This is a great time to get in on many cryptocurrencies. One such coin being NEO. It has aimed to be the “Ethereum of China”. Just like Ethereum, it offers the ability for developers to create smart contracts, as well as digital “tokens” for new projects. One such upcoming project is the Red Pulse ICO, which aims to give a glimpse into Chinese financial markets. There are other ICO’s coming up on the NEO platform, but for now they have pretty much all been postponed due to potential Chinese regulations on ICO’s.
Anyway, all of that aside, something nice about NEO is that is is already essentially Proof of Stake. NEO generates gas which is kind of like Ether on the Ethereum network. Technically, Ethereum isn’t meant to be a currency per se, but rather, Ether is supposed to be used as “gas” to run these smart contracts. NEO is different, in that owning NEO generates gas on the NEO blockchain. Ethereum will soon become Proof of Stake as well and no longer require GPU mining to “print”, but I digress.
So you’re asking yourself… “If my NEO generates gas, how do I claim that gas? Can I sell it?” The answer is yes, and we’ll show you right now, the simplest ways to claim your NEO gas. Here goes!
1. The NEON Wallet:
An independent team of developers known as the “City of Zion” have developed an excellent “Lite” wallet for NEO. A lite wallet does not require the full download of a coin’s blockchain, which can take many, many gigabytes of data, and often several days to download. Likewise, it requires you to sync each time you open the wallet. A lite wallet uses an external server to quickly sync you to the network, without all the hassle. The great thing about NEO’s “NEON” wallet, is that it lets you claim your gas with one click. Using the full NEO wallet, claiming gas is not particularly complicated, but it is a bit technical and will likely put off newbies. This is why I recommend the NEON wallet and use it myself. The GitHub download link is below. Just scroll down the page a bit, and you’ll see the installation files.
Go through the install as normal. Now, simply create a new wallet via the interface.
After clicking the above option, you’ll see the following. Now… Pick a strong password that you will also never forget. Of course, write it down somewhere, whatever you need to do to keep it secure.
After putting in your passphrase, you’ll see some information. Up top, the passphrase you just put in. Down below, your public key (the address you send NEO to and from), your encrypted key, and your private key. Your passphrase, encrypted key, and private key, are the pieces of information you want to never lose. As you can see, you can save this information in an encrypted file. Name it whatever you want. “Wallet 1” or something like that works just fine. Ideally, this wallet file should be saved offline, in multiple locations. But remember, lose this information, and you lose your funds.
This file be stored in…
Local Disk -> Users -> (Your User) -> AppData -> Roaming -> Neon -> Storage -> “Keys.json”.
That is the file you want to keep safe. It is encrypted and requires your password to unlock and use, but best to use good practices for your own security. And remember, adding new “wallets” to NEON, you will need to back up this file again for that new data to be part of this file. If you don’t, you could lose everything!! Note: If you can’t see the “AppData” folder, you’ll need to set Windows to access “hidden files and folders”. Guide is below!
UPDATE: Go to “Manage Neon Settings” in the main NEON menu, and you’ll see an option to easily back up your keys. Save this file where you’d like, and keep it safe!
Now that you’ve made your wallet, hit “login using a saved wallet”, select your wallet from the dropdown, and enter your password. Boom, you’re in! This is how you’ll access your wallet from now on.
Now that wasn’t so hard, was it? If you’re new to cryptocurrencies, setting up a wallet may seem daunting, but you’ll get used to it! Don’t give up! 🙂
So how do you claim your gas? Well, check this out. Just send NEO to your public address as highlighted at the top of the screenshot below… Wait for it to generate some gas… And boom, hit “claim gas”! Yep, that’s it. You can now easily collect your “dividends” from your NEO holdings! Of course, I don’t have any NEO in this particular wallet, but this is how things will look, and any NEO you have in your wallet will generate this “gas”.
But now you want to send your gas to sell. Here’s the deal. Only Binance exchange allows you to sell your gas right now, and only for Bitcoin. You’ll need a decent amount of NEO to make any real money on these dividends, and there are actually much better coins for passive income. More on this later.
When sending your gas, simply put in your gas deposit address from Binance, and highlight the amount of gas you have within the wallet. Oh, and be sure to toggle “GAS” as the asset you are sending, as shown below. And that’s it. Hit “Send Asset” and you’re done. You’ll see your gas on your Binance account in only a few minutes, often less.
2. Binance Exchange Gas Distribution:
This is definitely the easier method of the two, but also less secure. As any veteran cryptocurrency investor will tell you, keeping your funds on an exchange is not very wise. Remember, the massive hack of Mt. Gox is what led to the great Bitcoin Crash of early 2014. No need to get anxiety over leaving a few bucks on an exchange, but you should never, under any circumstances, be keeping any amount you are not willing to lose, an an exchange. Also, make sure that you enable 2-factor authentication on the exchange and use a different password for the email address you used to sign up, and your Binance account. These are some ways to mitigate most risk of your funds being stolen. But remember, nothing is ever 100% safe. Another thing is that when using an exchange, they hold your private keys, and to an extent, your at their mercy. If the exchange is down, you won’t be able to get your funds, if at all, in the case of the exchange closing down for example. Be careful! Anyway…
Just buy some NEO on Binance, leave it on the exchange, and gas will be distributed to your account once a day. Yes seriously, that’s it. Just leave your NEO on Binance, and receive your gas payments. It’s that simple. Do whatever it is you need to do to get funds onto Binance, and buy away! Binance link is below.
So… How Much Gas Will You Earn?
Truth be told, NEO is actually not that great for passive income. For example, I have almost 600 NEO and only receive a little under .20 GAS every 24 hours. Right now, NEO GAS is at a measly $10. So that’s only $2 per day of income, for over 10,000 in NEO holdings at the moment. Not much. However, remember that NEO has a lot of room to grow. The passive income NEO offers should not be the main appeal of this platform, but rather a bonus to an already impressive technology. If you invest in 100 NEO (currently about $2,000 at $20 USD per NEO), you’ll only get about .03 GAS per day. But again, NEO has a ton of room to grow, and at some point, it will be at the current price of Ethereum. Figure at ~$300 NEO, gas will likely be at least about $150. Multiply that by your 100 NEO’s .03 gas per day, and that’s just about $5 a day. Still low, but you’ll have made a ton of money. But again, NEO has actually been falsely represented as a great passive income earner. While it has potential at a massive price, we won’t see this for a while. If you like NEO, invest now. You’ll likely make a big return. But don’t invest in it strictly for passive income. It just isn’t worth it in my honest opinion.
If you are interested in cryptocurrencies that are MUCH better at earning you passive income, stick around. I have an article coming soon on some coins I’ve invested in, and have had the best returns on! 😉
Thanks for Reading!
We really hope you’ve enjoyed this article/tutorial. If you did, definitely consider donating any of the cryptocurrencies below! We really appreciate it, and it would make us ecstatic to know that you appreciate our work! Cheers!
Genesis Mining Discount
Follow the link below and enter our referral code for a 3% discount on ALL OF YOUR PURCHASES at Genesis Mining! (Note, you must use the code on each new checkout order).
Use code “uUSf48” at checkout at the link below for your 3% discount! We would really appreciate it!