, trade Contracts for Difference (CFDs) or other trading instruments through a regulated broker.
Trying to find the best-regulated broker can be challenging. Luckily, we’ve already done the heavy lifting for you.
Crypto Brokers Available in
Here’s a list of regulated options available in that offer CFDs and other trading products on cryptocurrencies such as NEO.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 73.90%-89.00% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.