Cryptocurrency Neo is considered in China the most determined competitor of Ethereum. This belief makes sense if you look at the prices of both these cryptocurrencies. Neo achieves a medium-term support at the level of a dozen or so dollars, and Ethereum has floated around the limit of $100 – $400 and levitates in the vicinity of this long-term support. Is it worth believing in the potential of Neo advertised by the Chinese?
NEO cryptocurrency is a non-profit platform based on blockchain technology and focused around a community willing to work on the digitization of the economic circulation. Digital resources and assets in the NEO ecosystem can be created and managed using smart contracts embedded in a distributed network. The platform is popular with investors around the world, as evidenced by the high capitalization of the cryptocurrency. The project’s capitalization has decreased since the cryptocurrency price peak, but the project’s potential remains high.
The Neo ecosystem is designed to solve popular problems and challenges posed by digital asset projects. Both the threat from quantum computers and scalability are referenced in the Whitepaper and team work. The number of applications running on the Neo blockchain is increasing, as is adaptation and recognition.
How has Neo been doing so far? Neo exchange rate
The Neo cryptocurrency price chart reflects the behavior of the broad cryptocurrency market. Now, in the situation it is really low, is it a good idea to buy Neo for a low price?
The exchange rate graph of the Neo price confirms the rapid break of the dollar barrier, ten dollars and one hundred dollars during last year’s price increases. Later, the situation went down sharply and the price of the Neo dropped down to the level from the middle of previous year. The downward trend seems to be slowly depleting, although from a technical point of view, it is worth waiting for a specific signal.
For example, a double bottom or the announcement of greater implementation or breakthrough would do the thing. So far, price has been bouncing between $10 and $20 dollars for 1 Neo. Only for couple of last weeks price has dropped below $10, breaking long term supports. Then, there were hardly any investors who are having healthy profits on their NEO investments. It appeared that investor needed to be really early to enjoy profits.
On the other hand side, volume is rising and the period of stabilization benefit those, who develop projects in the Neo ecosystem. They have also enjoyed dividends in Neo GAS.
Let’s dig into the technical details of Neo’s cryptocurrency
The story began with rebranding in June 2017, when the Chinese cryptocurrency Antshares changed its name to Neo. The idea remained the same: to develop the ecosystem around cryptocurrencies and to maintain development, realizing the vision of smart economy. Neo can not be mined, the supply is fixed and amounts to 100 million, of which 50 million are held by the Neo Foundation. Immediately after the start, the Neo token cost 60 cents, so those who bought at the beginning still enjoy large profits.
How does Neo work? While there is no mining, as in the case of Ethereum or Bitcoin, NeoGas serves to confirm transactions and use smart contracts. Users of the Neo ecosystem pay Gas for the service and operation of smart contracts, and fees are proportional to the resources that are consumed by the contract. Gas is a working currency that changes hands to the rhythm of network usage and goes to Neo owners in the form of a dividend. Neo does not divide into smaller units, the minimum amount of Neo that can be sent is 1.
Neo details for those interested in blockchain technology
How does the Neo ecosystem look in detail? First of all, the implementation of cryptocurrencies without mining, Proof of Stake seems to be functioning. On the other hand, the price of NeoGas decreases along with the decrease in the Neo rate, which means that token holders receive smaller and smaller dividends.
The advantage of the Neo ecosystem is that smart contract developers can use mainstream programming languages to code smart contracts. NeoContract is a separate concept, which is one of the most important advantages over Ethereum. NeoQS, in turn, is a technology that allows you to calmly look into the future in the context of the threat from quantum computers.
What is the question of using the Neo network by other tokens and projects? Currently, there are several projects with top capitalization of cryptocurrencies that operate in the Neo network. These include Red Pulse, Ontology, DeepBrain Chain, Trinity and Qlink. You can buy them on the Far East cryptocurrency exchanges. Additional implementations that provide a very broad view of development Neo is the native NeoFS and NeoX file system, a mechanism that allows communication between blockchains.
The controversy may be aroused by the fact that Neo does not seem to be decentralized. This is important because decentralization is historically a necessary condition for the success of cryptocurrency. It involves the distribution of responsibility and assessment of the situation in the case of changes towards development and decisions important for the ecosystem.
Additional value in NeoGas dividend
By holding Neo, you get a NeoGas cryptocurrency, which can be treated as a dividend paid to the owners of the company’s shares. If you keep NeoGas on the cryptocurrency exchange, NeoGas should periodically be credited to your account. If you keep Neo in your own wallet, you can decide when to assign the accumulated Gas to your account. The latter option is important, for example, from a tax point of view. Currently, in November 2018, the actual rate of return from holding Neo, paid in NeoGas is around 3%. The theoretical rate of return, based on predetermined network parameters, such as block generation time is over 4.5%.
Is it worth buying Neo at the average price level?
Compared to the prices from the top of the crypto market from around the turn of 2017 and 2018, the price of Neo seems to be a bargain. On the other hand, if the exchange rate is still thousands of percent higher than the starting price, it’s worth keeping in mind. What could be the justification for purchasing Neo as part of a crypto investment portfolio? Looking at Neo, whose aim is not to replace traditional currencies, but to implement modern blockchain solutions in China, maybe it is worth buying it as an exposure to the Chinese blockchain technology sector.
Where to buy Neo?
The best place to buy Neo is the Binance cryptocurrency market. On this exchange, the NeoGas account is automatically added to the account. Additionally, it is popular among new users thanks to it’s special trading offer: fee reduced to 0.15% for the whole transaction.