Tezos is a cryptocurrency which does not rely on miners using a Proof of Work blockchain model. In contrast, Tezos implements a Proof-of-Stake model, which is a consensus algorithm. The Tezos Foundation, a non-profit organization based in Switzerland, launched the Tezos Initial Coin Offering in 2017 while raising $232 million. This is regarded as the largest ICO during what is known as the 2017 cryptocurrency boom; a time when many early cryptocurrency investors became quite wealthy.
Tezos is best known for how the governance of its blockchain is implemented. Similar to EOS, Ethereum and Tron, Tezos uses a decentralized protocol which enables all stakeholders of the blockchain to vote on governance decisions. Tezos is also notable for being a smart contract platform.
Since its launch, Tezos has been used in a variety of transaction types, including by many asset management firms and real estate companies. For example, Dalma Capital teamed up with Banco BTG Pactual S.A. to use Tezos as Security Token Offerings in their asset management operations. In another instance, Elevated Returns, a financial firm, began using Tezos for real estate transactions starting in 2019. These instances bring serious legitimacy to Tezos and its potential for mainstream use.
Once it was launched, Tezos, along with the rest of the cryptocurrency market, benefitted from the broader appreciation of the cryptocurrency markets. Like Bitcoin, the first cryptocurrency, Tezos reached a historic peak around the end of 2017. At its height, Tezos reached just above $12 per token in value.
Since its historic price peak, Tezos has come back down along with the rest of the broader cryptocurrency market. The current market capitalization for Tezos is around a total of $2 billion. Despite this decline, this also means that there is potential for future profit for those investing in Tezos at these lower prices. Let us take a look at how you can buy, sell and trade Tezos and earn real profits.
How Can I Trade in Tezos (XTZ)?
Trading Tezos can result in significant profits especially since the prices have been quite low lately. With such an advantageous entry point, the potential for profit, especially if Tezos starts heading towards its historical highs, can be tremendous. Therefore, those looking to make money in the cryptocurrency markets should strongly consider trading Tezos as a part of their investment portfolios.
There are many sources for buying Tezos in order for you to trade for real profits. You can trade Tezos through either a cryptocurrency exchange or a cryptocurrency broker. Each has its own advantages and disadvantages. Which option you choose will depend on your own personal preferences and individual financial and investment goals.
No matter what type of platform you decide to trade with, you should make sure the broker or exchange has implemented sufficient security protocols. This will ensure you have a safe trading environment and that your personal information will be secure at all times. In this way, you will be able to remain protected from being a victim of any fraudulent activities.
Whether you choose a cryptocurrency exchange or a cryptocurrency broker, you will have to first register for an account with your chosen platform. The registration process varies between each exchange and broker. However, generally speaking, cryptocurrency brokers tend to have more streamlined and more hassle-free registration processes. Registration requirements are also much simpler when it comes to partnering with a crypto broker.
Once your registration has been processed and verified, you should then have access to a new trading account. This will allow you to start trading cryptocurrencies, including Tezos, in order to earn profits. It is also important to remember that before deciding on a platform to partner with, you need to check that Tezos is one of the tradable assets allowed by that particular platform. If you are interested in trading other cryptos or assets as well, take the time to check the offering at your preferred exchange or broker before signing up.
Where Can I Buy Tezos (XTZ)?
As stated above, you can purchase Tezos from either a cryptocurrency exchange or a cryptocurrency broker. Each has its own advantages and disadvantages and it is important to ensure that the platform you choose meets your trading needs, preferences and risk appetite. Take the time to do comprehensive research on whatever type of trading platform you are looking to use in order to buy Tezos or any other cryptocurrency.
Buy Tezos From Exchanges
One option for buying Tezos is to purchase this digital asset through a cryptocurrency exchange. This type of platform facilitates the buying and selling of assets, including cryptocurrencies, directly between users. A cryptocurrency exchange can be either a centralized or decentralized exchange.
Centralized exchanges, which have been in existence well before the advent of cryptocurrencies, are operated by a single firm or organization. This firm sets the rules for trading on the exchange, which includes how much and what type of data is required for users to share. The organization governing the exchange will also set limits on withdrawals while also deciding which tradable assets are facilitated on the exchange.
Exchanges can also be decentralized which has become increasingly popular in the cryptocurrency space. Decentralized exchanges lack a single firm or organization governing the exchange. Instead of a single entity setting the rules, the rules are spelt out through the use of smart contracts. Also, since decentralized exchanges do not store user funds directly on the exchange, these types of exchanges avoid many security issues associated with centralized exchanges. However, centralized exchanges do have some advantages over decentralized ones. Usually, decentralized exchanges have less liquidity and lower trade volumes, which can result in orders not being able to be filled at preferred prices.
Since all exchanges are different and offer unique services, it is important that you thoroughly research any exchange you are looking to register with. Of course, make sure the exchange is reputable and has proper security measures in place. Also, some exchanges may not allow Tezos to be traded which would mean you would miss out on the lucrative opportunities which investing in Tezos offers.
Buy Tezos From Brokers
Some investors may prefer to buy Tezos from a broker rather than through a cryptocurrency exchange. The difference between a broker and an exchange is that a cryptocurrency broker is an entity which sets the prices for buying and selling cryptocurrencies on its trading platform. Brokers also set their own fees or make money from a margin spread (the difference between the buy and sell prices of an asset) in exchange for providing a trading platform.
Brokers are able to facilitate trades for its users by partnering with holders of large pools of cryptocurrencies. A brokerage firm will bring these buyers and sellers together which allows the brokerage firm to facilitate trades. This is how cryptocurrency brokers are able to have a liquidity advantage over the exchanges. In addition, due to the larger trade volume, brokers are generally able to settle trades much faster than exchanges. Also, with more liquidity you will have better price fills on orders. This will result in improved profit margins on trading activities.
An especially important difference between a crypto exchange and a broker is that with an exchange, you are actually buying and selling Tezos. With a broker, you are trading on Tezos CFDs (contracts for difference). That is, you are simply making a prediction regarding the direction that the price of the asset will move. This makes this form of trading cheaper, less risky and more profitable.
Another advantage cryptocurrency brokers have over exchanges is that the registration process is usually faster with a broker. Most brokers will be able to verify your registration and complete the process within 30 minutes. In contrast, most exchanges may take a few hours or days to complete the registration process. Sometimes the process can take even up to a week to finish with a cryptocurrency exchange based on the verification and identification documentation they might require.
Also, many traders find that withdrawing and depositing funds is preferable with cryptocurrency brokers compared to cryptocurrency exchanges. Part of this is due to exchanges generally charging higher fees for withdrawing and depositing capital. Also, the process to withdraw and deposit is usually more streamlined when using cryptocurrency brokers.
Now that you are well-informed on the differences between brokers and exchanges and their benefits, you are now ready to choose your platform to buy Tezos.
The Future of Tezos
With the price of XTZ near all-time lows, it is a perfect time to consider buying Tezos. Whether you choose to use a cryptocurrency exchange or a broker as your trading platform, you can be sure that Tezos will be providing serious potential for profit in the future. Also, now that the adoption of cryptocurrencies into the mainstream financial system around the globe is steadily increasing, this bodes well for demand for cryptocurrencies. Additionally, the use of Tezos for financial asset management and real estate transactions in the past provides a strong argument for future demand for XTZ in the mainstream financial systems worldwide. With increased demand will come rising prices on Tezos. This can translate into plenty of profits for those who are savvy enough to invest in Tezos now before it is too late.