Invest in Tezos – How to Invest in Tezos for Beginners
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
Although Tezos is a blockchain network that shares some similarities with Ethereum, the protocol has a more advanced infrastructure. This makes it possible for the network to improve without requiring a hard fork.
The Tezos token also grants its holders the right to vote on important issues concerning any future upgrades. If you want to understand how to invest in Tezos, this guide covers all the important aspects you need – such as the best brokers for the job and the step-by-step process of buying the token.
Table of Contents
#1 Broker to Invest in Tezos – eToro
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How to Invest in Tezos – Choose a Broker
The following brokers are the best platforms to use if you want to invest in Tezos in the US.
- eToro – Overall Best Broker to Invest in Tezos in the US
- Coinbase – User-Friendly Broker to Invest in Tezos
- Binance – Largest Exchange to Invest in Tezos
- Coinmama – Great Place to Invest in Tezos With a Debit/Credit Card
- Kraken – Credible Exchange for Investing in Tezos
We assessed these brokers based on some strict metrics to determine their credibility for investing in Tezos. Some of these parameters include regulation, cost-effectiveness, ease of use, and more. Later in this guide, you’ll find a detailed review of each of these providers.
How to Invest in Tezos (XTZ) – A Quick Guide For 2021
You might have some experience in the cryptocurrency industry and only need a quick walkthrough to get started with investing in Tezos. Here, we have provided just that, as we simply highlight the key steps to invest in Tezos from the comfort of your home.
- Step 1: Create an Account with eToro – You can complete this in minutes by simply heading over to the eToro website and signing up. You’ll provide your personal information and choose a username and password.
- Step 2: Upload a Valid ID: You’ll need to get verified before you can fully utilize eToro, since the platform is regulated by the SEC. This is referred to as the Know Your Customer (KYC) process and you simply need to upload a valid government-issued ID.
- Step 3: Make a Deposit: You’ll have to fund your account before you can proceed to invest in Tezos. Once you add the minimum deposit of $50 to your investment account, you’re good to go. For this purpose, you can use a debit/credit card, an e-wallet, or ACH.
- Step 4: Invest in Tezos: Here, you’ll find the token by inputting Tezos into the search box. Once the result tab displays the token, click the ‘Trade’ button and enter your stake. Then confirm your order and open the trade.
There you go! With these steps, you have just invested in Tezos in the US. However, if you’re a beginner, you might need a more extensive guide on this process. Therefore, we’ve prepared a full step-by-step walkthrough on how to invest in Tezos later in this guide.
Cryptoassets are highly volatile unregulated investment products. Proceed at your own risk.
Where to Buy Tezos – Full Broker Reviews
When you look to choose a broker for investing in Tezos, you must consider some important factors such as supported markets, payment methods, fee structure, and of course – regulation.
This is because there are numerous platforms in the cryptocurrency market where you can invest in Tezos, making it important to understand how to choose the right one.
To make this a seamless process for you, we have assessed the market for the best brokers that allow you to invest in Tezos
1. eToro – Overall Best Broker to Invest in Tezos in the US
Of all the brokers we reviewed, eToro stands out significantly for its impressive features that make investing in Tezos easy and safe. The first point here is that the broker is heavily regulated. Approved by both FINRA and the SEC, the broker is regularly audited and expected to operate a fair trading system. Outside the US, the broker is also regulated by the FCA in the UK, ASIC in Australia, and CySEC in Cyprus. Essentially, this indicates the broker’s credibility as a reputable place to invest in Tezos.
By implication, the broker allows you to make deposits through debit/credit cards, alongside other supported payment methods such as e-wallets and ACH. Using any of these methods, you simply need to add a minimum of $50 to your account to get started with an investment in Tezos. What’s interesting here is that you don’t pay any fees when you make a deposit, which is a rare perk in the cryptocurrency industry. For instance, Coinbase will charge you nearly 4% for rendering this same service that eToro offers for free.
Another thing we find impressive about this broker is that you can invest in Tezos from as little as $25. This makes it a suitable platform if you’re looking to start investing with small amounts until you become more familiar with the markets. This investment minimum also extends to the 30+ other cryptocurrencies listed on the broker. Therefore, if you want to diversify your Tezos investment, you can buy Bitcoin, Ethereum, XRP, Stellar, Litecoin, and more. Suppose you also want to invest in Defi tokens, numerous options are listed on the broker as well including MANA and AAVE.
Furthermore, eToro allows you to leverage the experience of other traders to invest in Tezos by simply copying their positions. This is referred to as the copy trading tool, which is a means to passively invest in cryptocurrency. Additionally, the broker provides you with charting options and tools for research through which you can know more about the Tezos market and gain insights into when to buy the token and sell accordingly. There’s also a social platform where you can interact with other investors.
Lastly, eToro shines bright in terms of its fee structure. When you invest in Tezos using eToro, you’ll be doing so on a spread-only basis, meaning you only need to make enough profit to cover the gap between the ‘ask’ and ‘bid‘ price. While on other platforms, you may find the spread starting from 1% or even over 2%, this starts at just 0.75% on eToro. When you consider this alongside the other features we have discussed, you’ll realize while eToro ranks high on the list of best places to invest in Tezos.
Pros
- Invest in cryptocurrencies on a spread-only basis
- Minimum investment per trade from just $25
- Supports debit/credit cards, online banking, and local bank transfers
- Regulated by the SEC, FCA, CySEC, and ASIC
- Minimum deposit of $50 and no transaction fees for US citizens
- Used by over 20 million people
- Perfect for beginners
- Social and copy trading tools
Cons
- Perhaps too basic for technical traders
- No support for MT4 or MT5
Cryptoassets are highly volatile unregulated investment products. Proceed at your own risk.
2. Coinbase – User-friendly Broker to Invest in Tezos
From our research, we realized that investors who go for Coinbase often choose the platform because of its simple user interface and friendly design. Therefore, despite the fact that the broker has a high fee structure, it has been able to attract tens of millions of users. Thus, if you have no experience in the cryptocurrency market and you want to invest in Tezos, you might want to consider Coinbase.
Furthermore, asides from Tezos, Coinbase supports numerous other markets in which you can invest. This includes Bitcoin, Augur, Algorand, Cosmos, Golem, Kyber Network, and more. Therefore, if you want to diversify your portfolio, you have a long list of tokens to choose from. For this purpose, you can use your debit/credit card to purchase the tokens in no time. However, you must note that Coinbase charges 3.99% of the transaction amount, which is quite substantial.
To avoid paying this fee, you can elect to use the wire transfer option where Coinbase won’t charge you for making a deposit. However, this payment method is slow and your funds may take days before reflecting in your account. Therefore, if you’re looking to invest in Tezos immediately, this is not your best option. Nonetheless, another impressive thing we found with Coinbase is the platform’s regard for security, as users are required to complete a two-factor authentication process to access their accounts.
Pros
- One of the most popular cryptocurrency exchanges
- More than 68 million users
- Supports instant debit card purchases
- Dozens of digital currencies to choose from
- Institutional-grade security practices
Cons
- Debit card deposits are expensive at 3.99%
- You will pay a standard trading commission of 1.49%
at eToro, #1 Broker in the US
Cryptoassets are highly volatile unregulated investment products. Proceed at your own risk.
3. Binance – Largest Exchange to Invest in Tezos
Asides from being the largest cryptocurrency exchange (based on trading volume), Binance is also one of the few providers with a US-dedicated version of its platform. The Binance US platform offers you access to over 50 markets in which you can invest. This includes Tezos, Bitcoin, Solana, Ethereum, Cardano, and more. This is why we argue that the exchange is the best place to invest in Tezos if you want asset diversity.
Binance has established its position in the market as an exchange with high execution speeds. Meaning, if you want to invest in Tezos, you can do that in a seamless and swift manner. You can get started on the platform by opening your account, validating your identity, and proceeding to invest in Tezos. Although using a debit/credit card is the fastest means to add funds to your account, you’ll be charged a fee of 0.5%.
Notably, when it comes to ease of use, Binance is not the best. Even for the basic platform, a beginner might find it challenging to navigate their way when buying Tezos. Nonetheless, If you’re not bothered about the user-friendliness of a platform, Binance is a great option for you to invest in Tezos, not least because the platform allows you to stake your tokens and earn interest on them accordingly.
Pros
- Facilitates billions of dollars in daily trading volume
- Supports hundreds of digital asset pairs
- Near-instant deposits via debit/credit card
- Trading commission starts at just 0.1% per slide
- Offers crypto savings accounts
- Ideal for both beginners and experienced traders alike
Cons
- Not all supported cryptocurrencies can be purchased with a debit/credit card
- No e-wallet deposits or withdrawals
at eToro, #1 Broker in the US
Cryptoassets are highly volatile unregulated investment products. Proceed at your own risk.
4. Coinmama – Great Place to Invest in Tezos
Another broker we assessed based on our metrics is Coinmama. One of the significant perks of the platform is its ease of use. If you’re just getting started in the cryptocurrency space and need a simple broker to invest in Tezos, Coinmama will be on this list based on its user-friendliness. However, upon further evaluation, things get a bit murky with this broker.
The first thing we realized is that the broker doesn’t have an in-built wallet for you to store your tokens. This means you have to input a wallet address where the broker will transfer your tokens after making a purchase. This process can be a bit challenging for first-timers who want to invest in Tezos in the simplest way possible. Additionally, if you’re not trading large volumes, you’ll be paying an average commission of 5% when you buy Tezos.
In addition to this, there’s a 5% fee on debit/credit card payments and you’re charged 3.90% when selling your tokens. When you consider all these fees and commissions, it becomes clear that Coinmama is an expensive broker. This is a feature that will affect the returns you get to make from your Tezos investment since you’ll be paying a lot in fees. Therefore, although the broker is a popular option for investing in Tezos, its high fee structure can be discouraging.
Pros
- Easy to use platform
- Buy crypto directly with a debit or credit card
- KYC process is fairly simple
- Plenty of supported digital tokens
- Good reputation
Cons
- Super expensive fees
- Forced to withdraw crypto to a private wallet
at eToro, #1 Broker in the US
Cryptoassets are highly volatile unregulated investment products. Proceed at your own risk.
5. Kraken – Credible Exchange for Investing in Tezos
If you want to take your investment experience a step further, Kraken is one of the brokers to consider for that purpose. Specifically for investors in the US, Kraken offers you access to margin trading, which is a form of investment where you fund your purchases by borrowing money using your existing asset as collateral. Although American investors use this feature to target larger gains in the cryptocurrency market, it can also lead to huge losses.
Additionally, another reason that makes Kraken stand out is the broker’s commitment to security. Since its launch, Kraken has not recorded any hacking encounters, a feat which even Binance cannot lay claims to. Asides from keeping 95% of tokens in cold wallets, the broker’s servers are also constantly under surveillance and all sensitive user information is securely stored. Moreover, the broker regularly conducts vulnerability testing to assess its system.
However, the first major drawback with this platform is the absence of an in-built wallet. This means that when you buy Tezos, you’d have to move your tokens to an external wallet. This transfer process makes your tokens susceptible to remote attacks. Additionally, if your 30-day trading volume is above $50,000, you’ll be paying a commission of 0.26% per slide. Nonetheless, the broker supports a wide range of markets in which you can invest.
Pros
- Popular cryptocurrency exchange and broker
- Great selection of cryptocurrencies
- Supports both crypto-cross and fiat-to-crypto pairs
- Accepts debit/credit cards and bank transfers
- Offers complex crypto instruments for experienced traders
Cons
- Not all US states are supported
- Fees are somewhat pricey
at eToro, #1 Broker in the US
Cryptoassets are highly volatile unregulated investment products. Proceed at your own risk.
How to Invest in Tezos – Detailed & Explained in Full
Earlier on, we provided you with a quick walkthrough on how to invest in Tezos in the US. Now, we will explain the steps in detail.
When you’re investing in Tezos using a cost-effective broker like eToro, you can start buying the token from just $25. If you follow the steps provided below, you can complete the process in under ten minutes.
Step 1: Create an Investment Account
The first step is to visit eToro’s website and create an account to invest in Tezos. You can get this done by providing some personal details such as your full name, social security number, home address, and more.
During this process, eToro will also ask you questions about your investment experience to understand the right trading services you need. You’ll also be sent a PIN via the phone number you provide. Enter this pin into the relevant box on your screen to complete the registration process.
Cryptoassets are highly volatile unregulated investment products. Proceed at your own risk.
Step 2: Upload a Valid ID
You won’t be able to access all the features on eToro until you verify your identity. Therefore, to remove the restrictions on your account, you’ll have to provide a valid ID such as a passport or a driver’s license.
Additionally, you’ll also need to upload a document that contains your home address. This can be a bank statement or utility bill. Once you complete this process, you’ll be able to use your debit/credit card, meaning you can make payments in US dollars.
Step 3: Make a Deposit into Your Account
No Tezos investment can be completed if you haven’t funded your account. As a US investor, you simply need to make the minimum deposit of $50, which can be done through your debit/credit card. Alternatively, you can use ACH or online banking.
Once you decide on the payment method to use, you can proceed to add funds to your account without incurring any deposit fees. This is a feature that makes eToro stand out among other brokers. For instance, Coinbase will charge you nearly 4% for adding funds through your debit/credit card.
Step 4: Search for Tezos
Now that your account is funded, enter ‘Tezos’ into the search box to locate the token. The system will display different results. Since your goal is to invest in the token, the right option for you will be ‘XTZ’.
Once you see that option, click to trade it and that will take you to the final step of the investment process.
Step 5: Invest in Tezos
As we have stated earlier, eToro has a friendly user interface, so you have nothing to worry about as a beginner. Once you get to the order page, you simply need to enter the amount you wish to invest into the relevant box.
Although the minimum you can enter is $25, you can easily adjust the amount if you wish to invest more.
Once you enter your stake, the next thing is to open your trade. Then, you’d have successfully invested in Tezos in the US using eToro!
How to Sell Tezos
You can choose to invest as much as you desire in Tezos. For instance, instead of the $25 minimum on eToro, you can choose to invest hundreds of dollars.
Thus, if the market moves in your favor, you’d have made some decent returns on your investment. Suppose you invested $1,000 in Tezos and the token’s price increased by 20%, your portfolio would now be worth $1,200.
However, if you want to secure your profit after this price increase, you have to understand how to sell the tokens. Interestingly, you can do this in a few seconds when using eToro:
- Visit your account on eToro once you’re ready to sell the tokens.
- Click on the ‘Sell’ button to initiate the process.
- After confirming the order, the broker will sell your Tezos tokens. If you use a market order, your sale will be executed at the next market price.
- Following that, your cash balance will be updated accordingly.
Once your money is available in your account, you can withdraw the funds to your preferred payment method.
Ways to Invest in Tezos
As you can imagine, it is not enough to know how to invest in Tezos in the US, as you must also understand the ways to go about it. Here, you have different options from which you can choose the one you find most suitable.
However, one essential feature you should always consider when choosing a platform is security. Therefore, whether you choose a broker or a cryptocurrency exchange should be based on how safe the platform makes it to invest in Tezos.
Invest in Tezos Using an Online Broker
An easy pick in this regard is eToro, not least because the platform is regulated by the SEC and appropriately registered with FINRA.
- Therefore, it’s safe to invest in Tezos using a broker like eToro since the platform has the approval of leading financial bodies.
- Since eToro is SEC-regulated, this means that you can make payments with US dollars.
- Additionally, as a regulated broker, eToro is mandated to be completely transparent and have no hidden fees.
Investing with a regulated broker like eToro means you can also sell your tokens directly since the platform offers you an in-built wallet for storing your coins. Essentially, it’s not only secure to invest in Tezos using such a broker, but also safe.
Invest in Tezos Using a Cryptocurrency Exchange
On the other hand, some investors are a fan of cryptocurrency exchanges. In most cases, this is because some of these exchanges offer significantly low commissions. Additionally, these platforms allow you to invest in Tezos without revealing your identity, which some investors consider a perk.
However, the anonymity status offered by cryptocurrency exchanges comes at the expense of regulatory compliance. An unregulated exchange is unpredictable and users cannot fully understand the platform’s scope of operations.
This means that there’s nothing stopping the exchange from engaging in activities that might compromise your funds. More importantly, as a beginner, your fastest and easiest option to add funds to your account is a debit/credit card.
But with an unregulated cryptocurrency exchange, you’ll not have access to this payment option since the platform isn’t licensed to do so.
Should I Invest in Tezos?
When you’re yet to enter the cryptocurrency industry, you might assume that the space allows you to make money easily.
But when you start investing in digital tokens, you will realize that’s not the case. In most instances, you’d find yourself contemplating whether to buy a token or not since you’re unsure of how it will perform in the market.
Therefore, if you’re looking to invest in Tezos and you find yourself in this situation, the next thing to do is to perform research. We intend to make this phase convenient for you, so we’ll discuss some features you might want to consider before investing in Tezos.
Tezos Uses a Bilingual Approach
Tezos leverages both functional and imperative languages. Concerning functional languages, they are designed for mathematical reasoning. Imperative languages, on the other hand, are fundamental to smart contract programming and enhanced flexibility.
Combining the two languages, Tezos is able to ensure the security of its smart contracts. The protocol also uses Michelson to solidify its smart contracts coding, improving the network’s transaction speeds.
Consequently, Tezos can execute nearly 1,000 transactions within a second. Subject to voting, this number can increase in the future. Essentially, this is an impressive feature that might create more attention around the token.
Liquid Proof-of-Stake (LPoS)
This is an updated version of the Delegated Proof-of-Stake system. Here, the community holds the right to determine the delegated node.
- These nodes are responsible for validating transactions on the blockchain.
- LPoS has recorded significant success with Tezos, as the network has over 13,000 delegators and 450 validators.
- What this means is that Tezos ranks high among the most decentralized blockchains in the industry.
Therefore, if you’re passionate about a protocol’s commitment to decentralization, you might want to consider Tezos, as the network appears to be well-established in this regard.
Community Governance
Another perk of Tezos is the network’s regard for the community. Token holders can become more involved in the network by staking their coins.
- When you stake up to 8,000 XTZ, you can contribute toward deciding on the protocol’s future.
- Bakers get to vote on proposed changes to the network.
- This voting process takes place in four steps and lasts for about 23 days, during which the proposals that get the majority of support are chosen to be implemented.
- Community governance is a significant feature when considering whether to invest in a token.
Therefore, if you find Tezos’s community approach impressive, you might want to consider reading more about the token in this regard.
Notable Announcements
The media attention a token enjoys in the market might be an important factor to consider when contemplating whether to invest in the project. In 2020, Societe Generale, a large French bank, announced its plan to experiment with its digital currency using the Tezos blockchain.
Additionally, Tezos has received support concerning its staking feature from leading exchanges such as Coinbase and Binance. This form of support also has the potential to impact the coin’s value in the market.
Low Entry Point
As of the time of writing in September 2021, the price of Tezos is at just over $6. Unlike leading tokens such as Bitcoin, Tezos has a relatively low price.
Meaning, even if you only invest a couple of hundred dollars, you’ll get many tokens. In fact, even if you invest eToro’s minimum of $25, you’d still get about 4 Tezos tokens.
What are the Risks of Investing in Tezos?
A fundamental feature of the cryptocurrency industry is the risk that comes with investing in tokens. When you’re investing in Tezos in the US, you must consider some risks before going ahead with your purchase.
This will inform your decision and ensure you look for ways to invest in Tezos safely. Here are some of the risks to consider.
Stiff Competition
The cryptocurrency market in which Tezos operates is huge. With over 11,000 cryptocurrencies, the competition is stiff and if Tezos doesn’t create projects that can impact the token’s value, it might not witness significant growth.
Therefore, you might want to consider how much is being done by the network to grow the token.
Volatility
An inherent risk in the cryptocurrency market is volatility. This means that Tezos might witness a price increase or decrease at any point in time.
Therefore, if you invest in the token and the price drops a few days after, you must understand that this is the nature of the market. Essentially, it’s important to prepare for wild market movements.
Unregulated Exchanges
As we have emphasized in this How to Invest in Tezos Guide, a regulated broker is your best option to buy the token. If you use an unregulated exchange, you enjoy no protection over your funds.
Additionally, the problem compounds if the platform doesn’t have an in-built wallet and you have to transfer your tokens to an external storage option.
This might lead to a compromise of your tokens. Therefore, choosing a regulated and trusted broker like eToro helps you avoid these challenges.
How to Manage Your Risks
Concerning the risks discussed above, there are some strategies you can leverage to hedge them.
- Examine the markets before making an investment. This will help you understand how Tezos has performed in the market since its launch.
- Based on that, you can make an informed buying decision.
- Consider investing small amounts on a regular basis. This helps you to manage the volatility in the market.
You can also diversify your Tezos investment to manage your risks. With a broker like eToro, you have over 30 other crypto markets in which you can invest. By choosing a regulated broker, you’ll enjoy protection over your funds.
How Much Does it Cost to Invest in Tezos?
There is no standard cost to be incurred when buying crypto. Meaning, the total cost you’ll incur depends on the broker or exchange you choose for investing in Tezos in the US.
- For a cost-effective investment, choose a broker like eToro where you’ll be buying Tezos on a spread-only basis.
- Additionally, while you might incur a commission of up to 5% when you use debit/credit cards on other platforms, eToro will allow you to do the same without paying any fee.
- Furthermore, eToro’s minimum spread is 0.75% which is one of the tightest in the market. For instance, the spread on Coinbase can exceed 2% in some cases.
Ultimately, always carefully evaluate your broker’s fee structure before investing in Tezos, as that will determine the cost you’ll incur.
How to Invest in Tezos – Conclusion
We prepared this guide to answer all your questions concerning how to invest in Tezos in the US. We explained the steps you need to follow and the right broker for investing in Tezos in a cost-effective manner.
For all your needs during the investment process, a regulated and low-cost broker like eToro fits the bill. The broker allows you to add funds to your account for free and offers you dozens of other tokens you can buy to diversify your Tezos investment.
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