Tezos has a reputation as the coin with the largest ICO until 2017, and this shows in its placement among the Top 20 cryptocurrencies in the global market. Many people who have followed the performance of Bitcoin in the last two years are also keen to know about other coins and tokens with similar potential.
Tezos differs from other major cryptocurrencies like Bitcoin as its validated transactions on the blockchain are via proof of stake (coin ownership), rather than proof of work (mining).
After assessing the top brokers and crypto exchanges, we have presented here the best way to buy Tezos (XTZ) with a credit card, bank transfer, PayPal, and other digital payment methods. For people who want to know how to buy Tezos, this guide will cover all the basic essentials that you need to know.
If you’re looking for a simple way to buy Tezos, all you need to do is sign up with a crypto exchange. You can access it online with a computer, smartphone, or tablet to quickly buy and sell Tezos and a range of other cryptocurrencies. The best platforms are listed below as well as a quick step-by-step guide on purchasing Tezos.
The most important part of buying any cryptocurrency is choosing a vendor that is safe, affordable, and easy to use. We’ve listed our top choices below to help you select the right platform according to your needs.
Signing up is generally easy, and simply requires you to input your personal details. To fully verify your account, you’ll need to upload a copy of your photo ID and sometimes a proof of address as well. Once you’re verified, make your first deposit using one of the available payment methods.
Search the available markets for Tezos, and find a trading pair with the currency you deposited. Enter the amount of XTZ you want to buy, then execute the trade.
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, and security, and 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.
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 the exchange’s wallet. Exchanges involve a lot more people, which means that there is room for mistakes. 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.
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 them before you actually join.
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.
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.
At this point, you should be a proud owner of a certain amount of XTZ, depending on how much you decide 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. Centralized 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.
Tezos is an open-source proof-of-stake blockchain that is used for processing peer-to-peer transactions with the use of smart contracts. It is a decentralized network that is censorship-resistant, to manage various assets and help build DeFi Apps (DApps). The network runs on the native token, Tez (XTZ).
Investors who want to buy Tezos have to bear in mind that there are vital items on the checklist they need to tick. In this regard, the following will be important to consider.
How do you pay for Tezos? If you are used to online payments and money transfers, then you are in familiar territory. Despite the different payment methods to choose from when buying XTZ, what is secure and safe has to be determined.
Additionally, for trading crypto, time is of the essence like most investment decisions and you do not want to miss out when an opportunity presents itself. So, you may wish to choose an option that gives you an advantage in terms of processing speed.
Unlike other investments that possibly do not require a special storage medium, cryptocurrencies are different. Tezos has to be stored in custom-built wallets that other digital currencies might not use. Most coins have unique wallets and few others could fit in multi-storage designs.
Depending on the platform you are using, you might be able to access a ready wallet with no hassle involved. You should certainly consider setting up your Tezos wallet before you buy Tezos to ensure a seamless transaction.
When you buy Tezos, the ruling rates in the spot market are often universal across different countries. However, what might be different is the associated cost, and people who are new to trading might be unaware that this exists. Well, it does, and it is important.
When buying $100 worth of Tezos, you could end up paying $102. The difference might just be $2, but it could also mean that you end up with $98 worth of XTZ if you did not make a proper provision for the $2 transaction cost.
Again, what if you’re told of a competing crypto broker who waives the processing fee? Then, you do not have to pay an additional $2 in charges at all. As long as there is an alternative platform with fewer charges and acceptable security, you should consider such.
In a sense, Tezos offers partial anonymity as wallet details do not display the name of the account holder. Tezos was not designed as anonymous crypto, so its transactions can be viewed on the platform explorer and all inflows and outflows on each wallet are public information.
On platforms, the investor has the advantage of in-built security features like 2FA (2 Factor Authentication), which sends an alert each time a log-in occurs or a transaction is initiated. If authorization codes sent to your email or mobile phone are not provided, transactions will not be completed.
The security of the platform used is enhanced by the configuration type as seen in MT4 systems, which is used for foreign exchange transactions, and MT5, designed for CFDs, crypto brokerage, and stocks. The end-to-end assembling of these systems makes it impossible for any interception when you log in to your account.
How a platform works determines what can be done and what is possible. Two platforms might look alike and yet function differently. So, it is important to be able to have a hands-on user experience before trading Tezos.
You do not want to muddle up your transfers or purchases in the thick of any trade. Wherever possible, use a demo account in order to familiarise yourself with the features and mechanisms before you start to trade for real.
Feel free to contact customer care for support at the early stage of registration as this will give you an insight into the level of service provided and provide you with a clear view of whether you want to continue or try another broker.
You can buy Tezos with a range of payment methods which should make it possible for you to settle on the most convenient option available to you. The common payment methods include the following:
To buy Tezos with a credit card might be the most popular payment option. While everyone might have heard of credit card payments, it is not necessarily preferred by all. It is available in many countries around the world but limited in others. Speed and convenience are the common advantages of this payment method.
To purchase Tezos with cash is generally considered unsafe and not readily possible. The closest option is using a bank transfer. Using a bank transfer makes it easy for payments to be completed around the world. It is clearly the oldest payment method among the most acceptable options.
Almost all the leading platforms accept bank transfers, but you will need to factor in which fiat currency you can use. Many people can identify with this payment method.
To buy Tezos with a crypto deposit is most convenient and relatively fast. It is also the best in terms of cost as it helps you avoid processing fees and you only get to pay network charges.
Some investors are able to buy Tezos with PayPal, but it is not available in all countries and for those who do have this facility, your PayPal account must first be verified. It is low on fees and payments reflect immediately in almost all cases.
Traditional banking has associated fees, and this is the case too when buying cryptocurrencies like Tezos. These are what the fees typically look like:
Processing fees are attached to the payment method you choose when depositing money onto your trading platform or buying Tezos outright. So, if you do not use a fiat currency payment method, you can avoid these fees.
These are associated with the particular coin you are buying. In buying Tezos, the crypto network has its charges for transfers or deposits. Like most altcoins, these charges are minute.
Crypto platforms are able to stay afloat primarily because they charge transaction fees for investors’ activities. Again, these are small, tiny payments that are almost unnoticeable except you are carrying out a large transaction.
Whether you are buying Tezos to hold or trade, it is important that you know the various types of wallets so that you can safely store your Tezos.
You need a functional internet connection if you wish to access a web wallet. Most platforms that provide a wallet to investors have a free web wallet in place. Some choose to avoid storing coins on an exchange except you are using it as an ongoing investment.
TezBox and Atomic are two of the common web wallets.
A mobile wallet is downloaded for use on a mobile device such as a phone or a tablet. The oft-mentioned advantages include ease-of-use and accessibility, even when commuting. Mobile wallets are susceptible to loss and compromise due to the physical displacement of the device but have greater security than typical web wallets offer. AirGap and Exodus are examples.
Desktop wallets are used around the world and they are considered to be much safer than the two previous options. Since desktops are hardly moved around, the risk of physical loss is minimized. You can also install further security protocols to your system, so desktop wallets sacrifice some convenience for greater safety.
Examples of desktop wallets for XTZ are Exodus and Galleon Tezos Wallet.
Many crypto security specialists rate hardware wallets as the preferred option in terms of safety. However, you need to buy the devices to use them. You only need a hardware device if you are buying to hold a larger amount of XTZ over a longer period. These devices keep your cryptocurrency investment safe in an offline environment.
Because of their security hardware wallets tend to be slower to use than software wallets which is another factor you should consider if you’re planning on making many transactions. Leading hardware wallet brands include Ledger and Trezor.
Wallet combinations refer to multi-platform usage and this enables the investor to access such a wallet on a desktop, web, or even mobile. The advantage is that when desktop access is not possible, a mobile log-in might be possible. Multi-platform access comes with more convenience as alternate access can be explored if one method fails or is impossible to use.
In addition to the type of wallet, you may also wish to check if your choice has the option to stake XTZ. With Tezos being a proof-of-stake network, it’s vital that Tezos owners stake their coins in order for transactions to happen on the network. Staking offers advantages as you can earn additional coins from the fees on other user’s transactions.
You can use other coins to purchase Tezos and the most common of these are Bitcoin and Ethereum. You can buy Tezos with Ethereum on many platforms and the cost is comparatively low. Transaction speed is also reasonably fast, usually taking less than 30 minutes.
The coin you can use to buy XTZ will depend on the platform you are using, and if such crypto is permitted as default trading options. In other instances, you might have to convert the crypto you have to a more popular brand that is listed.
So, what is the minimum purchase for Tezos? The Tezzie, which is valued as 100th of a Tez, is like a cent (1 Tez = 0.01 XTZ).
So, can I buy a whole XTZ? Yes. At the time of writing, XTZ is priced at $2.45, and at that rate, it is within most people’s budgets. Restrictions on how much Tezos you can buy are platform-imposed and this means that your account rating determines the volume of transactions you can access.
Take a look at our Tezos Price page for a live rate.
Like most cryptocurrencies, Tezos does not provide complete anonymity. Tezos Explorer shows your wallet transactions and tracks inflows and outflows easily. So, you cannot purchase XTZ anonymously on any major platform. Tezos is, therefore, legal to buy and trade in many global jurisdictions.
First, your account cannot operate if you have not provided KYC and AML details. Secondly, in the event of legal intervention, your wallet transactions will be traced to you as your platform can be subpoenaed to provide your account details.
While you can buy Tezos with no verification from open marketplaces, this is not advisable. First, stolen coins or those used as proceeds of illegal activity are traceable using wallet addresses. If you buy such tainted crypto from the dark web, investigators can track and confiscate them, and you might end up with losses or even a criminal indictment.
Secure and safe transactions are provided by registered and licensed brokers with no fear of running afoul of the law.
Tezos can be used for settlement on a number of merchant sites around the world. One of the underlying uses is value transfer. It is easier and cheaper to send money to anyone overseas using the Tezos equivalent than any fiat method. In addition, a couple of merchant sites also accept XTZ for goods and services.
Some online gift stores like GIFTO accept crypto payments and web hosting services can also be paid for with Tezos. Online gaming ecosystems are largely crypto-friendly and a couple of them allow crypto payments.
Recent reports also point to educational activities driven by the Tezos blockchain, which provides an opportunity to use XTZ for allied purposes. Beyond this, there is the window of use that staking already provides.
In this way, individuals can buy Tezos coins and stake them by depositing them in the accepted manner in verified wallets over a period of time. This operates like fixed deposits in order to earn staking rewards, akin to interest. Staking rewards presently have a yield rate of 6 percent annually.
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.
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.
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.
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, price, and similar factors. The less you pay to the company you choose; the more will remain in your own wallet.
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 safest crypto exchanges.