Dubbed in the financial media as the ‘Chinese Ethereum’, NEO has been making waves recently due to its innovative smart contracts and ultra-fast transaction times. With its price increasing by over 1029% in the past year alone, more and more investors are beginning to pay attention to NEO and consider it as an addition to their crypto portfolio.
In this guide, we show you How to Buy NEO UK, discussing everything you need to know before investing and highlighting how you can buy NEO in the safest and most cost-effective manner possible.
How to Buy NEO UK – Step by Step Guide 2021
If you’re looking for a quick guide showing you how to buy NEO UK, then look no further. The steps below will show you how to buy NEO in under ten minutes with FCA-regulated broker eToro.
- Step 1 – Open an eToro Account: Head to the eToro website and click ‘Join Now’ to sign up.
- Step 2 – Verify your ID and Address: Upload proof of ID (copy of driver’s license or passport) and proof of address (copy of bank statement or utility bill).
- Step 3 – Fund your Account: Make a deposit via credit/debit card, bank transfer, or e-wallet.
- Step 4 – Buy NEO: Search for NEO in the search bar, click ‘Trade’, enter the amount you’d like to invest, and then click ‘Open Trade’.
What is NEO?
NEO is an open-source blockchain platform that allows smart contracts to be run and peer-to-peer transactions to be completed. NEO was founded back in 2014 by Da HongFei and Erik Zhang and was initially called Antshares. In 2017, the platform was rebranded as NEO and is commonly viewed as the ‘Chinese Ethereum’ in the financial press.
The NEO platform supports its own digital currency (NEO coin) and allows users to create digital assets and produce smart contracts. These smart contracts can be thought of as an innovative piece of software that self-executes without the user having to process them manually. Smart contracts allow transactions to be completed in a speedy and trustworthy fashion and without any biases from related parties. This is one of the major drivers of value for NEO, as according to a report by AI Multiple, the smart contracts market is expected to reach $300 million in value by 2023.
NEO aims to offer efficient blockchain technology for individuals and companies to create these smart contracts, which can then positively impact businesses. Smart contracts are secure, speedy, and cost-effective; furthermore, they can be used in various industries such as insurance, healthcare, and finance. To provide an example, smart contracts could be used when voting in elections; they can help ensure a secure environment that would reduce the risk of voter fraud.
In addition to enabling smart contracts, the NEO platform also supports two crypto coins – NEO and GAS. These coins are commonly referred to as ‘tokens’ and are capped at 100 million tokens each. The NEO token can essentially be thought of as a share in the NEO platform; if the platform experiences an increase in value, NEO’s price will rise. The other token, GAS, is used within the network to produce and deploy smart contracts. Users can earn GAS as a sort of ‘dividend’ from the NEO tokens that they hold.
However, the main selling point for NEO is the concept of their ‘smart economy’. This concept relates to the combination of digital assets, digital identity, and smart contracts. NEO’s smart economy feature allows physical assets (such as property) to be digitised and given a unique place on the NEO system. These assets can then be traded via the previously mentioned smart contracts. Through this innovative feature, NEO hopes to revolutionise how parties transfer assets, ensuring it is much faster and safer than current methods.
To summarise all of this, it’s best to think of NEO as the actual platform that underpins all of the features mentioned in the preceding paragraphs. When you buy NEO, you are not just investing in the digital currency – you are indirectly investing in the platform’s performance as a whole. Therefore, the value of your NEO investment will fluctuate depending on many factors, both internal and external.
Why Buy NEO in the UK?
If you are looking to get involved in cryptocurrency trading and are interested in investing in a digital currency with fantastic potential, it may be worth considering NEO. At the time of writing, NEO has a valuation of $94 per coin. However, this price point represents an incredible increase of 1029% since the same time last year. So, if you’d invested £1000 in NEO last April, you’d currently have £11,290! This highlights the incredible potential of this currency and the crypto market in general.
According to data from CoinMarketCap, one of the leading providers of cryptocurrency data, Neo currently has a market capitalisation of $9.38 billion – making it the 24th largest cryptocurrency in the world. Even though it is not in the top 10, this can actually be thought of as a benefit for NEO. The smaller scale of its operations means that NEO can handle much more transactions per second than other, larger cryptos.
To provide an example, Ethereum (ETH) currently supports roughly 15 transactions every second, whereas NEO can complete 10,000 transactions per second. Theoretically, this means that NEO can handle much more volume than Ethereum (and other cryptos), which hints at its potential value in future applications. This is one of many reasons that analysts claim NEO is a good buy going forward.
Another reason to buy NEO UK is that it has a solid presence in China. This presence means that NEO has a vast potential target market with the opportunity to gain a large volume of users in the future, both individual and corporate. Furthermore, if large Chinese institutions do decide to implement cryptocurrency into their operations, chances are they will utilise crypto that is based in China – such as NEO.
How Much Does It Cost to Buy NEO?
When buying NEO, there are a few different fees to be aware of. These fees tend to differ depending on which crypto exchange or broker that you decide to use. However, the two most prominent are transaction fees and liquidity fees.
Transaction fees (also known as commissions) refer to the charges associated with placing a crypto trade. Many brokers and exchanges will charge a percentage of your position size as their commission, which usually ranges between 0.05% and 0.5% – but can sometimes be even higher. As you can imagine, these fees have the potential to add up, especially if you are more active in the market. Therefore, utilising an exchange that offers low trading fees (such as Binance) will ensure that you can invest cost-effectively.
Another fee to be aware of is liquidity fees. These tend to be charged when using leverage, which is offered by certain crypto exchanges and brokers. However, liquidity fees can also be expressed through the spread, which is the difference between the bid and ask prices of an asset. If liquidity is low, this spread will usually be larger – meaning that the ‘cost’ of purchasing NEO is higher than in times of high liquidity.
Finally, there are also some additional costs to be aware of when buying NEO. Some brokers and exchanges will charge a deposit fee when you fund your account. In addition, specific platforms will also charge a monthly account fee just for using their services. However, some brokers out there, such as eToro, do not charge any of these fees – ensuring cryptocurrency trading is as inexpensive as possible.
How to Buy NEO with PayPal
In October 2020, PayPal announced that users who reside in the US can directly buy, sell, and exchange cryptocurrency through the PayPal platform. Unfortunately, this service is not currently available in the UK, and only supports four cryptos at present – Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. The good news is, if you wish to buy NEO with PayPal, there is another indirect way of doing so.
Some brokers (such as eToro) allow you to deposit funds into your account using PayPal. With eToro, this process is free – there are no deposit fees associated with funding your account through PayPal. Once funded, you are then free to buy NEO using their online platform.
How to Buy NEO with Bitcoin
If you’d prefer to buy NEO with Bitcoin, this is also super easy to do with most major crypto exchanges. Due to the nature of their platform, crypto exchanges focus primarily on the transfer of one digital currency into another. This means that typical FIAT-to-Crypto purchases for smaller cryptos are not as widely offered.
To purchase NEO with Bitcoin, simply buy Bitcoin using your chosen crypto exchange – or you can transfer some into your account if you already hold Bitcoin in your crypto wallet. After this, you can then use your Bitcoin balance to fund your NEO purchase. At the time of writing, 0.5 BTC is the equivalent of 284.14 NEO.
Buying NEO Safely
It’s crucial that you buy NEO through a reliable and trustworthy crypto exchange or broker, as this will ensure your personal details and capital are safe. The best crypto exchanges will ensure that all users are verified and that payment methods are legitimate so that the platform is as secure as possible. Furthermore, FCA-regulated brokers that offer crypto trading (such as eToro) must adhere to the strictest security protocols to protect their customers.
In addition to choosing a reliable crypto exchange/broker, you’ll also want to consider using a crypto wallet. These wallets allow you to store your NEO holdings in a safe place, protecting them from any unauthorised access. There are many different crypto wallets available on the market, including the Neo wallet, they also range from basic security to ultra-advanced protection, so make sure to research all of the options available so that you make the best decision for your investment situation.
Risks of Buying NEO in the UK
An article by the credit company Experian notes that there are multiple risks you must be aware of when trading cryptocurrencies. The most evident risk is the potential to lose money. If you were to invest £1000 in NEO, and the value of the coin dropped by 10%, you would have lost £100. Price declines such as this are not uncommon in the cryptocurrency market due to its inherent volatility. So it’s vital to be aware of the potential for loss when investing in NEO and other digital currencies.
Another risk to note is liquidity risk. This risk is more prevalent in smaller altcoins but essentially refers to the ease with which you can buy or sell crypto. If it’s challenging to find a buyer or seller, the market is thought of as having low liquidity. In low liquidity markets, spreads also tend to be much higher, making trading cryptocurrencies a lot more expensive.
One of the other risks unique to cryptocurrency investing is the risk that someone could gain access to your NEO investment. As NEO is a digital currency, you will never physically ‘own’ it – instead, it will be held online. Due to its digital nature, there is always a small chance that your holdings could be hacked, and someone could steal your coins.
However, there is a practical way to combat this risk. When investing in NEO (or other cryptos), you must hold them in a secure digital wallet. These digital wallets, such as the best bitcoin wallets, allow you to keep your crypto holdings safe. Many reliable brokers (including eToro) will offer a crypto-wallet as one of their safety features, ensuring your investments are protected. You can also invest in a physical hardware wallet if you’d prefer.
If you decide to sell NEO, then the best stock brokers and crypto exchanges make it simple to do so. You have two options – you can exchange your NEO holdings for another cryptocurrency, or you can sell your NEO and receive its value in your chosen FIAT currency, such as USD, GBP, or EUR. The currencies which you can exchange NEO for will depend on who you trade with – so make sure you do your research so that you can sell your NEO investment in the most efficient manner.
If you purchased NEO through a broker such as eToro, it’s super easy to close out your position. Simply head to your open positions, and opt to close the trade. If you have made a profit, your initial investment amount plus profit will go straight into your brokerage account. You are then free to withdraw this money or reinvest it as you see fit.
Where to Buy NEO UK
With the increasing popularity of cryptocurrency trading, more and more crypto exchanges are popping up, which offer various features and fee structures. Additionally, many traditional brokers and now offering crypto trading services – so it can be challenging to decide who to trade with.
Not to worry – in this section, we will detail two of our recommended brokers to buy NEO UK, highlighting the features they offer and the types of fees they charge.
1. eToro – Overall Best Broker to Buy NEO UK with 0% Commission
If you’re looking for a broker that provides a quick and easy way to buy NEO, then we’d recommend partnering with eToro. eToro is one of the world’s largest brokers, with over 20million users across the globe. Regulated by both the Financial Conduct Authority(FCA) and the FSCS, eToro ensures that all of its customers receive the highest possible protection levels.
One of the main reasons we recommend eToro when buying NEO is that they offer an attractive fee structure. Unlike many other brokers, eToro does not charge any commissions when you buy cryptocurrency – allowing you to save money when trading actively. Instead, eToro charges a spread when investing in cryptos, which is the difference between the bid and ask prices. This spread varies depending on which crypto you are investing in but remains competitive with other large brokerages.
If you’re looking to add some more cryptocurrencies to your portfolio, eToro offers a selection of 16 digital currencies to invest in. Alternatively, eToro offers an innovative ‘CopyPortfolio’ feature, a type of investment fund that allows eToro users to invest in and earn a return. These CopyPortfolios are actively managed and do not require any management fees to be paid. One of the best CopyPortfolios that eToro offer is their Crypto Portfolio – providing broad exposure to the cryptocurrency market in a straightforward and inexpensive way.
The great thing about eToro is that they make sure the account opening and verification process is quick and easy, allowing new users to be up and running in under ten minutes. Users can complete the whole process online, and users can fund their account via credit/debit card, bank transfer, or e-wallet. Moreover, eToro does not charge any deposit fees or monthly account fees for using their services.
- Trade 16 of the most popular cryptos, including NEO.
- 100% commission-free trading
- Competitive spread structure
- Revolutionary CopyPortfolio feature
- Regulated by the FCA
- Some inactivity and withdrawal fees
67% of retail investor accounts lose money when trading CFDs with this provider.
Cryptoassets are highly volatile unregulated investment products. No EU investor protection.
2. Binance – Low Transaction Fees when Buying NEO UK
If you are looking for an alternative to eToro, then we’d also recommend Binance. Binance is one of the best exchanges worldwide, boasting over 13.5 million users. One of the main selling points for Binance is their trading platform – they offer extensive charting features and tools that can be customised depending on your skill level. So, if you are an advanced trader, Binance can certainly cater to that.
A huge benefit of using Binance to buy NEO is that they offer one of the best fee structures on the market. Binance charge a flat rate of 0.1% per transaction – meaning that if you invested £1000 in NEO, you’d only have to pay £1 in fees! What’s more, this rate can be reduced even further if you use that platform’s own currency, Binance Coin (BNB).
Binance also offers the option to purchase cryptocurrencies with your debit/credit card through their partner, Simplex. This feature is very attractive for people who wish to buy NEO as efficiently as possible. However, using your credit/debit card to purchase crypto on Binance does come with a much higher transaction fee.
Finally, Binance offers an extensive selection of educational materials through their ‘Binance Academy’ feature. This feature is ideal for newcomers to the crypto market, as it makes everything easy to understand and reduces the potential for trading mistakes. In addition, you can even ask specific questions about crypto, which other, experienced traders will answer.
- Advanced, customisable trading platform
- Extensive selection of educational materials through Binance Academy
- Extremely low fees for crypto trading
- FIAT-to-Crypto trading offered via credit/debit card and bank transfer
- Regulated in the UK by the FCA
- Does not provide daily market analysis
Your capital is at risk.
Best Way to Buy NEO UK – eToro Tutorial
To round off this guide, we will now show you how to buy NEO in the UK. The steps below will show you how to do so with FCA-regulated broker eToro – all without paying any commissions.
Step 1: Sign Up for an eToro Account
Head over to eToro’s website and click ‘Join Now’ on their homepage. You can also do this through their investment app if you wish. On the page that follows, enter your email address and choose a username and password.
Step 2: Verify your ID and Address
To trade crypto (and other assets) with eToro, you’ll need to verify yourself. To do so, simply upload proof of ID (a copy of your driver’s license or passport) and proof of address (a copy of a bank statement or utility bill). Once this is completed, eToro will verify the documents, which usually only takes a few minutes.
Step 3: Fund your Account
You can fund your account using various methods, such as credit/debit card, bank transfer, or e-wallet. If you’re looking to buy NEO as fast as possible, we recommend a credit/debit card as the funds will arrive immediately.
Step 4: Search for NEO
Click into the search bar at the top of the screen, and type in ‘NEO’. Click on NEO in the drop-down menu, and click ‘Trade’ on the next page.
Step 5: Buy NEO UK
All that’s left to do is enter how much you’d like to invest (minimum of $25), double-check everything is correct, and click ‘Open Trade’.
Congratulations! You’ve just invested in NEO UK – all without paying any commissions!
eToro – Best Crypto Exchange to Buy NEO UK
With many top crypto analysts becoming increasingly bullish about NEO, the digital currency looks set to become a mainstay in many investors’ crypto portfolios. Thanks to solid backing within China and its innovative smart economy system, NEO has the potential to establish itself within the crypto space further and increase in value over the years to come.
If you’re looking to buy NEO today, then we recommend using FCA-regulated broker eToro. They allow you to purchase many cryptocurrencies (including NEO) without paying any commissions and from as little as $25 per trade. What’s more, you can have an account set up and ready to invest in as little as ten minutes!
67% of retail investor accounts lose money when trading CFDs with this provider.
Cryptoassets are highly volatile unregulated investment products. No EU investor protection.
Is NEO worth buying in 2021?
With the launch of its new blockchain protocol N3, NEO aims to rival Ethereum in the provision of smart contracts to large companies globally. As N3 is lower cost than what Ethereum offers, many analysts predict that NEO's price will appreciate over the coming years. However, it may be more of a gradual increase – so keep this in mind when investing.
Where can I buy NEO?
You can buy NEO through a cryptocurrency exchange or a trustworthy broker. Exchanges such as Binance allow you to buy NEO with FIAT currencies and exchange other cryptos for NEO.
Is NEO better than Ethereum?
With the launch of N3, the NEO platform hopes to establish itself as a lower-cost alternative to Ethereum. Furthermore, NEO also boasts a much faster transaction speed, capable of handling 10,000 transactions per second compared to Ethereum’s 15.
What are the risks of buying NEO?
The most obvious risk when buying NEO is the risk of losing money. If you invested in NEO and the price decreased, you would suffer a loss on your investment. There is also a safety risk when buying NEO (and other cryptocurrencies), but you can combat this by holding your coins in a crypto wallet.
How much does it cost to buy NEO in the UK?
At the time of writing, the price of one NEO coin is $94. However, you can buy fractions of a coin with eToro – meaning you can invest from as little as $25 per trade.