A Step-by-Step Guide to Buy NEO with Bitcoin (BTC)
What is NEO?
NEO is a blockchain platform designed to support the development of cryptos and decentralized applications.
The NEO blockchain relies on two tokens which are used for its functions. There are the non-divisible NEO token and the GAS tokens which need to be generated in order to pay for the transaction fees needed to execute the network applications.
The project was first founded in 2014 as “Antshares” by Da Hongfei and Erik Zhang, the founders of Onchain, a provider of blockchain consulting.
The blockchain has been called the “Chinese Ethereum” due to its functional similarities with the latter project, even so, NEO was created to be more scalable and it charges lower gas fees.
Furthermore, NEO can support a larger number of programming languages (e.g. C#, VB.Net, F#, Java, Kotlin) while Ethereum just uses its own coding language called Solidity, which would require the developer to learn the language before starting any project.
In today’s article, we will show you how you can buy NEO tokens using Bitcoin.
How to buy NEO
Choose an exchange
First and foremost, you have to select the exchange on which you will do your transaction. For this, you have to find a trading platform which supports NEO trading pairs.
After this you have to proceed and sign up for an account on the exchange you have chosen. You will be requested to provide your email address and select a password, but note that some exchanges will also need your name, address and a picture of your ID to prove your identity.
If you use a card, the charges will be higher, but you will be able to make instant purchases. Bank transfers are much cheaper, but they are not the speediest option, as it can last up to a week to complete the transfer of your coins.
Some platforms allow both fiat-to-crypto and crypto-to-crypto trading. In our particular case, you just need for the exchange to have the BTC/NEO option, and seeing as Bitcoin is the most popular crypto on the market, most trading platforms have this feature.
Deposit your BTC funds into the exchange’s account by following its procedures. You will be supplied with an address which represents your online wallet that the exchange holds for you and is where you send your BTC funds.
When the transaction has been finalized, you will be able to check the bitcoin balance of your wallet.
There should be a trading section in your exchange account which lets you opt for the currency pairing you want, for example, BTC/NEO or ETH/NEO. Select the BTC/NEO one, and then establish a market or limit order, enter just how much NEO you want to purchase or how much currency you want to spend, and then confirm the order.
Once the transaction has been completed, the NEO tokens you acquired will appear in the wallet made by the exchange.
It should be noted that if you want to purchase NEO for the purpose of generating gas, you have to transfer the crypto in your own wallet. Cryptocurrency exchanges let you store your cryptos in an online wallet which is linked to your trading account. Even though the wallet functions just like your personal one, there is a major difference in the structure behind them.
The wallet provided by your exchange does not technically have an address which is reserved to you. The exchange has a wallet which is divided amongst its users, and a part of it is reserved for your usage, but the wallet doesn’t actually belong to you.
Because the actual owner of the wallet is the exchange, it is the platform, not you, that will receive the gas.
Important notice: NEO, non-divisible
Unlike Bitcoin, NEO is indivisible. A majority of coins avoid this problem by being divisible by up to eight decimal places. This enables the coin’s users to make purchases in the coin with the sum they have (as 1 BTC might cost around $6,000, you could still buy 10 satoshis for $0.06). This cannot be applied when it comes to NEO’s case. If 1 NEO will be worth a couple of thousand dollars, it will be required to have the exact sum or over it to make the purchase.
But luckily, NEO is currently trading at much more affordable prices, at the time of writing the article having a value of $21.69 USD.
If you’ve been following our article up until now, you will be able to purchase NEO coins by using your Bitcoins without any problems