Where & How to Buy Tezos (XTZ) in 2023

Brokers and exchanges provide initial access to many investors who are looking to try out cryptocurrencies. Several exchanges are ubiquitous these days and they come in different descriptions and operational models. Here are vital steps you need to know on how to buy Tezos.

Step 1: Find an Appropriate Platform to Buy Tezos

When you need to buy Tezos, the first step is to identify a platform you can use for that purpose. While there are several brokers and exchanges out there, you need to choose the one that meets your requirements. Sometimes, you will find out that while a particular exchange is probably well-known, it might be too costly for you or offer a payment method you cannot access.

When you examine the features and tools on a crypto exchange, you are better placed to decide on the best fit for you. Coinbase might be extremely popular with bloggers and crypto news outlets in the United States, but its cost structure might not be favourable if you buy Tezos in 6 -figures. Binance offers lower rates that look more attractive if you buy Tezos regularly and in higher amounts. Coinmama is also an option here. You can also buy Tezos CFDs and futures using brokers like eToro and Pepperstone as well as platforms like Bitmex and Binance.

Step 2: Registration / Create a New Account

When you register on a crypto platform, you need to provide an email address, a password as well as some personal identification documents to authenticate your account. Registration is free and new account authentication can be completed almost immediately on several platforms. These days, most exchanges require that you submit a selfie as part of the KYC requirements to validate the identity documents you have provided.

While some investors consider KYC requirements unnecessary, it is important to consider that every regulated platform strictly adheres to this feature. Unregulated platforms might promise KYC-free trading, but the risk of loss, poor standards and lack of accountability loom in such marketplaces.

Step 3: Deposit Funds

Depositing funds in your new account is important so that you can start trading. In some cases, a minimum deposit of $250 is specified while others do not have such restrictions. eToro has a minimum deposit requirement of $50 while Binance doesn’t have a specification. On Coinmama, the minimum deposit depends on the payment method you are using, and trading starts from $50. You can make deposits using fund transfer, PayPal, and debit /credit card.

Step 4: Start Trading or Buying Tezos

Every exchange offers a free digital wallet when you buy XTZ. If you are buying XTZ for a long term investment, you will need an online or hardware wallet, which is accessed with a private key.

Apart from exchanges, when you use a broker to buy XTZ, you will also have access to futures contracts as well as CFDs. On an exchange like Binance or Bitmex, margin trading and futures are also available. When trading margins, you are able to trade higher than your available deposit, and the difference between your transaction value and your trading capital becomes the margin. This is a sophisticated trade that requires experience and understanding of how the market works.

Step 5: Optional Steps

In addition to what is presented above, you should also know about the following:

• XTZ Staking

XTZ started out with staking well ahead of other cryptocurrencies. When you hold your XTZ in an approved wallet or exchange, you should expect to earn additional XTZ on a regular basis. Those tiny disbursements are like interest payments to incentivise you to buy and hold the digital asset.

• Buy the dip

Some investors regularly buy XTZ and sell whenever there is an upward price movement. You can also wait for price dips when the ruling market price is on a decline before you buy XTZ and sell only when the price rebounds. As an investment strategy, buying the dip works when you know that the asset you are investing in has a foreseeable growth trajectory or an underlying value.

Available Payment Methods for Buying Tezos

The point of interest in listing several payment methods for buying Tezos is that an investor will at least be able to use one of the options. Exchanges and brokers present a range of alternatives that investors can use, and they include the following:

• Buy Tezos with Cash

To buy Tezos with cash, you might be able to make a bank deposit to the platform’s account. This option is not readily available in some platforms and jurisdictions.

• Buy Tezos with Credit / Debit Card

To buy Tezos with a credit card is probably the most common option. You can also use a debit card on many platforms. Faster transaction completion is one feature of this option, although you might pay higher charges.

• Buy Tezos with Bank Transfer

When you make a bank transfer to buy Tezos, you need to take note that national or local payments will be acknowledged faster. Wire transfers might take up to 2 days or more when going across borders.

• Buy Tezos with Cryptocurrency

You can buy XTZ with cryptocurrencies like BTC or ETH on many platforms. This is faster to process and incurs lower fees if there is no blockchain congestion.

• Buy Tezos with PayPal

You can buy Tezos with PayPal on a crypto trading platform like Coinbase or eToro. Limited availability of this payment option for investors outside North America and Europe should be noted.

What Are the Fees for Buying Tezos?

What is payable as fees when buying Tezos depends on the platform and payment method. Transaction fees are important as they help to keep exchanges and brokers afloat and to keep up with running expenses. Trading fees result from the network charges arising from movements from the seller’s wallets to that of the buyer. In addition, transaction fees arising from your deposit method cannot be left out. While Binance exchange can afford to reduce its charges because of its huge user numbers, not every platform can follow suit.  

If you are looking to reduce your trading fees or if you are a regular trader, you can consider using Binance exchange and select BNB as default payment to further reduce your charges. If you buy on a once-off basis or for the long term, you might have fewer worries using eToro, Coinmama or Coinbase.

Tezos has seen a high of $4.48 and a low of $1.02 over the past year. In between these price ranges, there have been upswings and downswings. In bull runs, prices might witness a continuous spike for weeks unending, but even in a downswing, there are still price peaks and valleys. As an investor, it is getting to know how crypto markets work that is most important. The opportunity to trade profitably will always arise, and there is no one best time to trade Tezos. Read blogs and crypto reviews to learn more about market behaviour and how to trade profitably.

What Drives the Coin’s Price?

Tezos coin price fluctuates at different times and could witness sustained weeks of increases. Underlying the price movements are sentiments that stem from the global economy, niche sector regulators, and industry-specific news like blockchain adoption by leading multinationals. Negative sentiments could lead some investors to sell XTZ and the positive developments will make more people buy Tezos. All the scenarios above boil down to demand and supply, which affects all cryptocurrencies and financial markets.

While XTZ rewards have occurred long before the DeFi reign began, the recent push to deposit tokens for rewards have drawn more attention to Tezos staking. Anyone who has some tokens in a Tezos wallet gets additional XTZ as a form of interest payment on an ongoing basis. Regular or heightened staking also serves to push the market price of XTZ  higher.

How to Sell Tezos

Selling Tezos to your broker can be simple and stress-free, but whether you use this opening could depend on your needs or locality. Some Tezos investors use crypto exchanges when selling XTZ, and this gives a wider berth in withdrawal options like crypto, fiat or even bank withdrawals.  

Since people sell their XTZ for different reasons, it is also possible that some would prefer to use brokers who offer only fiat withdrawals. Investors who are looking to convert their XTZ to stablecoins like USDT, or USDC will be better served on exchanges like Coinmama or Binance. For investors who hold Tezos CFDs, they are paid their rewards at the end of the contract tenor. Some at 60-days, and others at 90-days or more.