GAS/NEO Overview: While the markets take a rest at their key support levels, I wanted to take a look at NEO and its counterpart, GAS. Read on to see how you can earn an income by holding the token and learn more about the platform.
NEO-GAS Relationship
NEO, also known as China’s Ethereum, is a blockchain platform that facilitates the development of digital assets and smart contracts. It has two native tokens; NEO/USD and GAS/USD. The two tokens serve different purposes.
NEO tokens represent the ownership of the NEO blockchain. But GAS tokens give you the right to use the NEO blockchain. Much like Ether to the Ethereum network, GAS is the fuel that powers transactions in the NEO system.
You can consider GAS as something like a dividend payment for holding NEO’s token.
How to Earn GAS While Holding NEO
While holding NEO, you start generating GAS automatically as more blocks are generated by the construction of the blockchain. With every new block generated, 8 GAS are distributed for all 100 million NEO in existence. This is similar to Ethereum, but in contrast to Bitcoin, where the value of a bitcoin mined is the same as the value of a bitcoin purchased. GAS is used to pay for transaction fees on the NEO network.
If you are a NEO holder there a few popular ways to claim GAS. The most popular one is to go through your cryptocurrency exchange. But if you are worried about security, you can also look into connecting with NEON wallet.
This way, you can technically earn free GAS simply by holding NEO and create an income.
NEO/USD Technical Analysis
Looking at the NEO/USD chart, its price has been consolidating right above the $32.14 support level with the future Ichimoku cloud turning bearish.
Since it has already broken below the key support level of $45.85, there is a high chance of its price to test the next support level before bottoming out.
As the 4th point of the IDDA technique, you must calculate your risk tolerance before deciding on the investment strategy that is suitable for your portfolio.
Don't forget to complete your risk management due-diligence before developing your investment strategy.
*This article was originally published here.