How to buy Zcash is a question that has been rising since the emergence of cryptocurrency, and the market today is looking for alternatives that promise neater and more concrete solutions to this. Zcash is one such alternative coin, recognized for the anonymity it grants, with the fitting nickname ‘privacy coin’.
In this article, we’re going to be discussing the background and history of Zcash, and a few simple ways to purchase them for beginners to the digital currency market.
Steps to purchasing ZCash:
1) Acquire a ZCash wallet
2) Locate your Zcash Address
3) Identify an exchange suitable for trading ZCash
4) Transfer your ZCash into your wallet
What is Zcash?
ZCash was launched with the prime intent of solving one of the problems that Bitcoin posed – its lack of solid anonymity and its easy traceability. The project was developed on the same template that Bitcoin was raised on, and is thereby a fork of the currency only with some minor changes. Leading analysts in the market assert that ZCash is a stronger network than many earlier networks oriented towards privacy, such as Monero and Dash.
Most people may not aware of this, but Bitcoin does not guarantee complete anonymity. ZCash aims to address this issue by ensuring complete privacy in all transactions. As a result, in a transaction conducted between two people, all factors and details remain completely private, known only to the two parties involved.
How to Buy Zcash (ZEC)?
Step 1 – Get a Zcash wallet
The essential step for anyone seeking how to buy ZCash would be to acquire an appropriate wallet that can store Zcash coins.
There are two major forms of wallets for storing a digital currency – software wallets and hardware wallets.
Zcash Hardware Wallets
These are quite possibly one of the most secure mode of storing ZCash, since the threat of cyber attacks and online intrusions is virtually non-existence here.
When considering a hardware wallet to store ZCash, there are two major alternatives:
1) Ledger –The Ledger wallet enables storing and dealing with ZCash, and the experience is further cemented through Ledger’s ‘Live app’ which can be downloaded on your mobile and desktop . The two leading models under the Ledger brand are the Nano S and its close competitor, the Nano X.
2) Trezor – Under this brand, there are two leading models, known as the Trezor Model T and the Trezor One. Like Ledger, both of them facilitate the process of storing and dealing with the ZCash currency. The primary contrast between the two models, is the presence of a touch screen with the Model T.
Zcash Software Wallets
Although they’re much easier to avail and maintain, software wallets are generally considered more susceptible to hacks and other cyber security issues. Here are some leading software wallets.
1) Coinomi – This is a leading mobile wallet that supports the iOS as well as the Android platform.
2) Exodus – This wallet is available for the desktops and comes with the ability to store both ZCash and a range of other currencies.
3) Jaxx – This is a mobile wallet that can also be merged with a desktop version. It supports ZCash and many other leading currencies.
Locate your Zcash Address
After having acquired your wallet, the next immediate step would be to identify your Zcash address. The Zcash address comes in two major formats:
1) Transparent addresses – These are quite similar in their model to Bitcoin, in which the information is displayed on the blockchain. These addresses generally begin with the letter “t”.
2) Private address – These help to facilitate secure and private transactions under the blanket of anonymity. These addresses generally begin with the letter “z”.
Step 2 – Find a Zcash Exchange
There are many leading exchange firms through which you can acquire ZCash. We’re going to be running through some of the most esteemed and trustworthy firms here in this list, along with the most eminent advantages and drawbacks to associating with them.
1) Buy Zcash Through eToro
This exchange firm probably provides the most efficient and hassle free route to purchasing Zcash. However, with this option, the purchase can be made solely for investment purposes, meaning you would not be able to actually use the ZCash coins you’ve acquired for any other purpose. eToro allows customers to acquire ZCash coins in a quick, easy manner and with notable low fees. However, as mentioned you would not be able to access and use your coins. You would only be allowed to channel them back into Fiat currency.
This option is best tailored for speculators and investors who look to make a profit off a trading with ZCash. Meanwhile, those individuals looking to actually purchase and own ZCash coins would need to seek out another method.
2) Buy Zcash Through CEX.io
CEX.io is one of the leading crypto exchanges around. It offers the ability to buy Zcash (ZEC) through its brokerage service as well as its trading platform. Payment methods include a credit card which make it one of the easiest buying processes available (although a bit more expensive than using a wire transfer). You can read my complete CEX review here.
3) Buy Zcash Through Coinbase
Based on the United States, Coinbase is currently one of the largest and most popular exchange firms. It deals in a wide range of digital currencies, ranging and also provides other leading services such as custodial services and a wallet. Buying Zcash through this platform would need you to go through their simple brokerage service, designed for beginners in the market, or the Coinbase Pro trading platform in case you’re a more experienced user. The platform can be utilised by users from over a hundred countries, and supports a variety of mainstream payment methods such as cards and transfers through SEPA.
3) Buy Zcash Through Binance
Binance has anchored itself as the largest exchange for crypto to crypto transactions, and is one of the dominant brands in the business. If you’re seeking to purchase Zcash through trading another currency, then this firm would be your ideal options. The exchange enables trade-offs between digital currencies in a simple and strain-free manner, with a reasonable set of fees and an easy initiation process.
Step 3 – Withdraw your Zcash
Upon having purchased your ZCash coins, the imperative thing to do next would be to withdraw them. Leaving your currency in the exchange leaves it in a position of high vulnerability. Apart from the hacks and cyber intrusions, the exchange firm has the right to exert control over your currency unless you’ve withdrawn it from them. Therefore, withdraw the currency to your wallet as soon as you can.
Updates/Developments – 20 Nov 2019
- Zcash recently announced that the cryptocurrency is fully compatible with all the FATF regulations including the travel rule. The VASPs are compliant with CDD processes just like other major cryptocurrencies.
- Zcash’s parent company Electric Coin Company wrote a paper titled ‘Halo: Recursive Proof Composition without a Trusted Setup’ that will verify an instance’s correctness. Zcash’s nested amortization concept effectively eliminates the need for a trusted setup.
- Zcash will partner with Ethereum’s DeFi Ecosystem and serve as its gateway. This can empower the cryptocurrency to monitor more transactions and in turn, add value to its operations.
The popularity and prominence of alternative currencies such as ZCash have been on the rise lately, and much of this can be attributed to the fact that customers and governments are beginning to recognize Bitcoin’s shortfalls. The fact that it does not stand true to its promise of anonymity and security has been sowing dissent in the digital currency realm. Privacy coins such as ZCash, Monero, and Dash have been creating a new and re-vitalized path towards privacy and security in the digital currency space, along with other less known contenders in the market.
The process of acquiring true anonymity, however, stretches much further than just buying this currency and you would need to acquaint yourself with other methods apart from merely purchasing ZCash and other privacy coins.