The Ultimate Guide to Trading Tezos With eToro
Tezos is an open-source, decentralized fourth-generation blockchain network used to deploy smart contracts and a platform for executing peer-to-peer transactions. It has its own digital current called the Tez or Tezzie (XTZ).
Unlike Bitcoin, the Tez cannot be mined. However, rewards are given for those who joins the network's proof-of-stake compromise mechanism.
But just like Bitcoin, this cryptoasset can also be traded via the eToro online investment platform.
Thinking of trading XTZ with eToro?
If you're considering of investing on this cryptocurrency right now then you better click on the button below to get started. This will take you to the eToro Tezos investment platform and if you decide to continue trading, simply open an account with them but don't worry, this will only take a few minutes.
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78% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
History of Tezos
Tezos was conceptualized by Arthur Breitman, an engineer at Waymo—a technology company and subsidiary of Alphabet Inc. is—in 2014 when he released the Tezos white paper.
In August 2015, Tezos was funded by a company founded by Breitman, the Dynamic Ledger Solutions. By 2017, Tezos Foundation raised a fund totaling $232 million to become one of the biggest Initial Coin Offering (ICO) of the 2017 digital currency boom.
Understanding Tezos (XTZ)
As a decentralized ledger taking advantage of the blockchain technology, Tezos operates in a manner more similar to Ethereum and Bitcoin. Compared to Ethereum again, Tezos is designed for smart contracts—thus the name "Tezos" which according to the developers pertains to "smart-contract" in ancient Greek.
The upside of Tezos is that it not only follows the smart-contract concept, it also allows users to have a direct control of the network's rules.
According to its developers, Tezos "takes a fundamentally different approach by creating governance rules for stakeholders to approve of protocol upgrades that are then automatically deployed on the network".
This process hands out incentives to users who participates in the development and confirmation system thus democratizing the expansion and decentralizes upkeep. The Tezos network eco-system heavily relies on Ocaml blockchain programing and Michelson for smart contracts code to assure that its smart contracts system is safe and functions robustly.
But wait, what is Michelson?
Michelson is a unique programming and domain-specific language perfect for writing smart contracts. It was invented by the programmers of the Tezos development team tasked to create a blockchain process known as "formal verification".
Tezos uses a unique system that modifies the traditional proof-of-stake (PoS) with a newer version called the liquid-proof-of-stake (LPoS) consensus mechanism. This works by "baking" XTZ. To become a "baker", one node is required to bake 8,000 Tezos (XTZ) tokens.
In Tezos, it is the 'bakers' instead of Bitcoin 'miners' that plays a key role in managing its blockchain network. It is the Bakers who votes on code changes submitted by developers.
Tezos in a Nutshell
Concept: Smart contracts -> Governance -> Verification
Consensus: Delegrated proof of stake / liquid proof of stake
Native Currency: Tezzies (XTZ)
Release Date: End of 2017
Other Uses of Tezos: Aside from using Tezos as a 'stalking currency' via its "baker" concept, one can also use Tezos as an investment tool using trading platform such as eToro and as form of payment like with other cryptocurrencies and physical currencies.
Where to Buy Tezos (XTZ)
You can buy Tezos at the leading cryptocurrency exchange such as Binance, the Kraken Exchange and Huobi. However, you can also buy a Tezzie from trusted trading platforms such as eToro.
How to Trade Tezos on eToro?
- On your eToro dashboard, click “Trade Markets”.
- Select “Crypto”.
- Scroll down to look for “XTZ”.
- Click “Buy” and set the amount you want to invest.
- Click “Open Trade”.
How to Store Tezos (XTZ)
Like with other cryptocurrencies, you can store Tezos on mobile wallets and hardware wallets.
Hardware wallet is a better choice if you are planning to hold on to your digital currency for a long time. Hardware wallets keep crypto coins and stores it offline away from the threats of hackers. The Ledger Nano S and the Ledger Nano X are two of the most popular hardware wallets for cryptocurrency.
Another way of keeping your Tezos is by keeping it available to trade at any time on a trading platform like the eToro. Tezos has released its own wallet for XTZ. These are the Galleon (for desktop), TezBox (Desktop and Android).
Future of Tezos
Tezos just recently released a betanet where it conducts a bug bounty program aimed at speeding up the network process and also to find and solve technical problems.
The Tezos Foundation has also announced research grants and partnerships with several world-renowned organizations and institutions such as the Cornell University, Cryptium Labs, INRIA and France-IOI.
Got your eyes on XTZ now?
If you are, you can just click the button below and this will take you to eToro's online trading platform for Tezos. Take note that this is the live platform but if you would like to explore or use it, you will have to open an account by clicking the "Sign up" on that page.
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eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.
Copy trading is a portfolio management service, provided by eToro (Europe) Ltd., which is authorised and regulated by the Cyprus Securities and Exchange Commission.
Cryptoasset investing is unregulated in some EU countries and the UK. No consumer protection. Your capital is at risk.
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