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 XTZ.
If you want to add some Tezos to your wallet, read on for step-by-step instructions on how to buy XTZ.
Step-by-step to buy Tezos
What is Tezos?
Tezos' status as the first self-development blockchain is its huge 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 important factor was the involvement of billionaire venture capitalist Tim Draper, whose support further fueled the hype around its high-profile launch.
Since then, Tezos has been beset by delays and growing investor anxiety, but confidence in the altcoin's underlying promise, especially from Weiss Crypto Ratings, certainly won't hurt its prospects.
How does Tezos perform?
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.
The main innovation of Tezos 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 investing in XTZ: it's a much safer way to store cryptocurrencies 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 does not store any of your Private Key information internally. This desktop and online wallet is compatible with 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 trusted place to buy Tezos, and is the largest cryptocurrency exchange in the world. It offers a huge cryptocurrency marketplace 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 are 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 off the exchange and into your wallet as soon as possible. To withdraw your XTZ to your wallet, you must generate an address and then paste it into the appropriate field in your exchange account.
How to trade with 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 trading takes a position in a currency rather than buying Tezos (XTZ). This means 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 to the market, so not all brokers offer it yet. This seems to be changing fairly quickly given the recent market performance, so you don't have to look too hard. Plus500 and eToro are two of the best cryptocurrency 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 you don't have to provide the full value of a trade. Instead, you can make a deposit, which is called "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 of trading cryptocurrencies: CFDs (contracts for difference) and spread betting. Both methods essentially involve speculating on the price movements of your chosen currency. If you are unsure which option to choose, we recommend you learn more about the differences between spreads and CFDs.
Step 4 Start trading
If you are a beginner, we recommend you start with a demo account and familiarize yourself with the process and the platform. Cryptocurrency trading 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 cryptocurrency trader, you speculate on the price movements of your currency by taking a short (sell) or long (buy) position. If you believe Tezos will decrease in value, you should take a short position, if you believe it will increase in value, you should take a long position.
You may 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 be sure to have a stop loss to limit the damage.