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How to Buy Tezos Online in 2024
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.
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
Find an exchange or broker such as eToro and register for an account.
Step 2: Verify Your Identity
Provide ID to verify your details and then add your preferred payment method.
Step 3: Fund Your Account
Deposit some money into your account and use the search bar to locate the XTZ markets.
Step 4: Confirm Your Transaction
Enter the amount of XTZ you’d like to buy and confirm the 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.
As a trader, you should be sensitive to fees and commissions charged by a broker. This eats into your funds and eventually affects your gains. A good broker will also provide your preferred trading options, advanced risk management features, and security.
Step 2: Deposit Money
Brokers offer many ways of funding compared to exchanges. We advise checking the fee structure to select the cheapest way to fund your account.
The process will involve linking the broker with your funding option. Transfer an amount from your funds to the exchange. The amount will be available for trading, and you can also leverage it.
Step 3: Decide How to Trade.
CFD brokers offer derivative products that allow traders to speculate on the prices of crypto assets. In this case, the trader does not have to own any Tezos tokens but can speculate on the price movements.
Beginners should first understand fundamental and technical analysis before opening live trades.
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:
Credit Card
This is a popular payment method adopted by most platforms
- Secure, can help to prevent online fraud
- Easy and convenient to use
- Fast transactions (instant on some crypto platforms)
- Some banks and crypto platforms do not accept credit cards.
- May incur high fees
- Lack of privacy
Debit Card
Visa and Mastercards debit cards are accepted on most crypto exchanges.
- Fast transactions
- Easy and convenient to use.
- 3D security feature helps to prevent online fraud
- Some banks may prohibit transactions with crypto exchanges
- May incur fees
Bank Transfers
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
ACH-USA
Faster Payments -UK
- Cheaper fees
- High transaction limit
- Wide adoption
- Easy to set up
- Maybe slower in some cases compared to other methods.
PayPal
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.
- Easy to open and fund the PayPal account.
- Easy to use
- Secure
- Relatively higher transaction fees
Cash
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.
- Avoid high fees associated with the other payment methods.
- Possibility of getting scammed.
- May be difficult to find 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?
Buying Tezos online is safe as long as you use regulated platforms and follow the recommended security measures. These include:
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.
Final Thoughts
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.
FAQs
Can I buy Tezos in any country?
There are many global crypto platforms you can use to buy Tezos. However, you may not be able to buy Tezos in countries with a cryptocurrency ban.
Is there a limit to how many Tezos can buy?
This depends on the platform you have chosen. Oftentimes, you can increase buying limits by providing more ID.
Can I buy Tezos without ID?
Reputable exchanges will require ID verification before buying Tezos. You can opt to buy the tokens in-person to avoid ID requirements.
Can I buy Tezos instantly?
Yes, transactions are usually instant or near-instant after the initial set up.
What is Tezos?
Tezos is an open-source, peer-to-peer blockchain that utilizes smart contracts. Developers can create and publish applications ranging from NFTs to gaming apps on the blockchain. The project seeks to ease the adoption of blockchain-based assets and applications.
How does Tezos work?
Tezos utilises an energy-efficient proof of stake consensus algorithm to enable smart governance and easy development of decentralized applications.
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