Learn Where & How to Buy Tezos (XTZ) - A Beginner's Guide
Tezos made its way into the cryptocurrency scene when its ICO took place in July 2017. Tezos blockchain is now functional and it also offers a smart contract functionality. The way Tezos blockchain was structured from its design, comes out as superior to Bitcoin and Ethereum. The leading highlight is the fact that it was designed to be future-proof, agile and responsive to upgrade and re-imagination.
Tezos XTZ has held its place as a leading cryptocurrency since its launch and ranks among the Top 20 digital assets by market capitalisation. Its regular distribution of rewards to active XTZ wallets is an incentive for crypto investors. Users can buy Tezos on many cryptocurrency exchanges either directly through fiat currencies such as the US dollar or through other cryptocurrencies.
3 Things to Consider Before Buying Tezos
If there is a blockchain that is mindful of the future, it is Tezos. It is structured to be responsive to cutting-edge technological changes as well as surrounding exigencies in order to be relevant in the blockchain space. It has augmented its operations by launching its smart contract, which is clearly aimed at corporations and business organisations. So far, the French banking giant, SGB has adopted Tezos to develop a national digital currency.
There are a total of 749,708,525 XTZ in circulation with 80 per cent allocated to investors while 20 per cent is split between the Tezos Foundation and Arthur & Kathleen Breitman, who authored the Tezos code and whitepaper. Tezos operates as a Proof of Stake (PoS) driven blockchain, where validators anchor the network based on their security deposit and are rewarded for integrity and performance with XTZ pay-out.
Loyal & Dedicated Community
Tezos set the stage for the primacy of its community with the inauguration of Tezos Foundation. This has helped to focus its efforts on building a decentralised community that caters for the well-being of all stakeholders. You will find developers, validators, investors and publicists pushing the agenda of Tezos to become a leading light of the blockchain world.
Cryptoasset investing is unregulated in most EU countries and the UK. No consumer protection. Your capital is at risk. CFD crypto trading is unavailable for clients residing in the UK and US. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Where to Buy Tezos in 2021?
Before buying Tezos, you need to be sure that there is a compatible wallet available for its storage. While exchanges provide a free digital wallet when you buy Tezos, you might need a hardware wallet or some other online option when you want to buy Tezos for long term investment purposes. The increasing pace of adoption of crypto around the world has led to what people describe as price prediction.
Price predictions give investors an idea of how a digital asset might perform in the short to medium term. With such a framework to make use of, you can grasp an idea of what to expect when you buy XTZ.
There are other ways to trade XTZ such as margin, futures and CFDs. CFDs are contracts for difference in price between the expected spot rate at a given date and at the time of origination. Futures are closely aligned, except that they require higher commitment fees, but offer higher risk and higher rewards. Margin trading takes effect when your transaction values are higher than your actual trading capital with the host platform providing or guaranteeing the difference. You can trade XTZ futures using brokers or platforms like Bitmex, Binance, eToro, and Pepperstone.
Our Tutorial to Buy Tezos in 5 Steps
Brokers and exchanges provide the 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 as 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 price rebound. 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.
Expert Tip to Buy and Sell Tezos
Some crypto traders lose motivation when they miss out on some opportunities. Experts have explained that in every market, opportunities regularly arise, and if you miss out on one, look forward to the next. This is important if you wish to become successful in Tezos trading. There is no individual who can utilise every opening for investment. You need to keep your emotions in check to trade profitably.
How to Find the Best Time to Buy Tezos
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 other 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.
Frequently asked questions
Yes. XTZ is credible as it got the nod of France’s largest bank-Societe Generale Bank to serve as its operational blockchain for CBDC research.
No. Tezos is not a security token and it has not been so classified anywhere in the world or by the US SEC.
Yes. Tezos uses the PoS methodology, which requires a security deposit before validators can be a part of the network. This serves as a deterrent to bad behaviour as the deposit is forfeited if a validator is indicted.
Yes. Tezos has traded at just about $1.04 in the last year and is currently at above $2.15, showing more than 100 percent in ROI.
Yes. Transparency is a blockchain hallmark and all transactions are available for public scrutiny.
Yes. Tezos is one of the earliest coins to introduce staking. You can earn more XTZ when you buy and hold XTZ in a prescribed wallet or a participating crypto exchange.
As more dApps are hosted on the blockchain, more fees are generated in addition to normal network charges for wallet transactions. This increases the value of XTZ as its viability grows.
Nothing is too big to fail. While Tezos has enough going for it to make it sustainable, the community governance and its use cases are enough to keep it from failing.