How to Buy Neo (NEO) – July 2018

NEO smart economy

About Neo

A total of 100 million NEO was issued and it represents the ownership of the chain. 100 million was created in the Genesis Block and distributed according to distribution mechanism as described in its white paper. The total amount of NEO shares is fixed at 100 million and can not be increased. The smallest unit of the NEO is 1 NEO and can not be divided.

The main use of NEO shares:

  • Voting for bookkeeper
  • Receive GAS generated by new blocks
  • Obtain additional service charges for GAS
  • Voting on the future of the NEO blockchain

About GAS

A total of 100 million GAS will be produced and it represents the right to use the chain. GAS will be generated with the formation of each new block, in accordance with a decreasing rate of generation, it will take around 22 years for the amount of GAS to grow from 9 to 100 million.

The main purpose of GAS are:

  • Acting as a payment fees of the NEO blockchain
  • Pay an additional service fee for the small block area chain
  • As a deposit for the deposit of the candidate

Read the full Neo Whitepaper here.

How to Buy Neo in the US

Quick reference instructions, followed by more detailed instructions and screenshots below.

  1. Open an account on Coinbase.
  2. Open an account on Binance.
  3. Buy Ethereum ETH on Coinbase. ETH has a lower exchange and conversion fee and is faster than Bitcoin.
  4. Fund your Binance account with the Ethereum you just purchased. Note: Coinbase will charge a $14.25 transfer fee, so make sure you purchase and send enough to make it worth it. I recommend at least $500 at a time.
  5. Open the Exchange page on Binance and trade as you will.

The reason you must fund Coinbase first is the company accepts FIAT currencies, i.e USD, EUR, etc. From there, you can take your FIAT converted to ETH and purchase Neo, or any other coin at Binance.

These two companies are the most reputable I have currently encountered and used. Fees are reasonable compared to other options I’ve tried.

Fee roundup:

Coinbase: $14.25 to transfer to Binance

Binance: 0.1% trading fee.

Binance: Free to withdraw from Binance back to Coinbase.

Alt: Transfer for free to your Neo wallet for gas – instructions below.

Coinbase to Bank Account ACH: Free.

Total estimated fees on a $500 investment based on January 2018 rates: $19.25

Binance

Open an account in Binance.

Verify as necessary. The further verifications provided, the more you can deposit and withdraw at a time.

iota binance verify

Click over to Funds, then Deposits and Withdrawals. You will be presented with a screen showing all of the available cryptocurrencies.

binance currencies fund withdraw

Click on Deposit for Ethereum.

binance ethereum deposit address

You will be presented with an address to send your Ethereum to as a deposit. Copy the one time use address from Binance and paste it into the Coinbase accounts page under the Send button. The screenshot below shows BTC, but you will want to click on ETH.

coinbase send btc to binance

Once the fund have finished transferring, head over to the Binance exchange.

binance buying neo

Binance allows you to set limit, market, and stop-limit orders on buying and selling.

You are on your own from here. Good luck! To withdraw from Binance, go back to the Funds Deposits and Withdrawals page and click on the Withdrawal button for whatever currency you have.

Step by Step Instructions for using Binance

Now that your Ethereum has been successfully added, you can click Funds, then Deposits Withdrawals. Right in front of the coin you transferred, the total balance should reflect the value of Bitcoin or Ethereum you transferred.

  1. Click on Exchange, right beside the Binance Logo, then select the Basic option.
  2. On the Exchange page, look to the top right corner where you find the market pairs section above Trade History.
  3. Look for the market pair you want to exchange. In this case, locate the NEO/ETC pair and click (search for NEO/BTC if you funded your account with Bitcoin).
  4. The page loads the NEO/ETC pair, and you are set to exchange your coins for NEO.
  5. Beneath the chart, locate Buy NEO section.
  6. The first box shows the value of ETC per NEO to be purchased.
  7. The second box is for you to enter the amount (number of coins) of NEO you want to exchange for your BTC or Ether you funded.
  8. Below the Amount box, you have options to use 25%, 50%, 75%, or all of your deposited funds to buy the NEO cryptocurrency.
  9. The total box shows you how much BTC or Ether you are paying to buy the quantity of NEO you entered.
  10. Click the Buy NEO button.

Within some few seconds, you should have the NEO you have exchanged credited to your NEO wallet on the Binance platform.

Your NEO cryptocurrency is now available to be sent out to your wallet outside the exchange.

Earn GAS with NEO

All NEO holders on Binance will get GAS which is produced by NEO monthly. The details are as follows.

1. Statistical Method

GAS distribution number = total distribution number of GAS * NEO holder position ratio (with 8 digits after the decimal point)

NEO holders position ratio = sum of daily position number for NEO holders/ sum of daily position number for all NEO users

The daily position number is based on daily snapshot of NEO.

2. Distribution Time

Before 12am. of the second nature day in every month.

The statistics will start at the day one of Binance. The time of the first snapshot is 8am. on July 14th, 2017.

3. Demonstration of the Rule

User A is in the scope of statistics, and A hold NEO for three days which have 30, 300 and 60 respectively. Therefore, the sum of daily NEO position is 390.

Assume that the total distribution number of GAS is 1000 in this month, and  sum of daily position number for all NEO users is 600000;

Thus, the actual distribution number of user A = 1000*390/600000=0.65

To receive GAS with a NEO wallet, follow these instructions:

To get started, you need to download and setup NEON wallet on your computer.

  1. Download NEON Wallet – view up to date guides on on the latest versions of Neo here.
  2. The installation is straightforward and easy. It’s just merely unpacking and clicking on the executable file you see in it. The interface should pop up for you to login or create a new NEO wallet.
  3. Hit on the New Wallet button, and print the next screen as this displays your public and private key addresses.
    1. Note: You don’t need to have a printer to have it printed. Depending on your operating system, you could have the option of printing to PDF. Your keys then get saved on your PC as a PDF file which you can access at any time.
  4. Copy the private key displayed by clicking on the small icon in front of it.
  5. Click on “back to login” button.
  6. Enter paste the private key you just copied then click the login button.
  7. Now we’ll need to head over to Bittrex, Binance or wherever you have your NEO cryptocurrency stored.
  8. Copy your address, your public key address this time and enter on the exchange platform you are transferring from.
  9. Enter the amount you are sending and click the send button.
  10. Wait some minutes for your NEO to reflect in your NEON wallet.

It’s that simple. For as long as your NEOs stay in your NEON wallet, you will earn GAS for the value of NEOs you are holding.

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