Buy Tezos (XTZ): Analysis And Forecasts
Published: February 26, 2021 by Valentina
Two years after its launch on the market, XTZ is worth over 10 times the starting price and even if this may seem not so much in the explosive cryptocurrency market, it still demonstrates that buying Tezos can be a great investment. Let’s try to understand why in our detailed guide .
In this article, we will show that buying Tezos is not complicated, but these 3 steps are required:
- You register in a regulated CFD Broker, which is preferable to Exchanges (you will find out why later).
- Practice on the Demo account to become familiar with the platform.
- Make the minimum deposit required and start investing seriously.
By following these steps, you can invest in Tezos without paying commissions and in a safe and regulated manner.
In fact, thanks to CFD brokers such as eToro, it is possible to buy Tezos or other cryptocurrencies in total safety and avoiding the risks of Exchanges. Here are the best platforms available:
Min. Deposit: 50€
Min. Deposit: 100€
Min. Deposit: 50€
Min. Deposit: 250€
Min. Deposit: 100€
Min. Deposit: 250€
Buy Tezos: What it is and how it is born
Tezos was born from the idea of a former analyst at Morgan Stanley, Arthur Breitman, who brought XTZ to light in 2018.
It took some legal battles to solve the problems with the US Securities and Exchange Commission (SEC) and to get the recognition of the Tezos Foundation and its emerging cryptocurrency.
Tezos’ code is written with a programming language called OCaml, which has led to a platform for decentralized applications and smart contracts.
Tezos follows the line of Bitcoin and Ethereum with a blockchain and a decentralized system suitable for the smart contracts. In fact, the term “Tezos” stands for “smart contract” in ancient Greek.
But this emerging cryptocurrency goes a step further than its predecessors by allowing participants to directly control the rules of the network.
The Tezos network is constantly evolving, it is flexible and adapts. It has overcome the rigidity of BTC and the scalability of ETH reaching a new level.
Buy Tezos: How it works
The Tezos coin ticker is XTZ and is generated with a mining process called “cooking” together with the consensus of the Delegated Proof-of-Stake, which includes a sort of “witness” that verifies the generated (cooked) blocks.
To be able to generate new blocks, you must have at least 10,000 XTZ and for this activity, you get a reward for the “bakers”.
In practice, Tezos rewards the participants in the “confirmation” mechanism of transactions with new coins.
Tezos had an explosive start with a very promising ICO. Subsequently, the legal problems of XTZ and the collapse of cryptocurrencies in general slowed down its trend.
The price of Tezos more than tripled between October 2019 and February 2020 and hit record highs. Since then, the pandemic has slowed down this trend which now seems to be recovering slightly.
Is it worth buying Tezos?
In February 2020, the future of Tezos seemed already written, but as with many other cryptocurrencies, the unthinkable happened a month later and now we need a lot of caution.
Tezos proved its stamina by surviving the bear market since it probably has a structure that makes it stronger than many analysts believed. However, it is obvious that its fate depends on the value of its technological innovations and its ability to gain support from investors.
Ultimately, buying Texos is worthwhile but it is not a straight path: To successfully buy cryptocurrencies, you must always evaluate the volatility and time frame of the investment.
How to buy Tezos
After outlining how XTZ works, you need to understand how to buy Tezos safely.
There are two main methods: Exchanges and CFD Brokers. We will carefully analyze them in order to help you choose the most convenient.
- Exchanges are cryptocurrency exchange sites. They have no regulation and no external control. They do not offer deposit guarantees and unfortunately suffer frequent cyber attacks resulting in cryptocurrency theft.
- CFD Brokers, on the other hand, are authorized intermediaries, which offer excellent guarantees on the deposits made and are required to comply with a series of rules to protect investors. Furthermore, you do not really come into possession of cryptocurrencies and therefore there is no risk of theft.
Below, we have summarized the strengths and weaknesses of these two methods for investing in cryptocurrencies:
Pros > You “really” buy cryptocurriences
Cons > Commissions to be paid
> No license
> You can only invest upwards
> Serious security concerns
> Slow transactions
Pros > They are safe and licensed
> You can invest both up and down
> There are no commissions
> There is no risk of cryptocurrency theft
> Immediate transactions
Cons > You don’t “really” buy cryptocurriences
This leads us to understand that to buy Tezos the differences between Exchange and CFD Broker are considerable, namely:
- Exchanges are risky (they have suffered numerous cyber attacks), expensive (there are commissions to pay), and allow you to earn only in the event of a rise in prices (you cannot sell short).
- CFD Brokers are cheap (they don’t charge commissions), they are safe and regulated (they are licensed); and offer the opportunity to earn even when prices fall (short selling).
Buy Tezos with the best platforms
At this point, you should have a clearer idea of the methods available to buy Tezos. CFD Brokers offer a level of security that is truly unattainable for Exchanges, given the fact that the latter cannot obtain the FCA or CySEC licenses which are so precious for investors.
Moreover, we cannot overlook the fact that CFD Brokers are commission-free and therefore, once you have chosen the intermediary where to buy Tezos, you just need to:
- Buy Tezos CFDs to profit from the cryptocurrency price growth
- Sell Tezos CFDs to profit from the drop in the price of the cryptocurrency
Once the desired price has been reached, the transaction is closed and net profits can be withdrawn or reinvested, without commissions.
Thanks to the analysis carried out by OnlineTradingCourse.net on CFD brokers, it emerged that the best platforms to buy Tezos safely are those offered by eToro, ForexTB and IQ Option.
eToro: Intuitive platform for buying Tezos
eToro is the most used online broker in the world. Its over 7 million active users together with its various licenses, such as the FCA one for the Uk, demonstrate its reliability.
Mostly famous for its intuitive and very fast platform, eToro makes cryptocurrency trading really easy. Below, you can see a real example of the Tezos CFD:
To buy Tezos (or sell it) you need to click on “Invest”, decide whether to Buy or Sell the cryptocurrency and how much to invest in the operation.
Not everyone likes to study the charts and trade “manually” on the markets; especially for these investors, eToro has created Copy Trading.
It is a tool to invest automatically and to copy the market operations of the best traders in the world, chosen by you on eToro, automatically and without additional costs.
To use Copy Trading you need to follow these steps:
- Register on eToro
- In the section “people”, you can choose the traders to copy based on the performance.
- With a click, Copy Trading will copy exactly the same operations of the chosen traders in your account.
- At this point, you will get the same returns as these trading experts (of course, in proportion to your investment), without doing anything else.
Here, you can see some of the eToro Traders that can be copied.
Both Copy Trading as well as traditional trading can also be tested on a free Demo account, without taking real risks.
For more details you can read our full eToro review.
ForexTB: Trading signals to buy Tezos
ForexTB has managed to stand out in the broad market of intermediaries for trading, thanks to its training offer and support for investors.
This Broker has numerous licenses but the most important is the CySEC authorization, which is valid at European level.
ForexTB offers the possibility to choose between two trading platforms, very different but both free:
- The web platform is easy to use and can be entered from any browser without downloading any software.
- Metatrader 4 is more technical and full of professional indicators and meets the needs of the more experienced traders.
Buying Tezos on ForexTB is simple, just select the corresponding CFD, click on Buy or Sell and decide how much to invest in the transaction.
The training begins with a free trading course that this Broker has created for its users. This is an ebook that explains the basics of online trading in a clear and detailed way but without exaggerating with the technical terms.
In addition to theory, you will also receive practical support with the free Trading Signals, processed by Trading Central, which have a yield of more than 70%. To get them just use the official link below:
IQ Option: Buy Tezos with 10 Euros
IQ Option has reached a truly remarkable level of popularity in few years, especially thanks to its attention to traders who want to trade with small capital.
Thanks to the FCA license, IQ Option is considered a safe intermediary and full of very cheap services.
With this intermediary, in fact, the minimum deposit to open a real account is only 10 Euros, an amount that allows anyone to buy Tezos and negotiate on the market, even without large amounts to invest.
With the platform offered by IQ Option, you can buy Tezos (or sell it) by making small investments but with real possibilities of profit.
Even if the minimum deposit is only 10 Euros, you can still practice with a Demo account, so as to avoid any risk and become familiar with the platform.
The IQ Option trading platform is among the fastest and most advanced that we can find on the market but at the same time is not difficult to use. Indeed, traders with little experience find it really simple.
On this Broker it is also possible to study the basics of trading thanks to an educational area rich in content that is free of charge to all investors.
Buy Tezos: Forecasts
The graph below shows the trend of Tezos over the last 3 months, so you can understand the volatility of this cryptocurrency. The forecasts of the main cryptocurrency analysts are positive, but the investment time frame could be quite long.
Here are the forecasts – up to 2025 – from some of the major cryptocurrency analysts. Tezos is an investment with great potential and good volatility; in the short term, the fluctuations are frequent and there is no well-defined trend, while in the long term, there is a slight but constant upward trend.
- WalletInvestor announced that the price of Tezos (XTZ) could fall by 32.5% to $ 0.593. The market was in a bearish cycle for the past year. So WalletInvestor does not recommend buying Tezos in the short term, even if by 2025 the price will reach $ 7.03.
- According to DigitalCoinPrice, the price of Tezos will rise. Investing in Tezos is profitable. In 2020, the value will increase slightly without significant spikes and then gradually increase in subsequent years.
- TradingBeasts aims for a growth of Tezos (XTZ) by the end of 2020, the price will subsequently drop to $ 1.02 in 2021 and then recover the following year.
- CryptoGround considers XTZ a good long-term investment. The analyst says that the probabilities of growth are very high and in 2025, the price will reach $ 9.01.
Tezos pros and cons
After this review, you can buy Tezos and make more precise assessments on its future trend. Here are the pros and cons of XTZ summarized in some essential points:
- Tezos is a cryptocurrency developed for smart contracts
- It uses an improved blockchain and a flexible architecture
- The rules of this network can be changed by users
- Some legal issues are slowing the growth of the Tezos network
- Tezos faces competition from other similar cryptocurrencies
The prospects for Tezos have already improved since the beginning of 2020 even if, as we have seen, the forecasts for the future are still uncertain in the short term. If you trade for the long term, however, the trend appears to be bullish.
To buy Tezos, it is preferable to start with a Demo account, practice and then make the minimum deposit required and move on to actual trading.
Here are the official links of the free Demo accounts offered by the best cryptocurrency trading platforms:
- Practice the eToro Demo account for free by clicking here
- Register for free on ForexTB and access the Demo account from this link
- Access the IQ Option Demo account for free with this link
Tezos (XTZ) is a blockchain-based cryptocurrency, which offers high flexibility.
Yes, even if in the short term the fluctuations could be very high. Read the guide for more details.
Long-term forecasts are on the upside, find out the analyst forecasts in our guide.
The platforms offered by CFD brokers such as eToro are the safest and most convenient to invest in Tezos.