Holding NEO on Binance gives free GAS – Here’s how and why

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We often find people talking about free earning on the Internet and it is obvious most of them are fake. We have also seen the crypto industry boom up in the past few years and it is a big chunk of many people’s investment. Unlike the early days when people only used to invest in Bitcoin, we not see all the market players holding onto the other Altcoins such as Ethereum, Ripple, IOTA, and NEO. Each of these coins has advantages over the other but if you are a huge fan of those advertisements that promise you free income then NEO is bound to grab your attention.

We’ve written a guide on NEO before than you can read here.

If you’ve already read out NEO analysis you would have seen that we mentioned about free GAS being distributed to all NEO users, however, it is important to note that several exchanges including BITTREX are keeping the free GAS that you are entitled to. GAS is very much undervalued currently but it is expected to kick off at some point when people start realizing its market potential. Few exchanges give the users GAS tokens as a rewarding the users for holding onto the NEO tokens, Binance is one of them.

As unlikely as it may seem, all the NEO users are rewarded with GAS tokens and if you are not getting those tokens rewarded to your account it is very likely that your crypto exchange has taken them. All the Binance users with NEO balances will get GAS that is produced by NEO every month.

To calculate the number of tokens that you are entitled to get we use the Statistical Method, according to this,

GAS distribution = total distribution of GAS x NEO holder position ratio with 8-point precision

the NEO holder position ratio = sum of daily position number for NEO holders/sum of daily position number for all NEO users.

This daily position number is calculated based on the daily snapshot of NEO. Coming to the distribution time, it is generally 12 am of the Second nature day in every month. The statistics will start on the first day of Binance and the time of the first snapshot is at 8 am on the July 14th, 2017. Demonstrating the rule, the User holding NEO for three different days with 30, 300 and 60 will have a daily NEO position of 390 and if the total distribution of GAS is 1000 for that month, the sum of daily position number for all NEO users is 600000. This brings the actual distribution number of the user to 1000 x 390/600000=0.65

You can use the NEOTOGAS website to find accurately the amount of GAS you are entitled to for holding the NEO in your Binance account.

The other way if you do not want to use Binance for storing your NEO is by using the NEON wallet service. Start off by buying NEO on any of your favorite exchanges, NEO is currently traded on Binance, Bittrex, Koinex and several other exchanges. Then go ahead to download the neon wallet from neonwallet.com. Once you open it, you have an option to create your own wallet, click on “Create a new wallet” and choose a passphrase to encrypt your private key and keep it secure. Then choose a name for your wallet and hit the “Save Key” button to save the key. You can now go back by using the “back” option and then select “Login using a saved wallet” option. Choose your wallet here and click “login” button, now copy your NEO address and send the coins from the exchange that you used to purchase NEO. NEON wallet will reward you for the NEO you hold and you can then send the GAS to the exchange of your choice to sell it.

It is however recommended to use Binance to avoid the loss in transaction fees between the exchange to wallet and back when one wishes to sell their tokens.

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