Your guide to GAS, how it works with NEO and how you can buy GAS in Australia.
GAS is a cryptocurrency used to complete transactions on the NEO blockchain. When you hold NEO in your cryptocurrency wallet, you’ll also be rewarded with GAS generated by the construction of the blockchain.
If you’re interested in buying GAS, it’s important to first understand how it works, how it ties into the NEO ecosystem, and how you can buy GAS in Australia.
Where to buy GAS
You can buy GAS on a wide variety of popular cryptocurrency exchanges, including:
A step-by-step guide to buying GAS
If you want to buy GAS, here’s an example of how you can do it:
Step 1. Register for an account with CoinSpot
Local cryptocurrency exchange CoinSpot permits the exchange of Australian dollars (AUD) for GAS. However, before you can buy you’ll need to sign up for an account by entering your email address and creating a password. You’ll also be asked to verify your account by providing your full name, contact information and proof of ID before you can make a deposit in Australian dollars.
We also recommend that you enable two-factor authentication to provide an extra level of security for your account.
Step 2. Deposit funds into your account
Click the “Deposit AUD” link shown on the CoinSpot account dashboard page. You can then enter the amount of AUD you want to deposit, or you can also deposit cash at a newsagency via Blueshyft.
Many cryptocurrency exchanges don’t allow you to swap fiat currency, such as AUD, for cryptocurrencies. This means that you’ll often need to acquire a cryptocurrency that’s available in a pairing with GAS, such as Ethereum (ETH) or bitcoin (BTC), and then exchange it for GAS.
Step 3. Buy GAS
Click on the “Buy/Sell” link at the top of the page and search for “GAS”. Click on “Buy GAS” and you’ll then be given the option to either type in the amount of AUD you want to spend or the amount of GAS you want to buy.
The final step is to review all transaction details, including the amount of GAS you’re buying and the total cost of the exchange, before confirming your purchase.
How to sell GAS
If you decide at a later date that you want to sell GAS, the process is very similar to the instructions outlined in Step 3 above. Of course, it’s important to remember that exchanges simply don’t offer every possible currency pairing, so it may not be possible to directly exchange GAS for the cryptocurrency you want.
Which wallets can I use to hold GAS?
Unless you’re looking to place a trade, keeping your GAS in your account with a cryptocurrency exchange for any length of time is not recommended. You’ll need to store GAS in a wallet set up to handle these types of tokens, such as:
- Ledger Nano S (hardware wallet)
- NEON Wallet (desktop wallet)
- NEO GUI (desktop wallet)
- NEO Tracker (web wallet)
- NEOWallet (web wallet)
How GAS works
You should never hold any cryptocurrency without first having a solid understanding of its function. In order to understand GAS, we first need to take a look at the NEO network.
NEO was originally launched as AntShares by Da Hongfei and Erik Zhang back in 2014. China’s first public blockchain, AntShares was rebranded to NEO in 2017. The NEO platform aims to rival Ethereum – it’s even commonly referred to as China’s Ethereum – and provides a smart contracts ecosystem to allow for the easy storage and exchange of digital assets.
However, to perform transactions on the NEO blockchain you need GAS. Formerly known as AntCoins, this cryptocurrency also underwent a rebranding in 2017.
GAS is used to power the NEO blockchain network, with users needing to pay GAS fees to deploy and run smart contracts. The fee charged is calculated based on the computing resources used by the contract.
GAS is also generated at a rate of 8 GAS per block as the blockchain is constructed. With each new NEO block generated, GAS is distributed to all NEO holders – this process is similar to the way a company might pay dividends to its shareholders.
Key things to consider if you’re thinking about buying GAS
All cryptocurrencies are complicated and speculative, so you’ll need to thoroughly assess all the potential risks involved in holding any cryptos before you actually make a purchase. If you’re thinking of buying GAS, make sure you consider the following factors first:
- Supply. The maximum supply of GAS is capped at 100,000,000 tokens. According to CoinMarketCap, at the time of writing (24/01/2018) there was a circulating supply of 9,570,522 GAS, out of a total supply of 14,788,456 GAS.
- Limited GAS available. It’s anticipated that the maximum supply of GAS in circulation will reach the 100,000,000 limit around the year 2039, so the limited supply of coins could potentially increase demand.
- Use. GAS powers the NEO blockchain network and is used to perform transactions on the ecosystem. It is also offered as a reward to NEO holders – with every new block generated, 8 GAS are distributed for all 100,000,000 NEO.
- The NEO ecosystem. The value of GAS is closely linked to the success and adoption of the NEO ecosystem. With this in mind, it’s important that you understand how NEO works to determine its potential real-world applications and growth.
- Advantages of being based in China. With the world’s largest economy and a population of more than 1.4 billion people, China offers huge potential for companies developing blockchain technology. NEO’s Shanghai location means it is well placed to take advantage of opportunities and position itself to comply with any government regulations.
- Disadvantages of being based in China. However, the Chinese Government has launched a number of well-publicised crackdowns on cryptocurrency trading, so it’s essential to be aware of the impact that regulatory oversight could have on the profitability of GAS.
- Market competition. Finally, remember to consider the competition NEO faces from other companies that offer similar products and services. For example, Ethereum and EOS are two other cryptos you may wish to research further.