Investing Idea: NEO

October 30, 2019

There has been some breakthrough news in the crypto space recently, which has made for a pretty interesting cryptocurrency investing idea.

The coin catching my interest is NEO.

China Going In On Blockchain

China’s President – Xi Jinping – said China must make a greater effort to develop and apply blockchain technologies. The speech explained blockchain technology as an important breakthrough, and China will now be going in full force on blockchain & cryptocurrency technology.

This is a major breakthrough for the cryptocurrency & blockchain industry overall, but this new acceptance & enthusiasm for cryptocurrency puts the spotlight on Chinese tokens & coins specifically.

The Ethereum Killer

NEO is a Chinese blockchain, providing a network for dApp (decentralised app) developers to build applications, tokens & smart contracts off of the blockchain. The smart contract platform acts as a leading blockchain for dApp developers, especially in China.

It has very similar properties to the Ethereum blockchain – being dubbed Chinese Ethereum, or the Ethereum killer. Ethereum is the most active blockchain in the world right now with a major real world use case, and NEO boasts very similar qualities. With the government pushing focus toward the blockchain & crypto ecosystem – we could see some very interesting developments for NEO.

A major factor driving NEO will be the company’s regulatory compliance. One of their main aims is to stay within the bounds of regulation, making them a favourable & likely choice for government backing – this is a HUGE interest booster for me, any crypto ecosystem that works within regulations is going to far outperform & outlast those who don’t in the real world.

Backing this blockchain & investing in this asset could prove to be highly profitable in the future.

Price Data

At the time of writing, NEO sits at $11.24 – down almost 95% from the all time high of $199, achieved in the 2017 crypto bull run. We saw the capability to reach $200, even when the market was young & adoption was low. Now with a strong professional developer team, large capital funding, a strong blockchain system and a green light from the president himself, imagine the possibilities of this crypto asset.

NEO/USD 1W Chart

The one week chart shows just how low NEO has gone since the parabolic move to the upside back in 2017. This simply provides us with amazing risk to reward. Being a little later to the party can be beneficial sometimes, and in this instance allows us to enter the market at extremely low prices.

Don’t be fooled though, we are still early adopters, and this is only the beginning.

My Investing Approach

I will personally be loading up some bags of NEO at the current price, aiming to stock up on physical crypto between $8-$11 as preferable pricing. I will then continue to dollar cost average in to the market over a longer time frame, allocating in a certain amount of capital into NEO each month.

I’m not going all-in on NEO, it will be a backing crypto in my overall portfolio. I do see a lot of potential here so I won’t hesitate to buy a fair few physical coins. The majority of my portfolio will for now always continue to be XRP/BTC/ETH but I do like to accumulate some high quality crypto projects too. I am very selective with my crypto assets but for me, NEO makes the cut.

This investing idea is a long term play, and involves risk. In the worst case scenario you could lose all capital that you invest, so spend only what you are willing to lose.

I am not a financial adviser, this is not financial advice. Always do your own research before making investment decisions.

Purchasing NEO:

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