Neo Day Trading 2020 – Guide And Best Brokers
NEO is often thought of as the Chinese response to Ethereum. It aims to create a more intelligent economy by facilitating the public trade of digital assets using a smart contract enabled ledger. This page will break down everything you need to know about NEO, including its history, price predictions and wallets. Finally, useful information on how to start day trading with NEO coins will be outlined.
What is NEO?
Before getting into future cryptocurrency forecasts, what exactly is it? NEO is a blockchain platform and virtual currency that gives assets a digital identity and automates digital asset management. To do this it uses Ethereum’s smart contracts concept, which could lead to a world of ‘smart economy’.
NEO cryptocurrency tokens are used to stake and produce GAS tokens. These tokens then power the platform which pays for the implementation of smart contracts within the NEO ecosystem.
As discussions on cryptocurrency code forums and blogs have explained, NEO will support virtually all programming languages via a compiler, including:
This accessibility makes it easier for developers writing smart contracts, increasing the overall potential of the cryptocurrency.
For those still confused by the high value and expectations of this cryptocurrency, let’s break down what this digital currency could do. Instead of offering a platform to address current consumer issues, like Ethereum, NEO is looking at the needs of the future. The company sees a future where vehicle ownership, real estate, electronics and even precious stones are digitalised. All of which would make a smart contract based economy extremely powerful.
NEO vs GAS
Head over to the cryptocurrency’s official website and homepage and you will likely come across the term GAS. The straightforward definition is:
- NEO tokens represent ownership of the actual NEO blockchain. These tokens can then be used to create blocks and manage the network. But when you hold NEO in your wallet, you will actually be rewarded with GAS tokens.
- GAS tokens afford you the right to utilise the blockchain. Similar to Ether with the Ethereum network, GAS powers the transactions within the NEO network.
Both help the NEO platform function effectively. It’s also worth noting both coins are capped at 100 million units each. If you have NEO coins you are entitled to vote on key decisions and receive dividends.
GAS coins, however, can be divided into percentages of coins and their purpose is geared more towards allowing users to run and implement smart contracts.
For more technical cryptocurrency descriptions of both, see the white paper.
It has been clear since the initial launch date of the cryptocurrency that there are certain functions which have attributed to its value. Included in those key features is:
- NEOFS – This allows for decentralised storage, much like a peer-to-peer Dropbox.
- NEOX – This is the system that facilitates execution and operation across numerous blockchains.
- NEOQ – This is the lattice-based cryptographic process that formulates problems that quantum computers cannot answer.
- NEO Contract – This is the process whereby smart contracts are created in scalable environments, integrating codebases.
- Delegated Byzantine Fault Tolerance (DBFT) algorithm – This is a straightforward consensus mechanism that allows up to 10,000 transactions a second.
The cryptocurrency’s timeline starts in 2014. It was the brainchild of two Chinese developers, Da Hongfei and Erik Zhang. They aimed to build both a decentralised cryptocurrency and a platform where enterprises could leverage the blockchain for any number of processes.
Originally, these altcoins were to be known as ‘Antshares’. However, those in the cryptocurrency development team soon decided this wasn’t catchy enough. Instead, they went for NEO which means new and young in Greek. In addition, they hoped it would be like the protagonist in the film Matrix, also a ‘NEO’, who was ‘the one’ to change the system.
Since the release date, a total supply of 100 million coins has been issued, via the Genesis block. The distribution process followed the structure laid out in its white paper.
Cryptocurrency news has been quick to detail information on NEO’s impressive price history. However, most of its growth didn’t follow its start date in 2014. Instead, 2017 was the first big year of growth, consistently creating new all-time highs for the cryptocurrency.
In fact, despite the coin’s starting price at the beginning of the year being a few cents, a sharp rise saw live prices hit $100. The cryptocurrency’s growth featured in news announcements and on numerous crypto-coin websites and exchanges. As a result, 2017 saw Neo become one of the largest digital currencies in the world by market capitalisation.
What cryptocurrency rates and live charts won’t necessarily show you, however, is why the rise. Rumours of a number of potential partners helped the currency to grow so quickly, including those with:
In addition, some of the company’s future price projections can be attributed to details of their association with Onchain. Onchain grew out of the digital currency and works with businesses to help them utilise blockchain technology in daily operations.
After careful analysis, it’s clear that this is one of the clear advantages of the cryptocurrency, as Onchain attracts numerous businesses to the platform.
NEO Live Chart
Many cryptocurrency trackers have realised NEO offers an attractive alternative to other digital currencies. This is for the following reasons:
1. Indivisible Units
Many users worry about cryptocurrency shares and prices. However, NEO will always be one share. Unlike Bitcoin, for example, you cannot divide it. Admittedly this may prove a hurdle if value drastically increases.
Exchanges, however, have found a way around this indivisible hurdle. They allow you to trade fractions of NEO as long as you hold them in your exchange wallet. But if you transfer them to your NEO wallet, the fractions will be retained on the exchange and will not be transferred to your private wallet.
So, you cannot technically own 2.26 NEO. Instead, you would have either 2 or 3 NEO. So your exchange would let you hold 2.26 NEO without a problem. Yet if you were to transfer the 2.26 coins you own to your NEO wallet, you would be left with 2 and the remaining 0.26 would stay on the exchange.
2. Creating GAS
The dual-tier system is one of the cryptocurrency’s biggest benefits. While GAS is available on some exchanges, most users will purchase NEO. The advantage arrives when you transfer NEO to your compatible wallet.
When you hold NEO, you naturally start creating GAS as blocks are generated while the Blockchain develops. With each new block, 8 GAS is dispensed for all 100 million NEO.
This is different from the cryptocurrency mining and algorithms you see in other altcoins. There isn’t the same direct link between the value of NEO and GAS. Whereas the value of bitcoin mined is exactly the same as a bitcoin one buys.
3. Smart Contracts
Cryptocurrency founders are increasingly seeing the appeal of smart contracts. In effect, smart contracts are the digital version of holding money in escrow with a third party. After contract execution, the transfer of capital between wallets takes place. Blockchain regulators then automatically witness and verify the transfer.
Note the cryptocurrency’s live price and quotes for deploying a smart contract on the NEO network do change.
Cryptocurrency news today is primarily concerned with ICOs and dividends. However, whether it’s effective marketing or not, the creators of this cryptocurrency seems less concerned with profit calculators and more with building a useful product for its users. This is an opinion widely held in the crypto space, from Singapore and South Africa to the UK and US.
Also, because it is a proof of stake (POS) cryptocurrency, users can effectively make money by just holding coins.
Before you decide you want to buy into this cryptocurrency investment, you need to consider both the pros and the cons. Unfortunately, there are several drawbacks that need explaining, including:
- Competition – Everyone wants to become the root chain. But while there can be more than one, there probably isn’t going to be tens of root chains going forward. Individuals and enterprises will decide on one and then use it. Unfortunately, this means if companies choose not to build on it, NEO may be brushed aside.
- Legislation – Cryptocurrency legislation in China is particularly tough. The Chinese government resist anything that encroaches on their power. Therefore, there is a danger severe legal restrictions could lead to a drop and then a crash in cryptocurrency prices. Even rumours of such legislation could send prices falling.
- Backing – Cryptocurrency outlooks are changing as updates are making it clear that digital currencies can transition into almost anything. Therefore, defining what NEO can offer over competitors may prove challenging. As a result, securing partnerships is essential if the company is to move forward.
How to Buy NEO
If you decide you do want to purchase this cryptocurrency, the process is relatively straightforward. All you need to do is buy NEO and hold it in a compatible coin wallet.
Binance and Bittrex offer a cryptocurrency exchange wallet that supports NEO. Wallet apps can then be downloaded to mobile devices so you can access your new coins with ease. Some cryptocurrency exchanges and platforms will allow you to buy it directly with fiat currency, such as USD and GBP. Some of the most popular choices include:
You may now know where to buy NEO, but successful day trading will require careful technical analysis, utilising price graphs and a range of resources.
What’s Next for NEO?
Cryptocurrency reviews are often quick to recognise the potential in NEO. So it looks like the digital currency will continue to draw investment from those looking for a coin with sustainable growth that supports a future smart economy. Not to mention, with an experienced CEO and creator behind it, this cryptocurrency’s future looks increasingly bright.
For further crypto guidance and a summary of other digital coins, see our cryptocurrency page.