Invest in NEO – How to Invest in NEO For Beginners
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
NEO is a blockchain protocol that aims to build an economy that integrates identities, digitized payments, and assets. With a growing community of developers who continue to improve the protocol’s infrastructure, the network seeks to usher in the next generation of the internet.
If you want to know how to invest in NEO, we have prepared this guide to answer all your questions. Here, you’ll learn the steps involved in buying the token and selecting the right NEO broker to use for this purpose.
Table of Contents
#1 Broker to Invest in NEO – eToro
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How To Invest in NEO – Choose a Broker
NEO has been in the cryptocurrency space since 2014. You can expect to come across dozens of brokers that will allow you to invest in the token. Here, we bring you the top brokers to invest in NEO from the comfort of your home.
- eToro – Overall Best Place to Invest in NEO
- Binance – Best Crypto Exchange to Invest in NEO for Diversification
- Okex – Invest in NEO through a Crypto-to-Crypto Exchange
- Capital.com – Maximize Your NEO Trades with Leverage
You’ll find our review of the above NEO investment platforms further down on this page.
How to Invest in NEO – A Quick Guide For 2021
Learning how to invest in NEO is straightforward if you have prior knowledge about the cryptocurrency industry. You simply have to decide on the best platform to use and then proceed to invest in the token.
Here, we’ll explain to you how you can complete the NEO investment process using eToro – a low-cost broker licensed by the SEC, FCA, and several other financial bodies.
- Step 1: Create an Investment Account with eToro: Opening an account with this broker is super easy. You only have to provide eToro with some personal details such as your full name and contact information. Then, choose a username and password with which you’ll access your account moving forward.
- Step 2: Provide an ID: eToro is a regulated broker, meaning you have to verify your identity before the platform allows you to invest in NEO. For this purpose, you will need a government-issued ID and proof of address – such as a bank statement or utility bill.
- Step 3: Add Funds: You can make a minimum deposit of $200 into your eToro account ($50 for US clients). To do this, there are various payment options supported by the platform, including debit/credit cards, wire transfers, and e-wallets.
- Step 4: Invest in NEO: After funding your account, you can now proceed to buy the token. Click on the search tab to look for the coin. Once it appears, click on ‘Trade.’ This will take you to the next and last stage where you’ll decide the amount you want to invest in NEO After inputting the amount, you can then click on ‘Open Trade’ to complete the investment process.
With the steps discussed above, you can invest in NEO via eToro and be done in under five minutes. One of the perks of using eToro is that the broker allows you to store your NEO tokens on the platform until you are ready to sell them.
Cryptoassets are highly volatile unregulated investment products. Proceed at your own risk.
Where to Buy NEO – Full Broker Reviews
When contemplating where to buy NEO, it’s important to consider some important factors in every platform you assess. These include supported markets, regulation, fee policy, and the suitability of the platform for beginners.
Our research team has evaluated numerous brokers in the market where you can invest in NEO. Based on our assessment, the brokers reviewed below will allow you to purchase NEO in a secure and low-cost manner.
1. eToro – Overall Best Place to Invest in NEO
eToro is an online investment platform that lists numerous cryptocurrency markets. Therefore, investing in NEO using this platform is super easy. We consider eToro the best broker because the platform is beginner-friendly and allows you to start investing from just $25. Meaning, if you’re looking to start your NEO trading journey in a conservative manner, you can do so via eToro.
Regulation is one of the metrics we considered when vetting NEO brokers and eToro ticks this box adequately. The broker is authorized across multiple jurisdictions including the UK, US, and Australia. Some of the leading financial bodies regulating this broker are the SEC, ASIC, the FCA, and more. Essentially, this means that you enjoy regulatory protection when you invest in NEO using this broker. Consequently, as a broker licensed by the relevant financial bodies, eToro allows you to invest in NEO using fiat money.
Once you sign up on the broker and fulfill the KYC requirements, you can proceed to purchase NEO using your debit/credit card. The broker also provides you with other payment options including e-wallets and wire transfers. With the broker’s simple user interface, you can complete the investment process within five minutes. You might want to diversify your NEO investment so you can manage the risks that come with buying the token.
eToro makes this convenient — as you can invest in dozens of other cryptocurrency markets including EOS, Ethereum, Litecoin, Cosmos, Chainlink, and more. When investing in NEO and any of the other supported markets, you do so on a spread-only basis instead of paying variable commissions. In even better news, the spread on eToro is pretty tight, as this starts from 0.75% when buying crypto. This is competitive, as many crypto brokers have spreads that start at 2%.
Finally, the broker provides you user-friendly tools that make it seamless to invest in NEO. The first is the copy trading tool – which is leveraged by millions of traders on eToro. To use this feature, simply identify an experienced trader on eToro and the broker will automatically copy their investments on your behalf. eToro also makes it easy to gain more insights into NEO, as you have charting options and research channels for this purpose. You might also consider the eToro CryptoPortfolio, which gives you access to a basket of different cryptocurrencies through a single investment.
Pros
- Invest in cryptocurrencies on a spread-only basis
- Minimum investment per trade from just $25
- Supports debit/credit cards, e-wallets, and local bank transfers
- Registered with FINRA/SEC and regulated by the FCA, CySEC, and ASIC
- Minimum deposit of $50 and no transaction fees for US citizens
- Used by over 20 million people
- Perfect for beginners
- Social and copy trading tools
Cons
- Perhaps too basic for technical traders
- No support for MT4 or MT5
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. 67% of retail investor accounts lose money when trading CFDs with this provider.
2. Binance – Best Crypto Exchange to Invest in NEO for Diversification
If you’re looking to invest in NEO alongside other tokens, Binance is a great option for you. The exchange lists more than 100 cryptocurrency markets, making it convenient for you to diversify your NEO investment. When you use Binance, the cost you incur while investing in NEO depends on your location. For instance, while a US client will pay 0.5% for investing in crypto with a debit or credit card, a UK trader will incur up to 1.8% for buying the same token.
Notably, however, you cannot buy NEO directly from Binance. Instead, you’ll have to perform a crypto-to-crypto exchange. Here, you’ll need to first buy an established token such as Bitcoin or USDT. Following that, you’ll proceed to exchange the coin you purchased for NEO. The process is quite straightforward, but you might find it a bit challenging if you’re a newbie in the cryptocurrency space.
Nonetheless, Binance allows you to store your NEO tokens on the platform until you want to cash out the investment. Additionally, the exchange has some impressive security protocols to keep the platform protected. This includes IP address whitelisting and a two-factor authentication process to ensure the exchange remains secure. If you also have a private wallet and want to move your tokens there, Binance will allow you to do that as soon as your NEO investment is complete.
Pros
- Facilitates billions of dollars in daily trading volume
- Supports hundreds of digital asset pairs
- Near-instant deposits via debit/credit card
- Trading commission starts at just 0.1% per slide
- Offers crypto savings accounts
- Ideal for both beginners and experienced traders alike
Cons
- Not all supported cryptocurrencies can be purchased with a debit/credit card
- No e-wallet deposits or withdrawals
at eToro, #1 Broker in the Crypto Space
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. 67% of retail investor accounts lose money when trading CFDs with this provider
3. OKEx – Invest in NEO through a Crypto-to-Crypto exchange
Suppose you already have some popular cryptocurrency tokens — such as Bitcoin or USDT — in another wallet, you can consider exchanging the coins for NEO through OKEx. With this exchange, the swapping process will cost you a low commission of 0.10%, making it a cost-effective means to invest in NEO. Additionally, although this method isn’t the most convenient way to invest in a token, OKEx offers a beginner-friendly interface.
Also, if opting for a crypto deposit, using this platform means you can skip the KYC process (limits apply). If you also have the ambition to engage in advanced trading, OKEx is an exchange that also fits the bill. The platform provides for margin trading, which is a way to borrow money for funding your new crypto purchases. Many traders use this tool to secure larger gains in the market. However, you should note that margin trading is equally a high-risk venture, meaning you can incur huge losses.
To maximize this tool, OKEx provides leverage of up to 1:20, meaning you can multiply your stake by a factor of 20x. Lastly, OKEx makes its crypto deposit process user-friendly. If the token you hold in your private wallet isn’t a popular coin, you can still use it for the exchange. For example, suppose you have Aave in your wallet; you’ll first have to swap it for Bitcoin. Following that, you’ll then proceed to exchange the Bitcoin for NEO. After completing your purchase, you can use the exchange’s custodial wallet to store your tokens.
Pros
- Trusted crypto exchange with over 20 million users
- More than 400+ digital currency pairs
- Buy and sell cryptocurrencies with a debit/credit card or bank transfer
- Low commissions that start from 0.1%
- Fully-fledged mobile app on Android and iOS
- Great reputation and highly secure
Cons
- Debit/credit card fees could be more competitive
- Derivative products are too complex for beginners
at eToro, #1 Broker in the Crypto Space
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. 67% of retail investor accounts lose money when trading CFDs with this provider.
4. Capital.com – Maximize Your NEO Trades with Leverage
If your aim is to trade NEO in the short term, you might want to consider Capital.com. When you open a NEO position on the platform, you don’t take ownership of the underlying asset. Instead, you trade based on the value of the token, making it convenient to enter and exit positions. Capital.com also has a user-friendly interface that makes it convenient to trade NEO, even as a beginner in the cryptocurrency scene.
Another feature we consider interesting about this platform is that you can trade NEO with leverage. Essentially, this means you can open positions even when you don’t have all the capital you need for that trade. However, you should note that using leverage can also lead to larger losses. Additionally, Capital.com allows you to open long and short positions, offering you the possibility to secure returns from both a price increase and decrease in the NEO market.
Finally, Capital.com shines in terms of its fee policy. Asides from being a platform where you don’t pay commissions, the spreads charged by Capital.com are super tight. The platform also provides you with over 200 cryptocurrency markets, making it easy to trade other tokens alongside NEO. With a minimum deposit of $20 through your debit/credit card or e-wallet, the platform is suitable for those on a budget. If you deposit funds via a bank wire, the minimum increases to $250.
Pros
- Top-rated spread betting and CFD broker
- Regulated by the FCA
- Minimum deposit just $20 (debit/credit cards and e-wallets)
- 0% commission on all markets
- Tight spread and no deposit/withdrawal fees
- Thousands of financial markets supported
- Great for beginners
Cons
- Advanced traders might find the platform too basic
- Minimum deposit of $250 on bank transfers
- Not available in the US
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76.25% of retail investor accounts lose money when trading spread bets and/or CFDs with this provider.
How to Invest in NEO – Detailed & Explained in Full
Earlier in this guide, we provided a quick walkthrough of how to invest in NEO. However, if you are a beginner in the digital currency space, the quick walkthrough might be insufficient. As such, below is a more comprehensive guide where we discuss each of the steps outlined above in detail.
Step 1: Create a NEO Investment Account with eToro
After deciding to invest in NEO through a broker, the next thing you have to do is to create an account that allows you to buy, sell and store your coins. eToro is a broker that offers all this, making it highly suitable for you.
To set up your investment account, you have to provide the broker with some personal details such as your full name, home address, contact information, and more. After completing the registration steps, your account will be created.
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. 67% of retail investor accounts lose money when trading CFDs with this provider.
Step 2: Provide an ID
eToro is a regulated broker, meaning all investors must verify their identity before they can invest in NEO.
Therefore, you’re required to upload a copy of a government-issued ID such as your passport. You also have to submit a document to verify your home address. This can be a bank statement or a utility bill issued within the prior three months.
Step 3: Add Funds to Your Account
To invest in NEO, you have to fund your eToro account. The broker’s minimum deposit requirement is $200, after which you can invest in NEO from $25. US clients, on the other hand, are required to meet a minimum deposit of just $50.
Below are the payment options available for you to deposit funds:
- Debit/credit cards (MasterCard, Visa, Maestro)
- Neteller
- Paypal
- Apple Pay
- Online banking
- Wire transfer
- ACH (US clients)
All of the above payment methods, apart from a bank wire or ACH, are processed instantly. If you’re based in the US, you won’t be charged any deposit fees. Other nationalities will pay an FX fee of 0.5% – unless you are making a deposit in US dollars.
Step 4: Search for NEO
Before you can invest in NEO, you must first search for the coin. To complete this step, you should click on the search bar and input ‘NEO.’
When you see NEO appear, click on the ‘Trade’ button.
Step 5: Invest in NEO
You will now be directed to the order page where you will complete your NEO investment. There, you will decide the amount you want to stake.
The minimum stake on eToro is $25, making it possible for you to invest in NEO even if you’re on a budget. Once you’ve entered your stake and confirmed your input, click on “Open Trade.”
Consequently, eToro will execute your order and the NEO tokens will be added to your portfolio. There you have it — you just became an investor in NEO!
How to Sell NEO
A crucial part of learning how to invest in NEO is to understand the process involved in selling the tokens. With a broker like eToro, once you are ready to sell your tokens, you can create the order directly from within your portfolio.
- In your portfolio, look for NEO.
- Then, click on the ‘Sell’ button.
- You can choose a market order — which instructs the broker that you want to sell the tokens immediately.
- Within a few seconds, eToro will execute your ‘Sell’ order and update your cash account accordingly.
Alternatively, you can sell your tokens by using a limit order. However, this would mean you’re looking to sell NEO at a particular price. In that case, you’d enter the value at which you desire to sell the coin and eToro will execute your order if NEO attains that price point. As you can imagine, the market order is the right option if you want to cash out your investment immediately.
After executing your ‘Sell’ order, eToro will allow you to withdraw the funds back to the same payment method you originally used. For example, if you funded your account using a debit card, you would be able to withdraw your money through the same option.
Ways to Invest in NEO
There are different ways for you to invest in NEO. Each method comes with varying pros and cons, which you have to assess before reaching a final decision.
For instance, unlike cryptocurrency exchanges, brokers are often regulated, making them a credible place to invest in NEO. Therefore, to understand both brokers and cryptocurrency exchanges adequately, we discuss the two options in terms of their features below.
NEO Broker
Brokers are intermediaries that allow you to invest in NEO directly through their platforms. Often, these brokers are regulated by leading financial authorities, making them reliable service providers. For instance, eToro is licensed by the SEC, FCA, and CySEC — and also registered with FINRA.
If you are looking to invest in NEO through a broker, here are some things you should know.
- As a regulated broker, eToro is reputable for its transparency and fair trading conditions.
- You can also invest directly with fiat money when using a regulated broker. Meaning, you don’t just get to invest in NEO in a secure manner, but also swiftly.
- Most brokers also offer diverse payment methods, including bank transfers, debit/credit cards, and e-wallets.
- While eToro is the best broker in the market owing to its impressive features, there are other great options such as Coinbase and Coinmama.
Finally, most brokers offer personal wallet services, meaning you can buy, store, and sell NEO tokens seamlessly. Essentially, you don’t have to deal with searching for a credible external wallet and safekeeping your private keys – which is ideal for beginners.
NEO Exchange
Another way to invest in NEO is to go through a cryptocurrency exchange. However, these exchanges are usually unregulated, meaning there’s no regulatory protection over your funds. Additionally, it might be difficult to ascertain their scope of operations since they are not audited by any regulator.
However, some investors consider these exchanges a viable alternative because a few of them have notably low commissions. But upon careful scrutiny, you’d realize that the low fee structure comes at the expense of security over your funds, which is a risk you shouldn’t take.
Lastly, since these exchanges are unregulated, you cannot invest in NEO through a debit/credit card. As such, you have to purchase NEO with another crypto — and this process might be frustrating if you’re a beginner looking to invest in the token in a burden-free manner.
Should I Invest in NEO?
When you’re learning how to invest in NEO, you’d want to know whether or not the token will be a great addition to your portfolio. You might be tempted to invest based on online predictions. However, most predictions are not backed by tangible data.
- Therefore, the best strategy to leverage is to do your own personal research on the project.
- This will include Neo’s market condition, historical data, and more. When you do this, you will understand the asset’s growth trajectory and this will inform your NEO investment decisions accordingly.
Notably, a carefully-made NEO investment can yield great returns. In the same manner, if you invest in the token and the market doesn’t move in your favor, you can incur huge losses. With that said, we have highlighted some of the things to look out for when considering whether to invest in NEO or otherwise.
Regulator-friendly Project
Unlike other cryptocurrency networks originating from China, NEO was established to be regulator-friendly. Although this may seem unusual, the project might easily become the next big protocol from China – since the network enjoys approval from the relevant authorities. NEO designed its Onchain technology in line with the requirements of domestic bodies.
Essentially, the protocol has created a secure network where users can transact safely in a regulated environment. Using what it calls the “digital identity,” NEO requires users to verify their identity before being able to access the platform. Therefore, if you’re interested in a cryptocurrency project free from regulatory challenges, you might want to consider NEO, as the token fits this bill.
Passive Earning
If you are looking to multiply the value of your asset in a passive manner, NEO is a project potentially worthy of consideration. When you purchase NEO, you earn GAS, another native token on the network. The number of GAS tokens you earn depends on the amount of NEO you own. Therefore, many investors consider investing in NEO so they can have more GAS tokens.
- This is particularly interesting because GAS provides users with an opportunity to earn rewards.
- Additionally, developers can leverage GAS for transactions, making the token’s use case pretty important in the NEO ecosystem.
- The earning options on the NEO network do not end there. The protocol launched its N3 version in August 2021, providing even more opportunities to multiply earnings on NEO holdings.
- With this launch, users can now create non-fungible tokens (NFTs) on the platform, which is an opportunity to earn more.
Essentially, all these use cases can impact the value of the NEO token in the crypto market. Therefore, this feature might be worthy of consideration while researching the token.
Impressive Upgrades
A notable reason why NEO has survived this long in the competitive cryptocurrency market is due to the protocol’s frequent upgrades. The NEO project started as AntShares in 2014 but rebranded to its current identity in 2017.
- In 2021, NEO finally released its latest upgrade, the N3 version.
- This version has impressive features, such as an upgrade in transaction time from 1,000 per second to 5,000 per second.
- Moreover, this development comes with a reduction in transaction costs. With this, NEO is challenging the dominance of the Ethereum network, where users pay higher transaction fees and also face slower processing times.
- The new upgrade also provides an avenue for developers to create decentralized applications on the platform. For non-developers, you can still be part of the network’s governance structure when you hold a certain amount of NEO tokens.
This positions the NEO protocol as a user-dedicated project —a feature that has the potential to impact the coin’s price in the market.
Established Project
In the cryptocurrency industry – where tokens can wither away in no time, NEO has been able to establish its presence. The project has rebranded at different times and is also constantly upgraded to meet market demands. Additionally, CoinMarketCap lists over 11,000 tokens, most of which were founded in the past 24 months.
NEO, on the other hand, has been operative in the industry since 2014. This means that the token has gone through several cryptocurrency bear markets when compared against many other tokens. Essentially, this means that you have sufficient historical data to examine before buying this token. This will offer you different perspectives on the project, from which you can eventually make an informed buying decision.
What are the Risks of Investing in NEO?
In this How to Invest in NEO Guide, we have examined some of the reasons why the project is worthy of consideration. However, this wouldn’t be complete if we did not discuss the risks that come with investing in the asset. This is because, although you can generate returns from investing in NEO, you might also incur losses if things don’t go to plan.
Therefore, it’s essential to understand these risks so you can know the best ways to hedge them.
Unpredictable Government Regulations
Since NEO is compliant with domestic bodies in China, this makes the project easily susceptible to the adverse effects of regulations. Although this feature makes the protocol favored by the regulators, it also makes it vulnerable accordingly. Therefore, if regulators decide to implement an unfavorable policy, the project’s market value might be significantly affected.
Market Volatility
As is the case with other cryptocurrency tokens, NEO’s price might rise or fall abruptly. The forces of demand and supply are mostly triggered by the Fear of Missing Out (FOMO). Therefore, if you invest in NEO, and the token’s price falls, you’d incur a loss in that regard.
As such, you should prepare for wild market alterations when you’re creating your NEO investment plan. This will help you to stay on track all through your investment journey — as market movements won’t meet you unprepared.
Unregulated Exchanges
If you choose to invest in NEO through a cryptocurrency exchange, there are certain risks you need to note. The most significant risk in this instance is that you enjoy no security over your funds.
Additionally, most of these exchanges are not built with secure personal wallets. Meaning, you have to move your tokens to an external wallet — and this might make your coins vulnerable to remote attacks.
Managing Your Risks
Although you cannot completely avoid risks when investing in NEO, you can manage them using the strategies below:
- Diversify your NEO investment. Since NEO is vulnerable to regulatory challenges, a smart investor will also buy other tokens. eToro makes this seamless — as you can invest in more than 30 other markets from just $25 per trade.
- In terms of market volatility, you might want to create an investment plan where you buy the token in small amounts, albeit regularly. This way, you can absorb unpredictable market changes in a more risk-averse manner.
- Lastly, we would suggest that you consider a regulated broker like eToro to avoid the numerous issues that come with cryptocurrency exchanges. When you invest in NEO via a licensed broker, there’s protection over your funds.
With these strategies, you can hedge the risks that come with a NEO investment.
How Much Does it Cost to Invest in NEO?
One of the frequently asked questions concerning NEO is to do with the cost that will be incurred during the investment process. However, the cost of investing in NEO is mainly determined by the platform you are using for that purpose.
Therefore, a smart investor will choose a trusted and low-cost broker to invest in NEO.
- On most brokers, you can make payments through wire transfers for free. However, this option can take several days to execute your payment completely.
- Alternatively, you can choose to use a debit/credit card — which will execute your transaction swiftly. However, you should know that this will cost a much higher fee.
- For instance, Coinbase charges 3.99% on debit/credit card transactions.
- Nonetheless, eToro only charges you just 0.5%. In fact, if you’re a US client, the broker charges you nothing for using your debit/credit card.
Essentially, consider the fee structure of the broker you’re choosing, as that determines how much you’ll incur while investing in NEO.
How to Invest in NEO – Conclusion
From all we’ve discussed in this guide, you now know that the process of investing in NEO is straightforward and burden-free once you choose the right broker. Of all the brokers we assessed, eToro stands out – not least because the platform is regulated by numerous financial bodies – including the SEC and FCA.
With eToro, you can invest in NEO from just $25 and the broker supports debit/credit cards, e-wallets, and bank wires. We consider this an impressive feature that makes it convenient for beginners to start investing in NEO with minimal risk.
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FAQs
How to invest in NEO?
Where to invest in NEO?
Should I buy NEO?
How can I safely invest in NEO?
How can I cash out my NEO investment?
