NEO Cryptocurrency Complete Guide: Investment Strategies and Practical Usage Methods for Beginners
Hello! Recently, as the cryptocurrency market has been heating up again, interest in NEO is also increasing. I have also been watching NEO for several years and have witnessed many changes. Today, I will tell you in detail about NEO based on my experience and knowledge accumulated over the years.
I will explain it step by step from the basics so that even those who are new to cryptocurrency investment can easily understand it. If you read it to the end, you will be able to gain solid insight into NEO investment.
Introducing the NEO Platform - Why is it called the 'Chinese Ethereum'?
NEO is not just a cryptocurrency. It is an innovative smart economy platform based on blockchain technology. This is why many people call NEO the 'Chinese Ethereum'.
The biggest feature of this platform is that it supports the issuance of digital assets and smart contracts at the same time. It provides an infrastructure that allows developers to build various decentralized applications (DApps), while allowing existing programming languages (C#, Java, Python, etc.) to be used as is.
Key Points: NEO boasts high throughput and fast transaction speeds, capable of processing 10,000 transactions per second. This is an overwhelming performance compared to Bitcoin's 7TPS and Ethereum's 15TPS.
The Exciting History of NEO - From Antshares to NEO
Knowing the history of NEO will help you understand why this project is special. When Da Hongfei and Erik Zhang first started developing it in Shanghai, China in 2014, the project was named 'Antshares'.
At that time, Antshares grew rapidly as the Chinese government's interest in blockchain increased. Then, in June 2017, it was rebranded as 'NEO' with a more global vision. Interestingly, the name NEO is derived from the Greek word meaning 'new'.
2017 was a turning point for NEO. As its price skyrocketed, it began to attract the attention of investors around the world, and it has remained the largest blockchain project in China to this day. Partnerships with global companies such as Microsoft and Alibaba were also active during this period.
NEO's Unique Operating Principle - The Secret of the Dual Token System
To understand how NEO works, you must first understand the dual token system. This is one of the key elements that differentiates NEO from other blockchain projects.
NEO Token: The basic token of the platform, with a total of 100 million issued and no more issued. NEO holders have voting rights to participate in network governance. You can think of it as operating like a company's stock.
GAS Token: This is a token used for network usage fees. It is used for smart contract execution, transaction fees, etc., and if you hold NEO, GAS is automatically generated. This allows NEO holders to earn passive income.
Practical Tip: If you keep NEO in your wallet, a certain amount of GAS will be automatically generated every day. This is one of the hidden charms of NEO investment!
NEO uses the dBFT (delegated Byzantine Fault Tolerance) consensus algorithm. This is different from the existing Proof of Work (PoW) or Proof of Stake (PoS), and allows for faster and more stable transaction processing.
Practical Uses of NEO - Practical Use Beyond Theory
The best evidence to show that NEO is not a simple speculative asset is actual use cases. Here are some projects that are currently actively operating in the NEO ecosystem.
Decentralized Finance (DeFi): Flamingo Finance, O3 Swap, etc. are operating on the NEO network. Various DeFi services such as liquidity provision, staking, and token swaps can be used on these platforms.
Games and NFTs: NEO-based games are being released steadily. In particular, Ghost Market has grown into the largest NFT marketplace in the NEO ecosystem.
Digital Identity Management: NEO's digital identity technology is being used in identity authentication systems for actual companies. This is a technology that will become even more important in the future metaverse era.
Supply Chain Management: Many companies in China are using NEO's blockchain technology to track and manage the authenticity of their products.
NEO Community and Information - Where to Get the Latest News?
Accurate and fast information gathering is essential for successful investment. Here are some reliable channels where you can get information about NEO.
Official Channels:
• NEO Official Website (neo.org): The most accurate technology updates and announcements
• GitHub repository: Check the development progress and code updates in real time
• Official Twitter (@NEO_Blockchain): Quick news and community communication
Community channels:
• Reddit's r/NEO: The most active overseas community
• Discord and Telegram: Real-time discussions and Q&A
• Domestic NEO communities: Naver Cafe, DC Inside, etc.
Note: Always check the official channels for cryptocurrency-related information. Be careful not to be fooled by fake news or manipulated information.
NEO Exchange Selection Guide - Where to Buy and Sell?
Choosing the right exchange for NEO trading is very important. Each exchange has its own pros and cons, so you should choose carefully.
Overseas Exchanges:
• Binance: Highest trading volume and liquidity, offers a variety of trading pairs
• Huobi: Chinese exchange with strong ties to NEO
• KuCoin: Relatively low fees and various services
Domestic exchanges:
• Upbit: Largest trading volume in Korea, direct KRW trading possible
• Bithumb: Long-term operating experience and stability
• Coinone: Relatively low fees
Tips for choosing an exchange: Consider trading volume, fees, security, and customer support comprehensively. Also, diversifying investments across multiple exchanges helps manage risk.
The Complete Guide to NEO Wallets - The Key to Safe Storage
Choosing the right wallet is essential to safely store NEO. Let's take a closer look at the features and pros and cons of each wallet.
NEON Wallet: This is the most popular desktop wallet in the NEO ecosystem. The user interface is intuitive, and the GAS claim function is very convenient. Above all, it is highly reliable because it is a wallet officially supported by the NEO Council.
O3 Wallet: This is a multi-platform wallet that supports both mobile and desktop. It has a built-in dApp browser function, so you can immediately use various services in the NEO ecosystem. Especially the usability of the mobile version is excellent.
Ledger Nano S/X: It provides the highest level of security as a hardware wallet. It is the safest choice for long-term storage of large amounts of NEO. It can be stored offline, so there is almost no risk of hacking.
Security Precautions: Never share your wallet's private key and seed phrase with anyone else. It is also important to regularly create backups and store them in a safe place.
NEO Investment Strategy and Precautions - Essential Guide for Successful Investment
A systematic approach is required to successfully invest in NEO. I will share with you the investment strategies and precautions I have learned through my experience over the years.
Investment Strategy:
First, I recommend investing only 5-10% of your portfolio in NEO. Since cryptocurrencies are highly volatile, excessive investment can be risky. Also, it is a good idea to use the dollar-cost averaging method (DCA) to buy them in installments over a certain period of time.
In the case of NEO, GAS is generated just by holding it, so it is a coin suitable for long-term investment. Therefore, I recommend approaching it from a long-term perspective rather than short-term trading.
Risk Management:
Changes in the Chinese government's cryptocurrency policy can directly affect the price of NEO. Therefore, you should pay close attention to China's blockchain and cryptocurrency policy trends.
In addition, events such as NEO 3.0 upgrade, new partnership announcements, and mainnet updates may affect the price, so please continue to monitor these news.
Investment Warning: Never invest with living expenses or borrowed money. Cryptocurrency investment carries a risk of loss, so please only invest with money that you can afford to lose.
Tax Considerations:
Taxation on cryptocurrency investment income will be implemented from 2023, so please manage your investment records systematically. If you accurately record the purchase price, sale price, commission, etc., it will be helpful when filing your taxes later.
Closing message: NEO is not a simple speculative object, but a project with real technical value and usability. I think it is a project worth watching from a long-term perspective as it has a high possibility of growing along with the Chinese government's blockchain support policy. However, as with all investments, please remember that sufficient research and careful judgment are required!