Buying 0x: How to invest in 0x
Are you considering buying 0x? Understandably, because it is an interesting option. Would you like to know more about what 0x exactly is, how it works and what the predictions are for the future of 0x? In this article we discuss the possibilities of 0x.
How can you buy 0x?
0X is a decentralized trading platform that should make it possible in the future to trade all kinds of products much more cheaply. Do you believe in the future of 0x? Then it might be smart to buy the 0x cryptocurrency.
Do you want to buy the 0X cryptocurrency? You can do this quickly online! At Binance you can buy 0x at low transaction fees: you will never pay more than 0.1% in transaction costs when buying cryptocurrencies at Binance. Use the button below to open an account with Binance immediately:
How can you actively trade in 0x?
Do you want to actively trade in 0x? You can do so with an online broker! At an online broker, you can use CFDs to bet on both falling and rising 0x prices. At eToro you can try trading CFD cryptocurrencies completely free and without risk with a demo. Use the button below to open an account with eToro immediately:67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
What is 0x?
0x is a cryptocurrency (with the token ZRX) that makes it possible to decentralize exchanges through the so-called ‘Zero Exchange’ protocol. It is built on the basic principles of the Ethereum blockchain and is therefore available for all ERC20 tokens. This may sound a bit technical to you, so we will briefly explain the benefits.
The advantage of the 0x protocol is that several exchanges can use it, which reduces the cost per transaction. There is simply a higher volume being traded. The different exchanges, which are built on the 0x protocol, share their liquidity and in this way lower the individual transaction costs by jointly processing a higher trade volume. Twenty small exchanges can thus process the same volume as one large exchange. At the same time, they benefit from the lower costs.
The 0x is also similar to the Waves cryptocurrency. However, this cryptocurrency does not specifically cooperate with Ethereum.
How did the 0x come about?
Amir Bandeali and Will Warren founded this project in October 2016. They both believe in a future where everything of value is traded through tokens. Whether it’s shares, artworks, cars, each object can be given its own token. They are then traded on a decentralized network.
How does 0x work in practice?
On an exchange, the ownership of cryptocurrencies is regulated by so-called Smart Contracts. This offers the advantage that you, as the owner, are always in possession of the token instead of an intermediary (such as a bank). When executing transactions of these Smart Contracts, for example when selling a crypto coin, a small transaction fee is charged for the service.
Small exchanges have the disadvantage that this fee is often much higher than on a large exchange. This is because these exchanges have a smaller trading volume. 0x circumvents this problem by merging small exchanges and letting it work as one big exchange with a larger trade volume. This way the cost of a transaction is much lower, and it is therefore cheaper to use this exchange.
Blockchain & 0x
The use of Blockchain technology has also been slightly modified by 0x to achieve lower costs. For example, buy and sell orders are placed outside the blockchain. They are only placed on the blockchain when they are executed. This means that the blockchain is less burdened, as fewer data transitions are required. On the other hand, a crypto owner will enjoy having access to a purchase order book.
To provide this, 0x has devised ‘relayers’. Relayers are decentralized exchanges that keep track of all buy orders and share information with users such as unexecuted orders. They pay for the services they provide in the ZRX token. In addition, the 0x protocol offers an option to sell tokens directly to individuals at a pre-agreed price. This is regardless of the market price and is also called a ‘point-to-point order’.
Use of ZLX
ZLX is the token belonging to the 0x protocol. As previously mentioned, it is used in transactions within the blockchain to pay for data exchange fees. In addition, the coin is used for control within the protocol. In this way, a major shareholder in ZLX can also steer future plans for the platform. Adaptations and innovations can thus be pushed through and implemented by individuals.
There is a total of 1 billion ZLX coins, of which over 500 million are currently in circulation. In January 2021 ZLX will have a value of €0.5186 per token. It has a market cap of almost 400 million USD. The coin is traded in high volumes, which speeds up buying and selling considerably.
Buying the ZLX token, which uses the 0X protocol, is simple. You can buy it through most major crypto exchanges. As will be explained below, holding this token is done through a wallet. The 0x system can adapt to many Dapps.
Dapps are the software systems behind the Blockchain technology that make it possible to make payments in the form of other cryptocurrencies. 0x is fully committed to making the system easier for users. This means that you can pay with different coins on the 0x platform and that it is not necessary to convert all your tokens to the ZLX coin from 0x itself which is very convenient!
What to watch out for when investing in the ZLX wallet
The ZLX coin, based on the 0x protocol, can be easily held by standard crypto wallets. The hardware wallet is the most suitable for this, as it is equipped with a personal encryption. For the owners of the wallet, this guarantees full ownership of the cryptos in the wallet.
Be careful: you have to remember this personal encryption. This wallet is very safe and difficult to hack, but if you forget the encryption, the wallet containing the cryptos becomes worthless. Security and reliability are paramount in the crypto world and 0x is capitalizing on this. They have set up a very reliable system and cleverly solved the problem of low transaction volumes of small exchanges. In this way, the demand of many is met.
Should you invest in 0x?
The future for 0x looks bright. They offer an innovative and secure blockchain protocol that makes it possible to commercialize the technology. It is a decentralized exchange that uses a smart combination of smaller exchanges to reduce transaction costs without compromising on reliability.
We never make any statements about blockchain technology with regard to possible future values of coins or protocols. But 0x has already shown that there is a great demand for such technology. Moreover, there is still a lot on the horizon for this platform.
It is therefore interesting to look into this and see if it might be a good investment. Always read up on this before you buy this token or similar tokens. This way you can be sure that you are aware of the development and future plans of the platform or the crypto itself.