Cryptocurrencies are a fairly new innovation, whose implementation in our financial system has brought along a wide variety of products for their optimum usage.
In the beginning, when there was only Bitcoin (BTC), there were very few options for storing these coins and only a few not-so-beginner-friendly crypto exchanges. Fast forward a couple of years later and we have Bitcoin inspiring the emergence of altcoins the likes of Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH), Cardano (ADA), Ripple (XRP), and Monero (XMR), to name just a few. Each of these cryptocurrencies brings its own benefits to the table and Neo (NEO) is no different at all.
To start off the article, we’ll say that Neo is a community-driven blockchain platform that seeks to automate the management of crypto assets by using smart contracts. This guide will tell you all about Neo and the ways you can store its coins in aftermarket wallets like Ledger Nano S.
What Is Neo?
The Neo company was founded in China in 2014 by Chinese developers Da Hongfei and Erik Zhan under the name of AntShares, before it was rebranded in2017. Neo is an open-source blockchain-operated platform that has its own cryptocurrency (NEO) and offers the development of smart contracts and digital assets.
The main inspiration for this platform has been the US-based Ethereum blockchain platform but Neo has brought its own unique twists and features to the table. The platform’s main goals are the automation of digital assets management through smart contracts and the building of distributed network-based smart economy systems. In Neo’s Smart Economy System description, the system is described as a combination of smart contracts, digital assets, and digital identity.
The digitalization of assets on the Neo blockchain takes place in an open, decentralized, secure, traceable, and transparent manner that’s free of any intermediaries and fees for such third parties. Users of Neo can easily buy, sell, record, exchange, and circulate different kinds of assets on the platform and link their physical assets with an equal digital avatar to the assets on the network.
In addition to all these features, Neo provides excellent asset protection. The users registered on the platform have a valid digital identity and are protected by the law. The digital identity authorizes verifiable key information and data about the individuals, various organizations, and other users that digitally exist on the platform.
Neo supports two cryptocurrency coins on its network: NEO and GAS. Also, Neo supports programming in all of the major programming languages: C#, Java, Go, Kotlin, and Python. These languages are utilized by large communities of developers and users and can easily contribute to upgrades on the platform which is a real advantage over Ethereum’s insistence on using a unique (and complex!) language, Solidity.
Tutorial for Storing Neo: Choosing a Digital Wallet
There are different ways to store Neo on a crypto wallet and below we’ll list a step-by-step tutorial bearing in mind the operating differences between hot and cold digital wallets and the ways in which you can connect them to Neo.
Hot or Software Wallets
Hot wallets are digital wallets that are connected to the internet at all times and offer easy usage, acting in some ways like debit cards. Users can purchase, sell, or send crypto from the hot wallets to exchanges or other wallet addresses. They are more flexible than cold wallets but aren’t as nearly as secure. Where they fall short is in their constant connection to the internet. If users aren’t careful enough – and this goes especially for mobile wallets – they can attract malware that can be a gateway for prying eyes.
Most hot wallets come in the form of software wallets. These include mobile wallets, desktop wallets, and web wallets. Most of these are available on any browser or operating systems like Google Chrome, Mozilla, Android, iOS, Windows, Mac, and Linux.
Cold or Hardware Wallets
Cold wallets, on the other hand, come as a piece of hardware where you can store your cryptocurrency. These wallets offer the best crypto security due to the fact that they are offline and in order for someone to try to steal your crypto, they would have to steal the whole hardware piece. Hardware wallets can be less practical to use when you are on the move because in order for you to sell some crypto you would have to move the coins to a hot wallet first before you make a transaction.
The best option for cryptocurrency traders is the utilization of a hybrid approach, where most of your crypto is safely stored in a cold wallet with a small portion remaining in a hot wallet for day-to-day use. Every wallet comes with unique public and private key. The public key acts as a bank account number that you use to purchase, sell, and store crypto, while the private key acts as a security password and should be stored somewhere safe, far from the gaze of other people.
The Best Digital Wallets for Storing Neo
The Neo community has developed a couple of wallets that are suitable for different kinds of users. These wallets are hot wallets and are available for both desktop and mobile devices.
The Neo-GUI wallet is an open-source wallet and acts as a full-node application on Neo’s blockchain. The wallet uses Electron cross-platform technology and it’s supported on Windows 10 and macOS devices. You can download this wallet from GitHub according to the version of your operating system.
The wallet’s main functions are viewing and browsing through the blockchain information; offering regular wallet operations like creating a wallet, importing existing wallets, and transferring transactions; calling and deploying smart contracts and providing a node for election and voting consensus.
The O3 Wallet is a multi-chain wallet that’s developed by O3 Labs. This wallet supports most of the mainstream blockchain platforms and their designated dApps. The wallet also is frequently updated and currently supports the Neo N3 updates and features.
This is an open-source wallet and gives its users a high degree of control over their assets. The private keys are stored and encrypted by the Encrypted key and passwords feature. This wallet is available for mobile and desktop devices.
Neo Tracker Wallet
The Neo Tracker wallet is a wallet that enables Neo users to interact with the Neo blockchain. Users don’t need to create an account or give their funds for safe holding. No amount of data will leave the user’s computer and browser. The wallet is created for easy creation, saving, and access to information and interaction on the Neo blockchain.
The Neon wallet is a third-party wallet that enables Ledger devices to integrate with the Neo platform and provides a secure way for displaying balances and transaction management. The Neon wallet is an open-source cross-platform light wallet created for the NEO blockchain network by the City of Zion group on GitHub. This wallet is available on Windows, macOS, and Linux. It’s not available on mobile devices as of yet.
Ledger Hardware Wallets
Ledger wallets are one of the most popular and secure hardware wallets on the market. These devices are multi-currency wallets and their main function is storing private crypto keys offline. Ledger’s devices come in the form of hardware wallets. They use storage mechanisms or USB drives to store private keys. This makes them hacker-resistant to online attacks. Ledger offers two separate wallets: Ledger Nano S and Ledger Nano X.
Ledger Nano S
Ledger Nano S was introduced back in 2016. This wallet has earned the name “the original hardware wallet” due to its security and robust build, with a fast and user-friendly interface. It comes at an affordable price of $59.00 and can be used to purchase crypto and manage digital assets. The wallet has an integrated certified security chip and enables users to store between three and twenty apps.
Ledger Nano X
Ledger Nano X was introduced in 2019 and is viewed as an upgrade to the older model S. It costs nearly double the price of the previous model but it brings a fresh and more robust crypto storage experience. It has the same features as Nano S but offers additional storage of up to 100 apps. Moreover, Ledger Nano X comes with a Bluetooth connection so you can manage your assets from remote locations.
Both of the wallets support over 27 cryptocurrency coins and more than 1,500 tokens, from the most popular cryptocurrencies to some of the unfamiliar ones. All in all, these wallets are well worth the investment, provide decent crypto safety, and can be connected to several different blockchains.
When you combine your Ledger Nano wallet with the Ledger Live app you get total control over your assets with maximum security. This Ledger app is one size fits all and enables users to access a whole range of crypto services through a single app while keeping their assets tightly secured. Some of these services include buying, selling, exchanging, staking, and even lending crypto to other parties from the safety and comfort of your hardware wallet.
How to Set Up Ledger Nano S
As of 2017, Ledger wallets can be connected to the Neo blockchain to firmly secure NEO tokens in a hardware wallet. First of all, you will need to purchase a Ledger wallet, both of their options are viable for this method.
After that, you should power up your Ledger wallet and open the Ledger Manager. If you don’t have that app installed, you can conveniently download it here. After this is done, you should connect your Ledger wallet to your computer and unlock it with your key.
The next step is to download the Neo app and install it on your wallet. To put things in perspective, users can integrate Ledger devices with Neo only if they combine it with a Neon wallet. Once the installation is complete, you should open the latest version of the Neon wallet on your computer. Make sure that the Ledger wallet is still connected to your computer and that the Neo app is opened. If you followed the steps correctly, you should see a prompt on the opened Neo app that says “Wake Up Neo”. On the Neo wallet app click on the prompt login using a Ledger and select your Ledger device.
This should complete the process and you should be seeing your Ledger Nano S/X address in the Neon wallet home screen. Now you can transfer your Neo to your hardware wallet address. Sending or receiving NEO or GAS via the wallet is pretty simple. Users need only share their public wallet adress with the initial sender and verify the address on the device’s screen. To conduct a sending transaction, users should click “Send” and fill out the fields with the recipient address, the sending amount, and the gas fee. If you want to be extra careful, you can just send one NEO token to the address to make sure that everything is working correctly.
A Few Words Before You Go…
In our article, we’ve covered what Neo is, the different ways in which you can store Neo, and explained the best Neo wallets on the market. As we said in our intro, there are many different cryptos in the crypto ecosystem, each with their own unique features.
What makes Neo stand out is the fact that it’s not only a cryptocurrency but an autonomous blockchain platform that holds its ground to Ethereum. With the most recent updates and integration features, users can enjoy storing NEO in cold storage hardware devices with just a few simple steps.
Neo is one of those cryptocurrencies that isn’t only usable for trading, as it offers so much more than a store of value system or a passive income generator. As time goes on and more and more people start using it, it can become a major competitor of Ethereum and other smart contract platforms.