Where & How to Invest in Zcash (ZEC) in 2023
Zcash (ZEC) is a digital currency and a decentralised blockchain designed to solve the lack of privacy in the cryptocurrency market. Its Zero-knowledge proofs enable users to make investments and purchases with confidence. The underlying technology, zk SNARK, guarantees them transparent and confidential transactions. With a significant market cap, there’s adequate evidence that this Bitcoin fork has remained attractive to investors since Zooko Wilcox-O’Hearn founded it in 2016 with the support of JPMorgan. The bank provided the advanced privacy layer.
This guide will discuss all that you need to invest in Zcash successfully.
1. Trade Zcash
Since Zcash is a Bitcoin fork, you can use the popular ways of trading BTC to make money. Online brokerage platforms are ideal, as they allow you to choose from a wide selection of financial instruments and trade cryptocurrency. They also guide you throughout the investment process. Some financial tools you can consider are CFDs, Options and Futures.
Zcash is a volatile digital currency, and the underlying investment principle in this approach is to take advantage of the price fluctuations. The good news is that you can capitalise on the price fluctuation without owning mining rigs, software and likes. The risks are manageable, but it doesn’t guarantee the highest returns. Nonetheless, due to the volatility of the market and security threats, a new trader needs to start slow and learn crypto trading before taking higher risks. In other words, it’s a short-term investment strategy that suits investors who are looking for a secondary source of income.
Where to trade Zcash
From the above points, you can see that finding the right Zcash trading platform is the greatest challenge that new investors face. As a beginner, you are likely exposed to losing your investment. However, once you find a trustworthy broker, you significantly reduce the risk. The good news is that you can choose the right trading partner by considering the platform’s user-friendliness, compliance with legal and regulatory requirements, transaction fees, payment options, and security and privacy policies.
Sometimes, going through all these can be overwhelming. This one mainly applies to beginners and others who lack adequate research time. We’ve conducted in-depth research and reviewed the top Zcash brokerage platforms to help you make the right decision. Find our recommended service below.
2. Buy and HODL
The term “HODL” is popularly used within cryptocurrency investment circles to refer to speculative investment. In this case, the investor buys some digital assets when the price is low. They should hold the cryptos in their wallets until the price increases. This way, they can make a lot of money without putting a lot of effort into the work.
As you can see, “HODL” is derived from a misspelling of the term ‘hold.’ It refers to the buy-and-hold long-term investment strategy. The usage was featured online for the first time in 2013. An inexperienced Bitcoin trader promised in the hilarious rant that he would “HODL” his coins despite the risk of losing the investment. Remember, BTC was worth less than $15 at the beginning of January 2013. Before mid-December of the same year, it had sky-rocketed to over $1,100. However, on December 18, it dropped from $716 to $438. This fluctuation prompted the response that later gained traction.
You can use this same strategy to trade Zcash and make what looks like passive income. Before doing that, it’s essential to understand the future of the cryptocurrency market and the crypto. This is the best way to mitigate loss.
Once you are ready, you can obtain the digital assets from a cryptocurrency exchange or a brokerage. Choose one that allows the actual purchase of Zcash. The best exchanges and brokers have several trading pairs, so they give you plenty of options. Remember, you also need a hot or external wallet where you will store the cryptos.
Since we understand that our readers are interested in fully understanding the expert ways to purchase and invest in ZCash, we’ve created dedicated pages that provide these pieces of information. You’ll learn how to buy ZEC and the costs involved. Besides, you’ll learn how to receive and use the coins.
For detailed information on how to purchase ZCash, you can click the following links:
3. Invest in Cryptocurrency and Blockchain Companies
Besides direct investment, you can invest in Zcash by partnering with companies heavily invested in Zcash or using blockchain technology. This approach is best for investors with limited knowledge of the coin and the industry. They can take advantage of the expertise of the company and grow their portfolio with much ease. Investors also benefit from the success of the cryptocurrency.
If you wish to invest in shares of these experienced companies, you need to be careful to reduce the risks. Many companies and brands that claim to have the resources and expertise required can’t give you the necessary support. So, it would be best if you worked with a trusted crypto broker.
Where to invest in Zcash shares
Once you’ve decided to invest in crypto or blockchain companies, your first step should research these companies. Once you find a suitable one, you can open either a long or short position through your chosen broker. The primary duty of the broker is to facilitate the trade. The right broker should have an in-depth understanding of Zcash-based stock and the expert shares-investment tips. Remember that this strategy is the same as the traditional investment approach. The only difference is that you are investing in ZEC shares.
The success of the investment strategy largely depends on the competence and reliability of your chosen broker platform. You may have noticed that the cryptocurrency market is full of entities that parade themselves as crypto brokers, but some are not. To be on the safe side, you should consider factors like the platform’s user-friendliness, cost of service, payment methods, trading data and charts, and compliance with regulatory requirements before making the decision.
We know that following the above steps could be time-consuming. Some investors can also find them overwhelming. For that reason, we’ve handled the tricky part. We’ve conducted in-depth research and listed our recommended crypto broker below.
4. Become a Miner
The ZEC network has a maximum supply of 21 million coins, and the total supply is slightly above 11 million coins. This means close to 10 million coins are yet to be mined. The network uses an altered Proof of Work consensus mechanism known as the Equihash mining protocol to protect users and their digital assets. This protocol is the same as Bitcoin's PoW, but it’s much faster.
Zcash block reward halves after every four years. Since November 18, 2020, the reward has been 3.125. It was much higher during the coin’s early days but will reduce to 1.5625 in 2024.
The average block time is 75 seconds. If you become a Zcash miner today, you’ll earn 3.125 coins per block, and you could make a lot of money depending on the efficiency of your GPUs or ASICs.
Where to store Zcash
After mining ZCash, the network will accumulate your rewards. Once you’ve made a reasonable sum, you should be able to withdraw at any time. To receive your tokens, you can choose private transactions if you want to protect your personal information. You also should have a compatible wallet address. Here are the cryptocurrency wallet options that you have:
- Hardware Wallet: These devices store your cryptocurrency offline. You must press the physical buttons to confirm transactions. It’s best to purchase new hardware wallets due to security concerns.
- Software Wallet: They come as web applications, mobile apps, and desktop apps and store the coins online. Some of them come in more than a single form. The official Zcash wallet, for example, comes in the desktop and mobile application forms.
If you are looking for alternative Zcash wallets, our recommended wallet is given below.
5. Become a Zcash Developer to Make Money
You can develop your blockchain project and make money from ZEC.
To succeed, you need to get a quality education and acquire advanced coding skills. In particular, you should be able to code in the programming languages that blockchain projects use. To become a cryptocurrency developer, you need advanced coding skills. You should learn the computer programming skills like Java and C++ and others that blockchain projects use. A deep understanding of the cryptocurrency market could also make your work easier.
Expert Tip on When and How to Invest in Zcash“ Zcash is a very attractive investment option in the crypto sector and being mineable, allows for a great way to earn income. However, given the hardware expenses, trading is the easiest way to invest in the coin. All you need is capital—you can start small and grow your way into higher gains. Consider the price, history and new developments in the pipeline before opting for any method. Remember, there is no right or wrong time to invest in ZEC. Base the decision on your knowledge of the cryptocurrency market and Zcash to increase your chances of success. Proper risk management is necessary, especially for new investors. ”- Benson Toti