How to buy Zcash?- A Beginners Guide
Zcash is hogging the limelight for quite some time now. If you probe a little deeper, you will see many people are showing a lot of interest on the various cryptocurrencies, and why not?
The current scenario makes it ideal to strike the iron when it is hot. Now generating a passive income from Cryptocurrency isn’t as arduous and complicated as getting a rocket science Ph.D. degree but at the same time, it might seem you monumental at first.
Sometimes you would be needed to endeavor a lot addressing for the most remunerative currency out there.
All you need to do is analyze what is best in the present market situation. Here we incorporate the same approach, and it leads us to the knowledge that Zcash (ZEC) is the best yet profitable cryptocurrency for all the right reasons.
Here in this article, we will be covering almost everything that one would ever want to know for holding Zcash (ZEC). If even you are blissfully unaware about Zcash (ZEC), just be with us, and you’ll get to know everything once you make it to the end. So without further ado, let’s get into the details.
An insight to Zcash
The advent of Zcash was in the year 2016. The primary motto of the developers of this cryptocurrency was to create a completely private and anonymous blockchain. There could not have been a better global payments system.
Albeit, when you are transferring money with the help of the Zcash network, the transaction will be visible in the public blockchain, but the identity of the sender and the receiver will be anonymous. Additionally, no one will know the transaction amount.
Here, we are providing a sample transaction comparing a Bitcoin and Zcash systems respectively. The example should make it easily digestible for you to understand.
A typical Bitcoin transaction:
Wallet XYZ 789 sent 10 BTC to Wallet ABC345 on 05/06/2018 at 10:15.
A Zcash transaction, on the other hand, would be as follows:
Wallet ZZZZZ sent ZZZ ZEC to Wallet ZZZZZ on 05/06/2018 at 10:15.
This sounds pretty wow. Doesn’t it?
Advantages of using Zcash
As you can see in the above example, the Zcash transactions are anonymous. The developers of Zcash consolidate a technology “Zero Knowledge Proof” which helps in maintaining the anonymity properly during a transaction. Moreover, the Zcash transactions are lightning fast.
Zcash transactions take one-fourth time than Bitcoins to confirm. Inarguably, Zcash has all the right reasons that make it suitable for using it as a global payments system.
Interestingly, both Zcash and the ever popular Bitcoin function on the same agreement and that is “Proof of Work.” There is a significant difference. As you all know, since the advent of cryptocurrencies, Bitcoin has been ruling the roost, the individuals who perform mining on an expensive equipment ASIC (Application-specific integrated circuit) stand a good chance of gaining dividends from their mining.
Zcash, on the other hand, does not require any such specifications. Thus, you can gain rewards while mining even if you are doing so with the help of a GPU or a CPU. These are much cheaper than ASIC.
As a new user of Zcash, you should be aware of an important fact that developers of Zcash will receive 20% of the mining fees. This initiative is for the sake of funding the Zcash project.
Get a Wallet to buy Zcash
You will have to create a wallet as a first step to buy Zcash. Presently, you can avail wallets in both the mobile and desktop forms. Here, we explain the procedure to you.
- Downloading the Zcash wallet is easy. You can download the wallet for both the Windows and Mac desktop versions from the official website of Zcash.
- After installing the Zcash wallet navigate to the “Own address” tab. Now, right click on the address which the client has given you. Then click on “Obtain Private Key.”
- Remember, this private key is of utmost importance. So, you should immediately note it down and ensure you never lose it. Else, you are going to lose track of your money you do not have any options of recovering this key.
- After obtaining the private key, you need to click on the own address tab once more; here you will be able to copy the address. Later, you will need this address from the exchanges to your wallet. That’s it; your Zcash wallet is now ready.
- After installing it, you are ready to use the wallet, but transactions will not be visible. You need to sync the wallet overnight to view the transactions.
- Now, you are all set to buy Zcash. For this, you will require information on the best exchanges. Below, we are also providing you with the information on the best exchanges to buy Zcash.
Exchanges for buying Zcash
Kraken is one of the most trusted names in the cryptocurrency exchange arena. It offers you a lot of conveniences. The exchange accepts most of the types of real-world currencies and at the same time gives you the privilege of buying whichever coins you prefer using your bank account.
The biggest USP of Kraken is its user-friendly website. Those who are new will find operating in Kraken very easy and effortlessly.
Lastly, Kraken is known for providing high-level of security and for its low fees. There are however some drawbacks. Firstly, you will not be able to get more amounts of coins. Secondly, its services are limited to only a select few nations and thirdly, the customer support is prolonged to respond.
Binance started operating only a year ago. Within no time, they have become one of the largest cryptocurrency exchanges. You have the option of buying more than a hundred varieties of cryptocurrencies, including Zcash.
This exchange does not have the provision of trading in currencies, but you have the convenience of depositing cryptocurrencies without any cost. The trading fees of Binance is also low, only 0.1%. You can be sure, whenever there is the advent of a new cryptocurrency, Binance will enlist that in their exchange. Furthermore, you can select the basic and advanced mode when using the exchange.
The unavailability of trading with currencies can come as a disappointment for many. Lastly, the customer care section is somewhat disappointing.
Furthermore, there are some other well-known cryptocurrency exchanges as well as HitBTC, Poloneix, and Cryptopia. Now let us look at the procedure of buying Zcash.
How to buy Zcash?
For buying Zcash, you need to deposit Bitcoin or Ethereum on the exchange. For those, who do not have the cryptocurrencies mentioned above, they will require to buy them first. Coinbase is the ideal place to buy Bitcoin and Ethereum. Once you visit the Coinbase website, you will notice it is straightforward and self-explanatory to purchase these cryptocurrencies using real-world currencies.
- Here, we have taken up Binance as an example to explain you the procedure of buying Zcash. Just a note, before you open an account at Binance, you should set up your Coinbase page for quickly transferring the Ethereum to Binance.
- Once the purchase of Ethereum (ETH) is complete, you will need to navigate to the Accounts tab on the Coinbase page. Scroll down, select Ethereum and click Send. Just paste the Binance wallet address.
- By now, you should be ready with your Binance account. Now, login to your account and click on Funds, next click on Deposits. You should be able to see a drop-down list. Select the cryptocurrency you want to deposit, in our case, Ethereum.
- You will now be able to see your Binance deposit address. Copy this address and return to the Coinbase page.
- Paste the Binance deposit address here, and click on Send. Wait for around 10 minutes before the Ethereum transfer procedure completes.
- Now, your Binance account has Ethereum, and you can start the procedure of buying Zcash. At first, navigate to the Exchange tab and click on Basic.
- Now click on ETH and search for ZEC. Once you have found the option, click on ZEC/ETH. You will now be in the trading screen where you can make the Zcash and Ethereum pairing.
- In the trading screen, you will notice the Buy ZEC box. Just a note, it is prudent to click on the option Market to know about the best market price. Once you have the idea, enter the number of Zcash coins you wish buying. Alternatively, you can also mention the percentage of Ethereum balance here. Now, click on Buy ZEC.
- Congratulations, you are now an owner of Zcash.
Kudos to you! You have successfully made it to the end, and now you are knowledgeable enough to buy and hold ZCash (ZEC) without any hassle. Understanding its various advantages, you are going to appreciate it.