The Tezos (XTZ) cryptocurrency was officially launched in September of 2018 and is based on a similar type of blockchain to that used by Ethereum, but with a couple of important differences. The Tezos platform follows a modular architecture that is designed to facilitate their self amending blockchain philosophy. It also supports on-chain governance: a style of governance that gives all stakeholders a say in any proposed changes. By adopting a modular architecture and democratic style of governance, Tezos hopes to avoid the hard forks that have plagued cryptos such as Bitcoin and Ethereum.
Despite a number of legal issues between the founders that delayed the official launch of XTZ, the Tezos network now appears to have put its problems behind it and it should finally have the chance to prove whether its novel architecture and style of governance will help to make it a real contender against established giants such as Ethereum in the future.
Where to Buy Tezos (XTZ) Coin
There are a couple of ways in which you can pay for XTZ coins and a number of online exchanges that currently offer this cryptocurrency to their customers. Below, we take a look at exactly where you can invest in the Tezos digital token.
- Buy XTZ Coin with BTC – You can set up an account with a reputable digital exchange such as Binance, purchase BTC with your credit/debit card, then use them to invest in XTZ.
- Buy XTZ with Credit/Debit Card – There is currently no direct way to purchase XTZ coins with a debit or credit card but any of the big exchanges will enable you to acquire BTC coins with your card, after which you can exchange them for XTZ coins using the spot trading facilities offered by the exchange with which you register.
- Buy XTZ with PayPal – In common with most cryptocurrencies, it is not possible to buy XTZ coins directly with PayPal at the time of writing. However, you can buy BTC with PayPal and then deposit your coins with one of the digital exchanges that offer spot trading in the XTZ/BTC pair.
Using an established exchange is the preferred method to acquire cryptocurrencies as far as most people are concerned and if you wish to follow this approach, you will need to acquire some Bitcoins and then use these to buy your XTZ coins.
Whether you already have holdings in BTC, or you would like to use your credit/debit card to purchase some before exchanging them for XTZ, the first thing you will need to do is to set up an account on a reputable digital currency exchange, a procedure which we cover in the next section. If you have holdings in ETH, you can deposit these too, but you will need to exchange them for BTC in order to buy your XTZ coins.
Best Cryptocurrency Exchange to Buy Tezos (XTZ) Token
Setting up an Account on a Crypto Exchange
The sign-up process for most cryptocurrency exchanges is quite similar but there may be some small differences between one organization and another. For our purposes, we are going to examine the registration process for Binance, which is one of the big three exchanges. One advantage of signing up with Binance is they do not make you jump through all the Know-Your-Customer requirements, which makes the whole process much simpler than it might be with other exchanges.
Registering with Binance
As we mentioned above, the registration procedure for new Binance customers is relatively simple when compared to some of the other digital exchanges you might have come across online.
- Complete the Account Creation Form– When you click on the ‘Register’ button on the Binance website, you will be taken to a simple registration form, where you will need to enter your email and a safe password. You will also have to tick the box to indicate your agreement with Binance’s terms and conditions for account holders, which you can of course read beforehand.
- Complete the CAPTCHA – The CAPTCHA consists of a very simple puzzle that you have to complete in order to prove that you are a human and not an automated program attempting to open an account. All you need to do is to drag a puzzle piece across and drop it into a corresponding hole.
- Verify Your Email – Once you successfully complete the CAPTCHA, a code will be sent to the email address that you used to register your new account and you will be taken to a new form where you should enter this code. This is simply to verify that you are in fact the owner of the email address you have provided.
- Set Up 2FA – Having entered the correct verification code, you will then be asked if you would like to set up 2-factor-authentication for your account log in. You can either choose to have an SMS sent to your phone whenever you log in from a new device or use a Google Authenticator app, which works in much the same way. If you have set up 2FA for your email accounts you will already be familiar with how this process works. You will be constantly prompted to set up 2FA as it makes your account more secure so it is best to do it straight away.
Once you have registered, you can then buy BTC coins and use these to acquire your XTZ tokens. If you already have holdings of BTC or another cryptocurrency such as ETH, you can simply deposit them into your Binance exchange account.
Verifying Your Identity on Binance Before Using a Credit or Debit Card
If you wish to purchase some BTC with a credit or debit card, you will need to verify your identity first. To do this, you must indicate whether you are an individual or an enterprise. Assuming you are an individual, you will then have to enter your name, date of birth, address and telephone number in order to begin the verification process.
The next step in the verification process will depend on what country you live in and the type of identification you hold but you will normally have to submit an image of official photographic identification, such as a passport or driver’s license. Following this, you will be asked to position your face in front of your camera so that an image capture can be taken. With this in mind, make sure you using a PC with a webcam or a mobile device with a front-facing camera when you start the identity verification process.
How To Buy Tezos (XTZ) Coin on Binance
Binance offers spot trading facilities for hundreds of crypto pairs so once you have completed the verification process and either deposited an existing holding or bought yourself some BTC coins with your debit/credit card, you can then look for the pair you need, which in this case will be XTZ/BTC. If you deposited an existing holding of ETH coins, you will need to look for the ETH/BTC pair first and then the XTZ/BTC, as there is no XTZ/ETH pair that would allow you to directly exchange ETH for XTZ.
There are a number of ways in which you can execute spot trading orders on the Binance exchange, including market and limit orders. Market orders are the simplest, as all you need to do is to decide how many coins you wish to purchase and click buy. Your order will be executed at the current market price for the pair in which you are trading (which will be XTZ/BTC in this case). With a limit order, you can choose an exchange rate you are willing to trade at and enter your order. When this exchange rate is reached, your order will be executed but there is no guarantee that it will be reached of course.
If you are not familiar with how exchanges work, the above procedure may sound a little complicated but in reality, it is just as simple as taking your USD and exchanging them for Euros, GBP or another currency.
How to Store Your XTZ Coin
It is possible to just store your coins in the wallet provided by the exchange you decide to use, but cryptocurrency professionals recommend against doing this, owing to the number of hacking incidents that have occurred in the past. For a more secure storage solution, you may wish to store your XTZ coins in a compatible web wallet, such as Tezbox or the Galleon Tezos Wallet. For an even more secure solution, you can look into hardware wallets that can be used to store XTZ: Ledger Nano S and Trezor. The advantage of a hardware wallet is that once you have set it up and transferred your crypto holdings into it via a software interface, you can unplug it from your computer and keep it offline, in a safe place.
If you would like to go ahead and acquire some XTZ coins, either as a long-term investment or with a view to actively trading them, you can find the current exchange rate for XTZ/BTC on a major exchange such as Binance. Be aware that this rate is constantly changing so you will need to check it again when you are ready to make your purchase.