An introduction in the best exchanges to buy Tezos. Also, this guide gives you a deeper insight into this interesting blockchain project.
Alternative coins are cryptocurrency tokens which origin is based upon the mother of all cryptos which is Bitcoin. Furthermore, Bitcoin was being introduced to the markets as an alternative to the existing fiat currencies like the US dollar or Euro. Because this online digital money is new, the underlying asset could show massive price volatility. Additionally, some altcoins are trading at a totally different level if you consider price volatility. Many altcoins claim to be the ‘next Bitcoin’ causing traditional investors willing to buy blindly. By doing this, FOMO enters these very young markets resulting in large pump-n-dump schemes. How to find the proper ‘hidden gem’ in the markets and hold on to this investment? Tezos, could be one of the winners out there, currently ranking 11th on CMC. In this guide, the best exchanges to buy Tezos and some decent background information on its cryptocurrency called XTZ.
Short history of Tezos
The Tezos blockchain project is backed by a Swiss company called Dynamic Ledger Solutions and has two owners: Arthur Breitman and Kathleen Breitman(man and wife). Furthermore, the owners created the idea back in 2014 by submitting a ‘positioning paper’ which was the foundation of the Tezos protocol. Later on, in 2017, the founders were able to launch an ICO which was very successful by collecting $232 million funds in Bitcoin and Ether. In fact, by collecting these funds it was the biggest amount ever raised in crypto so far.
Also, many insiders stated this Tezos project as the new ‘Ethereum killer’. Unfortunately, this ICO launch got into trouble because of a dispute between the founders and a big investor. As a result, the launch of the Tezos platform got delayed and a legal suit happened. Next, in 2018 two new investors entered the project which resulted in a ‘go’ for the development activities of the blockchain project. As of today, a fully functioning decentralized network has been established. Besides, this network is a distributed, peer-to-peer and permissionless network. The fundamentals of the network have been realized and now the owners have given the Tezos-foundation the lead in future developments of the Tezos protocol.
Tezos vs Ethereum the stats
|Market cap||16 billion||1 billion|
|24-hour volume||$6.7 billion||69 million|
|Circulating supply||108.853.797 ETH||660.373.612 XTZ|
|Consensus mechanism||Proof-Of-Work(PoW)||Liquid Proof-Of-Stake|
|ICO funds||18.5 million||4 billion|
|Block time||13-15 seconds||3 seconds|
|Throughput||15-20 transactions per second||40-50 transactions per second|
One of the main differences between ETH(Ethereum) and XTZ(Tezos) lies in the way both coins are mined and scripted. To mine ETH, miners have to use a lot of electricity, because its a PoW-coin. This in contrary to XTZ, which uses Proof-Of-Stake(PoS) to create tokens on the chain.
Why Liquid Proof of Stake?
Tezos is a liquid Proof of Stake system that requires one to stake a certain number(10000) of Tezos token to participate in the consensus over the blockchain. The process of staking Tezos tokens (XTZ) is called baking. Furthermore, each baker(holder of 10000 tokens) has voting rights and also validates the transactions. Also, holders can delegate their validation rights to other token holders without losing ownership which makes it ‘liquid’. The process of adding blocks to the blockchain by the ‘bakers’ is as follows:
- Bakers get block publishing rights based on their stake.
- Each block is backed by a random baker and then notarized by 32 other random bakers.
- If the block is good to go then the block gets added to the blockchain.
- The successful baker gets a block reward and can charge transaction fees for all the transactions inside the block.
In summary, each baker has to stake 10000 XTZ tokens and can delegate validation rights. Additionally, each baker gets rewarded 16 XTZ for adding a new block to the blockchain.
What is Tezos: Video Explanation
Where to buy Tezos
Nowadays it’s quite easy to go to an exchange and buy Tezos if you compare it with the early days back in 2013. Back then not many altcoins existed besides Bitcoin or Litecoin and the few crypto exchanges out there were only willing to sell for Bitcoin.
Since then a lot of developments took place within the entire cryptocurrency space where a lot(!) of new exchanges appeared. As a result, it’s very easy to buy Tezos with fiat or credit card in a very short time.
Below the cryptocurrency exchanges which will give you the best result in acquiring XTZ instantly. The list below will be covered in more detail later on in this guide.
The general process of crypto at any exchange
One of the most famous properties of cryptocurrency is that it isn’t tied to physical borders. Also, it’s very easy for anyone in the world to buy a cryptocurrency like Tezos. Nowadays, buying Tezos instantly can be done with only one limit and that is a working internet connection!
How to do this properly?
The process of buying crypto at a regular exchanges could vary, but the basic principles of buying remains the same:
- Register at an exchange which sells Tezos(*See list above*)
- Complete KYC/AML checks if any
- Chose the preferred method for a deposit(Wire transfer/credit card)
- Make the deposit in any currency(USD/EUR/GBP etc)
- Buy XTZ tokens with these funds
This guide discusses the best exchanges to buy Tezos and is aimed at investors who are relatively new to cryptocurrency.
Where to buy Tezos : Best Cryptocurrency Exchanges
Coinbase is a USA-based cryptocurrency exchange. Based on daily trading volumes it’s one of the biggest and most popular exchanges in the world. They also support the instant purchase of Tezos via Visa/MasterCard credit and debit card.
To purchase Tezos(XTZ) with a credit card, your card should support ‘3D Secure’. To find out if your card supports this, you can just try adding your card to Coinbase and it will give you an error if it doesn’t.
Furthermore, you can buy Tezos at this exchange, provided that they serve your country. At present, they serve more than 100 countries, but unfortunately, not all countries are able to buy and sell.
You can check if their service is available in your country here.
How to acquire XTZ on Coinbase?
Steps to add credit card to Coinbase
- Register at Coinbase
- Complete ID verification with photo
- Go to the payment methods page.
- Click on +Add Payment Method on the right-hand side.
- Choose Card and add the credit/debit card.
- Accept and allow Coinbase to make two small transactions.
- Coinbase will make two very small test transactions between 1.01 and 1.99 in your local currency. Log in to your card statement account and note the amount of those transactions.
- Enter the amounts transacted in the Coinbase app / website
You should now see a window that says “Credit/Debit Card Added” and a Buy Digital Currency button.
Next in the procedure of buying XTZ on Coinbase is submitting a buy order on their platform. To buy XTZ on Coinbase you have the following trading pairs available:
Where to buy Tezos: Binance
Binance is founded by Changpeng Zhao and is a well-known blockchain industry expert and expert in setting up trading systems. In the past, he also founded BijieTech and was head of development at Blockchain.info. Furthermore, Binance can be considered as the best altcoin trading platform, if you consider the trading volume and the number of coins listed on the exchange.
Binance which is originally a company from China, recently moved it’s headquarters to Malta because the China government banned cryptocurrency trading. Despite this ban, this crypto platform managed to grow to the biggest altcoin trading platform as it is today.
US residents on Binance
If you are a USA resident, then I have to warn you. Recently, the main trading platform at Binance didn’t allow US residents at their platform anymore. This due to regulations by USA government. But don’t worry too much about that, within no time the trading company opened doors to Binance.us.
Trading at this domain is allowed for US customers because it meets US regulations and compliance standards based on its Digital Asset Risk Assessment Framework.
Trading pairs available for Tezos
For buying and trading the XTZ cryptocurrency the following trading pairs are available:
Where to purchase Tezos: Bitfinex
BitFinex has been around for many years in the cryptocurrency space and is one of the exchanges with the highest daily trading volumes. To start trading at this exchange you have to sign up and go to a regular KYC/AML procedure first.
This online trading company is based in Hong Kong and has been operational since 2014. It gives its users the option to trade more than 100 cryptocurrencies/pairs in exchange for USD, EUR, ETH or BTC. Depositing EURO or USD to this is exchange is currently only available by wire transfer.
Trading on Bitfinex
Bitfinex offers a very liquid order book and this makes it a very reliable exchange. Furthermore, it allows users to easily exchange Bitcoin, Ethereum, EOS, Litecoin, XTZ and many other digital assets with minimal slippage. Bitfinex also boasts a suite of order types to help traders take advantage of every situation.
Following are the supported pairs on Bitfinex exchange for XTZ:
Where to buy Tezos: Bitpanda
Bitpanda GmbH (formerly known as Coinimal) is a fin-tech company based in Vienna, Austria specializes in selling and buying Bitcoins and other cryptocurrencies. It has quickly grown to become Europe’s leading retail broker for cryptocurrencies. With over 900K users the company has recently expanded its services to allow users to invest in precious metals (gold, silver) as well.
The company was founded in late 2014 and has since grown to become one of the more popular options to purchase Bitcoins around Europe. Moreover, if you live inside the EU it’s one of the cheapest ways to buy Bitcoin with a credit card or SEPA transfer.
How to buy Tezos on Bitpanda
Like any other cryptocurrency exchange, you have to undergo the sign-up process first which is pretty straightforward. After this, it’s time to buy XTZ token. In short, the steps to purchase Tezos on Bitpanda:
- Choose Dashboard
- Click ‘Trade’ – button in upper right
- Choose XTZ token
- Give payment method(Credit card or Bitcoin)
Where to acquire Tezos: Kucoin
Compared with the crypto exchanges above, Kucoin is probably a modern platform for trading any cryptocurrency. In addition, this platform was founded by a group of cryptocurrency enthusiasts from Asia aiming to offer comfort and security of your mighty assets. Besides, Kucoin which was launched in May 2017, has its headquarters in China despite the difficult climate towards cryptocurrencies performed by the local government.
This difficult climate towards cryptocurrency exchanges doesn’t affect the business model of KuCoin much because they’re aiming at foreign markets. Back in 2013, the founders started with setting up the foundation by making a technical implementation of the trading platform.
KuCoin a modern trading platform since 2017
Later on, in 2017, the founders finished this work and made the platform available for the public. As of writing the platform ranks at position 70 on the list of exchanges which is based on trading volume for the past 24 hours.
One of the remarkable policies this online trading platform has is its liberal sign up policy for new users. As a result, signing up at this platform can be done with just e-mail and mobile phone which speeds up the process of buying Tezos instantly.
Trading pairs available for Tezos
What pairs of XTZ has this cryptocurrency exchange to offer? Check the pairs below:
Buying crypto like Tezos has become easier these days if you compare it with trading cryptocurrency a few years back. Furthermore, it totally depends on you what your intentions are with this newly purchased crypto. By showing you the general way to buy crypto, I hope I have given you a clear view of what Tezos is all about and what the best places are to buy this cryptocurrency.
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