NEO is often considered China’s response to Ethereum. Its goal is to create a smarter economy by bridging the gap between digital and traditional assets.
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- Go to the Coinswitch website.
- Select your payment currency in the “You Send” box.
- Select your desired cryptocurrency in the “You Get” box.
- Click “View All Offers”.
- Select the offer that’s best for you.
- Enter your cryptocurrency wallet address.
- Click “next”.
- Follow the steps Coinswitch provides to complete your purchase.
This is our quick guide to just one way to buy NEO. Compare some other options in the table below.
What is NEO?
NEO is a blockchain platform that facilitates the development of digital assets and smart contracts. The platform uses two different tokens (similar to Ethereum): the first is also called NEO, the second is GAS. Both tokens have specific uses on the NEO platform, as we’ll see in this guide.
|NEO||August 2014||N/A||100 million NEO|
|GAS||August 2014||N/A||100 million GAS|
The primary aim of NEO is to become a digital, decentralized and distributed platform for non-digital assets through the use of smart contracts (see below for a more detailed look at smart contracts). This means that its goal is to become a digital alternative for asset transfers that are currently non-digital. An example would be paying rent using a smart contract that triggers automatically once a month instead of setting up a bank payment.
The two native tokens of the NEO platform serve different purposes:
- NEO tokens represent the ownership of the NEO blockchain. They are used to create blocks and manage the network, and when you hold NEO in your wallet, you’ll be rewarded with GAS tokens.
- GAS tokens give you the right to use the NEO blockchain. Much like Ether to the Ethereum network, GAS is the fuel that powers transactions in the NEO system.
The NEO platform, with its system of NEO and GAS tokens, is drastically different from bitcoin and many other cryptocurrencies. Three of the unique differences that set it apart are:
1. NEO indivisible units
The smallest unit of NEO will always be 1 share, and this cannot be divided in the same way as other coins like bitcoin. The primary reason for this is that, just like shares in a company or service, NEO cannot be divided into fractions. This might become a problem in the future if NEO’s value increases, but exchanges already have their own methods of dividing the coin.
Coin fractions at exchanges: How do they do it?
Exchanges are currently trying to figure out a way around the problem of NEO being indivisible. The answer they have might not be the best one but it’s the best we have right now: You’ll be allowed to trade fractions of NEO as long as you keep them inside your exchange wallet. If you transfer them to your NEO wallet, those fractions will remain on the exchange and won’t be moved to your private wallet.
For example, you are not technically allowed to own 5.32 NEO. You either have 5 NEO or 6. But exchanges will let you exchange BTC for 5.32 NEO without issue. If you keep those 5.32 NEO in your exchange wallet, you should have no problem exchanging them for another cryptocurrency. However, if you transfer the 5.32 NEO you own to your actual NEO wallet, you will end up with 5 NEO, and the 0.32 NEO will stay on the exchange.
2. Generating GAS
The biggest differentiating feature is the two-tiered system of NEO and GAS. Although GAS can be bought and sold on a handful of exchanges, users typically buy NEO tokens, which represent their stake in the future of the platform. The benefit of the two-tier system comes into play the moment you transfer NEO to your NEO-compatible wallet.
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