How & where to buy Zcash (ZEC) online
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This guide includes a step-by-step guide for beginners that takes you through how to buy your first coins. Alongside that, it goes over a comparison of the best brokers to use to buy ZCash, then covers the most important things to consider before you put your money on the line.
What are the best exchanges to buy ZEC on?
The platforms below are some of the best places to buy Zcash now. You can get started right now by clicking through the links in the table. If you’re not ready to do that yet, then scroll down to keep reading about Zcash.
How to buy Zcash online – a step-by-step guide
Step 1. Find an exchange
To buy Zcash coins outright, you should use a cryptocurrency exchange. An exchange is a platform where you buy and sell coins directly from other people. The interface can be a little more advanced than that of a broker but the reward is you often get better prices and more ways to swap one crypto for another.
Two top exchanges that offer Zcash are:
- Binance: Binance is widely regarded as the top crypto exchange platform around. A Binance listing is a near must-have for any cryptocurrency, so you can buy almost any coin that you’re interested in on this exchange. Join Binance today >
- Bittrex: Bittrex is a beginner-friendly exchange that prioritises security. It also offers a broad range of coins and lots of different ways to buy them. Sign up for Bittrex now >
Step 2. Sign up and fund your account
Once you’ve picked an exchange, you have to create an account to be able to use it. This is relatively simple; all you need to do is supply some personal details like a phone number and email address, as well as a form of photo ID. More and more exchanges require the ID for verification to comply with money laundering regulations.
You can normally deposit money into the account via a bank transfer or by using a debit or credit card. You might have to pay a small fee, which varies by payment method. You should expect a flat fee of around $10 for bank transfers and between 3-5% on card payments.
Step 3. Find Zcash and purchase the coin
Once you have a fully-funded exchange account, you can search for the coin you want to buy by typing in its symbol. In this case, you’ll find Zcash by searching for ZEC. The results show a list of different pairs, presented like ZEC/BTC or ZEC/USD, which simply show the price of Zcash in either Bitcoin or the US Dollar.
Select one of the pairs, depending on how you want to pay for it. You might find that there is no option to use your fiat currency (like USD, or GBP), and the only available pairs are with other cryptocurrencies. In that case, it’s best to buy Bitcoin first and then use that to pay for Zcash.
To complete the purchase, just enter the amount of Zcash you want to buy, or the total amount you want to spend, and click ‘buy’ to execute the trade. It may take a few moments to go through but once it does, the new coins will show up in the wallet section of your exchange account.
Step 4. (Optional) Get a suitable wallet
The final step is to decide whether to leave the coins in that exchange account or move them to a dedicated cryptocurrency wallet. Wallets are like banking apps that you can use to store and manage your coins. Most of them are free, or come with a small, one-off fee, and keeping your coins there means you don’t have to rely on the security of the exchange.
Here are two of the top wallets around at the moment:
- FreeWallet: FreeWallet is an online wallet that lets you access your coins through a web browser or an app on your mobile phone. It’s easy to get started and free to use, as the name suggests. Get FreeWallet now >
- Trezor: Trezor is a hardware wallet, which means it stores your coins offline on a USB-like device. You can either plug the device into your computer or use a LED screen to access the coins. Get Trezor today >
How to trade Zcash – a step-by-step guide
Step 1. Find a CFD broker
Trading a cryptocurrency normally means the practice of buying and selling it regularly in order to take advantage of small changes in price over the course of a day. For this, you need a broker that charges low fees.
Not every one of these brokers will let you trade Zcash. While Bitcoin and other large cryptocurrencies, such as Ethereum, are almost always available, the range of smaller, lesser-known altcoins varies depending on the platform. The two brokers below do offer Zcash right now:
- eToro: The most popular retail trading broker around, eToro lets you trade all the most popular asset classes, from cryptocurrencies like Zcash to stocks and forex as well. Join eToro today >
Cryptoasset investing is unregulated in some EU countries and the UK. No consumer protection. Your capital is at risk.
- Robinhood: Robinhood is another free trading, CFD broker that lets you speculate on different assets. You can find all the most popular stocks, coins, and indices on Robinhood. Start trading today >
Step 2. Deposit money
Like with an exchange, you have to set up and transfer money into your brokerage account before you can do anything. The process is even easier with a broker and you can have it ready to go in just a few minutes. Deposits can be made via bank transfer, card payment, or sometimes through PayPal or Apple Pay, and the cost depends on the platform.
Step 3. Learn how to perform technical analysis
Technical analysis is the art of reading price charts to pick out patterns that can help you predict the future. By understanding which trends usually mean the price is about to rise versus the ones that suggest an imminent fall, you can time your moves to give you the best chance of making a profit.
You can learn about this process in detail through our trading courses. Or you can simply pick out a couple of basic themes (support and resistance levels, along with candlestick bases, are a good place to start) and read up on them so that you can get going as quickly as possible.
Step 4. Decide whether to go long or short
One of the unique features of trading CFDs is that you can buy or sell them to take advantage of price moves in either direction. This is in contrast to using an exchange, where you usually can’t sell something that you don’t own yet. CFDs are different, and give you much more flexibility in terms of how you trade.
Going ‘long’ simply refers to buying an asset, while going ‘short means selling it. You can decide which one is the best approach based on your research, analysis, and whether there is any recent news that might affect it.
Step 5. Make the trade
Search for the coin on your broker with its ticker symbol, ZEC. You’ll see a buy and a sell price that you can use to make a trade instantly. It might be a little above the price you see on an exchange, because brokers normally include a small commission in the difference between the two prices (this is known as the ‘spread’).
For a little extra you get the convenience of being able to simply buy or sell a coin in a couple of clicks. Once you’ve decided how much you want to spend, you can execute the trade and it will show up in the open positions section of your account.
Should I invest in Zcash?
Zcash might appeal to you if privacy is one of your biggest concerns. It was set up as an alternative to Bitcoin where users can keep their identities completely secret. It doesn’t have the same widespread appeal as the original cryptocurrency yet but it is arguably more true to its ideals.
Another advantage of Zcash compared to other coins is that you can go ahead and use it if you want, rather than simply holding it as an asset that you hope to appreciate in value. You can use Zcash with a few merchants, or spend it anywhere that Visa is accepted by downloading an app called Moon.
To help you come to a final decision, we’ve summarised Zcash’s most important pros and cons in the table below. After that, there are some more tips on how to time your investment and how it might perform in the future.
- Zcash prioritises anonymity and keeping your transactions secret
- Its otherwise very similar to Bitcoin, with the same security
- You can spend it with participating merchants already
- Some of its tech is already used by JP Morgan Chase
1. Is now a good time to buy Zcash?
That depends on a few factors, like how long you want to hold it for and the state of the wider cryptocurrency market. Altcoins like this can get swept up in big spikes or sell-offs, so if the market looks particularly volatile at the moment it might be best to wait until that subsides before investing.
If you’re more interested in trading Zcash or speculating on its price changes in the short term, then you should base the decision on your own technical analysis. Studying the price charts will give you signals on when to buy or sell, or you follow the work of our in-house team of analysts to help you get started.
2. What problem does Zcash solve, and what are its investment prospects?
It provides a cryptocurrency where it’s impossible to trace your transactions. It is genuinely anonymous, rather than pseudonymous, as Bitcoin is. The Zcash blockchain includes more advanced cryptography which is used to scramble the details of each transaction.
This makes it an attractive prospect to crypto enthusiasts or anyone who might want to stay anonymous online. Obviously, this can be associated with seedier activity, which might work against Zcash long term if there were to be more regulation of cryptocurrency in general.
A more immediate concern is the amount of competition. Monero and Dash are two coins that have been around for a while and were deliberately set up to be more secretive than Bitcoin. It’s difficult to assess which of them is most likely to be successful, but you should keep track of the latest news to see how they each perform over time.
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3. Do you want to hold Zcash for the long term?
Zcash is suited to buying and holding because you can actually use it to purchase things online. However, there are times where you might not want to do that, and when trading it quickly is a better alternative. Here are a couple of final considerations for the two different approaches.
Considerations for a long term investment strategy
If your plan is to hold Zcash then you should find a crypto exchange and use that to buy your coins. Afterwards, think about signing up for a wallet and storing the coins in there to keep them secure.
Considerations for a short term trading strategy
A short term trading strategy is based around choosing a broker with low trading fees and then using technical analysis to inspire your moves. Read up on CFDs and how to use them to be successful at this form of trading.
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