The History of NEO
In tandem with its name, NEO promises to usher in the new age of the ‘smart economy.’ In fact, the word ‘neo’ originates from the ancient Greek prefix ‘νεο’ which means young and new.
NEO was founded in 2014 by Erik Zhang and Da HongFei as an open source, community-driven blockchain platform for decentralised applications. The platform was initially launched as ‘Antshares’, which utilised the cryptocoin ‘Antcoins’ on its network.
The project then rebranded to NEO in 2017, along with the new vision to create a smart economy. NEO aims to achieve its vision by automating the management of digital assets using smart contracts.
AvaTrade is an industry-leading broker with some of the best trading conditions available, including the lowest crypto spreads on the market.
NEO is China’s first open source blockchain project, and since its inception, it started out focused on being regulatory friendly in what can be said to be, a tough crypto environment.
Thus, digital identity is a key tenet in the NEO platform, which utilises a consensus protocol known as Delegated Byzantine Fault Tolerance (dBFT). This mechanism can also support up to 10,000 transactions per second.
Uniquely, NEO has two crypto tokens: NEO and GAS. The NEO token, which is the base asset of the NEO blockchain, represents ownership of the NEO platform, acting as an investment on the blockchain project.
GAS, on the other hand, gives the right to use the NEO platform, essentially acting as a fuel within the system. That is, the NEO token generates GAS tokens which can then be used to pay the transaction fees required in order to utilise the NEO network.
NEO also supports programming in all mainstream languages, including Kotlin, Python, C#, Java, and Go. This variety ensures that a large community of developers can easily contribute to its platform.
During the initial block creation, 100 million NEO coins were pre-mined, and they are indivisible (the smallest unit will be 1). There will also eventually be 100 million GAS coins that will be generated using a decay algorithm designed to take 22 years.
Uses of NEO
NEO has interesting use cases in its quest to launch the smart economy. The project aims to transform traditional, physical assets into digital assets using smart contracts. These digital assets will be decentralised and protected by law.
NEO also seeks to create digital identities of individuals and corporations. Smart contracts are also a major use case of the NEO platform, which applies the Universal Lightweight Virtual Machine (NeoVM) that guarantees high concurrency, high certainty, as well as high blockchain scalability. NEO also supports the creation of decentralised applications and other blockchain projects on its platform.
The amazing NEO project has gained several backers and investors, with the major one undoubtedly being Microsoft, who have partnered with the blockchain project since its rebranding in 2017.
Why Trade NEO CFDs With AvaTrade?
- Uncompromised Safety – With six regulatory authorities and segregated accounts, your money is protected at all times.
- Many Cryptos to Choose From – Trade on the wide variety of cryptos available on our trading platforms.
- No Hidden Fees – We offer zero commissions and no bank fees on transactions!
- Crypto Never Goes to Sleep – AvaTrade is one of the few brokers offer around-the-clock service and support in 14 languages.
- Generous Leverage – Increase your initial capital with generous leverage and get far more exposure to trade than your account balance. Up to 2:1 (for EU residents) 25:1 (for non-EU residents).
- Limit Your Risk – You can preset profit and loss levels by using stop losses or take profit limits when you trade. Determine the maximum amount you are prepared to risk when speculating on the price, or set a price at which you want to take profits. Future orders like Buy Stops and Buy Limits are also available.
- Trade Cryptos Against Fiat Currencies – Unlike many exchanges out there, who are restricting their clients to trade only Crypto to Crypto, our clients can trade Cryptos against Fiat currencies (USD, EUR, JPY etc.), as well.
As mentioned above, 100 million NEO tokens were pre-mined during the foremost block creation (Genesis Block), and that will represent the maximum supply for the token. As of June 2019, there are about 70 million NEO tokens in circulation.
NEO held its first ICO in October 2015 at an introductory price of $0.032 and managed to sell 17.5 million tokens. In September 2016, it held its second crowd-sale and managed to sell 22.5 million tokens at a price of $0.2.
As China’s first public blockchain project, NEO understandably gained so much attention from the investing community. It has, therefore, had an interesting price history. From its ICO low of $0.032, NEO managed to achieve a price high of $196.85 in January 2018. In June 2019, it was trading at circa $18 with a market capitalisation of $1.267 billion.
With renewed enthusiasm in the crypto world as major tech giants launch their own coins, there is a general consensus that the future is bright for NEO and many other cryptocurrencies.
- MT4 Symbol: NEOUSD
- Trading Hours: 24/7
- Typical spread: 2% over-market
- Minimum Nominal Trading Size: 10
Here is why trading the NEOUSD and other cryptocurrencies at AvaTrade is a smart choice:
- Global, Growing Regulation – AvaTrade is an international, multi-regulated broker with a regulatory license currently across five continents. In addition, AvaTrade has been operating for over 12 years and has a wide global office presence.
- Cutting-edge Platforms – AvaTrade offers a choice of intuitive trading platforms including the popular MT4 and MT5 (MetaTrader) trading platforms, the AvaSocial social trading system, the AvaTradeGO mobile app as well as AvaOptions, the exclusive Vanilla Options trading app.
- Top-notch Security – In accordance with regulations, its clients’ funds are held in a segregated account. AvaTrade also protects its clients with the help of negative balance protection and ensures that its clients’ accounts never go below zero.
- Wide Choice of Assets – You can trade a wide choice of assets including stocks, indices, forex market, commodities, cryptocurrencies, bonds and ETFs, enabling you to diversify your portfolio with ease.
- Automated Trading – You can trade automatically with API Trading, DupliTrade and ZuluTrade.
- A Wealth of Educational Resources – At AvaTrade, you can access a wide choice of effective educational resources including videos, webinars, eBooks, daily market analysis and trading tips.
- Professional Customer Support – AvaTrade offers multilingual support as well as a dedicated account manager.
Sign up with AvaTrade today and gain direct access to trade NEOUSD and other Cryptocoins!
NEO Trading FAQ
Is NEO a good cryptocurrency for trading?
NEO has remained one of the top cryptocurrencies over the past several years, and it has enough volatility to recommend it as a good coin for traders. With frequent daily moves of several percentage points it should be clear that this is an asset that traders can take advantage of, especially if they choose to trade it using CFDs. The use of a CFD when trading NEO and other cryptocurrencies allows a trader to focus completely on the price action of the cryptocurrency and ignore the distractions of how to store and move the coins.
Is NEO better than Ethereum?
Both NEO and Ethereum are smart contract blockchains that support the creation of decentralized applications. But is one better than the other? Well, NEO supports far more transactions per second than Ethereum, although Ethereum is working on catching up. But Ethereum does have far more users at this point, and has become entrenched in decentralized finance applications. For a trader none of this matters, only the price action matters. In that regard NEO is actually better than Ethereum recently, as it has greater volatility, although that could certainly change at any time as markets do constantly change.
What’s the best way to trade NEO cryptocurrency?
While we certainly think learning more about cryptocurrencies is a good thing, when it comes to trading, we believe simple is the best course. So, rather than worrying about unregulated cryptocurrency exchanges, wallets and private keys, hackers, and the strange cryptocurrency crosses involved in trading actual NEO tokens, why not simplify and trade CFDs on the cryptocurrency. With a CFD you are only speculating on the price action of the token, and you don’t have any of the other concerns that come along with cryptocurrencies. It will simplify your trading and allow you to focus completely on the price action of NEO.