How to Buy Tezos (XTZ) with the Magma Wallet
on February 10, 2021
In this guide, we’ll walk you through how to buy Tezos (XTZ) in the Magma mobile wallet — including the onboarding process — and answer a few questions as well.
Where can I buy Tezos?
If you’re as passionate about Tezos as we are at camlCase, you’ve probably talked up its virtues with friends, a family member, or a colleague — benefits and features such as its delegated proof-of-stake consensus mechanism, on-chain governance, and smart contract capabilities. This inevitably results in the same question: “Okay, that sounds great — where do I buy Tezos?”
Until now, someone would have to buy Tezos from a centralized exchange such as Binance, Coinbase, or Kraken. Then, if they also wanted to use the Magma Tezos Wallet for iOS or Android, or make exchanges of XTZ for other Tezos tokens such as tzBTC (Tezos-wrapped Bitcoin), ETHtz (Tezos-wrapped Ethereum), or USDtz (a Tezos stablecoin), they would then have to send their XTZ out of their exchange wallet and into their Magma wallet.
This is too complicated, so we set out to make buying XTZ easy. Today, you can come back to them with a better answer:
You can buy Tezos (XTZ) with the Magma mobile wallet.
Today, camlCase is pleased to announce another first for the Tezos ecosystem: In-app purchase of XTZ using fiat currency for users outside the United States. The purchased XTZ are deposited directly into your Magma wallet. No trading account necessary. No financial institution, corporate entity or company has custody of your XTZ except you.
This means that individuals interested in Tezos who wish to avoid centralized custody of their assets can onboard to the Tezos ecosystem entirely in the Magma wallet.
These XTZ purchases are made via our integrated service partner, MoonPay. We are pleased that MoonPay is working with camlCase as their first integration partner for Tezos, and are hopeful that support for US users will be added in the near future.
Buy XTZ with EUR, GPB, INR & other fiat currencies
Buying XTZ with fiat currency is supported in the Magma wallet anywhere that MoonPay supports it. MoonPay keeps a list of countries and jurisdictions updated here, and regularly adds new supported locations.
As of this announcement, this feature is available in 162 countries. (Please note that MoonPay supports purchase of other cryptocurrencies in 46 states in the United States, but does not yet support buying XTZ in the US.)
Payment methods supported in Magma
Depending on your location and your device, MoonPay supports the following payment methods for purchase of XTZ:
Instant bank transfer with Open Banking
And ACH bank transfer support is coming soon.
How to buy Tezos (XTZ) with Magma
You’ll know that you’re in a supported location if you see the Buy button at the top of the Wallet screen in Magma. It’s just to the left of the Send and Receive buttons which are in the upper-right corner of this screen. (If your location is not yet supported, MoonPay is probably working on bringing availability to you.)
Magma determines your country based off of your device's Region system settings on iOS, or the first listed language in your device's Languages settings list on Android.
Here, we provide a brief guide on what to expect as you make your first purchase.
To purchase XTZ, start by tapping that Buy button on the wallet screen.
You'll see the current price in the default currency, which you can change to your local currency if you like.
Once you've entered the amount of XTZ you wish to purchase, you'll be taken through MoonPay's onboarding process.
From here, you'll continue setting up your account by going through an identification verification process. (If you already have a MoonPay account, you can log into that account and this step can be skipped. If you already have a debit card, credit card, bank transfer or other payment method set up in an existing MoonPay account, you should see that payment method appear here.)
Without leaving the Magma app, the MoonPay UI will guide you through a quick registration and an identity verification process specific to the KYC (Know Your Customer) regulations in your region. The level of KYC required may also vary depending on the amount of XTZ you wish to purchase. This might involve uploading photos of your driver’s license, a utility bill, photo ID, or other documentation.
Please note that this onboarding process is just one example — in this case, what an EU citizen might expect to experience. Depending on your region, this identification / KYC process will vary.
In some regions, you may be asked to upload a photo of a government-issued ID, for example:
Your MoonPay identity data stays with MoonPay
Note that this data passes directly to MoonPay, and is not captured by Magma or camlCase in any way. We don't see — or have access to — your personal identification information, credit card data, or other personal data. Once approved, you can proceed to add a payment method and make your first in-app purchase!
Entering your wallet address
If you’re this far along, Magma has already conveniently copied your wallet's deposit address to your device’s clipboard. You can just paste it into the MoonPay user interface when you are asked for it:
Select a Payment Method
From here, you'll be able to select a payment method available to your region. Once you have set up your debit card, credit card, bank transfer, or one of the other payment methods, you'll be able to complete your purchase.
MoonPay charges a fee for this service, which is shown during the purchase process. As of this writing, Magma has no plans to add any additional transaction fees. To learn more about how the MoonPay service works or to contact their support, use the built-in menu within the MoonPay interface in Magma.
XTZ Purchase confirmation
You'll see the confirmation of your XTZ purchase in the MoonPay interface. It may take several hours for your first purchase to appear on the blockchain, in your Magma account balance, and in your Magma Activity. You should also receive a purchase confirmation to your email address.
Subsequent purchases should usually only take a few minutes to settle. MoonPay provides further information on trade settlement duration.
Growing the Tezos user base
One of our goals at camlCase is to grow the overall user base of Tezos. We believe that growing that base means building features which remove barriers to entry. In-app purchase of XTZ with fiat currency, without having to first sign up for custodial exchanges like Coinbase or Binance, is one of the key barriers to knock down in order to increase adoption of Tezos — and decentralized finance as a whole.
More features are on the way
We’re excited to see how this in-app-purchase feature helps make it easier for our existing user base to buy XTZ, and for new adopters who have never used Tezos before to make their first entry into the crypto ecosystem with the best community.
We've got lots of new features planned for Magma this year — and many of those features are in direct response to requests from the community. These include upgrades to the Magma integration of Dexter, our decentralized exchange.
Dexter is built into the Magma wallet
Thanks to Magma’s native integration of Dexter, the decentralized Tezos exchange from our same team at camlCase, a user who buys XTZ in either our iOS or Android apps gains the ability to exchange their XTZ for other tokens on the Tezos blockchain, enabling exposure to other cryptocurrencies such as Bitcoin (via Tezos-wrapped Bitcoin — symbol: tzBTC) and Ethereum (via Tezos-wrapped Ether — symbol: ETHtz). Tezos is also home to a number of stablecoins, including USDtz. By using the Tezos-wrapped versions of these other cryptocurrencies, many community members and observers have noted the significant benefit of lower transaction fees on Tezos as compared to Ethereum’s stifling gas fees (gwei).
What is Dexter?
Dexter, another camlCase project, is a decentralized non-custodial cryptocurrency exchange. It’s also one of Magma's core features — and is baked right into the mobile wallet. Dexter reached $1M in liquidity about three months after launch, demonstrating the strength and promise of the Tezos DeFi ecosystem (this is a similar liquidity trajectory to what Uniswap v1 experienced on Ethereum in its first three months).
Learn more about using Dexter within the Magma wallet here, or point your desktop browser to the Dexter web application to connect a browser-based Tezos wallet and begin trading. Dexter web users can also provide liquidity to the exchange to generate trading fee income, and this feature is soon coming to Magma, as well.
Below are a few questions pertaining to the Buy XTZ feature in Magma.
Q: How can I see MoonPay's XTZ prices in my local currency?
A: Although we’ve recently added support for displaying prices and values in your local currency, you may need to also use the MoonPay menu to enable a similar preference. This menu will appear in the upper-right corner of the MoonPay user interface within the Magma app.
Q: What if I already have a MoonPay account?
A: If you’ve already created a MoonPay account through their website or another service, you should be able to log into the same account through the user interface, using the email address associated with that account. Follow the early steps in this guide, look for the opportunity to log into the MoonPay system. Please note that MoonPay account data is not shared with camlCase.
Q: Can I use a credit or debit card to purchase XTZ?
A: MoonPay supports credit or debit card purchases in most countries, as well as bank transfers supported by the Open Banking system. ACH bank transfers are coming soon. Apple Pay, Google Pay and Samsung pay are also supported.
Q: Can I buy XTZ using Magma in the United States?
Q: MoonPay does not yet support purchase of XTZ in the US, but they have it on their roadmap, and it's a major goal for the Magma team at camlCase as well.
Please note that users who live outside the United States but prefer to see prices in USD can still select USD as their preferred currency in the MoonPay settings interface.
Magma is the best mobile wallet for the Tezos blockchain. Magma is a self-custodial wallet built by camlCase, the team behind the Dexter exchange. Protect yourself by moving your Tezos (XTZ) off custodial cryptocurrency exchanges like Coinbase and Binance. Magma implements multiple layers of security features, and only you have control over your assets with Magma. Magma natively integrates Dexter, the decentralized exchange for the Tezos blockchain. Use Magma to delegate your XTZ to a baker to earn a share of baking rewards. Download the Magma wallet at the magmawallet.io website. Keep up to date with our mailing list. We welcome your comments on Twitter.