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Invest in Chiliz in 2022

Last updated 26th Sep 2022
Disclosure

Chiliz is the world's leading blockchain FinTech provider when it comes to sports and entertainment. The main way it has achieved this status is through the development of the Socios.com fan engagement platform built through the usage of the Chiliz blockchain infrastructure.

That said, the platform and everything else on the Chiliz blockchain network use the CHZ native cryptocurrency coin. CHZ is one of the most significant cryptocurrencies due to the fact that it powers the world's first blockchain-based engagement and rewards platform dedicated to sports and entertainment.

Users can purchase and trade branded fan-coins alongside participating, influencing, and voting in club-focused surveys and polls.

Let's take a deeper dive into how investing in Chiliz (CHZ) works, so you can have a better perspective going forward.

Best Way to Invest in Chiliz in 2022

You can invest in the Chiliz or the CHZ coin in multiple ways in 2022. We have provided you with a list of some of the best providers in the industry, so you can instantly create an account and start trading CHZ today.

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What Is Chiliz

Chiliz is a project founded by Dreyfus, an entrepreneur with years of experience within the gaming industry. Chiliz was created with a vision to bridge the gap between active and passive fans with their favorite athletes and teams. The idea behind Chiliz is to provide millions of fans with a Fan Coin that shares the influence of the athlete it represents. The Chiliz (CHZ) coin is what powers Socios.com, which is the customer-facing platform of Chiliz. Fans can utilize fan coins to participate in polls and surveys, where they are rewarded due to their active engagement.

CHZ coins are a requirement for participation within Fan Coin Offerings (FTOs), which is the initial sale of Fan Coins. Additionally, the Socios Locker Room also shows partner clubs that showcase how much demand there is for Fan Coins. Fan Coins can also be traded in-house on Chiliz.net against the Chiliz Coin, which is known as CHZ.

At the time of writing, Chiliz had a market cap of $1,928,988,694 with a circulating supply of 5.94 billion CHZ coins.

Pros and Cons

Pros

Chiliz is an interactive platform where you can spend money and support your favorite teams while also influencing specific choices
Socios.com is the first platform of its kind with low competition
There is a significant amount of partnerships with sports teams, leagues, and organizations

Cons

CHZ cannot be mined but can only be purchased and traded
Not many cryptocurrency exchanges offer the CHZ coin

How Does Chiliz Work

There are three primary elements that make up the Chiliz ecosystem.

First, you have Socios.com, where the Fan Coins are created and then sold in exchange for the CHZ coin. This is where the governance decisions are made as well, and where users can earn rewards and purchase more CHZ as a result of their efforts.

Then you have Chiliz.net, which is the world's first cryptocurrency exchange specifically catered around sports. This, in turn, allows crypto-enthusiasts as well as traders to speculate and trade their existing Fan Coins. Then there’s the CHZ coin itself that powers the entirety of the ecosystem.

The Socio platform runs two different blockchains, the permissionless sidechain and the main Ethereum blockchain. Everything in terms of voting and trading occurs on this sidechain, and all of the data is stored permanently within a public ledger. Through the usage of a permissionless sidechain, Chiliz can, in turn, reduce transactions through the usage of Proof-of-Authority (PoA) as a consensus mechanism. Through PoA, the transactions and blocks are validated by approved accounts. These are known as validators that run software that allows them to put transactions in blocks.

The main Ethereum blockchain is then used for everything that occurs in terms of transactions. This includes the creation of Fan Coins and any account exchanges which occur.

Ways to Buy Chiliz

Chiliz (CHZ) can be purchased in a multitude of different ways.

You can use cryptocurrency exchanges, CFD brokers, P2P marketplaces, or in-person trading, and we have gone in-depth showcasing each method.

CFD Brokers:

  • Contract for difference (CFD) brokers will allow you to buy the CHZ coin with ease. You can pick from many brokers, so you should set your primary focus towards finding the ones that offer the easiest-to-use systems, lowest fees, and a well-established reputation.

Cryptocurrency Exchanges:

  • Alongside the brokerages, you also have cryptocurrency exchanges. Through exchanges, you can buy the CHZ coin on the open market. However, most of the time, you will be required to have your own cryptocurrency wallet, assuming the exchange itself does not supply you with one. These are good due to the fact that they offer charting tools.

P2P Marketplaces:

  • P2P or Peer-to-Peer marketplaces are ones that connect you directly with a seller of the CHZ coin.

In-Person Trading:

  • This is a process where you meet up with a person in the real world with the goal of exchanging real money for the transfer of the cryptocurrency coins to a cryptocurrency wallet.

Here is everything you need to know about buying Chiliz (CHZ):

Step 1: Sign up for a cryptocurrency exchange and brokerage
Step 2: Fund your account
Step 3: Click on the "Buy" option

How to Invest in Chiliz

There is more to cryptocurrencies than just buying them, and in the case of Chiliz (CHZ), you can also invest in the coin. Through your investment, you can speculate on how the price of the coin will fluctuate. You can use a short-term or a long-term strategy and utilize margin and leverage trading.

Here are different ways you can invest in CHZ:

Brokerages:

  • There are many cryptocurrency brokerages out there that support the CHZ cryptocurrency, and they are the recommended option for many newcomer investors due to the fact that they are fairly simple to use, support a wide range of payment options, and have a variety of coins available.

Exchanges:

  • Cryptocurrency exchanges are the alternative to brokerages, and they are the most popular option for advanced traders due to the fact that they offer highly advanced charting tools, and it is the market that sets the price of the CHZ coin instead of the exchange.

ETFs:

  • Through exchange-traded funds (ETFs), you get access to a diversified portfolio of cryptocurrency coins that you can trade with alongside the Chiliz (CHZ) coin. Additionally, they offer a higher level of transparency.

Index Funds:

  • CHZ index funds give you the ability to buy a share of the CHZ coin instead of buying the coin in full. These are typically recommended for cryptocurrencies which might be a bit too expensive for anyone to purchase directly.

Mutual Funds:

  • You can invest in CHZ mutual funds, where you can put your money into the fund that has the coin.

Trusts:

  • You can hold your CHZ coins in trusts, where you can trade your shares through a brokerage or cryptocurrency exchange.

Apps:

  • There are also a lot of applications developed specifically to facilitate the trading of cryptocurrency assets, where CHZ might be available.

Is It Safe to Invest in Chiliz Right Now?

Chiliz (CHZ) is a cryptocurrency asset that is volatile. What this means is that its price can swing very high or very low quickly.

While no cryptocurrency asset has a guarantee of stability, CHZ’s volatility is one of the main reasons many investors could profit from it, assuming it swings in a preferred direction. That said, only invest in Chiliz with money you can afford to lose.

There are fully regulated and safe cryptocurrency brokerages out there that follow strict KYC and AML procedures that will protect your funds and your account. However, anything has the potential to be compromised. The safest way through being to store your cryptocurrency assets is through the usage of a cold storage device such as a hardware wallet.

Danny Maiorca

Danny Maiorca

Danny is a freelance writer specialising in technology and finance. Prior to working for himself, he spent several years working within those sectors in London. Since then, Danny has relocated to Denmark.