How To Buy Tezos (XTZ)?
A common question you often see on social media from crypto beginners is “Where can I buy Tezos?” Well, you’ll be happy to hear it is actually quite a simple and straightforward process. Thanks to its massive popularity, you can now buy Tezos on most cryptocurrency exchanges, including Coinbase and Binance in 3 simple steps.
Step 1: Create an account on an exchange that supports Tezos (XTZ)
First, you will need to open an account on a cryptocurrency exchange that supports Tezos (XTZ).
We recommend the following based on functionality, reputation, security, support and fees:
1
Bybit
Fees (Maker/Taker) 0.1%*-0.1%*
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Available for Trade 400+
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2
Binance
Fees (Maker/Taker) 0.075%*-0.1%*
Cryptocurrencies
Available for Trade 500+
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10% reduced trading fees*
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3
MEXC
Fees (Maker/Taker) 0.2%*-0.2%*
Cryptocurrencies
Available for Trade 1500+
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10% reduced trading fees & up to $170 in USDT vouchers*
Available in
North America, South America, Europe, Asia, Oceania, Africa
In order to sign up, you will need to enter some basic information, such as your email address, password, full name and, in some cases, you might also be asked for a phone number or address.
Note: On specific exchanges, you might need to complete a Know Your Customer (KYC) procedure in order to be able to purchase cryptocurrency. This is most commonly the case with licensed and regulated exchanges.
Step 2: Deposit funds into your account
Many cryptocurrency exchanges will allow you to purchase Tezos (XTZ) with fiat currencies, such as EUR, USD, AUD and others. Furthermore, they will also provide you with multiple deposit methods through which you can fund your fiat account, such as credit and debit cards, ewallets or direct bank transfers.
Note: Some payment methods will have higher fees than others, such as credit card payments. Before funding your fiat account on your chosen exchange, make sure to do your due diligence to find out the fees involved with each payment method to avoid unnecessary costs.
Step 3: Buy Tezos (XTZ)
This process is similar across almost every cryptocurrency exchange. All you have to do is find a navigation bar or a search bar, and search for Tezos (XTZ) or Tezos (XTZ) trading pairs. Look for the section that will allow you to buy Tezos (XTZ), and enter the amount of the cryptocurrency that you want to spend for Tezos (XTZ) or the amount of fiat currency that you want to spend towards buying Tezos (XTZ). The exchange will then calculate the equivalent amount of Tezos (XTZ) based on the current market rate.
Note: Make sure to always double-check your transaction details, such as the amount of Tezos (XTZ) you will be buying as well as the total cost of the purchase before you end up confirming the transaction. Furthermore, many cryptocurrency exchanges will offer you their own proprietary software wallet where you will be storing your cryptocurrencies; however, you can create your own individual software wallet, or purchase a hardware wallet for the highest level of protection.
For more in-depth instructions, our ‘Absolute Beginner’s Guide To Cryptocurrency Investing‘ will take you through the process step-by step. In addition to providing instructions for sending and receiving your cryptocurrency.
And if you’re completely new to crypto our beginner, intermediate and advanced level articles will get you up to speed with everything you need to know about the cryptocurrency space starting out.
Simplecryptoguide.com
What Is Tezos (XTZ)?
Who Are the Founders of Tezos?
Arthur Breitman was the man who wrote the Tezos white paper — and in a nod to Satoshi Nakamoto, he wrote his works under the pen name L. M. Goodman. He argued that one of Bitcoin’s biggest failings was the lack of a governance process that invited contributions from the community who use the network — as well as the fact that new tokens couldn’t be issued through this blockchain.
He and his wife Kathleen founded a startup called Dynamic Ledger Solutions which was tasked with writing the code that would underpin the Tezos protocol. This company was subsequently purchased by the Tezos Foundation to ensure that it owned all of the intellectual property rights relating to the network.
How Tezos (XTZ) works
What makes Tezos (XTZ) unique?
Tezos has a few key differences from the other smart contract platforms in the blockchain space.
Tezos (XTZ) governance
Changes to Tezos follow an on-chain governance model. Changes to the blockchain are submitted by delegates through code updates. Stakeholders can then vote on whether they approve or deny the changes.
Thanks to this on-chain governance model, radical disruption can happen at any time – if the delegates approve of the proposed changes to the blockchain. This can involve system changes like amendments to fees or the process of baking, or anything really! This also results in a thriving community to discuss changes and new rules to make the system better.
How Does Tezos’ Self-Amending Model Work?
There are three main protocols that function as the backbone of the XTZ platform.
Network Protocol
The network protocol is designed to determine blocks and broadcast them through the chain. Basically, it links the “gossip” network and the whole protocol. Everything that is needed by nodes to maintain the integrity of the network, such as downloading the state of the blockchain, connecting users and broadcasting finalized blocks to the network, is covered in the network protocol.
Transaction Protocol
The transaction protocol governs the validity of transactions. It has a record of all blockchain information, especially that relevant to facilitating the transaction of peer-to-peer interactions and blockchain activities.
Consensus Protocol
The consensus protocol enables the platform to reach consensus on the state of the blockchain. This is also where the DPoS model comes into play. Through this protocol, any blockchain modification, addition or upgrade, has to be voted upon by the stakeholders of the platform.
The network shell of the platform is what links these different protocols together. The network shell also refers to the “blockchain protocol,” which puts together the transaction and consensus protocol.
The form of the blockchain protocol is also the outcome of all modifications and upgrades on the network. To support the platform’s ability to “self-amend,” the blocks that stakeholders add to the chain — which may contain transaction information or protocol upgrades — are allowed to implement changes to the whole network.
From a more technical perspective, the coding language used to build Tezos, OCaml, is capable of identifying three main elements on the chain: blocks, protocols and transactions. Any module written in OCaml and implemented on the chain can update its overall state.
Decentralized Innovation
Proposed amendments that are accepted by stakeholders can include payment to individuals or groups that improve the protocol. This funding mechanism encourages robust participation and decentralizes the maintenance of the network. Fostering an active, open, and diverse developer ecosystem that is incentivized to contribute to the protocol will facilitate Tezos development and adoption.
Smart Contracts & Formal Verification
Tezos offers a platform to create smart contracts and build decentralized applications that cannot be censored or shut-down by third parties. Furthermore, Tezos facilitates formal verification, a technique used to improve security by mathematically proving properties about programs such as smart contracts. This technique, if used properly, can help avoid costly bugs and the contentious debates that follow.
Tezos (XTZ) use cases
Like other blockchain networks, Tezos is a fast way to verify financial transactions with minimized trust.
In September 2019, Gendarmerie’s cybercrime division (C3N) became one of the first governmental agencies to use Tezos for the validation of their judicial expenses.
Tezos can also be used to transfer ownership of illiquid assets, such as real estate, art, and jewelry. For instance, a company called MountX is leveraging Tezos for tokenization of real estate in Mexico.
Tezos development updates in 2023
Tezos (XTZ) has seen several notable developments in 2023, reflecting its continuous growth and innovation in the blockchain space. Key updates include:
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Oxford Protocol Upgrade: Tezos announced its 15th protocol upgrade proposal, dubbed “Oxford.” This upgrade includes several updates and improvements like Adaptive Issuance, a new staking mechanism, refinements to Proof-of-Stake (PoS) penalties and rewards, the reintroduction of Timelocks, and improvements to Smart Rollups. Adaptive Issuance is a notable feature that ties the regular issuance of tez (the native token of Tezos) to the ratio of staked tez over the total supply, aiming to adjust the economics of tez to better fit with real-world usage.
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Scalability Milestone – 1 Million Transactions Per Second (TPS): Tezos is working towards achieving 1 million TPS in 2023 with the upcoming Mumbai upgrade. This milestone is significant for blockchain technology in general, as it represents a major leap in scalability, potentially surpassing traditional payment processors like VISA and Mastercard in terms of transaction throughput. This scalability is expected to be achieved through the development and implementation of Smart Rollups, a Layer 2 scaling solution.
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Partnership with Google Cloud: Tezos has formed a partnership with Google, where Google Cloud will become a validator on the Tezos network. This collaboration aims to support Web3 innovation on Tezos’ blockchain by making it easier for Google Cloud’s corporate customers to deploy and host Tezos nodes. This partnership has been seen as a significant step for Tezos in gaining institutional adoption and attracting more significant players into the blockchain space.
These developments underscore Tezos’ commitment to evolving its blockchain technology, improving scalability, and fostering strategic partnerships, positioning it for continued growth and innovation in the blockchain industry.
Official website: https://tezos.com/
Best cryptocurrency wallet for Tezos (XTZ)
There are plenty of different crypto wallets available. The best one for you depends on your general trading habits and which provides the most security in your situation. There are two main types of wallets: hot storage wallets (digital) and cold storage or hardware wallets (physical). Both have their pros and cons, and there is not necessarily a right or wrong answer when it comes to figuring out which crypto wallet is best for you.
HOW DO I DECIDE WHICH cryptocurrency WALLET TO USE for Tezos (XTZ)?
Deciding which type of wallet to use depends on a variety of factors, including:
- How often you trade. In general, hot wallets are better for more active cryptocurrency traders. Quick login ability means you are only a few clicks and taps away from buying and selling crypto. Cold wallets are better suited for those looking to make less frequent trades.
- What you want to trade. As mentioned earlier, not all wallets support all types of cryptocurrencies. However, some of the best crypto wallets have the power to trade hundreds of different currencies, providing more of a one-size-fits-all experience.
- Your peace of mind. For those worried about hacking, having a physical cold wallet stored in a safe deposit box at the bank or somewhere at home, provides the safest, most secure option. Others might be confident in their ability to keep their hot wallets secure.
- How much it costs. It is important to investigate the costs associated with each wallet. Many hot wallets will be free to set up. Meanwhile, cold wallets, like any piece of hardware, will cost money to purchase.
- What it can do. While the basics of each cryptocurrency wallet are the same, additional features can help set them apart. This is especially true of hot wallets, many of which come with advanced reporting features, insights into the crypto market, the ability to convert cryptocurrencies and more. Security features can also be a good differentiator.
For a more in-depth overview of cryptocurrency wallets visit our “Cryptocurrency Wallets Explained” guide.
If you’re going to be dealing in larger volumes of crypto, investing in cold storage might prove advantageous.
Most widespead examples of this being the Ledger Nano and the Trezor.
Ledger manufactures cold storage wallets designed for users who want increased security. Their wallets are a physical device that connects to your computer. Only when the device is connected can you send your cryptocurrency from it. Ledger offers a variety of products, such as the Ledger Nano S and the Ledger Nano X (a bluetooth connected hardware wallet).
Trezor is a pioneering hardware wallet company. The combination of world-class security with an intuitive interface and compatibility with other desktop wallets, makes it ideal for beginners and experts alike. The company has gained a lot of the Bitcoin community’s respect over the years. Trezor offers two main models – The Trezor One and Trezor Model T (which has a built in touch screen).
Market Overview
Coinmarketcap.com
Coinmarketcap will be your cryptocurrency go-to for just about everything. Here you can see the following:
Market Capitalization And Daily Trading Volume
Current Market Price Of Every Cryptocurrency Relative To USD (And Some Local Currencies)
Circulating And Total Supply
Historical Charts With Prices Relative To USD, Bitcoin (BTC), And Ethereum (ETH).
