A Beginner’s Guide to Buying and Selling 0x Cryptocurrency in the UK

Last Updated July 23rd 2021
5 Min Read

If you’re based in the UK and wish to buy 0x – the process is very straightforward. All you need to do is find a regulated exchange, deposit some funds, and decide how many 0x tokens you want to buy.

Cryptocurrency investment is one of the most profitable investment avenues in the market today. At the same time, it presents the riskiest and most volatile investment avenue for crypto investors. Despite the risk and volatility characteristic of this investment space, traders and investors have not shied off. Players in the crypto space are bold enough to face the risks and volatile nature of this market, going against all odds to make a financial gain.  

0x is an open-source protocol established upon the Ethereum blockchain. The cryptocurrency makes it possible for a network kind of transaction to occur, in which case the exchange is in Ethereum-based tokens. 0x (or as is its native name, ZRX), can therefore be interpreted as an Ethereum token. The token serves to enable the 0x protocol, which is tailored to allow for the trading of Ethereum tokens at a reasonable rate directly from the holder’s wallet. 

ZRX tokens are also referred to as decentralized exchange (DEX). The ZRX platform provides a means for exchanging several varieties of tokenized assets such as stocks, gold, real estate, video game items, etc. The coin seeks to help develop interoperability between decentralized applications (dapps), exchange components included.

What's in This Guide?

  1. QUICK GUIDE: HOW TO BUY 0X IN THE UK
  2. A Step-by-step Guide to Buying 0x
  3. How to Sell 0x Tokens
  4. Which Wallets Can I Use to Hold 0x Tokens?
  5. How 0x Works
  6. Key Things to Consider When Buying 0x Tokens
  7. Conclusion 

QUICK GUIDE: HOW TO BUY 0X IN THE UK

  1. Open an account with a cryptocurrency exchange
  2. Verify your account
  3. Go to the deposit section
  4. Go to the platform and select 0x
  5. Enter how many 0x tokens you want to buy
  6. Check the details and confirm your purchase

A Step-by-step Guide to Buying 0x

Follow the following steps to start buying the ZRX tokens. 

Step 1: Open an exchange account

Opening or registering for an exchange account is the first step in your journey to buy the ZRX tokens. This means that you need to sign up for your own private account. The registration process is easy and does not require any technical skill, training or experience whatsoever. There are certain personal details that you must produce during the registration process, including your official names as they appear on your national ID card. You must also provide your mobile phone number as well as your email address.

During the registration process, ensure that the account you are signing up for is compatible with your intended transactions. In this case, for buying ZRX in the UK, the account must support the ZRX coins and the GBP currency. 

In compliance with the Know-You-Customer (KYC) rules, a government-issued Identity Card is a requirement, alongside a utility bill for identity verification and proof of address purposes, respectively. 

Step 2: Deposit funds into the account

After you are done with the account registration process, you can now deposit funds into the account stage. Depositing funds entails or requires linking your credit or debit card to the exchange account. Alternatively, you can link your bank account to the exchange account and then facilitate a direct bank transfer from your bank account straight into the exchange. 

As mentioned above, there are accounts which do not support buying ZRX token using fiat currency. In the face of such a case, you have to use other cryptocurrencies in your possession to trade for the ZRX tokens or coins. In this case, you have to select the pair that matches the cryptocurrency you have for the one you want to buy. 

Step 3: Buy 0x tokens

The next step after depositing funds into the account is purchasing the coins you want, as enabled by the exchange account.  To buy ZRX, go to the buy section of the account and enter the amount of GBP you wish to use to buy the tokens. Next, confirm that you wish to proceed with the order. At this point, you will receive a notification confirming that the transaction has been completed.

You can either use a market order or a limit order to buy the ZRX tokens. Market order involves buying the ZRX tokens automatically and at the prices prevailing in the market. On the other hand, a limit order involves selecting the least price at which you wish to buy the tokens. Once the market prices shift to reach your set limit, the transaction is completed automatically. 

Step 4: Store in a crypto wallet

After buying the ZRX coins, the fourth step is storing them, of course, if you do not wish to sell them right away. Cryptocurrencies are normally stored in a crypto wallet. There are two different kinds of crypto wallets - Hot and Cold wallets.

A hot wallet stores the tokens online and can therefore be retrieved if you want to make a transaction. Hot crypto wallets are a preferred choice for traders who actively store and retrieve transactions. 

On the other hand, Cold wallets use or capitalize on external hardware such as a USB drive to store the tokens. Retrieval of this token is not as fast as the hot wallet. For this reason,  cold wallets are a preferred choice for traders who normally hold their tokens for some time before using them for a trade or transaction. 

How to Sell 0x Tokens

The process of selling your ZRX tokens requires that you go to the sell section of the account and enter the number of tokens you wish to sell. 

Which Wallets Can I Use to Hold 0x Tokens?

When you want to store your ZRX tokens, you can use a hot wallet - store tokens online, thus easy retrieval in case of the looming transaction) or a cold wallet (offline in hardware devices like USB drives). 

How 0x Works

Founded in 2016, ZRX is an Ethereum-based decentralized exchange (DEX). The coin targets trading assets and cryptocurrencies. The cryptocurrency uses smart contracts on the 0x platform. The main purpose for which this coin was designed was to provide a standard protocol on the Ethereum blockchain so that it makes it possible to exchange any Ethereum-based token. 

Key Things to Consider When Buying 0x Tokens

There are certain elements that you must consider: 

Availability

Highly available tokens have a higher acceptance score than the rare ones or the ones not commonly or popularly used.

Usability

Tokens that can be used for many transactions have more value than those that only serve a few purposes.

Historical performance

The historical performance of a coin over a few months can facilitate a nearly accurate tracing to help you predict how the coin will perform. 

Conclusion 

ZRX tokens are a good investment and a promising means for diversifying your investment portfolio. Nonetheless, you must always perform some research and market analysis before diving into this very hot market.

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