5 Things to Consider if you Want to Buy Zcash
There are a bunch of factors to consider if you’re buying Zcash for the first time. We recommend taking a look at the following five specific factors before you complete your first ZEC purchase.
1. Carefully choose your preferred secure payment method
Platforms that sell cryptocurrencies usually support several secure payment methods for convenience. What options are available to you will largely come down to your location. For example, a user in the U.S. can expect to see PayPal as a payment option, but a user in Pakistan won’t see it because PayPal isn’t supported in that country.
If you happen to live in a location that has multiple options, then consider the cost and speed of a transaction by each payment system. The good news is that any platform worth its salt will be transparent about the fees and transaction processing times for the available payment methods.
2. Will you need to set up your own wallet?
Setting up your own Zcash wallet is a crucial step before you make any purchase. While every crypto platform will automatically create a wallet for you, these built-in web wallets are generally more vulnerable to security breaches. Your ZEC tokens will be safer in a cryptocurrency wallet that you have full control over.
The exception to the wallet rule is if you’re entering a CFD (Contract For Difference) agreement with a reputable broker. That’s because CFDs and other futures contracts are derivatives that don’t require you to actually hold any ZEC tokens.
3. Comparing costs
Every cryptocurrency network—including Zcash—has fees and costs for transactions. Some networks charge smaller fees than others, so try to compare different networks to see which one is the most affordable option for you. That being said, cryptocurrency transactions are generally much cheaper than traditional alternatives. Low fees are found on the Zcash network itself so you can focus more on the other types of fee for this particular digital asset.
4. Safety and security
On a network level, Zcash has the same level of security as Bitcoin, but with a higher level of encryption thanks to its zk-SNARKs technology. It offers users two levels of privacy:
- Public transactions: A standard transaction between public addresses that is recorded on a public ledger. It’s easy to connect a public address to a user’s real-world identity.
- Shielded transactions: Zcash uses a technology known as zero-knowledge succinct non-interactive arguments of knowledge (zk-SNARKs) to enable completely anonymous transactions over the public blockchain. The fact that a transaction occurred is recorded on the ledger, but the sending and receiving addresses and the amount sent are not revealed to the public.
When making ZEC transactions through brokerage and exchange platforms, combine Zcash’s default security and privacy features with the features offered by your chosen platform for more safety and security. These include security features such as two-factor authentication (2FA) and MetaTrader 4 (MT4) or MetaTrader 5 (MT5) support.
5. Can you understand and navigate the platform?
While buying cryptocurrency from an established platform can be easy, it’s important to first familiarise yourself with your chosen platform. Figure out how the built-in wallet works, what costs and fees you may incur, and how long transactions take. Perhaps even perform a few dummy transactions just to see the system in action. Zcash Blockchain transactions are immutable by design, so there are no refunds or chargebacks if you accidentally enter the wrong wallet address or wrong transaction amount.
What is the Best Payment Method for Buying Zcash?
Crypto platforms typically have multiple payment options available for users to securely buy Zcash. Factors to consider when choosing a payment option include your location, transaction times, and associated fees.
Buy Zcash with PayPal: PayPal is one of the most convenient payment options available. However, it is limited to certain locales. PayPal also charges higher fees than other payment systems, so consider all your options before you use it.
Buy Zcash via Bank Transfer: Bank transfer is a common payment option available on most broker platforms. It may require you to verify your identity and will leave a paper trail, but it’s also reliable and secure. It also typically has low transaction fees, but it can take several business days to complete.
Buy Zcash with Credit or Debit Cards: A credit or debit card is another option that is universally available on broker platforms. Like bank transfers, this option may require you to verify your identity and leaves a paper trail. Card payment processors also usually charge higher transaction fees than other alternatives.
Buying Zcash via Crypto Deposit: Some broker platforms accept cryptocurrencies like Bitcoin or Ethereum as a payment option. Payment via crypto deposit is quick and has very low transaction fees, but there may be a minimum deposit amount.
The Verification Process for Trading Zcash: To comply with financial regulators, all reputable broker platforms require users to verify their identity before they can initiate trades. The verification process is straightforward and involves uploading a copy of a government-issued ID and sometimes some form of proof of address. Following Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations are a necessary evil to protect broker platforms and their users from theft and other criminal activity.
What Fees are Involved in Buying Zcash?
While using Zcash for transactions won’t cost you as much as traditional payment options, there are still some fees that you should consider.
Transaction Fees: The transaction fee charged by the Zcash network is almost negligible—the default fee is 0.0001 ZEC. However, there are maybe other platform-specific transaction fees, so carefully read your chosen platform’s terms before you initiate a transaction.
Deposit Fees: Brokers don’t typically charge deposit fees, but it’s not unheard of. If there is a deposit fee, then it shouldn’t vary from one currency to another.
Withdrawal Fees: Like with deposit fees, some platforms may charge withdrawal fees. However, this isn’t common practice, so it’s better to seek out platforms that don’t have withdrawal fees.
Safely Storing Your Zcash
Securely storing ZEC tokens requires a cryptocurrency wallet that supports Zcash. The good news is that there are several software and hardware options to choose from. Most of them only support transparent ZEC transactions, but there are a few that support both transparent and shielded transactions.
Be sure to factor in all aspects before you choose a wallet, those looking to trade Zcash may need to choose a wallet that can make many Zcash transactions easily, like software wallets while those that are holding will want the most security, such as hard wallets.
Web Wallet: As the name implies, web wallets are crypto wallets for web browsers. Broker and cryptocurrency exchange platforms automatically create a web wallet for new users for quick storage. Web wallets are incredibly convenient and easy to access no matter where you are, but they are also more vulnerable to security threats. As the host of the wallet, the broker or exchange platform has full control over your assets. If the platform is hacked or goes out of business, then you could potentially lose everything.
Mobile Wallet: Mobile crypto wallets are a good storage option for smartphones and other mobile devices. They are convenient and generally offer better security protocols than web wallets. However, the convenience of a mobile wallet comes with risks; your assets will be in danger if someone manages to gain access to your phone.
Good examples of mobile wallets that support fully-shielded transactions include ZecWallet Lite, Nighthawk Wallet, and Unstoppable. Mobile wallet options that support transparent transactions only include Atomic Wallet, Jaxx Liberty, Ledger Live, and Exodus.
Desktop Wallet: Desktop wallets aren’t as convenient as mobile wallets in terms of accessibility, but they are much more secure. They offer a variety of security options that you can use to protect your ZEC tokens, including two-factor authentication, backups, and advanced encryption. Examples of desktop wallets include ECC Zcashd, ZecWallet, Atomic Wallet, and Exodus.
Hardware Wallet: Hardware wallets are the most secure of all crypto wallet options because they are completely offline when not in use. These wallets have the form of a small USB stick. It only connects to the internet when you plug it into a computer. Good examples of hardware wallet options that support ZEC include the Ledger Nano S and Trezor One.
Wallet Combinations: It’s possible to use a combination of two or more wallets for increased security. For instance, the Ledger Nano S is compatible with several third-party wallet applications. If, for example, you use the Ledger Live mobile wallet, then you can check your balance and send and receive tokens held in a Ledger hardware wallet directly from the app.
What Other Coins Can I Trade or Use to Buy Zcash?
In addition to fiat money, it is possible to buy Zcash with Bitcoin, Ethereum, and other popular cryptocurrencies. Numerous platforms support the purchase of altcoins using BTC and ETH. As with other payment methods, there may be fees associated with buying ZEC tokens using another cryptocurrency.
What’s the Smallest and Largest Amount of Zcash I Can Buy?
People who are new to cryptocurrencies often think you need hundreds or even thousands of dollars to get started, but that’s not true. So, what’s the minimum purchase for Zcash? If you’re wondering, “Can I buy less than one Zcash?” The answer is yes.
You don’t need to buy a whole ZEC token; it is possible to buy small amounts of Zcash for less than $10. The minimum quantity on most broker platforms is 0.001 ZEC. There is no ZEC buy limit, so you can buy as many tokens as you desire. How much Zcash you can buy comes down to how much you’re willing to spend.
Can I Buy Zcash Anonymously with no ID? Is it Safe and Legal to Buy Zcash?
Cryptocurrency investing is shrouded in complicated technical jargon, so, unsurprisingly, many people wonder: “Is buying Zcash illegal?” The answer is no. While criminals may use shielded transactions to hide their paper trail, there is no evidence of widespread illicit use of ZEC tokens.
Several platforms facilitate Zcash purchases and allow users to buy ZEC safely. However, reputable platforms will comply with KYC practices, so it may be difficult to buy Zcash with no verification. That doesn’t mean it’s impossible to buy ZEC anonymously. If you want to buy ZEC without ID, then you’ll have to find a person willing to sell them to you.
Will Buying Zcash Make Me Money?
Many investors purchase cryptocurrencies for potential riches. So, is it possible to buy Zcash to get rich? That’s a tough question to answer with absolute accuracy. Fundamental and technical analysis indicators like the historic price movements of Zcash, who is buying Zcash, and how much does it cost to buy ZEC today can help you deduce possible market trends. However, there is no way to guarantee your investment will turn a profit. Anyone who says otherwise is a snake-oil salesman.
But don’t let that dissuade you from investing in Zcash. It is a perfectly valid asset that has the potential of becoming a valuable commodity in a more privacy-conscious future. If you want to know the best price to buy ZEC, check out our Zcash Price Page for information on its historical price and other notable factors.
How to Spend Zcash
Zcash was forked from Bitcoin, so its primary purpose is to function as a medium of exchange. The one major difference between the two is that Zcash offers shielded transactions.
While Zcash isn’t the most popular privacy coin, it has had some success as a medium of exchange. The project has partnered with platforms like Moon and Flexa SPEDN to enable users to pay for goods and services at physical and online retailers. Several online merchants also support direct Zcash payments.
Zcash’s value as a privacy coin may be realised in the future as the world continues to become more conscious about the importance of online privacy.
How to Sell your Zcash
You have several options for selling Zcash. Broker or exchange platforms are the easiest way to sell ZEC tokens. You can use them to sell your tokens for fiat money or trade your tokens for Bitcoin, Ethereum, or other digital currencies. Another option is to use your tokens to buy CFDs. It is generally easier and more convenient to sell ZEC tokens that are held in a CFD.
You can also sell your Zcash directly to another person although this might be a riskier and more difficult approach, and to do so you'll the recipients Zcash Address for their wallet, or vice versa if you wish to receive Zcash.