Known as Tezzies, XTZ tokens are the native currency of the Tezos blockchain. However, they can currently only be traded on a small number of exchanges, so it's important to know where to look if you want to get your hands on XTZ.
If you want to add some Tezos to your portfolio, read on for step-by-step instructions on how to buy XTZ.
Step-by-step to buying Tezos
What is Tezos?
Tezos' status as the first self-developing blockchain is its big USP. This partly explains the excitement around its development in 2014 and the $230 million (plus hedge fund investment) it raised after its IPO in 2017. Another big factor was the involvement of billionaire venture investor Tim Draper, who's support further fueled the hype that greeted its high-profile launch.
Since then, Tezos has been dogged by delays and increasing investor anxiety, but confidence in the altcoin's underlying promise - especially from Weiss Crypto Ratings - certainly won't hurt its prospects.
How does Tezos work?
Tezos is touted as a "new decentralized blockchain that governs itself by establishing a true digital commonwealth." This notion of a commonwealth is central to the Tezos proposition. In this case, the commonwealth consists of Tezos token holders who receive rewards for participating in a proof-of-stake system.
Tezos' headline innovation is that its "community" of users are true stakeholders in the development and governance of the currency. This democratized approach to maintaining and developing Tezos allows token holders to vote on pending protocol decisions.
To buy Tezos online-step by step.
Step 1. Get a suitable wallet.
A wallet allows you to keep your Tezos safe. It's a good idea to have one ready before you invest in XTZ - it's a far safer way to store cryptocurrency than leaving it on the exchange. There are many good options on the market, including:
- Ledger Nano X: Ledger Nano X is a hardware wallet, which means you can store your XTZ (along with 30 other cryptocurrencies) offline on a super-secure wireless device.
- TezBox: One of the first dedicated Tezos GUI (Graphical User Interface) wallets on the market, TezBox offers a responsive interface and great security as it doesn't store any of your private key information internally. This desktop and online wallet supports both Windows and MacOSX.
- TREZOR Wallet: Hardware wallets like TREZOR Wallet offer maximum security, but at a price that may deter some novice and casual traders.
Step 2: Find an Exchange to Buy Tezos (XTZ))
There are many exchanges on offer if you want to buy Tezos. Each has pros and cons, so it's a good idea to do a little research. To help you get started, Here are two of our favorite Tezos...:
- Binance: Binance is considered the best and most reliable place to buy Tezos, and is the world's largest crypto exchange. It offers a huge crypto market and fees that compare favorably with its main competitors, as well as a well-designed mobile app.
- Bitpanda: If you can't find what you're looking for on Binance, BitPanda is the next best place to buy Tezos. If you're mobile, you can download the Bitpanda app and buy Tezos (XTZ) on the go.
Step 3. Withdraw your Tezos.
To secure your tokens, it's a good idea to move your Tezos (XTZ) coins out of the exchange and into your wallet as soon as possible. To withdraw your XTZ to your wallet, you need to generate an address and then paste it into the appropriate field of your exchange account.
How to trade Tezos - step-by-step instructions
If you are only interested in trading Tezos, you don't need to worry about finding a suitable wallet, as the trade takes a position on a currency instead of buying Tezos (XTZ). This means that you may be able to profit from XTZ without the hassle and security risk of owning it.
Step 1. Find a broker
Tezos is fairly new on the market, so not all brokers offer it yet. This seems to be changing pretty quickly given the recent market performance, so you don't have to look too hard. Plus500 and eToro are two of the best crypto brokers.
Step 2. deposit money
Most trading platforms allow you to deposit fiat money (USD, GBP, EUR, etc.). It's worth noting that trading platforms offer leveraged trading, which means that you don't have to provide the full value of a trade. Instead, you can make a deposit, which is called a "margin". This means that you may be able to make larger profits and, of course, larger losses.
Step 3: Decide how you want to trade.
There are two methods to trade cryptocurrencies: CFDs (contracts for difference) and spread betting. Both methods essentially involve speculating on the price movements of your chosen currency. If you are not sure which option to choose, we recommend learning more about the differences between spreads and CFDs.
Step 4 Start trading
If you are a beginner, we recommend starting with a demo account and familiarizing yourself with the process and the platform. Trading cryptocurrencies is extremely volatile, which means you can make and lose money very quickly. Tezos is prone to fluctuations, which makes it an intriguing prospect for traders who want to take advantage of volatility.
As a crypto trader, you speculate on the price movements of your currency by taking a short - (sell -) or long - (buy -) position. If you think Tezos will decrease in value, you should take a short position, if you think it will increase in value, you should take a long position.
You can choose to incorporate leverage into your trading strategy. With leveraged trading, you can invest a fraction of the trade value as a deposit or "margin". However, this can be risky, so make sure you have a stop loss to limit the damage.