What Is Tezos Coin? How To Buy And Cash Out XTZ?

In the fast world of cryptocurrencies, Tezos (XTZ) has become a major player in the market. Tezos is known for its self-amending protocol which allows it to evolve without the need for hard forks. This feature, along with its strong smart contract capabilities has made Tezos a scalable blockchain. But what exactly is Tezos Coin, and how can you buy and cash out XTZ?

Key Takeaways

• Tezos is a blockchain network that hosts a digital token called Tez, also called Tezzie. 
• The network is governed based on users’ economic stakes. 
• Tezos follows a proof-of-stake mechanism, which reduces energy consumption compared to proof-of-work blockchains. 
• You can buy Tezos (XTZ) in popular exchanges like Bitcoin, Coinbase, and Kraken. 

What is Tezos? 

Tezos is a decentralized blockchain that facilitates the creation and execution of smart contracts and decentralized applications (dApps). It was launched in 2018 by Arthur and Kathleen Breitman and stands out due to its on-chain governance model and self-amending protocols. Tezos hosts the token Tez (XTZ), which is also called Tezzie. Tezos encourages users to participate in Decentralized Finance (DeFi), Decentralized Applications, and Non-Fungible Token (NFT) projects, similar to other cryptocurrency blockchains.

But unlike other blockchains, Tezos does not have hard forks, or blockchain splits, and instead has a blockchain-based governance mechanism where users can vote to implement protocol upgrades according to their economic stake in Tezos. Instead of mining, Tezos uses a Proof-of-Stake mechanism to validate blockchain transactions. These features allow Tezos to implement upgrades and improvements without disrupting the network, making it adaptable and future-proof. 

How to Buy Tezos (XTZ)

Here’s how you can buy Tezos (XTZ) in a few steps: 

1. Start by selecting a reputable cryptocurrency exchange that supports XTZ. Some popular exchanges are Binance, Coinbase, Kraken, and Bitifinex. 
2. Create an account on the exchange you choose. You will have to give some personal information and verify your identity according to some regulatory requirements. 
3. Once you set up your account, deposit funds into your exchange account. Most exchanges accept deposits in fiat currencies (such as USD, EUR, or GBP) and other cryptocurrencies (such as Bitcoin or Ethereum). Some platforms also allow purchases via credit/debit cards, bank transfers, or even payment services like Apple Pay and Google Pay. 
4. Go to the trading section of the exchange and select the XTZ trading pair that matches your deposited funds. (for e.g., XTZ/USD, XTZ/BTC, XTZ/ETH). Enter the amount of XTZ you wish to purchase and complete the transaction.
5. For more security, you can withdraw your XTZ tokens to a personal wallet. Hardware wallets like Ledger and Trezor, as well as software wallets like Exodus and Atomic Wallet, support Tezos. Cold wallets are the best option that provide more security. 

How to Cash Out Tezos?

You can sell Tezos (XTZ) by similarly converting your tokens back into fiat currency or another cryptocurrency. Follow these effortless steps to sell Tezos:

1. If your XTZ tokens are stored in a personal wallet, transfer them back to a cryptocurrency exchange that supports XTZ. 
2. Once you deposit your XTZ tokens in your exchange account, select the appropriate trading pair according to which currency you want to transfer it. Choose your fiat payout method like bank transfer. Give your details related to your wallet address, bank account info, etc. Then enter the amount of XTZ you wish to sell and execute the trade. 
3. After selling your XTZ tokens, withdraw the proceeds to your bank account or another cryptocurrency wallet. Most exchanges have different withdrawal methods, like bank transfers, PayPal, and other payment services. 

You can choose to sell when you have made a profit, or if you are a long-term holder, study the graphs, and make a careful decision. The core focus should be on avoiding losing money. Make sure to always buy low and sell high. You can sell when there is a profit of 50% or at least 25%, and then buy it again when the price drops. 

Tezos (XTZ) Tokenomics 

It launched its ICO in July 2017, raising approximately $231 million, making it one of the largest ICOs at that time. The initial distribution was as follows:

• 10% to the Tezos Foundation
• 10% to Dynamic Ledger Solutions (the founders)
• 79.59% to ICO participants
• 0.41% to early backers

Tezos has an inflation rate of approximately 4.58%, which incentivizes staking by rewarding bakers with new tokens. As of now, over 76% of the total circulating supply is actively staked. The total supply of XTZ currently exceeds 918 million tokens. 

Final Thoughts

Tezos (XTZ) is a versatile and scalable blockchain that stands out due to its self-amending protocol and strong on-chain governance. If you are interested in buying or cashing out XTZ, the process is pretty straightforward. As with any investment, it is important to conduct thorough research and consider your risk tolerance before you decide to invest in Tezos. 

Disclaimer: This is not financial advice and is gathered based on publicly available information. Please practice due caution and DYOR before taking any action.