How to buy 0x online
This beginner’s guide helps you understand what 0x is and how the ZRX cryptocurrency is crucial to the way it works. It shows you where to buy ZRX and gives you a few tips on which trading strategies to use.
Compare where to buy 0x, and open an account
Use one of the brokers below to buy 0x now. We’ve reviewed all the top brokers and you can use our research to help pick one, or just choose from the list below. If you aren’t ready to buy yet, keep reading to learn more about the 0x platform.
What is 0x?
0x is ‘the Craigslist of cryptocurrencies’, where people can come together and trade without the need for a middleman. 0x is a software that anyone can use to create a trading market for a digital asset. The software has its own cryptocurrency, known as ZRX, that’s used to influence 0x’s future.
The idea for 0x dates back to 2016, and an initial coin offering for the ZRX token raised the capital to build it. Now, ZRX is used as a reward to encourage people to set up the liquidity pools that make the software run smoothly, as well as for governance and fees.
How does 0x work?
0x works by creating a marketplace that stores all its transactions on the blockchain. Every time a trade is completed, the smart contract is signed and stored on a publicly available ledger.
0x operates like a website plugin. A developer can use 0x to power an exchange on their app rather than building their own. 0x runs all these exchanges by pooling its resources together, so each exchange can access the main 0x order book to complete trades.
The ZRX token helps the whole operation run smoothly as creating liquidity is important when each individual app might only experience a few trades. ZRX is used to pay rewards to people who introduce liquidity by setting up open orders, and these users are paid a portion of the transaction fees.
How to buy 0x online – a step-by-step guide
Step 1. Find an exchange to buy 0x
You can buy 0x on most major exchanges. The main thing to be aware of is that you probably won’t be able to buy it directly with your fiat currency (like GBP, USD, or EUR). Instead, you need to change up your money into a cryptocurrency first – the best way to do this is to buy Bitcoin – and then use that to buy ZRX.
Here are two of the top cryptocurrency exchanges that offer 0x:
- Binance: Lets you trade over 130 cryptocurrencies, including all of the most popular options. With more trading volume every day, Binance is the first port of call for most crypto buyers. Buy with Binance now >
- Bitpanda: An intuitive exchange that’s ideal for beginners, Bitpanda lets you purchase most of the top cryptocurrencies with fiat currency. Sign up with Bitpanda >
Step 2. Sign up and fund your account
Signing up for an exchange is quite easy. You might find you need to verify your identity before you can start trading, which you can do by providing a form of photo ID. After verification, you just need to deposit your funds to get started.
Step 3. Buy 0x
With a fully-funded account the last thing to do is go ahead and buy ZRX. As we’ve discussed, you need to buy most cryptocurrencies using Bitcoin, or another top crypto. So buy some Bitcoin and then look for the ZRX/BTC price and buy your 0x.
Step 4. (Optional) Get a suitable wallet
Wallets are a way of storing your cryptocurrency securely. This isn’t necessary, as most exchanges can store your coins, and that might be enough if you only plan on holding a small amount of ZRX.
If you want to hold a lot, or intend to buy lots of different cryptocurrencies, a wallet might be a good idea. Wallets come in different formats, like browser, desktop, or completely offline, but give you a private key that means only you can access your coins. Here are a couple of the top wallet options:
- Ledger Nano S: The Nano S is the most popular hardware wallet available. It stores your coins offline, so they’re secure even if you attach it to an infected computer. Get a Ledger Nano S now >
- Trezor: The first ever hardware wallet, with Trezor you store your coins on a USB stick that can be connected to your computer via a cable. The coins are secure even if the computer is infected. Sign up for Trezor >
How to trade 0x – a step-by-step guide
Step 1. Find a broker
To trade 0x you want a broker with low fees and high flexibility. You want to be able to trade whenever you want with no restrictions. But note that 0x is a small cap cryptocurrency that you can’t trade with many brokers yet. When that changes, eToro and Robinhood are good places to look for a broker.
Step 2. Deposit money
You can usually fund your brokerage account with fiat currency. The deposit limit for brokers can vary and some offer special offers when you sign up, so you should check what you’re entitled to before you start.
Step 3. Decide how you’d like to trade
You can trade cryptocurrencies in a few different ways. They depend on your level of experience and how much of a hands-on, frequent trader you want to be. One of the most popular options is to trade contracts for difference, or CFDs, which let you speculate on the performance of ZRX without owning the asset itself.
Step 4. Start trading
Once you’ve chosen a trading strategy, it’s time to get started. Ultimately, when you start trading you have two options depending on whether you like a cryptocurrency, or you don’t. If you think it’s going to go well, you go ‘long’ and back it to go up. If not, you go ‘short’ in the hope that it goes down.
To compliment that basic decision, you have a few ways to try to be a more successful trader. Some of these come with risks, like trading with leverage. Many brokers will let you speculate by only putting up a percentage of the overall trade – ‘the margin’ – in the aim of making big gains if the price goes up.
The risk of trading with leverage is that your chances of big losses are increased. If the market moves against you, you’re still liable for the overall losses even if you only put up the margin. You can limit these losses by using methods like stop-loss limits, but it’s still a strategy that should only be considered by experienced traders.
If you still aren’t sure whether to buy ZRX, don’t worry. Below you can find a summary of 0x’s pros and cons, as well as a few questions to think about before you make a final decision.
- A relatively inexpensive way of investing in decentralised exchanges
- A fixed total ZRX supply means less chance of diluting the price
- You can earn rewards for creating liquidity
- Not many uses for ZRX if you don’t want to provide liquidity and earn fees
- Lots of competition from other exchange platforms
Here are three more questions you should think about before you decide to invest in 0x.
1. Is it a good time to buy 0x?
You should think about your investing goals before you buy. If you have a long term view, consider the competition and how well 0x shapes up against it. Platforms like Uniswap offer exchange services as well, and there are more and more competitors springing up.
In the short term, the competition isn’t as important, but you should still think about whether there is likely to be a price increase you can profit from. The best way to stay on top of the state of 0x is by following the latest analysis. You can find all ours below:
2. What problem does 0x solve, and what are the coin’s investment prospects?
0x creates trading markets for anything, making it possible for any asset to be tokenised and traded. By pooling resources, it means any app can use 0x’s software for its exchange even with a very small trading volume, so it doesn’t have to build its own.
ZRX’s investment prospects depend on how well 0x can stand out from the competition. It has its own exchange that aggregates the best prices for cryptocurrency trading, and integrates with some wallets to let users trade directly through their wallet provider. The success of those kinds of endeavours would be a good sign.
There are a finite number of ZRX coins – 1 billion – and that scarcity could boost the 0x price if starts to grow. As always with cryptocurrency, things can change, particularly when token holders themselves hold voting rights over the future of the software. You should always do your research, and you can start by following the latest 0x news below:
Revolut extends crypto offerings with 0x (ZRX), Tezos (XTZ), OMG Network (OMG), and EOS (EOS)
3. Do you want to hold 0x for the long term?
Whether to hold for the long term depends on how you see the future of decentralised exchanges. If you think 0x has potential to establish itself as one of the leaders, or just feel that this type of exchange is a good alternative to traditional platforms, it might be a good long term investment.
Considerations for a long term investment strategy
If you like 0x’s prospects versus the competition, or believe in the future of decentralised exchanges, it could be a good time to buy. In that case, you should look for an exchange that offers ZRX coins and buy some straight away. You could also think about getting a wallet to store those coins.
Considerations for a short term trading strategy
For short term traders, it’s still important to think about 0x’s competition, but your decision might come from studying price charts to find opportunities. If you plan on doing lots of trading, remember to choose a broker with low trading fees before you start.