How to Buy Tezos Online in 2022
Tezos is an open-source blockchain that supports decentralized applications and assets. The blockchain has a native cryptocurrency - tez with a ticker symbol XTZ. The project has seen considerable adoption in recent months, including for non-fungible tokens (NFTs) which are all the craze right now.
In this guide, we explain how to buy Tezos easily, the best platforms, and much more. Read on to find out all there is to know.
Best Brokers to Buy Tezos in 2022
Given the meteoric rise in adoption and uses of Tezos, many crypto platforms have announced support for the token. Choosing the right platform can be a long and daunting process.
To save you the time and effort, we’ve listed below the top platforms to help you get started right away:
What Is the Difference Between Buying and Trading Tezos?
Buying: When you buy XTZ, you do so with the intention to profit either in the long or short term. XTZ tokens can be purchased from exchanges, P2P marketplaces, and more.
Trading: This process involves buying and selling XTZ when the market moves in your desired direction. You can even use derivative products that allow you to speculate on the price of the token without owning the underlying asset. That way, you won’t have to deal with the technicalities of cryptos such as setting up a private wallet and more.
How to Buy Tezos Online?
It is possible to buy Tezos online with fiat currency on reputable exchanges. We recommend beginners stick to well-known crypto platforms. Here is a step by step guide:
Step 1: Find an exchange or broker
Step 2: Verify your identity
Step 3: Fund your account
Step 4: Confirm your transaction
How to Trade Tezos?
Crypto trading is highly speculative, and we advise beginners to learn the ropes first using demo accounts.
Here is a step-by-step guide to opening your first trade with a broker.
Step 1: Find a suitable broker.
Step 2: Deposit money
Step 3: Decide how to trade.
What Are the Different Ways to Pay for Tezos?
Different crypto platforms will have varying payment options depending on the jurisdiction and partnerships they’ve forged. P2P marketplaces lead in offering a variety of payment means, with the likes of Paxful having over 300 payment options.
Here are some of the options you have:
This is a popular payment method adopted by most platforms
Visa and Mastercards debit cards are accepted on most crypto exchanges.
It is a widely adopted mode of payment. You can transfer small and large amounts. Some of the common bank transfer services globally include:
SEPA - Europe
Canadian EFT - Canada
Faster Payments -UK
Some crypto platforms have started accepting PayPal as a payment method. If you already have an account with PayPal, it may be worth checking to see if your chosen crypto platform offers this option.
You may find vendors who accept cash for Tezos tokens. Meetups and peer-to-peer (P2P) marketplaces are some of the places you can meet cash vendors.
What to Consider When Buying Tezos?
There are several things to take into consideration before making an investment in Tezos including:
Fees: Crypto platforms have different fees for different services. Make sure you do some research online to find the best rates.
Volatility: Like any other cryptocurrency, the price of Tezos fluctuates frequently. Your investment will undoubtedly be affected by market movements. Before purchasing Tezos, decide whether you are investing long or short term. The short-term investment will require a comprehensive analysis of price trends. As a long-term investment, you will need to look at the fundamentals of Tezos, such as roadmap, use cases, and competition.
Competition: Tezos faces competition from heavy hitters like Ethereum and Cardano. These projects are in the top 10 by trading volume, while Tezos ranks just above the 50th position. It is critical to evaluate whether the Tezos project is unique enough to sustain it in the long run or if it stands to be overrun by its competitors.
Regulation: We recommend the use of regulated crypto platforms to buy Tezos. Avoid unregulated platforms because many have been known to pull exit scams or fall victim to security breaches.
Roadmap and Possible Use Cases: This is critical for long-term investors. For instance, due to its energy efficiency and low fees, artists use Tezos to mint NFTs. Others use the blockchain to create decentralized applications (dApps). You need to decide whether or not you think these will be valuable industries in the future.
Is It Safe to Buy Tezos Online?
Use secure storage: We strongly advise against leaving your crypto assets on an exchange. Crypto platforms have become prime targets for hackers. After you buy Tezos, transfer your tokens to a secure wallet such as Trust wallet or others.
Two-factor authentication: Most crypto platforms offer this feature by default. 2FA is important because it provides an additional security layer in case of any login attempt to your account. Other platforms have a secret question/answer feature required before funds withdrawal.
Mandatory KYC only: Personal data has become valuable in recent years. We recommend submitting what is mandatory to complete your account verification. This reduces overexposure in case of a security breach on the crypto platform.
Use only trusted sites: Avoid clicking on unsecured sites or unfamiliar links. These may be out to steal your personal and financial information. Always run an updated web browser when accessing the wallet and crypto platform.
How to Store Tezos?
After buying the Tezos token, we recommend transferring them to an external wallet. Two broad categories of crypto wallets exist.
Hot Wallets: These are online-based software applications that help you store and use Tezos. You can easily download them online. Hot wallets can be categorized into desktop, web, and mobile wallets. They are versatile and easy to use. With the web wallet, you can easily access Tezos anywhere if you have an internet connection. On the downside, since these wallets operate online, they are susceptible to cyber-attacks. Hot wallets compatible with Tezos include Trustwallet, ZenGo, and Guarda.
Cold Wallets: Unlike hot wallets, cold wallets will cost you money as they are physical USB-shaped devices that require you to physically approve transactions. Examples of cold wallets compatible with Tezos are Ledger and Trezor wallets.
How to Sell Tezos?
To cash out your Tezos tokens back into fiat currencies such as USD or GBP, here’s what you need to do:
Exchanges: Go back to the Tezos markets, enter the amount of XTZ you would like to sell, and confirm the transaction. E.g., Sell XTZ into USDT which is a stablecoin, then convert the USDT into USD and withdraw back into your bank account.
Brokers: Click on your open positions, choose “sell” and finalise the trade. You can then withdraw that amount of fiat currency, be it USD or GBP, back into your desired bank account.
Is It Worth Buying Tezos Right Now?
Cryptocurrencies are highly volatile assets and XTZ is no different. Before you invest, make sure you do enough research on this topic so you know what to expect. That said, Tezos seems to be a promising project with some high-level partnerships being forged with McLaren and Redbull.
If the platform continues to gain adoption, this should reflect positively on the price of the token. Although, as ever, gains are not guaranteed.
The best way to buy Tezos (XTZ) is on eToro as it offers users a quick and easy registration process as well as all the tools you’ll need to make a more informed decision.
Ensure you activate 2-factor authentication on all your accounts, avoid clicking on unfamiliar links, and only invest with money you can afford to lose.