Coins Guide George Shnurenko

How to mine NEO for Free

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The moment the coins passed through the development phase, the creators made sure that the 100 million coins got pre-mined.
How to mine NEO for Free

Formerly known as Antshares and popularly referred to as the Chinese Ethereum, NEO was founded in 2014. It's founders aimed at initiating a digital system that supported smart contracts and offered the exchange of digital assets. It went on to become the first open source Chinese blockchain technology. 100 million NEO represents the blockchain ownership. This original 100 million NEO was created via the Genesis Block.

The distribution process was carried out through a unique process referred to as the white paper mechanism. The 100 million is also the total number of NEO tokens, and it cannot be increased. Since NEO cannot be divided into smaller units, the lowest portion will always be a whole number. Owing to its technological prowess over its competitors, profits boomed in 2017, and the value of the coin ascended. It even offered investors a Return on Investment as high as 21,000%. Currently, its market cap is valued at over 1.45 billion dollars.

Mining NEO

Most people fall into the category of those who link NEO to other digital currencies. Such people believe that by adopting the use of specialized hardware and GPUs, they will be able to mine NEO. However, that is not the case as it is impossible to mine NEO. The moment the coins passed through the development phase, the creators made sure that the 100 million coins got pre-mined.

Rest assured that you cannot mine the cryptocurrency. To further elaborate on the point; PoS protocol or better known as Proof of Stake gets used to undertake the process of distributing NEO. In the long run, the consensus gets distributed. The NEO foundation has a different kind of token called GAS besides owning the cryptocurrency NEO. Rather than focus on ways to mine NEO, stake the NEO coins and wait for rewards in the form of GAS. GAS offers some profitable returns once a person stakes the GAS inside an NEO wallet.

The other PoS cryptocurrencies require that the user keeps their wallet open all along the process; however, that is not the case with ‘Chinese Ethereum.' Users' reviews and experiences reveal that wallets with staked NEO can generate GAS that can get claimed within a continuous span of 5 minutes.

The coin is not similar to the likes of Bitcoin when talking concerning mining, but great rewards get reaped once a person makes up their mind to stake it. Bitcoin's usage of PoW protocol or Proof of Work protocol is the significant difference when considering the mining process as NEO focuses more on Proof of Stake. The latter method gets preferred by most people since they feel it be more suitable and efficient.

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NEO's PoS

The version of PoS protocol used by NEO is an improved type that is called dBFT. The holders make it efficient and elaborate by voting for delegates known as bookkeepers who run the network. It leads to transactions getting done at a higher rate. The norm receives achieved due to the allowing of only bookkeepers to do the validations. GAS is the token that runs NEO. GAS is what gets used in conducting transactions of any kind including payments as opposed to NEO. The way to claim GAS tokens is by merely holding NEO in your wallet.

Staking Defined

For a miner to mine different Altcoins as well as Bitcoins, they need to go through and solve an intricate mathematical problem which then needs confirmation from network peers. The name of the system gets referred to as Proof of Work. The miners' block will get added to the blockchain once the peers within a specific network agree. To do away with the need for calculating mathematical problems which necessitate the need for high energy consumption and specialized hardware miners aim to do staking.

Cases in which a mining pool or miner finds themselves with 51% computational power through the tragedy of commons get minimized or avoided. Which such power the miner could easily invalidate legal blocks while creating illegal ones. In Proof of Stack, it will require one to possess 51% of all coins to be able to crack such an attack.

Miner

Well, it may not be possible to mine NEO. That said there would be GAS tokens that get distributed to the NEO holders once there has been a new generation of NEO blocks. The NEO team holds all the nodes in the NEO's network. That makes it impossible for users to mine GAS. However, any person holding NEO tokens in their wallet will claim GAS since it gets distributed to them.

Reasons to Mine

Mining allows people to acquire cryptocurrency without having to pay for it. Keep in mind that one can still own crypto without necessarily being a miner. People can also opt for the option of using fiat currency to buy crypto. Trade is also another method done in exchange platforms where a person can sell Ethereums or Bitcoins for NEO. Some platforms pay people in crypto by either publishing blog posts or playing video games on their platforms. Steemit is an example of a medium that rewards people within their system using Steem. Steem is a type of cryptocurrency which using Exchanges, and one can get to buy NEO coins.

Acquiring NEO

Since mining NEO seems to be a dead end, the best way to get it is through trade. Several guidelines exist on how one can obtain NEO. Below are five core steps that assist in the buying of NEO.

Via an NEO Wallet

Without a doubt, if one opts to get a wallet, then the most suitable place is from the website. Purses found there include those that have features of mobile versions, web as well as desktop. However, other options to put into consideration include the ones below.

NEO Tracker Wallet

Most users prefer this type of web wallet. Its developer, NEO Tracker, made it an open source that easy to use and functional. It allows users to hold on to NEO coins while claiming GAS.

NEON Wallet

The desktop version is available for Mac, Linux, and Windows. The wallet can hold on to GAS and NEO while users the ability to trade them. One can claim GAS should they be holding on to NEO. The fact that it is usable on most desktop operating systems, its simplicity and functionality make most users interested in it. Even its security protocol is high since no private keys get stored on their servers.

NEOWallet

It is another Onchain application that makes use of open source structure which only allows the user access to private keys. Using this feature enables the claiming of GAS when holding NEO.

NEO Wallet

Another web open source wallet that makes it possible for holders of NEO to send receive, and store NEO assets and still claim GAS.

Official NEO Wallet

Peterlinx developed the application found on the company's website as the only listed mobile wallet and only functions on the Android operated system.

NEO Paper Wallet

Anyone seeking to hang on to their value while offline and for prolonged periods should check out this form of wallet. The downside is that it is impossible to claim GAS even when holding NEO tokens.

Exchange platform

After establishing the appropriate wallet, the next step is to figure out an exchange platform. Numerous exchanges allow for the trading of NEO. Some lack the options of buying via credit cards while others insist on trading only with Bitcoins. The best way to get around it is by choosing a platform based on your liquidity, method of buying, and your location. The importance of cash is the fact that transaction fees tend to be lower where on busy exchange platforms.

Binance

There are numerous exchanges where one can be able to get NEO coins. The extensive list will include the following platforms namely Binance, Upbit, Qryptos, Kucoin, Exrates, Coinnest, Tidebit, OKEx, Huobi, Cryptopia, Coinegg, BigONE, TDAX, Livecoin, HitBTC, CoolCoin, Bittrex, BCEX, Quoine, Lbank, Gate.io, Coinrail, Bitfinex, and Allcoin.

According to research and reviews of previous and current users, Binance tops the list of being the most efficient one. Below is a guideline of how to make the trade.

  • Once one opens the official website of Binance Exchange, they will click on the ‘register' icon on the right corner.
  • Fill in the required info.
  • An email will get sent, and you will need to click on the link posted for account verification.
  • After that, you will have to send the funds in the form of cryptocurrencies like Ethereum and Bitcoin. You will use that currency to buy NEO coins.
  • The next step will be to log in then go to the Funds icon and select Deposit Withdrawals.
  • Once on the page, choose the button marked Deposit next to ETH. After the generation of a wallet address, the coins will get transferred to Binance exchange.
  • Mark the address and send tokens from ETH wallet to the Binance account. The Ethereum will get credited to Binance in a short amount of time.
  • Use the ETH in the account to buy NEO coins. There should be a reflection of the balance of Ethereum in front of the ETH.
  • Click ‘exchange' beside the Binance logo then select ‘Basic.'
  • The ‘Exchange' page.
  • You will find ‘Trade History' in the top right corner and above it is info on the market pairs section. Look for NEO/ ETH then click on it.
  • After that, the page will load, and the NEO/ ETH pairing chat will appear. Check on the location of the ‘Buy NEO' segment beneath the chart.
  • Once you see the ‘Amount' box select and enter the amount of NEO, you desire to purchase. Look for information on the ‘Total' box to show how many ETH you will require paying for the desired amount of NEO.
  • Once you click on the ‘Buy NEO' marker, expect the NEO coins to get into your NEO wallet that is on the platform (Binance).
  • After concluding the steps, you can transfer the NEO tokens from the exchange to your portfolio.

Using Fiat Currencies and Credit Cards

Most exchanges only make a trade with other cryptocurrencies like Bitcoins or Ethereum. Some do allow buying NEO using credit cards which makes the process quite easy. The only possible exchange that helps to purchase NEO with fiat currency is Hitbtc.

Using a Bank Account

Since it is hard to directly buy NEO with money one can opt for using a bank account. However, you will have to purchase different crypto like Bitcoin first. Once the Bitcoin is in your pocket, then go ahead to an exchange platform and trade the coins for NEO tokens.

Via PayPal

The method is not as direct just like in using a bank account. First, you will buy Ethereum or Bitcoins then proceed to an Exchange and trade them for NEO and transfer them to your wallet.

NEO Viewing Point

According to research and the developers, it is impossible to mine NEO. The reason being that it was pre-mined before 2014 presale. The 100 million shares got split up after being pre-mined. Ten percent was sent to early supporters. Seventeen percent got designated to the ICO Phase 1. Twenty-three percent was for ICO Phase

The Antshares Company reserved the remaining fifty percent. After a year of locking the shares, they will be released to support the long run duties of the currently NEO team.

Once you acquire NEO tokens, it is best to transfer them to an NEO wallet as soon as possible. The reward for doing that is to benefit from the free GAS. However, note that you have to hold the tokens in your wallet to reap the rewards. Be sure of the storage system to be an NEO wallet.

Acquire one from their website to avoid weak or fraud cases. After getting one, find a way to buy Ethereum or Bitcoins or any other acceptable form of cryptocurrency. Use the acquired coins and find a reliable exchange location like Binance. Trade them for NEO coins. Make sure to transfer them to your desired personal wallet to claim GAS.

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