5 Things to Consider If You Want to Purchase Tezos
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.
Carefully choose your preferred secure payment method
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.
Will you need to set up your own wallet?
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 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.
Safety and security
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 is 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.
Can you understand and navigate the platform?
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 on whether you want to continue or try another broker.
What is the Best Payment Method for Buying Tezos?
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:
Buying Tezos with Credit Card
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.
Via Bank Transfer
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.
Purchasing Tezos with Crypto Deposit
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.
Buying Tezos with PayPal
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.
What Fees Are Involved?
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 from investors’ activities. Again, these are small, tiny payments that are almost unnoticeable except you are carrying out a large transaction.
Safely Storing Your Tezos
Whether you are buying Tezos to hold or trade, it is important that you know of 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 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 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 users transactions.
What Other Coins Can I Trade or Use to Purchase Tezos?
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.
What’s the Smallest and Largest Amount of Tezos I Can Buy?
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.
Can I Buy Anonymously with no ID? Is it Safe and Legal?
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.
How to Spend Your Tezos
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, 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 on 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.