Learn Where & How to Buy Zcash (ZEC) - A Beginner's Guide
Zcash (ZEC) is one of the two leading privacy coins that are on the list of top 50 global cryptocurrencies by market capitalisation. It has held on as a unique cryptocurrency considering that not many options exist in the privacy coin niche. It has also witnessed price spikes and crashes in the past year like other cryptocurrencies. The currency is known by the symbol ZEC.
If anything, Zcash by its design seems to have carefully navigated the minefield of regulatory sanction for 100 per cent privacy coins in some jurisdictions. So far, it fulfils a marketplace need and that is a unique selling point. Zcash is currently widely traded recording up to $460 million in daily volume across global marketplaces. Users can buy Zcash on many cryptocurrency exchanges either directly through fiat currencies such as the US dollar or through other cryptocurrencies.
3 Things to Consider Before Buying Zcash
With many people considering privacy coins as a niche market, the fact that Zcash offers two sets of wallet addresses makes it a seeming 2-in 1 cryptocurrency. You can decide to use the transparent wallet address or opt for the shielded one when planning your transactions. As the outlook of cryptocurrency brightens, the dual usability of Zcash could be pivotal in it retaining a marketplace appeal.
Zcash has a supply of 21,000,000 like Bitcoin but its circulation is 10,450,325 ZEC and it was originally designed using the Bitcoin codebase. Its limited circulation makes it pretty much a scarce cryptocurrency that was probably never directed at mass adoption. It has its niche use and that represents its strongest selling point.
Loyal & Dedicated Community
Zcash is mined using the resource-intensive Proof of Work (PoW) algorithm, and that shows in its restricted circulation volume so far. Its miners are actively the bedrock of the community with other stakeholders like investors, publicists and market watchers making up the numbers. Its PoW algorithm further cements the community as the miners must always collaborate to validate and authenticate transactions.
Cryptoasset investing is unregulated in most EU countries and the UK. No consumer protection. Your capital is at risk. CFD crypto trading is unavailable for clients residing in the UK and US. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Where to Buy Zcash in 2021?
Just before you go ahead to buy Zcash, you also need to know about digital wallets used for its storage. Cryptocurrencies are not stored like fiat, and the details needed to keep them safe and easily accessible are all necessary as you begin your lessons on where to buy Zcash. The good news is that there are safeguards you can adhere to protect your digital assets and avoid loss or pilferage. This is necessary to learn before you start trading Zcash.
With crypto trading, you learn about price prediction, which will provide you with an insight into the direction of token prices over a given period. While these insights might not be always accurate, they serve a useful guide that you can evaluate as you make progress with the buy and sell signals you might come across.
Some brokers also provide an opportunity for more trading opportunities to investors with CFDs and futures contracts. With CFDs, you have a chance to take a bet on a future market price of the digital asset, and if successful, you will be paid by the broker.
Our Tutorial to Buy Zcash in 5 Steps
Brokers and exchanges are the major intermediaries that you come across as you take steps to invest in Zcash. Brokers are quite ubiquitous online while exchanges are popular among crypto fans and enthusiasts around the world. The following are useful steps that you need to know.
Step 1: Find an Appropriate Platform to Buy Zcash
In buying ZEC, you will realise that this coin is easier to buy on an exchange than from a broker. Different brokers offer crypto for sale, but they are not all widely available like most exchanges. If you are dealing with big brokers like eToro, your chances of buying most cryptocurrencies are improved than when using a lesser-known brand.
To patronise an exchange, you need to know if such a platform is best for you. You might want to consider the fees and whether the payment method available is such that you can easily use. The bright spot is that you can easily choose an exchange as most of them have a global reach. Where Coinbase is unavailable, you can use Binance, which is used across many countries. Brokers like eToro and Pepperstone will deepen the trading experience for investors by providing avenues to explore CFDs and margin trading, which comes with higher risk and profitability.
Step 2: Registration / Create a New Account
What you need to do to register a new account is simply provide your email address, choose a unique password and provide your personal ID. While the accepted identity documents could vary, most platforms will require a proof of address, a government-issued ID card, and maybe a credit card statement in some cases. American residents might be required to provide an SSIN before their accounts are authenticated.
New account authentication can be completed almost immediately in many cases, while others get resolved within 24 hours or less. You will be notified by email or a push message if you use an app as soon as your details are authenticated. While you might have no need to provide KYC documents on some platforms, the risk associated with such is way too high. Unregulated exchanges might avoid this vital layer of account authentication, but that should also be a red flag that indicates a willingness to operate outside regulatory standards, which puts your funds at greater risk.
Step 3: Deposit Funds
As you get ready to fund your account, you need to navigate to the account balance section in your user dashboard, click on deposit funds, and enter the amount you have available and submit. It is important to point out that how much you can deposit depends on the platform you are using. Binance requires no minimum deposit but at least $10 is needed for you to initiate a trade. eToro has a minimum deposit requirement of $50 if you are using credit card deposit or local bank transfer. Higher limits will suffice for wire transfers.
Fiat currency is the most common deposit method, although some platforms also accept crypto deposits in Bitcoin, Ethereum or some of the leading digital coins. Most deposits reflect immediately for credit card payment or local bank deposits. International transfers can take up to 48 hours to reflect.
Step 4: Start Trading or Buying Zcash
Before you begin to trade Zcash, you need to be sure about selecting a wallet for coin storage. On an exchange, you will get a free digital wallet which you can activate just by clicking on the ticker for Zcash in your account dashboard. Hardware wallets are also available, and you will need one if you are buying Zcash to own and not to sell immediately.
Trading Zcash using a broker provides opportunities to access CFDs and futures contracts, which is not readily available at most exchanges. When you trade with eToro, you have the freedom to carry out direct trades. While services rendered by brokers and exchanges are similar, they are not the same. Some big-ticket traders use brokers to buy digital assets in the 6-figure range as against buying outright from an exchange for safety purposes.
Step 5: Optional Steps
You can also use the following steps as you invest in Zcash:
- ZEC Staking
When you stake ZEC with some exchanges that support such, you will earn some other crypto in return in the form of interest payments. You could also be paid in ZEC depending on the platform you are using. At the end of the fixed term of staking, you will get your staked ZEC back in addition to the rewards paid.
- Buying the dip
The market price of ZEC has had a low of $18 and a high of $102 in the last 12 months. In between these two price levels, there have been fluctuations recorded. At a low of $18, ZEC price dipped, and at maybe $45, that was a high. If you bought ZEC at $18 and sold at $45, you earned a profit of $27 per coin. Buying at low prices is an incentive, and in this respect, you earn rewards when the price surges and you trigger a sell-off.
Available Payment Methods for Buying Zcash
Each cryptocurrency exchange has a set of payment methods that are supported and some support more options than others. These are the available payment methods for most platforms:
- Buy Zcash with Cash
You can buy Zcash using fiat on a P2P platform or by direct deposit into a seller’s bank account. This is not commonly available.
- Buy Zcash with Credit / Debit Card
You can buy Zcash with debit /credit card in most marketplaces, and it is the most used payment method.
- Buy Zcash with Bank Transfer
A bank transfer can also be used to buy Zcash. While local bank transfers can reflect almost immediately, cross-border payments are slower.
- Buy Zcash with Cryptocurrency
You can also buy Zcash with cryptocurrency using a platform that supports the payment method. Binance and Coinmama are common examples.
- Buy Zcash with PayPal
PayPal is fast and commonly used for payments in North America and parts of Europe. You can buy Zcash with PayPal in these areas.
What Are the Fees for Buying Zcash?
A business that charges no fees could find it hard to survive. Exchanges and brokers charge fees to provide funding for their operations. Although the fees charged are mostly small, when aggregated from several customers, they help these crypto facilitators to stay in business. In addition to platform fees, the network fees also arise whenever movements occur between wallets. Some platforms incorporate the fees associated with your payment method and the network fees in your charges
Expert Tip to Buy and Sell Zcash
Humans and emotions are almost inseparable. However, many experts recommend that for you to be a good investor, you need to separate your emotions from your trades. So, no matter how attached to a trade you become, when the hard choices need to be made, you need to stand firm. One means of getting this done is by triggering stop-limit and stop-loss mechanisms. The other aspect of emotions has to do with overlooking missed opportunities so that you can focus on other oncoming pathways and earn the rewards.
How to Find the Best Time to Buy Zcash
All markets are subject to the vagaries of demand and supply. When supply outstrips demand, a price drop is inevitable. In the same vein, when demand eclipses supply, a price surge will result. The lesson to take away is that whatever triggers increased demand or supply can be tracked and used profitably. So, there is no specific time when Zcash must be bought.
If you follow market reports, performance charts and expert analysis, chances are that you will be able to also recognise patterns that might be repeated in the future. Whenever they reoccur, you will be better placed to buy Zcash and sell profitably as the occasion demands.
What Drives the Coin’s Price?
Many factors impact the price of cryptocurrencies and Zcash inclusive. Blockchain adoption reports, regulatory sentiments, technological breakthroughs and newly formed partnerships all have an impact on Zcash price movement. The impact of Bitcoin performance cannot also be overlooked. Since BTC controls up to 60 per cent or more of the total market cap of cryptocurrencies, it can easily influence the performance of Zcash and the altcoins.
When the price of BTC rises, there is a bandwagon effect, and the same thing when it goes in the opposite direction. While this might not always be the case, it is one of the known factors in the crypto market to observe. As an investor, it is right to look out for these signals in order to maximise trading profits.
How to Sell Zcash
Convenience and speed are major factors to consider when selling Zcash. On exchanges, Zcash can be sold, with the process of withdrawal and cashing out completed in 30 minutes. How fast you can sell Zcash depends on the platform you are using. Big exchanges are awash with the funds of takers and makers that regularly ensure seamless processes. After completing your sales, you can decide whether to cash out in fiat currency or cryptocurrency subject to what your trading platform supports.
Some brokers offer Zcash CFDs, which provides an opportunity to earn more with a greater demand for risk management as well. CFDs are completed when the set tenor elapses and you are paid for your successful bet or made to pay the spot rate difference to the broker.
Frequently asked questions
Yes. It has an anonymous feature that users can activate for transactions, which makes it impossible for third parties to have details of coin received or sold.
No. ZEC is not classified as a security.
Yes. Like Bitcoin, it uses the proof of work algorithm, which is considerably fraud-proof.
Zcash price is volatile like other cryptocurrencies with spurts of surges and dips.
Yes. Most global exchanges have it on sale. It is also available on Coinbase.
Yes. Like other cryptocurrencies, its profits are taxable in most global jurisdictions. If you incurred a loss in trade, you could qualify for tax relief.
In a sense, it is. It was developed using Bitcoin code and algorithms. It is the privacy feature that makes it markedly different.
This is likely. There are several cryptos with a niche appeal. As long as there are users of the coin that prefer its privacy features, it will have a worthwhile value.