What is Tezos cryptocurrency, is Tezos crypto a good investment?
Tezos cryptocurrency, at the press time, was one notch higher than WBTC, is currently ranked 18th out of all cryptocurrencies listed on Coinmarketcap, at $ 2.19 and a market cap of $ 1,637,699,001.
Tezos in the ticker symbol is XTZ, perhaps not the only digital currency being chased by crypto enthusiasts.
Maybe at this time, Tezos is not as excited as Polkadot or Chainlink, but this could be very interesting to re-examine the Tezos cryptocurrency, is this good for future investment?
Tezos Crypto explained
Tezos is defined as “a decentralized blockchain system with a unique character that can upgrade itself through a voting system by the coin owner. Tezos can facilitate the formal verification process on its smart contract code. This means that it can be a technique that works mathematically in determining the validity of transaction codes to increase the level of security of sensitive smart contracts.
Or it can be said that Tezos is a blockchain network connected to a digital token called Tez or Tezzie (XTZ).
Tezos does not use a mining system for XTZ tokens. This is what distinguishes it from other cryptocurrencies.
Tezos chooses to reward token owners who participate in the liquid proof of stake consensus mechanism.
The way Tezos works is similar to Ethereum where both are blockchains that support dApps by using smart contracts.
The main difference between Tezos and Ethereum concerns network governance, which allows holders of XTZ, the original coin of Tezos, to choose the future direction of the network.
How does Tezos work
To understand how the Tezos blockchain works, you first need to understand the three important layers of the blockchain. Tezos uses an agonistic middleware called the "network shell".
In a typical blockchain system, there are 3 layers:
Network protocol. This layer is the protocol that is responsible for listening and spreading the word to all nodes.
Transaction protocol. This layer is a transaction protocol that regulates the accounting system used on the blockchain.
Consensus protocol. This protocol layer will help the blockchain system to build an understanding regarding the transactions that occur.
In the Tezos system, the last two protocols (transaction protocol and consensus protocol) are combined into one and are named Blockchain Protocol.
Meanwhile, the network shell function in Tezos is to help the communication process between the network protocol and the blockchain protocol. This network shell is agnostic to transaction protocols and consensus protocols.
Advantages of Tezos over Other Blockchains
Among the advantages of Tezos are:
Tezos uses the Michelson programming language on the smart contracts used, this is a functional programming language that facilitates formal verification. With this, developers can mathematically verify their smart contract code in the existing system.
The consensus and decision-making system applied by Tezos is better able to prevent community splits because every decision taken is a decision that has been mutually agreed upon to minimize the occurrence of conflict.
Tezos uses Liquid Proof of Stake which is somewhat more effective than the Liquid Proof of Work system used by Ethereum, with liquid proof of stake being more comfortable and more effective without having to spend too much power because everything works virtually.
The decision-making process or changing the protocol is carried out by voting by the coin owners. Each decision gets approval from the majority of coin owners and will later minimize the occurrence of hard forks.
Where to Buy Tezos cryptocurrency?
Several exchanges accept Tezos buying and selling, but users should confirm what payment methods the exchange supports.
Because some exchanges do not accept fiat money, it is necessary to first buy tokens for example USDT on a local exchange, and then transfer USDT to an account on the exchange. Here some exchanges that we can buy Tezos:
Crypto.com. Crypto.com is a cryptocurrency-based payment platform, accepts payment by MCO visa card, and they issue native CRO tokens, Supporting 80 more cryptocurrencies at low cost, you can buy Tezos through this platform.
Kraken. You can also buy Tezos on the Kraken marketplace, this is a well-known exchange, accepts payment methods in flat currency Euros, USD, and CAD via SEPA (Single Euro Payments Area) transfers, you can also wire transfers and deposit with cryptocurrencies such as BTC, ETH, QTUM, ADA, Zec, LTC, XMR, or XRPX.
EXMO. EXMO is the largest exchange in Europe, you can buy crypto using a credit card, or if you want to trade via their platform. There are quite some payment systems used, from Advcash, Qiwi, SEPA, Visa, MasterCard, Payer, Cabs, Bacs. Of all these payment systems are supported by flat currency USD, Euro, RUB, UAH, PLN, TRY, GBP.
Coinbase. Coinbase is a familiar exchange for cryptocurrency enthusiasts, there is a large selection of cryptocurrencies to trade. Supports 102 countries around the world.
How to buy Tezos cryptocurrency
There are a lot of exchanges that support Tezos on their platform, but I'm only taking a few examples, which are marketplaces that score high in user reviews.
How to buy Tezos or XTZ is the same as buying other cryptocurrencies, you have to register on the exchange then verify KYC, the next step is to deposit funds, which depends on the exchange's willingness, some only accept cryptocurrency, some support credit cards and so on.
The process for registering an account in an exchanger is usually similar to several steps.
Fill out the registration form by email, create a strong password.
Email and KYC verification, by sending the required documents, such as country ID.
Deposit to the marketplace account, the amount that will be used to buy Tezos.
Make Tezos purchases through the platforms available in the marketplace.
If these steps have been fulfilled you can use the crypto buying platform to make transactions. If you buy Tezos for investment, you need to provide a Tezos wallet where you will put XTZ tokens in the wallet.
However, if you want to trade XTZ, you can simply hold Tezos in the exchange account.
Will Tezos replace Ethereum?
Tezos is often compared with Ethereum because both are a Dapps platform and use smart contracts, but Tezos has several advantages such as the staking method used.
Tezos vs Ethereum is still a hot debate among crypto enthusiasts, will Tezos be able to replace Ethereum?
By look and analyze the data at press time, ETH is still superior in terms of market capitalization and daily volume compared to XTZ. Currently, XTZ is ranked 18th while ETH is in 2nd place, where ETH's market capitalization has reached $ 42,900,438,138, and the daily volume is $ 17,185,916,927 in Coinmarketcap.
Compared to XTZ with current market capitalization of $ 1,575,499,563, daily volume stands at $ 200,644,426.
There is a high difference between the two, this means that ETH is still a token that has a large market. Ethereum is more widely used by large companies in the development of Defi.
However, Tezos offers a better security aspect because there is a very minimal possibility of a hard fork as has been made in several other cryptocurrencies.
Furthermore, in terms of locked staking assets, Tezos has seen a sizeable increase to date having approached one and a half-billion dollars. So that some observers stated that Tezos and Ethereum competition was still tight.
Responding to the competition 'Arthur Breitman, Co-Founder of Tezos, stated that the main factor being considered between Tezos vs Ethereum is a better ability to be a store of value as well as money.
In the community discussion, there is still debate that what Tezos developed also exists in Ethereum, and this is one reason Tezos can replace Ethereum. Many traders see XTZ's standalone mechanism as solving governance issues, so Tezos can be relied upon to be a reliable alternative to ETH.
Is Tezos crypto a good investment?
Tezos, by some analysts, is still considered a good asset for investment, but investors should not only rely on Tezos' investment but by diversifying capital into other assets. Users can participate in coin staking so that it is possible to get income from their investment.
XTZ's volatility included high frequency, and based on historical pricing, Tesoz hit its all-time high in August 2020 with a record price of $ 4,4900.
Although Tesoz was once judged by the law, claims by the U.S. The Securities and Exchange Commission (SEC) and the resignation of Johann Gevers. Tezos which was developed by former Morgan Stanley analyst Arthur Breitman released in 2018 were able to survive these conditions well.
As a result, the developer showed a 90% increase (after the Athena Proposal was approved it reduced the stake to 8,000 XTZ and increased the gas limit.
Even though currently the XTZ value is quite low, sometimes investors who dare to take steps will buy when the price is low.
Tezos price prediction
Investing in cryptocurrency is considered risky, therefore an investor must be aware of the risks that may occur. Researching a digital asset is very helpful in determining an investment decision.
After several experts give input on the future of an asset, they usually will also look for a comparison. As in forecasting sites that use different methods, the results are different.
Wallet Investor XTZ price prediction
Wallet Investor who claims to have more than 70% sharpness in forecasting. They consider Tezos a good investment asset in the next year or so. In 2021 the price of TXZ can reach $ 3,831. While the prediction for the next five years is expected to reach $ 9,970.
Short term price prediction
Short-term predictions show the price is in a wave range with a high of 2.40 and a low of 2.10.
Source Wallet investor.
Long term price prediction
Long-term predictions show the price is in a bullish tendency with an up and down swing pattern in an ascending pattern.
Source Wallet Investor.
Digitalcoin XTZ price prediction
The pattern of price changes based on Digitalcoin predictions shows a pattern that is not in the same direction, meaning that price predictions go up and down with unstable conditions. End of 2020 prediction at $ 4.29, final 2021 prediction at $ 0.57009694, 2022 prediction at $ 1.76, 2023 prediction at $ 0.98816673, 2024 prediction at $ 0, 2025 prediction at $ 6.45, 2026 prediction at $ 8.84.
Gov Capital XTZ price prediction
Gov Capital predicts XTZ's future prices are likely to be favorable with a prediction that a year later in 2021 it could reach $ 3.321055, and a prediction of 2025 could reach $ 6,273.
Short term price prediction
The XTZ price prediction in the short term is estimated with a high of $ 2,575, and a low of $ 2,063, with changes swinging up and down significantly.
Source Gov Capital.
Long term prediction
The XTZ's long-term price prediction is expected to peak at $ 3,052 in September 2021, however, prices have declined again until they finally hit a low of $ 1,756 in early January 2022.
Source Gov Capital.
Tradingbeast XTZ price prediction
Tradingbeast predicts XTZ prices at the end of December 2020 to reach $ 1,98960, December 2021 at $ 2,02534, December 2022 at $ 2.52329, December 2023 at $ 2,09490.
XTZ price history by highcharts.com
Tezos short term analysis 21 October 2020
After reaching an all-time high in August 2020 at $4.900, the XTZ price movement then tended to decline, like a bubble burst like the Bitcoin phenomenon at the end of 2017, gradually the price began to move downward.
At the time of the press, the price of XTZ / USD was at the level of $ 2.1740 on the Coinbase platform with Tradingview charts, up 5.62% from today's open price.
Chart by Tradingview.
Analyzing the image above, it can be seen that a decrease in volatility is indicated by the indicator line that is starting to look squeezing.
Meanwhile, the candlestick pattern that is formed at the end of the day forms a bull’s candle after the bears’ candle previously appeared. The implication is that after bearish pressure, buyers' encouragement causes prices to rise again.
If you draw the horizontal line, this area is tested support, which allows the price to push up. The daily target is the upper band of $ 2.3622.
Two other indicators are MACD and RSI, which are based on the MACD line and Signal line, the current trend is bearish, but there is a divergence pattern there which allows the price to go up again.
While the RSI value of the current level is 46 with an ascending line after reaching the 37 levels, it means that the price reversal from bearish to bullish is taking place.
Now we go to the 1H timeframe, and it is clear that the bullish pressure is currently dominating the market even stronger.
Chart by Tradingview.
From the image above we can see that the Bollinger band is starting to expand, meaning that volatility starts to increase, and the direction of the up line is an indication of a strong uptrend.
The MACD indicator also shows a bullish trend, but what is of concern is the RSI indicator which has shown an overbought level at the 61 levels.
Tezos is still considered by some crypto enthusiasts as a valuable asset in the future, and getting Tezos at a low price is certainly beneficial if in the future the price increases as many predict.
But good advice is to diversify, as the old saying goes, don't put eggs in one basket so that if the basket falls not all the eggs will break.
However crypto investing carries a high risk, whether you are speculating by trading, or investing long-term, the investment risk remains there. This is what you also need to pay attention to.