How our NEO calculator works
NEO is backed by the Chinese and Japanese governments -as well as the giant Alibaba. This means you will likely be very interested in our NEO calculator. This NEO calculator will help you to work out the value of a single token. It will also help you to work out how much it will cost to buy the amount of NEO you require.
The mathematics involved is simple –If you were exchanging for USD, then the formula would be:
value in USD = exchange rate x amount of NEO.
However, the movement between the NEO and a fiat currency is more difficult as most exchange sites will not allow a direct transfer. This means you are likely going to have to convert to another cryptocurrency such as Bitcoin, Litecoin and Ethereum before completing the conversion. As the popularity and reliability of this digital currency increases it is likely that exchanges will allow you to use your credit/ debit card or bank account to purchase NEO. Until this time there may be transaction fees that are not considered by the NEO calculator.
The maths may not be so difficult, but the NEO calculator is a useful tool because it draws in the most up-to-the-minute information. The real-time information fuels the NEO convertor and helps you keep up-to-date with the price on your investment or future investment.
What does converting NEO mean?
Converting NEO is essentially a process of buying and selling a GAS token. NEO is quickly becoming one of the top cryptocurrencies to be traded worldwide but is still open to fluctuations in price. The buying and selling of digital assets is something akin to buying stocks and bonds. You buy the token in the hope that the price will appreciate and make you a profit. However, until you sell your NEO tokens you will be earning nothing from the tokens and it relies on the continued appreciation of the currency. This makes buying and selling NEO – and any other cryptocurrency – highly speculative. It is for this reason that you need to keep an eye on your investment, or potential investment, using the NEO calculator.
How can you convert your NEO?
The process of converting your NEO is a process of buying and selling your tokens. The most used method for buying and selling digital currencies are online exchanges. These are sites that bring together individuals for peer-to-peer transactions. Once you have bought your NEO you will then need to transfer this into your wallet to take ownership of your digital currency.
When buying from an exchange there are a number of issues to be aware of. First and foremost is that most exchanges will not let you buy NEO directly with your credit/ debit card or your bank account. You are likely going to have to transfer funds to another currency and then onto NEO or cash for your bank account. This is not as complicated as it sounds but is worth taking into account. It is likely that exchanges will begin to trade directly in Neo once its market position has been thoroughly established.
Other issues with exchanges relate to reliability, trust and liquidity. Storing large amounts of money as code makes exchange sites appealing to criminal hackers. There have been numerous instances of large amounts of cryptocurrency being taken from sites illegally, stripping people of their investment. Since some exchange sites were forced to shut down, remaining sites have taken on a cold war style paranoia in the protection of assets. Some offer insurance but most offer the use of cold storage. Cold storage holds digital assets offline and therefore out of the prying hands of hackers.
The obvious issue of holding assets offline is that they are not available for transactions in real-time. Most sites maintain about 5% liquidity. This does not sound a lot but when you consider the number of tokens is in the billions – then this is a substantial number of NEOs available to buy and sell. Therefore, although people cite liquidity as a positive of individual exchanges – it is not likely to be an issue unless you are too rich to care about reading this!
The final issue is one of regulation. Currencies themselves tend to resist regulation by governments or third-party institutions. However, sites that deal with financial exchanges should be monitored under the regulatory control of independent organisations. For instance, in America exchange sites tended to be monitored by state-level financial groups who check they are working ethically.
Alternatively, you can use a NEO converter to exchange your money to NEO or your NEO to money. You are more than likely using an exchange to do this but it can probably make the number of clicks go quicker!
When should you convert your NEO?
The news around NEO is either spectacularly positive or impending doom – though this is the case with most cryptocurrencies in the current atmosphere! This means the timing of your NEO conversion is entirely speculative and down to your judgement. This is what makes the NEO calculator so essential – as you keep up to date with the real-time value of the currency.
The reason for NEOs volatility is the backing it does or does not enjoy and whether it is a true altcoin or not. The Chinese government have been closely linked to this digital currency – leading some to claim it is a centralised currency that just happens to be traded online. However, with Japan showing interest and the backing of giant Alibaba – it is hard to see this currency as a failure.
It is worth keeping up to date with the news around this digital currency, as well as keeping in touch with the real-time price on our NEO convertor.