Zcash is one of the most private currencies to have emerged in the crypto boom, which makes it an interesting coin to trade with. This guide will show you how to buy Zcash with USD and how to trade it in 2020.
Compare where to buy Zcash Coin, and open an account
Read on to find out more about Zcash and how it works or skip ahead to our step-by-step buyers guide if you’re ready to buy Zcash.
What is Zcash?
Launched in 2016, Zcash was created to solve some of the privacy issues with Bitcoin and give users the option to hide their transactions.
How does Zcash work?
In some ways, Zcash is just like any other form of anonymous digital cash. It uses advanced cryptology to obfuscate information that is usually publically available when using non-anonymous cryptocurrencies like Bitcoin. The big difference with Zcash is the focus on giving users the option to hide or reveal their transactions.
There are plenty of legitimate reasons for wanting to keep transactional information private including companies wanting their movements hidden from competitors and users in repressed countries looking to avoid detection when buying and selling.
Zcash allows users to choose a z-address (hidden) or a t-address (transparent) when sending or receiving funds. Users can also allow trusted third-parties to see a z-address by handing over a view key.
How to buy Zcash (ZEC) online – step-by-step guide
Step 1. Get a Zcash wallet
There are plenty of Zcash compatible wallets out there, so you won’t have to spend too much time searching for one. Here’s three of our top picks:
- Zcash Wallet: If you want the best desktop wallet for your Zcash, go direct to the Zcash website where you’ll find a download button for the Zcash wallet.
- Jaxx Wallet: Digital wallets don’t come much more accessible and widely supported than the Jaxx Wallet. Available for desktop, mobile and web browser, it’s easily one of the handiest Zcash wallets we’ve come across—if only they had a hardware version for some beefed up security.
- Ledger Nano X: If it’s high-end security you’re after, the Ledger Nano X (or the slightly cheaper Nano S) are worth checking out. These aren’t necessarily beginner wallets, thanks to their top end price tags, but they are two of the better hardware wallets we’ve used.
Step 2. Find an exchange to buy ZEC
Finding a Zcash exchange shouldn’t be too difficult these days, so your main concern should be finding the best one to buy Zcash. With that in mind, here are a couple of our favourite places to buy ZEC:
- Binance: It’s not a bad idea to head straight to Binance if you’re looking to buy Zcash (ZEC). It’s one of the most trusted exchanges around and it’s usually our first port of call regardless of whether we’re buying Bitcoin or Zcash.
- Kraken: Another of the bigger players, Kraken is a great place to buy your cryptocurrencies from as it accepts fiat cash. You will need to open an account, but this doesn’t take long and once you’re done, it’s easy to start buying ZEC.
Step 3. Withdraw your Zcash
Once you’ve secured your funds, it’s best to withdraw them rather than keeping them in a wallet on the exchange. It’s usually a very simple one or two-click process to transfer coins to your own wallet and they will be safer there, especially if you’re using a hardware wallet.
How to trade Zcash – step-by-step guide
If you’re only thinking about trading Zcash, you won’t need a digital wallet as you’ll only be speculating on the price, rather than buying ZEC outright.
Step 1. Find a broker
There are a number of brokers to choose from, so it’s a good idea to do some research before you jump in and start trading. Two of our go-to brokers at the moment are Plus500 and eToro, but there are others brokers around that may suit your needs just as well.
Step 2. Deposit money
Once you’ve chosen your broker to trade ZEC, you’ll need to deposit some cash so you’ve got funds to trade with. Most brokers, including the two mentioned above, have a minimum deposit requirement, but this is usually pretty low, so it shouldn’t be too off putting for serious traders. Usually, you wont be able to buy Zcash with credit card, however you can deposit money to the broker using various payment methods including credit or debit cards.
Step 3. Decide how you’d like to trade
There are two main ways you can trade on the cryptocurrency market. These are CFDs (contracts for difference) and spread betting, both of which allow you to speculate on the movements of a currency without actually buying it.
Step 4. Start trading
If you’re just starting out, it’s a good idea to spend some time getting used to the trading platform you’ve chosen. The best way to do this is by setting up a demo account and trying a few practice trades before upgrading to a live account. This will help you understand how volatile cryptocurrencies can be and highlight how quickly you can win and lose money.
Once you’re up and running with your demo account, you’ll need to decide whether you think the price of your chosen cryptocurrency will rise or fall, then take a position. If you think the price will rise, you’ll take a long position (meaning buy) and if you think the price will fall you take a short position (meaning sell).
You may also decide to add leverage to your strategy. With leveraged trading you only have to put up a small amount of the total value of your trade. This is not usually something a beginner would get into straight away as the bigger the trade, the bigger the risk.
- Zcash is anonymous
- Zcash is a fungible currency
- Fixed supply of Zcash coins
- Zcash is attractive to criminals
- CPU-only mining
- Zcash has some big competitors