A large problem that developers don’t favor with Ethereum is the high fees (Gas) required when testing development. The 0x protocol enables off-chain transported orders, which allows for very low gas costs. The 0x token is utilized as the fuel for the decentralized exchanges that developers create using 0x protocol. The token ‘ZRX’ is used within DEX’s (decentralized exchange); even if a team or developer wants to create a DEX using their own token, if building on the 0x protocol, they will at some point have to convert to ZRX tokens, therefore raising speculation that this will increase the token’s price if DEX’s ever reach mainstream status.
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Where to Buy 0x (ZRX)?
0x is found on a plethora of exchanges. Its availability is not as large as is with Bitcoin, however it is still found on many different crypto exchanges and is exchangeable for many different cryptocurrencies. At the moment, the highest volume pair for ZRX tokens is ‘ZRX/BTC’, or 0x tokens for Bitcoin. Here are the current exchanges with highest volumes for trading ZRX:
Please keep in mind these exchanges are unique to one another and have different verification processes (if any at all) per different exchange. Some of these exchanges will require ID verification including KYC compliance documents which range from your driver’s license to SSN, and so on. Make sure you’re always on the correct URL! You cannot purchase ZRX on Coinbase at the moment, however it is exchangeable for USD at ETHFinex.
Step by Step Guide on Purchasing 0x(ZRX)
To purchase 0x, you’ll have to choose an exchange it is listed on. You can choose from the list above, or find your own exchange. Traditionally, the process for purchasing 0x is going to be relatively the same, with the traditional market or limit order placing process. For this example, we’re using Poloniex.
Find the most liquid pairing for ZRX. At the time of this writing, March 2018, ZRX/BTC is the most liquid pair for ZRX. All that this really means, as we’ve stated, is that this pairing will allow for the fastest obtainence of ZRX tokens. We’ll be exchanging Bitcoin for 0x tokens.
Head over to Poloniex. You can find the sign up and relative instructions at the top right of the page by ‘Login/Signup’. For Poloniex, you are going to have to complete the necessary ID verification checks to proceed. If you’ve passed the verification checks successfully, you should have access to the ‘Wallets’ tabs, within your account portion of the exchange. This is the section where you’re going to be depositing some sort of base cryptocurrency in order to be converted into another altcoin. In this case, we’re converting Bitcoin to 0x. Find the ‘Bitcoin’ or ‘BTC’ portion of your wallets, and click on the ‘deposit’ tab. This should create a random series of letters and numbers for you. This is your address for deposit. Wherever you have base cryptocurrency, in many cases it will be Coinbase, send it to this deposit address. Once completed, though, head over to the ‘BTC’ markets on Poloniex. Type in ‘ZRX/BTC’. Press enter, and you’re on the 0x exchange. This is your hub for converting Bitcoin to ZRX tokens, and vice versa.
For this example, we’ll create a market order. Market orders are programmed to execute at the next available time. This means as soon as there’s an optimal entry point, the order will execute. Enter the amount of 0x you want to purchase relative to the current market price of the asset, and press ‘Buy’. This should execute and you should be allocated 0x tokens directly to your ZRX wallet on Poloniex.
Considerations When Purchasing 0x
0x is subject to extreme price swings. This should not persuade you to purchase or not purchase 0x, however if you cannot stomach the price volatility, this may not be the best option for you. ZRX tokens are not unique to other cryptocurrencies in their volatility, in fact, in relation to the overall crypto market, ZRX’s volatility is not that large. ZRX’s token is regarded by many as a utility for the 0x protocol. The 0x protocol is unique to its kind as it has been noted as being the first protocol that truly enables flexibility to create decentralized exchanges. It gives the framework for these incredible technology systems that are reliant on nothing but the users capability to submit and offer funds, as stated previously. Decentralized exchanges have been regarded by many as the future of crypto transactions as they enable a lower chance of hacking and fraud.
With this in mind, the success of the 0x token relies on, obviously, the continued growth of the cryptocurrency market, in addition to multiple other factors, including the adaptation of decentralized exchanges. As 0x tokens are the fuel used when developers build off of the 0x protocol, it’s important to consider that the growth of the token will come hand in hand with public adoption of developers using 0x.
Wallets That Can Hold 0x (ZRX)
0x is an ERC20 based token meaning that any wallet that supports ERC20 tokens can hold ZRX. The most commonly used wallet for ERC20 tokens is MyEtherWallet:
Additionally, you can use a Ledger Nano S hardware wallet to hold your 0x tokens if you prefer physical wallets.
Another popular option for storing ZRX tokens is through MetaMask. MetaMask can be operated and downloaded here:
If you are unsure whether or not you can store ZRX tokens on your wallet of choice, it’s best to contact the dev team behind the wallet so that you don’t lose your tokens.
Q: Can I purchase 0x (ZRX) on Coinbase?
A: At the moment, no you cannot purchase ZRX tokens on Coinbase, however there has been a statement from the CEO that states if they did support ERC20 tokens, ZRX would be an optimal choice.
Q: Can I purchase 0x using fiat money?
A: ETHFinex supports ZRX/USD conversion. The link to their exchange can be found above.