Have you ever heard of NEO? Cryptocurrency investors are undoubtedly familiar with this aspiring crypto, similar in concept but better in performance than Ethereum. A growing number of individuals and companies have become interested in trading digital assets on this platform by employing different strategies.
The only way for investors to exchange NEO is by choosing a reputable digital cryptocurrency trading platform. These platforms allow users to purchase and sell cryptos, as well as communicate with other traders.
Here is everything you need to know about NEO trading.
What is NEO?
NEO, originally named AntShares in 2014, is a cryptocurrency growing in popularity, particularly after the rebranding process in 2017. This Chinese version of Ethereum was rebranded for the purpose of focusing on the smart economy, which combines smart contracts, digital assets, and identity.
The ultimate goal of the founders is for the smart economy to allow individuals and companies to trade digital assets safely on this blockchain platform. It strives to make financial transactions quicker and more affordable than traditional ones without requiring an element of trust. Once the necessary criteria are met, smart contracts make sure digital assets are transferred properly.
Moreover, the network of this cryptocurrency is based on two types of tokens, NEO and GAS. The former can be bought, but there are solely 100 million such tokens available for purchase. These tokens are used for creating blocks and managing the network. The latter is used for paying transactions and maintaining the blockchain function.
Regarding design, NEO is almost identical to Ethereum, as the goal of both platforms is to create a virtual economy where trust won’t be an issue. By using smart contracts, these cryptocurrencies allow users to exchange digital assets without forcing them to be directly involved in the trade. However, the transaction speed of the former is much faster when compared to that of Ethereum. Click here for a complete guide to Ethereum mining.
What factors affect its price?
This cryptocurrency has experienced a multitude of price alterations since its creation in 2014. After the phase of rebranding, its price was gradually increasing, attracting the attention of investors. Nevertheless, NEO has come across a setback in 2017 when the Chinese government forced the founders to return the investments back to capitalists, leading to a drop in price.
Investors are supposed to consider various factors prior to starting their trading journey. For instance, the general situation on the cryptocurrency market has a major influence on the price of NEO. When the price of Bitcoin and the other cryptocurrencies soars, it indicates a rise in the price of all cryptos in the market.
News and important events also play a vital role in price fluctuations. Encouraging news such as the introduction of new partners in the company have an increasing effect on the price, whereas unfavorable news is likely to decrease cryptos’ cost. Additionally, government decisions related to the adoption of cryptocurrencies have a major influence when it comes to price. The value of NEO increases along with the number of countries deciding to adopt this cryptocurrency.
Trading strategies
In order to delve into the world of NEO trading, investors are required to choose a trading platform allowing them to purchase and sell this cryptocurrency. Make sure you check out the fees related to the deposit and withdrawal of money, as well as the level of security.
In terms of making profits, most investors opt for the strategy of long-term investment, involving the lowest level of risk. It refers to purchasing the crypto for a low price and waiting patiently for its value to grow over time. This strategy is excellent for investors who aren’t keen on taking risks but wish to try out their luck in the trading world.
Day trading, on the other hand, isn’t a strategy suitable for novices due to the high levels of risk. Experienced traders use bots to trade on their behalf to avoid spending the entire day in front of the PC. Go to the following link, https://www.thebalance.com/day-trading-tips-for-beginners-on-getting-started-4047240, to learn some day trading tips for beginners.
Final word
Cryptocurrency trading has become a trend among investors.
Give NEO a chance!
