Will Tezos overtake smart contract cryptos like Ethereum, EOS, or Cardano?
If you are interested in Tezos and its investment potential, this article is just for you. We're here to provide answers to all your financial questions.
So, what is Tezos and is Tezos (XTZ) a good investment? Why is Tezos one of the fastest-growing cryptocurrencies and why are so many investors curious about Tezos?
Keep on reading to find out more about XTZ investing and decide for yourself if investing in Tezos is worth it!
If you are new to the world of Tezos investing, you might be wondering if Tezos is a good investment, or should I invest in Tezos? Well, let’s break all Tezos-related concerns before you consider investing in Tezos XTZ.
In this article, we will cover:
Investing Tezos: Getting Started
To start investing in Tezos and/or other cryptocurrencies you first need to register online with an exchange that will allow you to buy and invest in Tezos.
An exchange broker is an online platform that enables you to buy and sell Tezos as well as any other cryptocurrency that they have listed.
If you want to buy Tezos quickly and easily, with 0% commission, check out eToro Exchange!
What Is Tezos?
Tezos is an open-source, blockchain-based platform that can be used for the execution of peer-to-peer transactions and smart contracts.
Like other cryptocurrencies, Tezos aims to decentralise the financial sector and provide equal access to people from all walks of life.
And Tezos’s smart contract capabilities allow it to support a range of dApps, NFTs, and DeFi projects.
Tezos was first proposed in 2014 by Arthur and Kathleen Breitman as a unique decentralised ecosystem in their white paper. The platform was released a few years later in 2018.
The founder of Tezos once said that ‘Tezos’ is the ancient Greek word for ‘smart contracts’.
And while the origin of the name is questionable, the initial success of Tezos wasn’t a joke.
In less than a couple of years, Tezos has established itself as one of the leading blockchain projects in the cryptocurrency investing sector.
Tezos also offers advanced infrastructure that can change and evolve without risking the occurrence of a hard fork.
Hard forks refer to any drastic changes to a network’s protocol. The best aspect of Tezos is that users can vote on proposals for upgrades and developments to improve the blockchain.
And Tezos takes its democratic approach seriously. Users and investors can participate in the network’s governance through a process known as baking.
To ensure that this process is honest, each participant must essentially make a security deposit and delegate a ‘roll’ of XTZ, which equates to 8,000 XTZ.
Bakers can vote on proposed changes in a multi-stage process that takes up to 23 days, with changes being fully implemented only after they’ve been backed by a super-majority. As developers put it:
“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 […] When a developer proposes a protocol upgrade, they can attach an invoice to be paid out to their address upon approval and inclusion of their upgrade”.
No surprise that thanks to its effective and democratic governance process, Tezos defines itself as a “secure, upgradable and built to last” platform that will “remain state-of-the-art long into the future”. AKA - a platform worth investing in.
What Is XTZ?
XTZ or ‘tez’ is the native cryptocurrency (or coin) of Tezos, however, you will also see people use the ticker symbol XTZ and Tezos interchangeably.
It also uses the ‘ê©’ symbol and can be broken down into subunits called Mutez or micro tez. 1 tez = 1.000000 microtez.
You will also see XTZ alongside other symbols on trading platforms, most commonly USD (US dollar).
‘XTZ/USD’ would mean you are buying USD with XTZ. If you switch the two - USD/XTZ - it would mean you are buying XTZ with the US dollar.
Tez is defined as the token used as fuel for the Tezos ecosystem. At the time of writing, there are 853,353,175.48 XTZ in circulation.
Note that developers haven’t announced the total amount of XTZ planned to be released. So, there is not currently a maximum supply put in place yet.
While some argue that lack of scarcity is detrimental in the investment sectors, developers believe that this way Tezos will never reach its capacity limits.
Tezos had a remarkably successful Initial Coin Offering (ICO), which started on the 1st of July 2017.
A total of 65,681 BTC and 361,122 ETH were raised, worth $232 million at the time. It remains one of the largest ICOs ever and garnered XTZ a lot of attention.
Despite its success, however, the release of Tezos was delayed because of a conflict between the Breitmans and the former president of the Tezos Foundation, Johann Gevers.
While no one knows the specifics and who was right or wrong, it is widely believed that Gevers would not allow the funds to be used for any development work.
The delay was hugely concerning for investors who were worried about losing their investment. To regain their losses, they opened a legal dispute regarding unregistered securities.
Still, the price of XTZ had a dramatic increase between October 2019 and February 2020.
Tezos price, October 2017 to July 2021. Source: CoinMarketCap
The good news is that one can purchase XTZ from a reputable platform like eToro.
Is Tezos a Good Investment?
Tezos (XTZ) is an especially good investment for investors who feel passionate about its democratic and decentralised approach.
Moreover, Tezos utilises a ‘liquid proof-of-stake’ consensus mechanism (an upgrade of the delegated proof-of-stake system) and a multi-language approach (imperative and functional) to ensure both flexibility and safety.
This strategy also improves transaction speed, with XTZ being capable of executing about 1,000 transactions per second, theoretically.
With a stake rate of over 80% spread across 13,000 delegators and 450 validators, Tezos is one of the most decentralised platforms.
As such, Tezos will likely continue to increase in popularity as decentralised finance (DeFi) projects continue to grow.
One of Tezos’s largest DeFi projects is QuipuSwap, a decentralised exchange (DEX) on the Tezos platform.
And recently, Smartlink, a decentralised escrow smart contract platform for Tezos announced that it will release its token called SMAK on QuipuSwap.
Slowly but surely a whole ecosystem is emerging.
And it’s not only its on-chain self-governing properties and continued development that attract investors. XTZ’s positive financial development is another factor that makes Tezos stand out.
At the time of writing, according to CoinMarketCap, Tezos ranks 41st and has a market cap of $2,041,287,561.
Read Also: Will Tezos Make Me Rich in 10 Years?
Would you consider investing in Tezos XTZ?
How Much Could Tezos Be Worth?
Though Tezos is a well-suited asset for the future of cryptocurrency investing, making price predictions is speculative. Let’s not forget that nobody can predict the future price of cryptocurrencies.
Prices depend on various factors, such as supply and demand, tech innovations, crypto news, and market sentiment.
While its future growth depends on tech innovations and support, we should also look at past data to make price predictions.
With peak levels of almost 300% in 2019, Tezos has become an attractive investment and a crypto news miracle and Tezos has managed to survive the bear market triggered by the ongoing pandemic.
Looking back, Tezos started as a high-profile business, which is a huge advantage in the financial sector.
Big exchanges and influential investors, such as the Winklevoss brothers, also supported Tezos.
Tezos Price Prediction 2021
Tezos price forecasters vary significantly for 2021 with XTZ estimated to reach $4.001 at the highest and $0.91 at the lowest.
|Price Forecaster||Lowest Price||Highest Price|
|Coin Price Forecast||$2.78||$3.04|
|The Economy Forecast Agency||$0.91||$3.11|
Tezos Price Prediction 2025
While not in complete agreement over where Tezos will be in 2025, price forecasters have a positive outlook.
|Price Forecaster||Lowest Price||Highest Price|
|Coin Price Forecast||$5.20||$5.27|
|The Economy Forecast Agency||$1.85||$2.35|
Tezos Price Prediction 2030
It’s hard to say how much Tezos could be worth by 2030 as it’s still pretty far away. As you can see from the below predictions, estimates are extremely far apart.
|Price Forecaster||Lowest Price||Highest Price|
|Coin Price Forecast||$8.97||$9.35|
|Cryptocurrency Price Prediction||$190.39||$234.71|
Don't Miss: Tezos Price Prediction for 2025 and 2030
Is Investing In Tezos Risky?
Despite the potential of Tezos and its innovative on-chain governance, cryptocurrency prices are highly volatile and speculative, so investors should exercise due diligence. Investing in Tezos or any other cryptocurrency can be risky.
There’s no such thing as a 100% safe investment, so never risk more than you can afford to lose. The best way to invest in Tezos is to allocate an amount you are comfortable investing.
Experts suggest investing only around 5% in cryptos to diversify your portfolio, following an important rule: never risk more than 1% of your account on a single trade.
With Tezos specifically, from an investor’s perspective, perhaps one of the biggest concerns is that people may be losing interest.
Expectations were high after the ICO, and it may feel that Tezos has underperformed. However, this may just be the result of poor marketing.
In a similar vein, Tezos is still scarred by the legal issues that took place before its launch.
It is particularly embarrassing for Tezos because they strive to be democratic and open, but at the very beginning, they couldn’t even deal with their foundation’s president.
You start to wonder how effective they will be at running a governance-focused platform.
Should I Invest in Tezos?
Tezos is worth investing in. Though cryptocurrency investing is not risk-free, investing in Tezos can be done well when you understand the asset.
XTZ has a large and growing ecosystem and ranks 41st in the crypto market by market capitalisation.
After you’ve analysed the risk-reward profile of Tezos, you should decide if you are interested in day trading or long-term investing, create an effective strategy, and open an account with a reputable exchange such as eToro.
Do not forget that with Tezos, you can also earn passive income by staking (also known as ‘baking’ and you will need a considerable amount to do this).
Keep in mind that it’s wise not to put all of your eggs in one basket, so diversify your portfolio and explore other strong assets, such as Bitcoin, Ethereum, Ripple, and EOS.
Here we should note that cryptocurrencies (particularly, those that survived the bear market of 2018) are usually undervalued compared to other investments, but can be highly profitable investments.
Who Should Include Tezos (XTZ) In Their Portfolios?
Tezos can be a good investment for:
- Crypto day traders: Like any other crypto, Tezos is a great day trading asset and has become one of the biggest bets based on volatility.
- Long-term investors: Given its positive future, according to some sources, Tezos makes a great long-term investment as well. Despite the bumpy ride, Tezos is on the up in the long term.
- Financial institutions: Real securities and other assets can be tokenised on the Tezos blockchain, which has drawn big financial institutions. Some of the companies preparing to introduce their own tokens on Tezos are Dalma Capital, tZERO, Alliance Investments, and BTG Pactual.
- Crypto enthusiasts: As Tezos can update itself through its “meta-consensus” automatically and democratically, it’s a valuable asset among crypto enthusiasts and those who believe in the future of decentralised finance.
In the end, there’s no one-size-fits-all approach in crypto investing, so you should decide for yourself if Tezos investing is for you or not. It depends on your goals, knowledge, and expertise. Always exercise due diligence.
Ready to buy Tezos XTZ?
Tezos Investing Explained - Key Points
If you remember anything from Is Tezos A Good Investment & Should I Invest In Tezos? make it these key points.
- Tezos is one of the fastest-growing cryptocurrencies. At the time of writing, Tezos is ranked 41st by market cap.
- Tezos is defined as an open-source blockchain-based platform. It can be used for the execution of peer-to-peer transactions and smart contracts.
- Tezos provides advanced infrastructure. Users can vote on upgrades without risking the occurrence of a hard fork.
- Tezos had an impressive ICO. A total of 65,681 BTC and 361,122 ETH were raised, worth $232 million at the time.
- XTZ is the native cryptocurrency on the Tezos blockchain. One XTZ trades at $2.39.
- Tezos could be a profitable long-term investment. Forecasters estimate that it may reach as much as $4.001 per coin in 2021 at the highest.
Where To Buy Tezos?
eToro – Buy XTY with 0% commission
eToro have proven themselves trustworthy within the crypto industry over many years – we recommend you try them out.
How To Buy Tezos?
As one of the most well-known coins, Tezos can be bought at most reputable crypto exchanges and brokers by signing up and exchanging fiat or crypto for XTZ.
The process is simple in most cases and can be done in four simple steps. Here’s how you would do it at eToro.
Step 1. Go to eToro’s website → Click ‘Join Now’ → Fill out the registration form.
Step 2. Verify your information by uploading proof of identity and proof of address. This is to comply with anti-money laundering laws and prevent fraud.
Step 3. Make your deposit. Typically, eToro’s minimum deposit is $200 or $50 in the USA. However, there are several countries where it’s much higher - so check first!
Step 4. Go to ‘Trade Markets’ → ‘Crypto’ → ‘XTZ (Tezos)’ and choose how you would like to buy the crypto.
And now you have XTZ!
Still have questions about Tezos? Perhaps these frequently asked questions will help.
What Is The Purpose Of Tezos?
Tezos is a blockchain-based platform that aims to facilitate cross-border payments and create smart contracts and applications by eliminating the need for third parties.
It is also a platform that facilitates formal verification by improving security; a platform that provides a democratic infrastructure where users can vote on changes without risking the occurrence of a hard fork.
What Makes Tezos Unique?
The fact that Tezos allows users to participate in decision-making is the most unique aspect of Tezos.
As stated above, Tezos is a self-amending and democratic blockchain platform that can update itself without the occurrence of a hard fork, providing flexibility and security all at the same time.
Is Tezos Like Ethereum?
Yes, Tezos is similar to Ethereum as both cryptos act as platforms where smart contracts and dApps can be built.
Two of the most significant differences are that Tezos is proof-of-stake and Ethereum (for the time being) is proof-of-work, and Tezos is more decentralised.
Ethereum is also immensely more popular, which is reflected in its much higher valuation.
Is Tezos Better Than Ethereum?
In terms of market cap, Ethereum performs better than Tezos, with many crypto investors claiming that Ethereum is the king of smart contracts and the only real competitor to Bitcoin.
At the same time, we can say that Tezos is better than Ethereum in terms of technology. Tezos is a cryptocurrency that uses a delegated proof-of-stake consensus (DPoS) or the so-called liquid proof-of-stake, which makes it more robust than the current state of creating new Ethereum.
On top of that, researchers claim that Tezos is more decentralised and transparent than other DPoS blockchains.
More recently, high transaction fees on the Ethereum platform have led some dApps to look for more stable alternatives.
One example is Tada, a blockchain-based ride-hailing app, which has decided to move from Ethereum to Tezos, citing high fees, scalability and environmental sustainability as their main reasons.
Where To Store Tezos?
According to Arthur Webb of Ripple Coin News, the best Tezos wallets in 2021 are:
- Ledger Nano X
- Trezor One
- Binance Wallet
- Guarda Wallet
- Atomic Wallet
- Kukai Tezos Wallet
Two wallets have been removed from the list as they are no longer available.
How To Bake Tezos?
Anyone can bake Tezos by running a node with baking software and keeping it online, or you can delegate your baking rights to a ‘Baker’ who will bake for you.
Many prefer to use the delegation method because it’s easier, and you can still use your XTZ as it has not been handed over - you’re only sharing your rights, not the crypto.
However, if you prefer to delegate, your yield may be slightly lower because you must pay a fee to the Baker for their service.
You can delegate by opening your XTZ wallet, select ‘delegate’ and then picking a Baker to delegate to.
How Much Do You Need For Tezos Baking?
To start baking, you need a roll of Tezos. Originally, each roll was 10,000 XTZ but the amount needed was lowered to 8,000 XTZ to make voting more accessible and decentralised.
If you don’t have enough capital, you can delegate your share to a baker who’ll be randomly selected from other bakers.
When Is The Next Tezos Bake Payout?
According to Baking Bad, Bakers typically wait up to 17 days to be paid for their work, at which point the new tokens are no longer frozen.
Delegators typically wait longer as they must wait for the Baker to send over their profits. However, some Bakers pay in advance before the frozen tokens are released.
Is Baking Tezos Profitable?
Yes, baking Tezos can be profitable. According to data provided by Messari, the yield for staking Tezos is approximately 6.94% per year. This is a fairly good yield and compares well against other PoS cryptos.
No surprise that Tezos is one of the most-staked assets, with users baking $495 million XTZ or 75% of its current supply.
Is Tezos Being Used?
Tezos is used for a wide variety of companies and most recently has been highly successful with NFTs in particular.
For example, OpenSea partnered up with Tezos to allow Tezos NFT to be traded on their platform. They are now one of the biggest NFT platforms in the world.
Tezos has also been used for real estate. In collaboration with tZERO, Tezos worked to tokenise luxury properties in the UK for Alliance Investments.
And Tezos is also a growing platform for stable coins with USDC, one of the most popular stable coins tied to the US dollar, announcing that it will also be issued on the Tezos blockchain. This makes Tezos one of four platforms where USDC is available.
Is Tezos A ‘DeFi’?
Tezos is not a DeFi project, but it provides a platform for DeFi projects to be built on.
How To Vote For A Tezos Proposal?
Only Bakers can vote, and their votes are proportional to their stake. For example, if several people decide to delegate their rights to a baker, their vote equals that amount in rolls (8k XTZ).
What’s Wrong With Tezos?
Scandals have been Tezos’s primary issue since day one and without a strong marketing presence, they have struggled to improve their image.
Elsewhere, Tezos struggled to convince people to vote on the platform for key changes, such as the Granada upgrade proposal.
To pass, it needs a minimum of 53.43% of votes, and only just passed the threshold.
This is concerning because governance is Tezos’s focal point, and it seems that people are not as interested in it as first thought.
What Facilitates Smart Contract Safety On Tezos?
‘Formal verification’, a feature of Tezos’s Michelson language, facilitates smart contract safety on the blockchain, according to Apriorit.
Tezos’s formal verification feature guarantees smart contract code is written correctly in regards to specifications. This prevents bugs and smart contracts from failing.
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