What is Tezos (XTZ)?
Tezos is a smart contract blockchain network that competes against the likes of Ethereum, Solana, and Cardano, among other notable decentralized networks. It thus can host decentralized apps (dApps), Defi apps, non-fungible tokens (NFTs), NFT platforms, and several other blockchain-based applications. In its whitepaper, Tezos is described as “a self-amending crypto-ledger,” which, in that context, means that the community of stakeholders comes together to propose, vote on, and oversee the implementation of network upgrades. The idea behind the self-amending ledger is to avoid a contentious hard fork that could potentially lead to a network split, something that has been witnessed multiple times with other major blockchains. At the core of the Tezos ecosystem is its native token called “Tez” or “tezzie.” On exchanges, the token uses the ticker symbol XTZ stylized as ꜩ (“Latin small letter tz.”) XTZ is both a utility and governance token. As in the former, it can be used value transfer across the network, while in the latter case, it can be used by token holders as a means to contribute toward the governance and maintenance of the project. Launched in 2018, Tezos uses a slightly-tweaked Proof of Stake (PoS) consensus mechanism called Liquid PoS (LPoS). With PoS, transaction validators are required to prove that they are economically invested in a network to be able to verify transactions and create blocks (referred to as ‘baking’ within the Tezos whitepaper.) With Tezos’ LPoS, while validators/bakers still need to have a stake in the network to verify transactions, these tokens are not locked. Owners have the option of reassigning them between various delegates. Additionally, the network has a low entry barrier to becoming a validator/baker, thereby ensuring that it attracts a diverse set of network participants.
Why invest in Tezos?
To an investor, the XTZ cryptocurrency has several uses that make it valuable. These include:
Currency – XTZ tokens can be used as a payment method for goods and services or digital currency; Staking – there are a couple of levels on which a Tezos investor can participate in regards to staking: either as an active or passive validator. An active validator will stake their tokens to verifying transactions, while a passive contributor will delegate their tokens to an active validator and get a share of the rewards from block generation and transaction verification; Governance – only XTZ token holders are permitted to participate in the governance of the Tezos network allowing them to make improvement proposals, vote, and promote them to ensure their adoption; Speculation – due to cryptocurrency’s volatility, the market presents a huge profit opportunity for speculators seeking to profit off the price movement. Tezos has seen immense price appreciation since its 2017 ICO, but given that the whole market is growing, there could be room for further growth, which is appealing to both long and short-term investors.
Where to buy Tezos (XTZ)
Currently, Tezos is ranked among the fifty-most valuable cryptocurrency asses by market capitalization at ~$2.9 Billion. More than 880 Million XTZ tokens are circulating across multiple digital currency exchanges. If you are looking to invest in XTZ, there are several options split into two broad categories: A CEX platform is an exchange operated by a single individual or entity such as a company, while a DEX is a platform being operated by a diverse group, community, or autonomously based on preset rules and protocols. A majority of the options in the market are centralized, but that does not necessarily, mean that they are better than DEXes.
As an investor, you have to consider multiple subjective factors to decide which is better for you. Some of these factors are: Accessibility – refers to whether or not you are able to access the platform from your geographical location; Regulations – consider whether the exchange is compliant with relevant rules and regulations (applies to centralized exchanges); Security – this is one of the more important factors to consider, especially when it comes to safeguarding your assets. Ensure that the exchange you’re considering has taken all the essential steps to protect its users; Insurance – this factor is increasingly becoming more common-place whereby most companies operating crypto exchanges have realized that even with the best security systems, they cannot guarantee the safety of their assets. Therefore, they have resorted to insuring their user deposits; Transaction cost – different platforms will typically charge varying fees for their services; Features – depending on your investment goals, you might want to consider what features various exchanges offer to choose which is more suited to your situation.
Note: For this tutorial, we have opted to use the fully regulated and highly secure Uphold exchange for its ease of use and multi-asset support. With the platform, you can buy, sell, and trade between various national currencies, precious metals, US-based stocks, and cryptocurrencies, including Tezos’ XTZ. The following section is a comprehensive step-by-step process for buying Tezos (XTZ) on the Uphold platform.
How to buy Tezos on Uphold (step-by-step)
Create an account.
If you are to use Uphold, you need a fully verified account. The first step would be to sign up for one. To do that, visit Uphold.com and click on the Signup button on the top right of the home page. As a regulated brokerage platform that adheres to KYC and AML regulations, you will need to provide identifying information, including email address, phone number, location, and word details (check our Uphold KYC guide). We have a comprehensive section focusing on how to create an Uphold account within our Uphold review. Do check that out for further details.
Log in to Uphold.
Access your Uphold account by logging in using the email address and password you used when signing up. Visit wallet.uphold.com for the login page.
The Uphold User Interface.
When you successfully log in, you will notice three columns. The first one has information about your recent trades and a watchlist. The middle column will display an overview of your portfolio and its performance over the previous day, week, month, and year. The last column with the label ‘Anything to Anything’ is the transaction column, and that’s where we will focus. It’s just a simple transaction form with three tabs.
Transact – this tab will enable you to buy Tezos on the spot with immediate execution; Repeat – with this tab, you can set up a recurring purchase for Tezos; Limit – a limit order allows you to buy Tezos at a specific price.
Below, we will highlight how each tab is used when buying any supported asset, including digital assets such as XTZ.
1. How to Buy Tezos (XTZ) Instantly on Uphold
Step 1 – Select the [Transact] tab.
Ensure that the [Transact] tab is selected as shown below. Below that there is a simple transaction form with three fields. In the first field, labeled [From], you will provide a payment method. This could be a debit card, bank transfer, or you can opt to convert an asset within your portfolio. The second field with a double ellipsis symbol serves as a value converter between the asset and a fiat currency of choice. Finally, the last field represents the asset that you wish to receive after the payment or trade has concluded. It’s labeled [To].
Step 2 – Add a payment method.
To add a payment method, click on the [From] tab. Scroll down to the section on banks and debit cards. Here you’ll have the option to add a bank account or link a debit card to your Uphold account. Click on the [+] symbol corresponding to the payment method of choice. If you prefer to add a debit card, you will be provided with a form to fill in your card details, as shown here. Click [Add card] to revert to the home page. If you prefer to make a bank transfer, choose between linking your bank account or making a wire transfer. Next, select the default currency for your back account. Only three are supported so far. Whichever currency you choose, you will be provided with its corresponding bank account details. Use these details to make your funds transfer. Click [Done] to close this window and revert back to the home screen.
Step 3 – Specify which asset to receive.
Click anywhere within the [To] form field to display a list of all the assets available on Uphold. To easily locate Tezos (XTZ), use the search box. Alternatively, you can select the [Cryptocurrencies] tab below the search box to filter out the assets, then scroll down and locate XTZ. When you do, click on it. This will revert to the main screen, where you can then proceed to input the amounts of either XTZ you want to purchase or an equivalent in fiat money that you want to spend.
Step 4 – Confirm the transaction.
At the bottom of the transaction form is the [Preview] link. Click on it to load the confirmation screen where you can check to ensure that you have opted to use the right payment method, filled in the correct amounts, and you can check to see the selling/trading price of XTZ as offered by Uphold. Confirm the transaction to conclude the process. Note: Wire transfers take a few (business) days to settle, therefore if you opt to use this payment method, your XTZ will only reflect once the funds sent have been received in the Uphold bank account.
2. How to Setup a Recurring Buy for Tezos (XTZ) on Uphold
Step 1 – Select the [Repeat] tab.
From the home screen, select the middle tab labeled [Repeat] to reveal additional tools to set up a recurring trade. Below the actual transaction form is an extra panel that will enable you to specify how frequently you want your order to repeat, and when it should start and end. Additionally, you can also provide a custom label for the order.
Step 2 – Activate the repeat feature.
Click on the [Repeats] tab highlighted in the image above. This action will reveal the three available options supported by Uphold. You can choose to have your repeat order executed daily, weekly, or monthly.
Step 3 – Specify start and end dates.
Click on the [Starts] tab to open a calendar view from which you can select when the first order will be executed. Expectedly, the first order will be executed immediately when you finish setting it up but you can schedule it to begin at a later date and time. You also need to specify when the last order will be processed. You can do this by choosing the last date or providing the number of occurrences of repeat purchases. Click on the [Ends] tab to open the calendar view again and choose a preferable date. Alternatively, switch to the [Occurrences] tab within the calendar view and specify the number of times to repeat the order. Once done, click on [Set] to revert back to the initial page. Proceed to fill in the rest of the transaction form as you would a typical spot transaction as detailed in the previous section. Click [Preview] then confirm the trade. Note: The Repeat Buy feature can only be used in conjunction with a debit card payment method. Ensure that you have funds in your card for subsequent trades at the moment of execution.
3. How to Buy Tezos (XTZ) Using a Limit Order on Uphold
The last method to buy Tezos on Uphold is to use a limit order whereby you have the option of determining the price you are willing to make the purchase. Here’s how to set that up.
Step 1 – Select [Limit] tab.
Click on the last tab labeled [Limit] to reveal a slightly different transaction form to the one we have been interacting with from the initial two methods described before. Notice the change in the second field which now has a green chain link symbol as opposed to the previous gray double ellipsis. This change is significant because for you to specify the exact price to buy XTZ tokens, you will have to link the spending amount to the number of tokens. Therefore as usual provide a payment method (use a debit card) then click on the downward-facing arrows between the second and third form fields. This way you will link the middle field to the bottom one. Enter the amount of money to spend within the second form field and choose which asset to buy using the third field. Also, provide the exact number of tokens to purchase using the same field.
Step 2 – Choose the validity of the limit order.
There is always the possibility that the market price does not drop or rise to the desired execution price. Therefore, Uphold offers a setting whereby the user can specify how long they wish to let their order be valid. The three options available are manual, or automatic cancelation at the end of the day or at a specific date. Click within the [Duration] tab to display the options. Once done with the setup, click on the [Preview] tab at the bottom to confirm the order. You will notice within the confirmation page there is a purchase rate whereby this time it is based on the figures you provided in the setup stage instead of the default rate offered by Uphold. Click [Confirm] to authorize the execution of the transaction. However, since its a limit order, its execution is dependent on the market price matching the order price and it might take time. Uphold will list it as a pending order within your transaction history.
Final thoughts
Buying Tezos is not as complicated as it might seem to a beginner. In this tutorial we have demonstrated that it only takes a few simple steps: signing up for an account with a crypto exchange, adding a payment method, and making the purchase. Once you make the purchase, remember to keep your assets safe. Check out our Crypto Wallets Guide for how to store Tezos and other digital assets. Tip: Anyone new to the cryptocurrency space may look up all of the supported crypto exchanges to buy Tezos (XTZ) and other asset-related metrics on the largest cryptocurrency market aggregator Coinmarketcap. Disclaimer: The content on this site should not be considered investment advice. Investing is speculative and digital assets are highly volatile. Your capital is at risk when investing, so only invest what you are willing to lose.
Currency – it can be used for value transfer; Staking – investors can buy and stake XTZ for passive income; Governance – XTZ is a prerequisite for community members who wish to participate in the governance of the project; Speculation – traders buy, sell and trade XTZ due to its volatility in anticipation of making a profit.
