In this article, you will find out everything you need to know about 0xProject and how to easily buy the ZRX coin. If you don’t understand the basics of things like smart contracts and the ether cryptocurrency, you should first read our article about Ethereum.
Table of contents
- What is 0xProject?
- Decentralized & Centralized exchanges
- What is ZRX coin used for?
- Guide: how to buy the ZRX coin in 5 minutes
- How to buy the ZRX coin with a credit card
In summary – this is how you buy ZRX with euro:
Step 1: Register to Kriptomat.
Step 2: Verify your account in 3 minutes.
Step 3: Select your payment method.
Step 4: Select and buy ZRX directly.
Step 5: Receive ZRX to your free Kriptomat wallet.
What is 0xProject?
In formal terms, 0xProject (or 0x for short) is an open protocol for a decentralized exchange on the Ethereum blockchain. But we can all agree that this is not the most user-friendly explanation, so let’s delve in a bit deeper and extract the essentials.
0x is creating a protocol using Ethereum smart contracts for anyone in the world to operate a decentralized exchange. There are already thousands of Ethereum tokens, and the 0x team believes that there will need to be a way to trustlessly exchange them. A trustless way of exchange means that there is a requirement for decentralization. So the main thing we need to understand here is the difference between centralized and decentralized exchanges, and where the 0xProject comes into play.
Decentralized & Centralized exchanges
A centralized exchange (like Kriptomat) is generally used as a so-called fiat gateway into the world of crypto. They are easy to use and offer traditional payment methods like a bank account or a credit card purchase of cryptocurrencies.
A decentralized exchange is a market that doesn’t rely on a third-party service to hold the customer’s funds. Instead, trades occur directly between users in a peer to peer manner through an automated process.
There are benefits and downsides in each of the two models, so we believe that centralized and decentralized exchanges will always co-exist.
In simple terms, the decentralized model provides privacy, but usually at the cost of reduced security.
Decentralized exchanges are also illiquid, which means that there are generally few participants and a low volume of activity. 0x tries to solve this by creating a protocol of orders being relayed off of the blockchain and only having them brought back onto the blockchain when the order needs to be settled. 0x doesn’t charge any fees to use the protocol but anyone who decides to build a decentralized exchange on top of the protocol can charge their own fees.
What is ZRX coin used for?
The ZRX token is used to pay trading fees, but the main purpose for ZRX is decentralized governance over 0x protocol’s upgrade system. This means that owning the ZRX coin gives you a say proportional to your holdings in how the protocol should be improved over time. The more ZRX you own, the bigger your voting power.
Guide: how to buy the ZRX coin in 5 minutes
Here is a detailed step-by-step guide of how you can easily buy the ZRX coin directly with euro right here on Kriptomat.
- Register to Kriptomat by following this link.
- Navigate to the My wallets tab (you should land on this page by default when you log in).
- If you don’t have any funds to buy ZRX, you will first need to deposit some money. If you’re unsure about how to do this, you can read our article about SEPA deposits or contact our customer support.
- Navigate to the Buy/Sell tab and choose the 0xProject (ZRX) cryptocurrency.
- Enter the euro amount that you wish to spend on buying ZRX.
- Click the Buy 0xProject button.
- You will receive the ZRX coin to your Kriptomat wallet in a moment.
Check out our tutorial video which shows how to buy cryptocurrencies on Kriptomat. The example shows how to buy bitcoin, but the process is exactly the same if you buy ZRX coin or any other coin.
How to buy the ZRX coin with a credit card
Take a look at our tutorial video which shows how to buy cryptocurrencies on Kriptomat with a credit card. As above, we buy bitcoin in our example, but the process is exactly the same if you buy ZRX coin.