Tezos is a blockchain project that supports decentralized applications and smart contracts. The platform governs itself by establishing a true digital commonwealth and facilitates formal verification. Apart from smart contract support, Tezos is a self-evolving blockchain project. Tezos protocol undergoes constant development through on-chain governance. This enables the network to grow over time instead of undergoing radical changes that require a hard fork. All stakeholders can participate in governing the Tezos protocol by voting on proposed changes and upgrades. Tezos also runs the language of its smart contract known as Michelson. To achieve consensus on the network, Tezos uses the proof-of-stake algorithm.
If you want to get started with Tezos, you’d first need to know the best Tezos wallets where you can keep your crypto safe.
The native cryptocurrency of Tezos is Tez or a Tezzie (XTZ). It is worth noting that the Tezos blockchain does not support mining. However, the platform enables token holders to receive a reward for taking part in the proof-of-stake consensus mechanism. By press time, the XTZ token was trading at $1.19 with a market cap of $780,815,515. Based on this data, CoinmarketCap ranks Tezos in the 22nd position among digital assets. If you plan to invest in the asset, here is how you can buy it. If you wish to purchase Tezos (XTZ), you need to find an exchange that supports the asset. Before buying Tezos, you need a compatible wallet. Take a look at our review of the best Tezos wallets in 2019.
The best exchanges to buy Tezos (XTZ)
Kraken is a San Francisco-based exchange with a relatively large selection of listed crypto assets, fiat trading with multiple currencies, and a good security track record. Additionally, Kraken accepts payments in 5 different fiat currencies – USD, EUR, JPY, GBP, and CAD. To purchase Tezos on Kraken, you need to create an account and undergo the Know Your Customer process before depositing any funds.
You will then undergo the verification process by clicking at the top of the website and select your account name. A drop-down menu will appear from which you select “Get Verified”. Key in the necessary information to complete verification.
In the next phase, you will need to deposit funds. You can deposit the supported fiat currencies by clicking on the Deposit bar. Select the currency you want to deposit and select the SEPA option. You will be shown bank account details, a deposit reference, and other instructions. Initiate a SEPA-transaction from your bank’s website using the given instructions. Once the money has reflected, click on Trade / New Order and then choose the option you want. You will buy Tezos and Deposit in your wallet. One disadvantage of using Kraken is that you can’t deposit with a credit card.
Alternatively, you can buy cryptocurrencies like Bitcoin and Swap with XTZ. To deposit, Bitcoin go to the navigation bar at the top of the website and click your account name. A drop-down menu will appear from which you select Deposit. Note that on Kraken the ticker for Bitcoin is XBT. You will get an address to deposit Bitcoin. After the Bitcoin reflects in your account, you can initiate a trade to swap with XTZ.
Gate.io is a cryptocurrency exchange with support of over 200 cryptocurrencies with trading fee standing at 0.2%. The exchange allows purchase and withdrawal of XTZ tokens. Note that Gate.io was the second exchange to list Tezos after HitBTC. However, you will first need to have some BTC, USDT, or ETH in your wallet before being able to purchase XBT. To buy Tezos, you will need to create an account first. Note that the exchange requires KYC and US customers are not supported. You will then need to search for the Tezos market.
The exchange has different trading pairs like XTZ/USD, XTZ/BTC, and XTZ/ETH. Before buying XTZ, you will need to fund your account with cryptocurrencies supported on the exchange. You can deposit Bitcoin on the exchange from the address that will be provided to you. Your deposit addresses can be found in the wallets section. Once your Bitcoin has reflected on your account, go to market and type in XTZ. Search for your trading pair, for example, XTZ/BTC. You will then execute the trade, and the XTZ tokens will reflect in your account. Remember that to withdraw your XTZ tokens, you need the KYC and enable the two-factor authentication.
BitPanda is a cryptocurrency exchange based in Europe with support for cryptocurrencies like Bitcoin and Ethereum. The platform has more than 1 million registered users. On Bitpanda, you can buy Tezos by first buying registering an account. To sign up, you will need your email address and then verify your account to enjoy BitPanda services. In the next stage, you will need to fund your account. You need to deposit the supported fiat currency- Euro, British Pound, Swiss Franc, and the US Dollar. The deposit methods available include Wire (SEPA, SWIFT), Credit Card, Klarna, Neteller, and Skrill.
In the next phase, you will need to start trading Tezos. Click the “Trade” button to buy Tezos on Bitpanda. You will then click “Buy” and search for the Tezos Wallet. BitPanda will then ask you to select the fiat currency wallet. Select your preferred fiat currency to proceed. Select the amount of Tezos you want to purchase. You can switch between the input of fiat or the amount of XTZ. You will then be required to finalize your trade. Bitpanda provides you with an overview at the end of the buying process. Check the trade details once again and complete your order. To finalize the trade, click “Buy Now.” Using Bitpanda comes with several advantages, such as automated systems and convenience.
There are an array of options in the market when it comes to buying Tezos cryptocurrencies. Selecting the appropriate method can be challenging. However, with sufficient research, it all becomes smooth. Note that before investing in cryptocurrencies, bear in mind that they are are very volatile and complex. With this in mind, you must research and understand the factors that can potentially impact the price movements of any cryptocurrency before you buy. Always be on the look for news and controversies surrounding the asset before purchasing it. Additionally, look at the tokens potential to grow. Most assets that have the potential for growth are the ones that offer real-world solutions. Buying cryptocurrencies also requires one to have the appropriate wallet. Ensure the wallet you select is secure by looking at the reviews and security record.
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