In Likutei Moharan, Torah 23, Rebbe Nachman says that the Jews are all tzaddikim because of the "Brit", and Reb Nosson says that the Rebbe told him that this means because they are circumcised.
But this Brit, this covenant between a Jew and his Creator, does not end with circumcision. In that same Likutei Moharan, Rebbe Nachman also says that every Jew who guards his Brit is considered a tzaddik relative to another Jew who is not at the same level when it comes to guarding his Brit. Circumcision is the first step in bringing a Jewish man into the category of "Tzaddik" and without that mitzvah he cannot relate to the truly great Tzaddikim. He must continue to guard and sanctify the mark of circumcision by avoiding misuse of that part of his body which at the time of his Brit was dedicated to purity and sanctity.
In Likutei Moharan (I:2 and I:130) Rebbe Nachman quotes the Zohar stating that the yetzer hara, the evil inclination, focuses its influence on moral issues. Someone once spoke highly of a certain Tzaddik to Rebbe Nachman. Rebbe Nachman responded, "How is he with that desire?" The Chassid replied "How can anyone know about that?" Rebbe Nachman responded, "But that is the main thing. All the other desires can easily be subdued but the true measure of a Tzaddik is to what extent he has purified himself in that desire" (Chayei Moharan 601).
The Torah does not expect every Jew to achieve the purity of the greatest tzaddikim. At the same time, we must realize that our level of purity need not remain static, and that we are expected to constantly continue to purify and elevate ourselves, in thought, word, and deed.