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Buying Zcash Guide
Zcash is a digital privacy coin. Like Monero or DASH, Zcash was developed to provide users anonymity when completing transactions. The Zcash decentralized, blockchain-based platform was developed in 2016 by a team of specialized security programmers. The main goal of Zcash was to improve on Bitcoin by providing total privacy to users.
Zcash provides total anonymity to traders by using advanced techniques known as zero-knowledge proofs. These techniques keep Zcash transactions valid but hide any details that may reveal the traders.
Lately, Zcash has had a spike in price movements. High demand for privacy coins in May and Gemini exchange announcement it would be accepting the cryptocurrency caused Zcash’s price to move from $280 to $360 in just five days. The price has since experienced a market correction, but the cryptocurrency’s growth curve remains steady.
In the financial world, Zcash has been causing major disruptions. Its security system which ensures a trader decodes a hidden message in order to gain access to information has potentially wide applications.
How to Buy Zcash?
On May 14, 2018, Gemini became only the first cryptocurrency exchange to sell Zcash for FIAT. Gemini’s announcement had a drastic influence on the coin’s value as Zcash’s price quickly rose by more than 50% in five days.
Apart from Gemini, most crypto exchanges trade ZEC like any other altcoin. The coin is paired against dominant cryptocurrencies like Bitcoin, Ethereum and USD Tether (ZEC/BTC, ZEC/ETH, and ZEC/USDT respectively).
Irrespective of the trading pair used, it’s easy to buy Zcash on any exchange where it is listed. This guide will help you learn which cryptocurrency exchanges trade Zcash, ease of buying coins on the exchanges and how to secure Zcash coins.
Step 1: Setting up a Zcash Wallet
It makes a lot of sense to set up a secure Zcash wallet before purchasing the coin. A good wallet secures the cryptographed data that proves your own coins. If the wallet is buggy, insecure and poorly managed, it will lead to the loss of coins.
A variety of wallets support Zcash. Each of them has a varying degree of security, ease, and reputation. The best Zcash wallets are;
Ledger is one of the best rated multicurrency wallets that support Zcash. Ledger is a hardware wallet, designed in the shape of a flash drive and engineered to secure users’ private and public keys in an offline manner.
To enhance security, the wallet provides a recovery phrase, PIN security and physical buttons that must be used to confirm a payment. The wallet supports over a dozen altcoins and all ERC20 tokens. Hardware wallets like Ledger are the most secure wallets for storing any type of cryptocurrency.
Jaxx is a multi-platform multicurrency wallet. The most popular Jaxx wallet is the desktop wallet available on both MAC and IOS operating systems. The wallet supports Bitcoin, Ethereum, Zcash, Augur, Dash and more than a dozen other coins.
Apart from the desktop wallet, Jaxx is also available as a mobile wallet and as a Google Chrome extension. Irrespective of the platform, Jaxx offers a user-friendly interface, tight security and ownership of coins through the private keys.
Coinpayments is both a payment gateway and a multicurrency wallet. The wallet is free of charge for personal use, but businesses that want to use the payment Gateway are charged 0.5% for each incoming transaction.
Coinpayments claim to support over 500 altcoins, including ERC20 tokens, Verge coin, USDT, and Bitcoin. Compared to Ledger and Jaxx, however, Coinpayments is the least preferred wallet. They have a poor reputation among users particularly in terms of customer support.
Step 2- Get Some BTC/ETH
The most popular method of buying Zcash is by use of Bitcoin and Ethereum. More than 50 cryptocurrency exchanges list Zcash using BTC or ETH as trading pairs. The two trading pairs are sold in nearly every exchange where cryptocurrencies can be traded with FIAT.
Cex.io is one of the exchanges that sell both BTC and ETH. Based in London since 2013, Cex is a cryptocurrency broker for Bitcoin, Ethereum, and more. The exchange supports a wide variety of payment methods, including VISA/MasterCard, wire transfers, SEPA and Crypto Capital.
There are no deposit fees for all supported payment methods, and withdrawals are largely free except with bank transfer and Crypto Capital.
As earlier mentioned, it’s now possible to purchase Zcash using FIAT on Gemini. However, Gemini only accepts members from the US, Canada, the UK, Singapore and South Korea. Again, the only payment method on Gemini is bank transfer, which can take up to a week for the payment to go through.
If you are after convenience, security and you want to purchase ZEC coins fast, using VISA/MasterCard or Crypto Capital will get you Bitcoins in a matter of hours on Cex.io. You can then register on any of the exchanges below and buy Zcash coin.
Step 3- Choose a Zcash Exchange
With a wallet setup and Bitcoin or Ethereum already purchased, we are one step closer to buying Zcash coins. Being the popular coins it has become, Zcash is supported by nearly all exchanges that support altcoin trading.
However, it’s recommended to purchase altcoins in a reputable exchange. Popular exchanges have high liquidity, better security, are easier to use and have comparatively low trading fees. Below are some of the popular exchanges that support Zcash.
Established in 2017, Binance is Hong Kong-based. It’s the largest cryptocurrency exchange based on daily trading volumes. Binance started with an ICO in June 2017 and quickly rose to become the largest exchange within about six months.
Binance has four main trading pairs: BTC/ETH/USDT and BNB. Trading with BNB/Binance coins gifts you a 50% discount on trading fees. USDT, on the other hand, is pegged to the US dollar, which makes it less volatile. Zcash is paired against all trading pairs except for USDT.
Binance has a great reputation for user-friendliness, security, and liquidity. Their trading engine matches thousands of orders per second. There no deposit fees on Binance. Trading costs 0.1% in fees and withdrawals vary.
HitBTC is one of the oldest exchanges in the world. Unlike Binance, however, HitBTC has not always been very reputable. The exchange has been hacked before, accused of being a scam and so much more.
In the last six months though, HitBTC has been one of the best-managed exchanges. Nearly all reviews are full of praise of the exchange’s ease of use, excellent support and advanced security.
HitBTC offers three main trading pairs: BTC, ETH, and USDT. Zcash is paired with all of them. In terms of fees, market makers are given a 0.01% rebate while takers are charged 0.1% in fees. To enhance security, HitBTC requires that you set a password and enable 2-factor authentication.
Established in 2016, Lbank is a Chinese cryptocurrency exchange that serves members worldwide. Lbank is a crypto to crypto exchange, and all deposits are done using cryptocurrencies. There are no deposit fees, but there is a flat 0.1% trading fee.
Lbank is currently ranked 5th among the largest cryptocurrency exchanges, just one spot above HitBTC. Like most exchanges, Lbank offers BTC, ETH, and USDT as the main trading pairs. The exchange is paired with all pairing coins, but ZEC/BTC offers higher liquidity.
Ranked third amongst the largest cryptocurrency exchanges in the world, Huobi supports more than 230 altcoins. Like most exchanges, BTC, ETH and USDT are the main pairs on Huobi. Zcash is paired with BTC and USDT. Like Binance, Huobi also has a coin, Huobi token. The token is listed as a trading pair for Bitcoin Cash, EOS, Litecoin and several other coins.
Huobi boasts of an easy registration process, excellent market liquidity and an advanced order matching engine. However, the exchange has the higher trading fee compared to Binance, HitBTC or Lbank. For every trade made on Huobi, each trader must pay a 0.2% fee.
Step 4- Storing Zcash Safely
Poor wallet security is the leading cause of lost cryptocurrencies. Zcash may be designed to provide privacy and hide the identity of users, but Zcash coins can be lost through an insecure wallet.
Transferring coins from an exchange to a personal wallet is one of the best preventive measures a crypto trader can take. The wallets provided by crypto exchanges secure coins online, which makes them vulnerable to hackers. Leaving coins on the exchange also means you entrust an exchange with your funds as the exchanges hold the private keys to your wallet.
How to Move Zcash to a Personal Wallet?
Transferring coins from an exchange to a personal wallet can be equated to moving funds from a PayPal account to a bank account. The process is simple but making mistakes when dealing with cryptocurrencies can lead to the loss of coins permanently.
Follow the guide below and exercise caution at every stage of the process.
Step 1: Launch your Personal Wallet
Launch your personal wallet and click the ‘Receive’ coins feature. Select Zcash cryptocurrency and the wallet will generate a receiving address. Copy the address.
Step 2: Access your Balances on the Exchange
Access the ‘Balances’ section of the exchange where you purchase Zcash. On some exchanges, this section may be named as ‘Funds’. Click Zcash and ascertain that you have the amount of balances you expected.
Click ‘withdraw’ or ‘Transfer,’ enter the amount you want to transfer and the exchange will ask you to provide a receiving address. Paste the address copied on your Ledger, Jaxx or Coinpayments wallet.
Take time and confirm that the address you copied has the same characters as the one you pasted. This is important because some malware nowadays interferes with your phone’s or computer’s clipboard to change the receiving address. Sometimes you could also miss out one character when copying using the ‘Shift + C’ method.
If the address is correct and you have confirmed the amount of ZEC coins you want to withdraw, confirm the process. Your coins move from the Zcash exchange’s wallets to your wallet via the Zcash blockchain for confirmation. On average, Zcash transactions take 2-5 minutes to complete, which is much faster than Bitcoin.
Zcash is one of the most popular privacy coins. It’s also one of the best coins to invest in if its fast growth rate is anything to go by. Currently available in more than 50 crypto exchanges and supported by most multicurrency wallets, Zcash deserves the growing adoption.
For traders looking forward to investing in the coin, it’s easy to purchase and secure ZEC coins. However, it’s important to perform due diligence on any coin before investing. Cryptocurrencies are volatile currencies. Only invest what you would be willing to lose.
Thank you for reading our Zcash buying guide above. Feel free to visit our site to find more guides and reviews from a wide range of cryptocurrency topics.