How To Buy Tezos | Ultimate Guide To Buy XTZ
Tezos (XTZ) is a popular high-ranking cryptocurrency project that also acts as a multi-purpose platform for smart contracts and decentralised applications (dApps). The coin was launched in 2017, during the height of the crypto craze, and unlike many other coins launched at that time, it didn't disappear — it kept developing, and it became one of the strongest coins in the crypto industry.
If the coin manages to attract your attention, and you wish to buy it or trade it, you have come to the right place, and we will explain how you can do that.
5 Steps to Buy Tezos with eToro Now
Buying any cryptocurrency with eToro is easy, simply follow the steps below:
Sign up for free with eToro, entering your details in the required fields.
Fill out the questionnaire, this is both educational for you and eToro.
Click 'Deposit', you'll then be asked how you want to fund your account.
Choose your required payment method, follow the simple steps to link your payment.
Enter the amount you want to deposit and you're good to go!
Our Recommended Platform to Buy Tezos
Considering that some people may be more experienced than others when it comes to the cryptocurrency sphere, you might not be interested in a guide on how to buy Tezos but would rather see our recommendations on where to do it. If this is the case, then you don't have to read any further, and simply move to one of these exchanges to make your XTZ purchase.
If, however, you wish to learn about how to purchase Tezos in detail, keep on reading, and we can definitely help you out with that.
Where to Buy Tezos in 2021?
Before you start working with XTZ itself, you first need to consider your strategy. For starters, you need to decide whether you simply wish to make a quick profit off of Tezos price, or if you wish to actually own the coins.
If you are looking for the former, then you likely need a crypto broker, which would allow you to invest in CFDs (Contracts For Difference) or futures contracts. These will enable you to bet on the Tezos' price, and you can make a profit whether the price goes up or down, simply by making an accurate prediction.
If you wish to own XTZ coins, then your best bet would be to go for a cryptocurrency exchange, and purchase XTZ directly or obtain it through trading.
Of course, both methods have their strengths and weaknesses. For example, buying Tezos on an exchange means that you will also have to set up a Tezos wallet, and be responsible for your own security. If you go for a crypto brokerage option, you won't have to worry about owning the coins, managing them, storing them, or securing them.
However, owning the coins is an excellent thing for long-term investments, so it really all comes back to your strategy, what you wish to do, and what kind of trader/investor you are.
Now, let's look at these two approaches in detail, and see what there is for you to know about each of them, we will show you how to deal with both methods, and then you can decide which one you like the most.
How to Buy Tezos With a Broker
If you decide to buy Tezos via a broker, you need to know a few things first. For example, not any broker will do. The crypto industry is extremely competitive, and everyone wants a piece of the pie. This is why countless crypto-supporting brokers currently offer their services out there, and they all differ in numerous ways.
They all offer different fees for their services, as well as different levels of security strength. You must also only use regulated brokers, since the market is full of scammers, letting them take care of your money would be a bad idea.
So, it is important to consider multiple companies and find the one that satisfies your needs, but also fits the bill in regard to all of these other considerations. However, once you pick a platform to join, here is what you need to do next.
1. Register With the Broker
Naturally, the first step would be to register with the broker of your choice. We can recommend multiple trusted and reputable platforms, such as Plus500, Pepperstone, and eToro is held in especially high regard among crypto users.
Registering is an easy enough procedure. Pepperstone, for example, allows you to create an account with your email address, or you can simply log in with your existing Google or Facebook account.
eToro would ask you to choose a username, enter your email, and decide on a password. It is all pretty standard, and if you ever created an account anywhere, you won't have any problems by following this step, either.
2. Verify Your Identity (KYC Process)
The next step will be to verify your identity, which is something that you must do on most regulated platforms. This is known as the Know-Your-Customer (KYC) procedure, which is required by the law.
Such procedures are set in place so that users would not abuse their accounts and engage in criminal behaviour, such as terrorism financing, money laundering, and alike.
The procedure is not complicated, but depending on the platform, it will require you to upload photos of certain documents. Your ID is likely to be included on all platforms, but some of them may also demand a photo of your bills, passport, or some other document. It differs from platform to platform, so the required documentation will depend on which broker you opt to use.
3. Deposit Funds With Your Preferred Payment Method
Once you verify your account, you will have full access to the platform and its functionalities. You should spend some time familiarising yourself with the dashboard, available tools and functions, and alike. Once you are done with that, however, it will be time to deposit your funds into your account.
This is another thing that you should consider when choosing the broker, as you need to ensure that they support your preferred payment method, be that credit card, debit card, bank transfers, or something else entirely.
Keep in mind that some methods of transferring funds are faster than others, although they will often cost more. Security is also something to consider, as you don't want your money to be lost somewhere along the way.
Once you deposit the funds, make sure that the funds have actually arrived. If everything is in order, you will be able to start opening positions.
4. Open a Position to Long/Short Tezos
Once you are ready to open a position, you will have to decide whether you wish to go long or short on Tezos.
This will depend on your expectations of the coin, and what you believe will happen with its price in the near future. If you believe that its price will grow, then you wish to go long. This is not much different from buying actual coins when their price is low, in expectation of growth. However, if you go for CFDs or futures contracts, you won't actually purchase coins, as mentioned.
There are some platforms, like eToro, which do allow you to purchase coins if you wish, but you are not obligated to do so, as there are alternatives.
If, on the other hand, you think that XTZ price will go down, then you wish to go short, and basically bet that the price will move in a negative direction in the future. In this case, buying actual coins would not make sense, as you would buy them at one price, only to sell them at a lower one, and actually experience losses.
CFDs and futures are a perfect way to benefit from Tezos' price movement during bearish periods, so keep that in mind. You can make a profit regardless of how the price moves, as long as you make an accurate prediction.
Lastly, you should also consider securing your investment through some protective methods, such as stop-loss or take profit orders. Then, there are market order/limit order, trailing stop-loss orders, and alike. These will protect your investment by automatically closing positions if the price starts moving in an unfavourable direction so that your losses would be minimal.
5. Close Your Position
Lastly, you should also know that you can close your position. You can do it manually, if you wish to retire for the day, or if you are satisfied with the profits you have made, and you don't want to take further risks.
Alternatively, your order might be closed automatically by one of the protective measures listed above. In other words, if you expect that the price will grow, you should put a stop-loss somewhere below the price that the coin had when you entered the market. If the price starts dropping, instead of growing, your position will be closed automatically once the previously established level is reached.
How to Buy Tezos With an Exchange
As mentioned, it is possible to buy coins with some brokers that allow it, such as eToro. However, most people who wish to buy, sell, and trade actual XTZ coins would prefer to go to cryptocurrency exchanges.
So, if you are into buying XTZ, instead of just betting on its price, you will need to choose one of those. As last time, you need to make sure that you are satisfied with the exchanges' fees, security, make sure that it is regulated, or at least reputable, and as transparent as possible.
Naturally, you should also try to find an exchange that lets you buy Tezos with fiat currencies directly. If no such exchange services your region, there are alternative ways to get your hands on some XTZ, but we will talk about that later. For now, let's assume that you have access to exchanges that do offer the ability to buy Tezos directly. With that in mind, here is what you need to do.
1. Set up a Tezos Wallet
The first step doesn't actually have anything to do with the exchange itself. Instead, you will need to set up a private cryptocurrency wallet that supports Tezos.
This is necessary so that you can properly secure your coins, and not leave them in exchange's wallet. Exchanges involve a lot more people, which means that there is room for mistake. And a mistake is all that a skilled hacker needs in order to invade the exchange's wallets and steal your coins.
So, find a reputable wallet, with good reviews, and set it up first.
2. Choose and Join an Exchange That Sells Tezos
The first step that does include exchanges is to do your research and find the best one that you can use. There are many exchanges that you can select, depending on where you live. There is Binance, the world's leading exchange, or Coinbase, which is the biggest trading platform in the US. There are also CEX, Coinmama, Poloniex, and many others for you to choose from.
Make sure that the exchange you choose sells Tezos, that it supports your preferred payment method, and that its fees and other terms are acceptable to you.
Different exchanges offer different fees and similar details, so you do need to consider such things. Also, some of them might be more complex than others, but you likely won't know if you can find your way around it before you actually join.
3. Choose Your Payment Methods to Buy Tezos
Once you create an account, and you confirm that you understand its tools and features, you will have to deposit your money. Once again, this will mean using your preferred payment method to fund your account. However, before you do so, you should consider which payment method suits you best.
Credit and debit cards, for example, offer fast but expensive transfers. Bank transfers are cheaper, but they also last longer. These are the things you need to consider, depending on whether you are in a rush, or if you work with a very limited budget, where every cent counts.
4. Place an Order to Buy Tezos
Assuming that you found an exchange that lets you buy XTZ directly and that you now have your preferred payment method in mind, it is time to place your order.
You can do so by finding a 'Buy Coins' button, or some variation of it, depending on the platform. Simply click on a button, or a dropdown menu that offers the option to buy, enter the coin you wish to buy, the amount you wish to spend/purchase, and details regarding your payment method of choice. That's all there is to it.
5. Safely Storing Your Tezos in a Wallet
At this point, you should be a proud owner of a certain amount of XTZ, depending on how much you decided to buy. The next thing you wish to do is secure your XTZ in a private wallet, assuming that you want to buy them and wait for their price to go up someday.
This is an optional step, and you don't have to do it if you don't want to. Centralised exchanges have their own wallets, after all, However, note what we spoke about before, and remember that exchanges can be hacked. It is safer if you store your coins inside your own wallet, and know that they are safe, instead of relying on the exchanges' security.
Should You Buy or Trade Tezos?
When it comes to whether you should buy, or rather trade XTZ, that depends on you. If you wish to trade Tezos, that will imply that you need to own it first. If you don't want that, then you will have to go for derivatives products offered by the brokers.
It all depends on you and your choice. So, in order to properly understand that, let's establish the differences between an exchange and a broker.
What's the Difference Between a Tezos Exchange and a Broker?
You can buy or trade XTZ on any crypto exchange that has it listed, and that is likely the best option for those who wish to invest in it for a long period or exchange it for another crypto.
If, on the other hand, you don't wish to own it, and simply want to make a profit via small price fluctuations, brokers are your best bet for that. Simply invest in CFDs or Tezos futures, do your research, and with an accurate prediction, you can earn a sizable amount over time.
Both methods are rather safe these days, as long as you go for a regulated, reputable company, and do the necessary research first.
Long vs Short Term Investment
Investing in Tezos — or any other asset, for that matter — can be long-term or short-term.
Short term investments are, well, short. Basically, you buy a coin (or a derivative that uses it as an underlying asset) and sell it when the price moves in a favourable way. This will earn you a smaller amount, but it is a quicker way to make a profit.
The long-term investment would be buying XTZ, storing it in a wallet, and basically forgetting about it for months, or even years. You will then sell it when its price surges up by a considerable amount, thus earning a much greater profit. The downside, of course, is that this takes a longer period of time.
3 Tips to Buy Tezos
At this point, you are ready to start trading. But, before you do so, allow us to share some additional tips with you. You never know when these might come in handy, so be sure to take note and keep these hints in mind.
Choose the Right Time and Do Your Own Research
This is pretty self-explanatory. Don't just buy Tezos because someone thinks or says that it will go big someday. Do your research, and make sure that you yourself think so, based on facts and data.
Also, make sure to buy when the price is low, and wait for it to go up. Doing things the other way around is bound to result in losses.
Comparing Costs to Buy Tezos
Next, don't just pick one exchange or broker and go with it. Check out as many of them as you have access to, and figure out which one is the best in terms of fees, the price, and similar factors. The less you pay to the company you choose; the more will remain in your own wallet.
Safety and Security
Lastly, make sure to keep safety and security in mind. Different platforms use different methods, and you shouldn't take that matter lightly. This is the security of your hard-earned money, so make sure to keep it safe by choosing only the best.
What Is the Best Payment Method for Buying Tezos
There are multiple methods that you can use to buy XTZ, and you can choose to:
Buy Tezos with Cash
Buy Tezos with Credit Card
Buy Tezos with Bank Transfer
Buy Tezos with Bitcoin
Buy Tezos with PayPal
Other Ways to Buy Tezos
There are alternative methods for you to purchase XTZ, in case you cannot find an exchange that offers it, or you don't like the methods that are offered. You can acquire XTZ via:
Buying stablecoins and trading them for XTZ
Lending XTZ that you already have
Earning it by doing work for someone who would pay you in XTZ
So, you definitely have options when buying Tezos, just find the best method for you, and go for it.
Frequently Asked Questions
Yes, you can. There are some exchanges that allow you to do so.
Yes, Tezos is a legal cryptocurrency that you can own, trade, buy, and sell without the fear of breaking the law.
This depends on your region. In most parts of the world, this shouldn't be a problem, as long as you can find someone who accepts it. In places like Russia and China, however, doing so is illegal, and you shouldn't risk it.
You can store it and treat it as a long-term investment, use it for smart contracts and dApps within its ecosystem, trade it for another coin, or spend it if you find a merchant who accepts it.