In general, Tezos is described as “a self-amending crypto-ledger,” meaning that stakeholders come together to vote on and propose network upgrades. The purpose of the ledger is to prevent a contentious hard fork that could lead to network splitting, as has been seen multiple times with other blockchains.
Nowadays, developers can use the Tezos blockchain to create new applications, while users can stake the digital token Tez (XTZ) to vote. However, in order to be able to take advantage of both features, you will need to buy XTZ coins first.
For more information, read our post about Tezos and learn how and where to buy it.
What is Tezos?
Tezos (XTZ) is a fourth-generation blockchain network that incorporates advanced protocols that enable a variety of functionalities. The platform supports decentralized applications (DApps) and clever contract coding.
Tezos is an open source decentralized network for assets, and applications. Its community includes developers, validators, researchers, and support groups, all of which share the common goal of expanding the Tezos ecosystem.
Why buy XTZ?
The XTZ cryptocurrency is valuable to investors for its many uses. For instance, the XTZ coin is a way to pay for goods and services, or you can use it as a digital currency. When it comes to staking, there are two levels that a Tezos investor may participate in—the passive or active validator.
An active validator will stake their tokens in order to verify transactions, whereas a passive contributor will transfer their tokens and receive a portion of the rewards for block generation and transaction verification.
In addition, only XTZ token owners are allowed to participate in the governance and management of the Tezos network. This allows them to vote on improvements, make suggestions, and promote them for adoption.
The market offers a great opportunity to make a profit from the volatility of cryptocurrency. Tezos’ price has grown tremendously since its 2017 ICO. However, the market is still growing making it attractive to both short-term and long-term investors.
Where can I buy XTZ?
Tezos, with a market capitalization of $2.9 billion, is currently ranked as one of the 50 most valuable cryptocurrency assets. There are more than 880 million XTZ tokens in circulation across multiple digital currency exchanges, which are often the preferred method for people to purchase them.
Generally speaking, you have two options for investing in XTZ, either through centralized exchanges (CEX) or decentralized exchanges (DEX).
A CEX platform, for example, is an exchange managed by one person or entity, such as a company. On the other hand, a DEX is operated by a group of people, communities, or independently according to predetermined rules and protocols. Although most of the market options are centralized, that doesn’t necessarily mean they are better than DEXes.
How to buy XTZ
Here are five steps to follow to buy XTZ on any trusted global exchange:
- Open an online account using a valid email address, a unique username, and a strong password to protect your account.
- Verify your account by entering your name, date of birth, country of residence, and phone number. This will allow you to buy XTZ using cryptocurrencies, such as LTC or DASH. If you plan to use cash, you may need to provide additional supporting documents to verify your identity.
- Deposit cash into your account.
- Purchase a wallet where you can keep your investments safe.
- XTZ can be purchased like stocks, which means through limit and market orders. If you place a market order, you will buy Tezos at the market price, but if you set a limit order, your purchase will be executed only if the market price reaches your limit price.
Where to keep your XTZ
You’ll need somewhere safe to store your cryptocurrency once you have purchased XTZ.
Although exchanges can be secure, it is safer to keep your XTZ in a wallet. This wallet could be a hardware or software device that stores the private and public keys necessary to perform crypto transactions.In general, there are many types of XTZ wallets. While web and mobile wallets simplify transactions, hardware wallets offer long-term, secure storage.
To find the right crypto wallet for your XTZ wallet, it is advised that you spend some time thinking about your goals and choosing the wallet that best suits your needs.
Final thoughts
Today, Tezos has proven to have one of the most followings on the market. Therefore, it shouldn’t come as a surprise if you see it on the list of the top twenty cryptocurrencies in the years to come.In case you are interested in investing in Tezos, be sure to refer to our post and learn everything about where and how to buy XTZ coins.