What is NEO Cryptocurrency?
NEO is a blockchain-based platform that supports its own cryptocurrency as well as enables the creation of digital assets, smart contracts, and other services. It is very similar to the U.S.-based Ethereum Blockchain network. Neo was originally founded in China as AntShares in 2014 by Da Hongfei, Erik Zhan. It was rebranded as Neo in June 2017.
The ultimate goal of Neo is to build a distributed, network-based smart economic system.
Assets can be digitalized easily on the Neo blockchain in an open and decentralized manner, that is trustworthy, traceable and transparent, without intermediaries or their costs.
You can record, buy, trade, exchange, and circulate many types of assets. Neo allows users to NEO physical assets with a unique digital avatar. Neo supports asset protection. All assets that are registered on Neo's platform have a digitally validated identity and are protected under law.
Digital identity allows for verifiable key information regarding participants, organizations, or other entities, provided that they are present in the digital context.
Smart contracts enable transactions and agreements to be executed between different parties without the need for central governance or any legal system. These contracts are executed using the programming code of a network. This allows for traceability, transparency and irreversibility of transactions.
Neo supports programming in all major languages, including C# and Java, Go, Python and Kotlin. This allows a large community to contribute to the platform.
As crypto exchanges have become more accessible and the NEOUSD price has risen, more people have begun to invest in cryptocurrency. NEO trading is allowing a great transfer of wealth and even new investors can hope to profit from its fast growth and earn higher returns than they would on the stock market.
With so much attention from the media and financial traders, new cryptocurrency investors are always looking for advantageous ways (platforms) to buy NEO (NEO) online. Luckily, there are numerous services and guides on how to buy NEO to help you get started in the cryptocurrency market.
Where to Buy NEO (NEO coin)
There are two ways cryptocurrency investors can choose when searching how to buy NEO (NEO) online:
- Cryptocurrency exchange
- Online Brokers
Crypto exchanges might be a good option for holding your funds, especially if you plan to withdraw them to a private wallet.
Online brokers are another great option where to buy NEO (NEO), which is increasing in popularity lately due to ease of trading, fast transaction, and greater control over the digital assets in your portfolio.
When you use a broker platform, you gain access to a comprehensive feature set that will assist you in more precisely calculating your strategies and risks. As a result, you will be able to add more indicators to the chart and use the built-in technical analysis tools. However, unlike an exchange, the broker platform will not provide you with the same large offer of cryptos to trade.
Additionally, global brokers like CAPEX also provide a few options to indirectly invest in NEO and other cryptocurrencies: cryptocurrency Exchange-Traded-Funds (ETFs) and companies connected to cryptocurrencies (crypto stocks).
Buying NEO cryptocurrency over an exchange
If you want to participate in a crypto project development and own the digital asset, you can buy NEO (NEO) online through a cryptocurrency exchange, such as Binance, Kraken, Bittrex, or Coinbase, and store it in a digital wallet.
Having an account on a cryptocurrency exchange allows you to send and receive NEO (NEO). Transferring NEO is like the way traditional bank transfers work, except for the bank account address, which is replaced with a NEO address. Because digital currency is transmitted directly between individuals without needing third-party entities, such as banks, transaction fees are cheaper than those charged by traditional institutions.
If you want to hold your crypto for a longer time, it is advised to transfer them from the crypto exchange to a secure cryptocurrency wallet. Wallets are much safer, and each private crypto wallet has a private key. It is critical to keep your private key safe because you won't be able to access your crypto without it, and if it's easily available, your funds could be stolen.
Buying NEO (NEO) through an exchange is for those who want to use it for day trading or purchasing crypto to transfer to a wallet. When you’re buying NEO (NEO) through a cryptocurrency exchange, you own the digital asset, and you can transfer it to a crypto wallet or do whatever you wish with it. If the price of NEO rises, then the value of your portfolio goes up as well. But if the price of NEO (NEO) falls, then the value of your portfolio falls, while the amount of NEO (NEO) remains the same.
Here are the main drawbacks when buying NEO (NEO) through a cryptocurrency exchange:
- Cryptocurrency exchanges may not be regulated in your country and offer little to no protection for investors.
- The matching engines and servers on NEO (NEO) exchanges are often unreliable, leading to the inability to access your account and control your funds.
- Cryptocurrency exchanges have many restrictions and limitations for their services, including transaction fees, withdrawal fees, and imposing minimum amounts for funding and withdrawing funds.
The good news is that investors can limit the risks presented by the crypto exchange by trading NEO (NEO) with contracts for difference (CFDs). NEO (NEO) CFDs allow you to speculate on the price of the cryptocurrency without having to own the digital asset.
Read on if you want to learn to trade NEO with capex.com in the most convenient way.
Buying NEO (NEO) with an Online Broker
Trading NEO (NEO) with an online broker like CAPEX means that instead of owning NEO outright, you’ll be speculating on its price with CFDs.
The main difference between buying NEO (NEO) from an exchange and buying NEO (NEO) from an online broker is that you don’t own NEO (NEO) when you use a broker. Owning crypto requires investors to have a crypto wallet, either within the exchange or a private wallet. But when you purchase NEO (NEO) CFDs using an online broker, the CFDs are stored in your account and are far more liquid, which makes trading CFDs more popular. Unlike cryptocurrency exchanges, online CFDs brokers are regulated by financial authorities.
The Alternative Way to Invest in NEO (NEO)
Trading CFDs is a process of buying or selling CFDs and can generate a profit if the value of the asset moves in the direction of the investor’s prediction, or a loss if the market goes against him.
You can buy NEO CFDs (go long) if you believe the value of the digital asset will increase.
At the same time, you can “go short” if you believe that the price of the underlying asset, in this case, NEO (NEO), will decrease, by selling CFDs.
Trading CFDs provides leverage, and you can open your position by depositing only a margin.
For example, if a trader wants to buy 100 NEO CFD at $38 would only require $1900 of trading capital.
It’s important to remember that leverage can increase both your profits and your losses, and they will be based on the full exposure of the trade, not just the margin requirement needed to open it. Potential losses, as well as profits, could exceed your margin.
Concisely, if you choose to trade crypto CFDs, you can profit from the difference between the buying and the selling position.
With CAPEX, you can trade CFDs on futures or spot prices. Trading CFDs on futures gives you exposure to the futures market, but without requiring you to take on any obligations or worry about any of the other nuances that are associated with futures trading.
Buy NEO NEO CFDs - Go Long
Instead of taking ownership of NEO, you can place a ‘long position’ translates to buying NEO CFDs. Your position, or NEO CFDs, will increase in value according to the increase in the price of the digital asset NEO’s price increases. If the price of NEO falls, then your position will lose value and can lead to loss.
Let’s assume that NEO is trading at a sell/buy price of 36.20/36.80 USD. You want to buy 100 CFD (units) because you think the price of NEO will go up. NEO has a 1:2 leverage or a margin rate of 50%, which means that you must deposit only 50% of the position’s value as position margin.
In this example, your CFD position margin will be $1840 (50% x (100 units x $36.80 buy price)). Losses greater than the margin can occur if the price of NEO moves against your position.
Outcome A: a profitable trade
If your prediction was correct, and the price of NEO surges over the next hours or days, then you have made a profitable trade. If the sell/buy price is 42.80/43.40 USD when you decide to close your position by selling at 42.80 (the new sell price), then your profit will be $1000.
The price has moved $6 (42.80 - 36.80) in your favor. Multiply this by the size of your position (500 units) to calculate your gross profit which is $600.
If the position was closed during the day, there will not be any swap charges and the net profit is $600.
If the position was closed after a few days, there will be swap charges according to the overnight rollover specification, in this case, -0.0563%.
Let us assume the position was closed the next day, the overnight swap calculation formula will be:
- Overnight swap = 100 (units) x $38.30 (price at rollover) x 0.0563% x 1 (days) = $2.15
Therefore, your total profit on NEO CFD is your gross profit minus the rollover cost.
- $600 - $2.15 = $597.85 net profit
Outcome B: a losing trade
If your prediction for the price of NEO was wrong, the NEO CFD trade will result in a loss. Let’s assume that the price of NEO drops over the next hour to a sell/buy price of $33.50/34.10. Because you want to limit the loss in the eventuality that the price continues to drop, you can sell at $33.50 (the new sell price) to close the position.
The price has moved $3.3 (36.80-33.50) against you. Multiply this by the size of your position (500 units) to calculate your loss, which is $330.
Sell NEO NEO CFDs - Go Short
In this CFD example, NEO is trading at a sell/buy price of 36.20/36.80 USD. Assume you want to sell 200 CFDs (units) because you think the price will go down. NEO has a 1:2 leverage or a margin rate of 50%, which means that you only must deposit 50% of the position’s value as position margin.
In this example, your CFD position margin will be $3620 (50% x (200 units x 36.20 sell price)). Remember that if the price moves against you, it is possible to lose more than your initial position margin of $3620.
Outcome A: a profitable trade
Your prediction was correct, and the price falls over the next 2 days to a sell/buy price of 26.90/27.50 USD. You decide to close your trade by buying back at $27.50 (the new buy price).
The price has moved $8.7 (36.20-27.50) in your favor. Multiply this by the size of your position (200 units) to calculate your profit, which is $1740 gross.
Let us assume the position was closed after 2 days, the overnight swap calculation formula will be:
- Overnight swap = 200 (units) x 32.50 (average price at rollover) x 0.0118% x 2 (days) = $1.53
Therefore, your total profit on NEO CFD is your gross profit plus the rollover cost.
- $1740 + $1.53 = €1741.53 net profit
Outcome B: a losing trade
Unfortunately, your prediction was wrong, and the price of NEO coin rises over the next hour to a sell/buy price of $38.20/38.80. You feel the price is likely to continue up, so to limit your potential loss you decide to buy at $38.80 (the new buy price) to close the position.
The price has moved $2.60 (38.80-36.20) against you. Multiply this by the size of your position (200 units) to calculate your loss, which is $520.
If you are not ready to trade CFDs at spot or futures prices yet, we have also got educational resources like CAPEX Academy with free courses on how to trade. Plus, we offer a demo account – giving you $50,000 in virtual funds to build your confidence in a risk-free environment.
Investing in NEO without actually buying NEO
While buying and day trading cryptocurrency is a major trend right now, it is important to remember that cryptocurrencies are a volatile and risky investment choice. If investing in crypto on an exchange or via a broker does not feel like the right choice for you, here are a few options to indirectly invest in NEO and other cryptocurrencies:
Exchange-Traded Funds - Crypto ETFs
Exchange-traded funds (ETFs) are popular investment tools that allow investors to buy exposure to hundreds of individual investments in bulk. That is why ETFs are a means of diversification for your portfolio and as less risky than investing in individual investments.
A crypto ETF allows investors to trade cryptocurrency on a traditional market and eliminates the need to trade the asset on a crypto exchange. Another advantage of trading crypto ETFs is that investors do not have to worry about the security aspects of trading crypto.
US investors can enter the crypto market by using ProShares Bitcoin Strategy ETF (BITO). The Fund provides capital appreciation through managed exposure to bitcoin futures contracts.
A NEO ETF could come in 2022. The approval of a Bitcoin ETF means a similar offering for NEO is imminent.
>> Learn what is an ETF and how does it work
Companies Connected to NEO and Cryptocurrency - NEO Stocks
Another option is to invest in cryptocurrency indirectly by investing and buying shares of companies that offer real-life products and services but still use or own cryptocurrencies as part of their business model (known as NEO stocks). With an all-in-one trading account with CAPEX, you can also trade shares CFD of public companies like:
Nvidia (NVDA). This technology company builds and sells GPUs, which are the main equipment needed to mine cryptocurrency. Learn how to buy Nvidia shares
- PayPal (PYPL). This is a worldwide payment service that allows their customers to buy and sell crypto using their PayPal and Venmo account. Learn how to buy PayPal shares
- Square (SQ). Since October 2020, Square has purchased over $220 million worth of Bitcoin. As of February 2021, this payment services provider stated that 5% of its cash is stored in Bitcoin. Their app, Square Cash, allows clients to buy, sell and trade crypto. Learn how to buy Square shares
- Coinbase (COIN). Coinbase is a cryptocurrency exchange that allows consumers, financial institutions, and businesses to transact between fiat and cryptocurrencies and securely store and use cryptocurrencies. Learn how to buy Coinbase shares
Tesla (TSLA). Tesla is an electric vehicle manufacturer, has always been a staunch supporter of digital currencies, and started accepting them as payments in February 2021, when the company purchased $1.5 billion worth of bitcoin. Learn how to buy Tesla shares
- CME Group (CME). CME is a financial derivatives exchange that offers trades in cryptocurrencies as well. In Q3 2021, the company reported a 14% year-over-year increase in its average daily volume (ADV) at 17.8 million contracts. Learn how to buy CME shares
>> Learn more about stock investing
How to Buy NEO Coin
Are you wondering how to buy NEO with CFDs? CAPEX offers NEO trading via CFDs on NEO USD spot prices to speculate on the value of NEO against the most popular currency, as well as the brand-new PRO Shares Bitcoin Strategy ETF. Here are the steps:
Step 1: Create an account and deposit funds
When you trade on cryptocurrencies, instead of purchasing NEO and other popular digital currencies, you can be ready to open a position much faster. You do not need a digital wallet or an account with an exchange. In fact, all you need to trade via CFDs is an account with a leveraged trading provider.
With CAPEX, you can open an account in minutes, and there is no obligation to add funds until you want to place a trade.
When you create a trading account with CAPEX, you will be able to:
- ‘Buy’ (go long) or ‘sell’ (go short) NEO and other popular cryptocurrencies to speculate on their price rising or falling
- Take a position on our range of ETFs to get exposure to a basket of shares from an entire country, index, or sector that could be rising or falling in price.
- Trade a host of global indices to go long or short on the performance of an entire economy with a single trade.
- Use QuantX, the smart portfolio builder that helps you cover the popular industries and only invest in the top-performing stocks.
Step 2: Choose your Crypto trading platform
Our trading platforms can provide you with a smarter and faster way to trade NEO CFDs – with personalized alerts, interactive charts, trading signals, and built-in risk management tools. You can trade via the CAPEX trading platform using:
CAPEX Web Trader
Trade on one of the most complete, fully customizable trading platforms on the market.
Available on desktop (Windows, Mac) and mobile (Android, iOS), it provides intuitive, web-based access to a vast range of tradable instruments, charting tools, analytical tools, and many more features.
To view NEO's real-time price and chart on the trading platform can click on the "Search" icon located in the left panel or by clicking on "Cryptocurrency" and then select the instrument, in this case, NEO (NEO).
MetaTrader 5, one of the best crypto trading apps, is providing superior tools for comprehensive price analysis, use of algorithmic trading applications (trading robots, Expert Advisor), and copy trading.
MetaTrader 5 is available on both desktop and mobile.
Step 3: Pick up a NEO trading strategy
Learning how to buy NEO is easy but adopting the right NEO trading strategy is essential to time the market.
The main NEO trading strategies are:
Buy and hold, also called position trading, is an investment strategy whereby an investor buys NEO to hold them long term, with the goal of realizing price appreciation, despite volatility.
Traders take a position according to the main trend (months to years). You can “go long” if NEO is in a bullish trend or “go short” if the NEO trend is bearish. If the major trend starts to slow or reverse, you will think about closing your position and opening a new one to match the emerging NEO trend.
All trades are performed during the day. There are no open positions overnight, though no rollover charges. Traders are looking to profit from NEO’s short-term price movements (including scalping), and it can enable them to make the most of daily volatility in bitcoin’s price.
When you hedge NEO, it means that you use CFDs to counteract the NEO price movement you already own. For example, if you owned some NEO but were concerned about a short-term drop in their value, you could open a short position on NEO with CFDs. If the NEO price falls, the gains on your short position would offset some or all the losses on the coins you own.
Following the chart patterns and general trends can give you a hint to where NEO is going.
Step 4: Set your NEO orders
A trade order is an agreement to buy or sell a specific asset like NEO at a specific price or price range.
To buy NEO CFD with CAPEX, click on the "Buy" button and a window is displayed to configure the purchase order. You can choose among Market, Limit, and Stop orders.
Additionally, you can pre-define Stop Loss and Take profit orders, which are crucial risk management tools – that help you minimize the potential loss and maximize the potential gains.
How to buy NEO with Market Orders
The simplest type of trade order is a market order. Market orders are usually placed by traders if they want to be certain trade is executed. A market order is instant. Therefore, it is simply an order placed by a trader to buy or sell NEO immediately at whatever its current price is.
I want to buy 200 NEO (NEO) right now or as quickly as possible.
How to buy NEO with Limit Orders
While a market order is simply an order placed by traders to buy or sell an asset immediately at whatever the current price, a limit order in its most basic sense, is an order to buy or sell an asset at a specific price. Buy limit orders are placed above key support levels with the purpose of limiting price risks anticipating the uptrend will resume after a correction (buy the dip).
The price for NEO/USD is currently at USD 36.00 and you place a buy limit order at USD 32.00, then your order is meant to execute at the price of USD 32.00 as soon as there is a matching sell order at this price or better.
How to buy NEO with Stop Orders
A stop order is an order that becomes a market order only once a specified price is reached. It can be used to enter a new position or to exit an existing one. Limit orders are placed above key resistance levels anticipating a breakout after a consolidation.
The price for NEO/USD is currently at USD 36.00 and you place a buy stop order at USD 37.00, then your order is meant to become market at the price of USD 37.00 as soon as the price is reached.
Step 5: Monitor and close your NEO position
To open a NEO trade, you’d buy if you thought that the price was going to rise or sell if you thought the price was going to fall. Once your trade is open, you’ll need to monitor the market to make sure that it’s moving in the way you anticipated.
The technical indicators available on our trading platform can help you to determine what NEO’s price might do next. Indicators can also help you monitor current market conditions like volatility levels or market sentiment.
CAPEX WebTrader can deliver an in-depth analysis of the charts and offers over 90 indicators (including moving average, MACD, RSI, and Bollinger Bands). The WebTrader platform also supports an interactive trading activity with high-end research tools helping you interpret market data.
Take Profit & Stop Loss
Traders can close a position immediately to take a profit or to cut a loss. You can use market order or set Stop Loss and Take Profit levels when you set the order to buy NEO.
The platform offers the stop-loss option, which lets you clearly state how much you're willing to risk with your trade. Similarly, the take profit is the exact opposite. It tells your broker how much you expect to make as a profit and when you want to close your position.
Any profits you make will be paid directly into your trading account. Losses are deducted from your account balance.
When to buy NEO (NEOUSD)
Investors should be aware of the fundamental and technical analysis when deciding when to buy NEO. The fundamental analysis considers the news and events about the coins, exchanges, and other crypto businesses. The technical analysis uses the price value history to map the evolution of the supply and demand for NEO.
NEO Price Prediction using Fundamentals
When using the fundamental analysis approach, investors should be aware of the government regulation, latest cryptocurrency updates, and technical issues, as well as cryptocurrency exchanges that affect the supply and demand for cryptocurrencies.
For instance, when Bitcoin CME was introduced into the government regulations, and it drove the price of Bitcoin to almost $20,000 in December 2017.
An accurate NEO price forecast using fundamental analysis considers the three main aspects:
- Blockchain metrics (hash rate, active addresses, transactions fees, and values)
- Financial (market capitalization, liquidity, trading volume, circulating supply)
- Project overview (team’s background, whitepaper, competitors, roadmap, tokenomics)
>> Learn how to forecast NEO price with fundamental analysis
What is the future of NEO?
The fact that Neo is designed to create the "smart economy" often drives the price prediction. NeoContract is a smart contract framework that facilitates different blockchain use cases. These include many decentralised finance (DeFi), applications such as marketplaces, investment management tools, or new processes to interact with decentralised exchanges (DEXs).
Neo developers have switched from the proof-of-work and proof-of-stake consensus mechanisms to a Byzantine fault tolerance method. It is designed to reduce the vulnerability of the network and improve transaction speed and scalability.
In 2021, Neo coin experienced extreme volatility spikes. The cryptocurrency reached a new all-time high of $140.37 in April 2021, and then plunged to $30.64 on June 22 2021. The token remained within the $25.00-$30.00 price range for the next month, and began a bullish trend.
NEO officially launched the N3 version on 2 August 2021. This was the team's biggest milestone and their greatest achievement in 2021.
N3 brings several improvements to the project's previous version NEO Legacy. The new architecture, revamped governance and multi-language support are just some of the upgrades. NEO 3.0 is intended to increase transaction speeds from 1,000 per second up to 5,000 per second and lower gas prices 100 times. NEO is a competitor for Ethereum, especially due to its low transaction fees.
Neo announced a partnership with Alchemy Pay (ACH) on 11 November. Alchemy Pay will integrate NEO token into its global hybrid crypto/fiat gateways. The integration is expected to amplify NEO tokens' use cases by allowing NEO transactions across Alchemy Pay merchant networks, including Shopify and Arcadier.
Investors and traders should be more attentive to the migration process, as it could become an important driver for the future price NEO.
Because is difficult to analyze the intrinsic value of a cryptocurrency, it is recommended you perform a technical analysis before investing in NEO CFDs. It might offer some insight into the past movements of NEO, helping you predict where it will head in the future.
NEO price prediction using technical analysis
Some believe the high concentration of retail traders makes cryptos truer to traditional chart patterns and indications of oversold, overbought conditions, etc.
Technical analysis techniques can be applied to any market where the price can freely fluctuate, and data is available to see those fluctuations. The CAPEX Web Trader has a full suite of all the best-known technical indicators and chart drawing tools.
>> Learn how to forecast NEO price with technical analysis
NEO Forecast 2022
The Neo price forecast remains bearish for the next months. At the time of the writing, NEO coin price is testing the previous low at $25.00 after a gap down. Usually, after the gap is closed the downtrend is more likely to resume.
Wallet Investor predicts that Neo's price will rise to $69, within a year - a bullish Neo 2022 prediction. They believe that Neo investing could prove to be a long-term profitable investment. In five years, they expect the price will reach $197.
Digital Coin also provides an analytical resource that offers a positive Neo price prediction for 2022. The forecasting agency predicts that Neo prices will rise between $54 and $164 by 2028.
The NEO forecasts above were generated using deep learning technologies and technical analysis. These forecasts should not be used as a basis for your investment decisions. Past performance is not indicative of future returns.
We ask traders to develop their own trading strategies, taking into account their risk tolerance and investment goals. Before you make any trades, we recommend that you do thorough research. This includes both technical and fundamental analysis as well as expert opinions and the most recent crypto market trends.
What Moves NEO Price
The most important aspects that can influence the NEO price are:
- Total supply
- Rules and regulations
NEO’s price corresponds to the current supply and demand in the crypto space. Considering NEO has a fixed maximum supply of around 100 million NEO, it is a digital asset that will experience scarcity as more investors join the NEO trading market.
An important aspect of what moves the price of NEO is the news.
It is well-known that small cryptos mirror movements of BTC/USD. The NEO/USD pair mirrors the ups and downs of the Bitcoin trends. The coronavirus, which ravaged financial markets in March 2020, caused downtrends in crypto-world, driving Bitcoin and NEO down.
Nevertheless, there were some instances when prices moved in a different direction. NEO partnered up with the Blockchain-based Services Network at the end of July 2020. BSN is a global infrastructure which offers a platform for blockchain projects, similar companies and creates a digital economy. This led to an increase in the NEO price. It is easy to see how NEO news could affect the cryptocurrency's price.
In conclusion, should you Buy NEO or not?
As with any investment, make sure you carefully assess your financial situation before investing in cryptocurrency, NEO, and the stock market. NEO can be extremely volatile—a single tweet can make its price plummet—as cryptocurrencies are still a highly speculative investment. Follow the already famous crypto investment phrase — "invest only what you can afford to lose".
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