5 Things to Consider If You Want to Buy Zcash
When buying Zcash, you need to have an understanding of some of the considerations. You are better placed to complete your transactions promptly and without any constraint if you pay attention to the following:
Carefully choose your preferred secure payment method
How to pay for Zcash depends on what options you have available, where you live and the service charge payable. It is important to know the payment methods allowed in your location before you make your decision. The preferred secure method of payment might also vary from one location to another because of operational restrictions. For example, while PayPal is global in nature, it is still not available in some countries. You should not just choose a secure method, but ensure it is available in your area.
Will you need to set up your own wallet?
Another consideration that comes with buying any crypto is whether you will require a wallet. When you buy Zcash via an exchange, you will be offered an online wallet with no requirement to set one up. It is not considered best practice to buy crypto and store it in an exchange wallet as there is a risk of loss to hackers or outage. A difference comes when you go for a Zcash CFD, in which case, you will not require a wallet, as only an investment certificate will be issued to you without any actual transfer of Zcash.
As an investor, it is your responsibility to compare the fees and charges when buying Zcash. Sometimes, buyers end up with fewer units of crypto than they intended because of higher costs than envisaged. When this happens, it means the buyer must order more units to make up for the shortfall, and this would mean an extra cost or a foregone alternative.
However, you should find out if your broker allows a crypto deposit instead of using fiat payment. If this is obtainable, you will be able to save on processing fees attached to the payment method.
Safety and security
Zcash offers anonymity at two levels, which makes it possible for transactions on a wallet to be publicly displayed like the bitcoin explorer. On the other hand, higher-level encryption also ensures that specific transactions cannot be publicly displayed, thereby obscuring such from prying eyes.
At the transaction level, crypto platforms insist on 2-factor authentication to prevent unauthorised access and withdrawals. Brokers also make use of MT4 and MT5 systems for their trading and interface. These configurations ensure end -to -end encryption that rules out data intercept or compromise.
Can you understand and navigate the platform?
An investor can get lost in the euphoria of possible gains and miss out on knowing how the trading platform works. To date, some of the biggest losses in crypto arose from wrong wallet address input and other user errors. It is important to first walk-through a platform, understand how it works, and attempt a few dummy transactions before putting your money down.
Ultimate Beginner’s Guide to Trading Zcash
What is a Zcash Broker?
A broker provides a platform for the buying and selling of a commodity, financial instrument, or securities. A broker might also buy and sell in some scenarios and would, therefore, be a party to such transactions.
Zcash brokers would enable you to buy and sell the crypto for a fee. Using a broker might appear to be the best option in many places around the world.
What is a Zcash CFD?
A CFD refers to a Contract for Difference, and with respect to Zcash, investors would agree to buy it at a given rate and sell at a stated price within a defined period. When the tenor elapses, the broker will pay the investor the difference if the price closes at the rate chosen. On the other hand, the investor will pay the broker the difference if the market closes less than what was stated.
What is the Benefit of Regulation?
Regulated Zcash transactions ensure that the buying and selling of the cryptocurrency operate within the confines of stated guidelines. In some climes, investors have the benefit of deposit insurance, which means they could receive some reimbursements if the platform falters or fails.
What is the Best Payment Method for Buying Zcash?
There might be no best payment method for Zcash. However, if the speed of the transaction is your goal, it might be wise to consider either credit card or crypto deposit.
Buying Zcash with Credit Card
Buying Zcash with a credit card is perhaps the fastest payment method. It only requires that you quickly verify your ownership of the credit card by providing bank statements and personal identification. It ensures immediate value and the investor can take advantage of cryptocurrency market opportunities almost immediately.
Buying Zcash with Bank Transfer
Zcash can also be bought using bank transfer, and to many people, this would appear to be the preferred payment method. Not only is there a paper trail, but the added assurance of layers of verification are also worth mentioning.
Buying with Crypto Deposit
Not all brokers accept crypto deposits as a payment method. Some might and others do not.
Crypto deposits can reflect anywhere upward of about 30 minutes, depending on the crypto network speed. Investors that use crypto deposits understand that they can avoid processing fees associated with other payment methods.
Buying with PayPal
Using PayPal payment is fast and cheap if your account is verified. However, not all geo-locations can make use of this payment method, and some brokers might not accept it as a deposit method.
The Verification Process for Trading
Brokers offer their platforms to investors for buying and selling of crypto. However, this requires a specific process that should be adhered to. Each broker requires that a user provides an email address, full names and a contact phone number when signing up. This ensures KYC compliance.
Some brokers might require that you send in a means of person identification before verifying your account. The entire process is usually completed after funding your trading account. Verification can be a little frustrating for those who want to jump right in, but it is a necessary process to protect all parties from fraudulent activity.
Long vs Short Term Investment
The investor has the option of approaching Zcash using a long term or short-term approach. Anyone who buys Zcash for the short term would be looking at a likely rise in price based on given scenarios. It could be that there is an ongoing bull market or some other information that shows increased activity or introduction of an optimized process to boost efficiency.
A long-term approach will mean that the investor is not looking at immediate gains, but a likely build-up in price beyond the near future.
Why Buy, Rather Than Trade?
Buying Zcash to hold is one approach to crypto investing. Although it is not possible to predict with absolute certainty when there will be a price surge or bull market, buying to hold can be a rewarding trading technique.
In addition, while buying Zcash to own, it is important to note that you need to have a knowledge of the best wallet type for storage as well as to keep a tab on crypto market happenings. All of these will help you safeguard your tokens while you wait for a major market shift to determine your next move.
For those who would rather avoid learning of wallets and storing crypto, a CFD broker would be a better option where you do not need to worry about such things.
What Fees are Involved?
When buying Zcash, there are fees that must be paid to complete the transaction. These include:
The processing fees are payable when buying Zcash through your selected payment method. This will be charged by the payment processor and not the broker. This cost is usually minimal.
Each crypto network charges fees to process a transaction. This will be paid when making a transfer from one wallet to another.
Your broker or trading platform will charge transaction fees for withdrawals. Some might also include this when making a deposit. In most cases, deposits do not attract a transaction fee. In any case, this is not strange as normal banking transactions attract some charges.
Safely Storing Your Zcash
To store Zcash, you need to determine what kind of transaction details you want to disclose. This is as Zcash storage is defined as either shielded or transparent transactions.
Zcash can be stored in web wallets. These wallets can only be accessed with internet connectivity on the platform that supports such. Brokers and exchanges have purpose-built web wallets which might often be mobile friendly.
Using a web wallet will allow the investor to easily and quickly access tokens to sell or transfer. However, it is not advisable to leave your tokens on an exchange if you are not actively trading due to the risk of loss to hackers or system glitches. BitGo and Freewallet are common web wallets in use.
Mobile wallets are available to store your Zcash (ZEC). Some of these include JAXX, Exodus and Atomic wallets.
They are easy to use as they can be downloaded to your mobile gadgets and used on -the- go. There is also the risk of loss and compromise if you happen to lose your device.
These wallets are rated highly for their security features. Examples include Shielded Guarda, ZECWallet Fullnode and ZECWallet Lite. These wallets can be operated with 2-factor authentication, which reduces the risk of third -party access.
This is the safest wallet class. The hardware wallet requires a password to access. Since the hardware is not carried about, like the mobile examples, it is often highly recommended for use.
The best-known types are made by Ledger and Trezor.
Other wallets can be interlinked with one or more combinations. These include desktop, mobile, and web type. Jaxx, Freewallet and Exodus have some of these multi-use variations. They can be accessed on mobile platforms and either web or desktop in other cases.
What Other Coins Can I Trade or Use to Buy Zcash?
You can buy Zcash with Ethereum on any platform that supports crypto settlement. The advantage here is you don’t need to navigate to another device or website to get anything done. You will be able to conclude the transaction at a lesser cost and faster speed. You can also purchase Zcash with Bitcoin or even Bitcoin Cash.
When buying Zcash with another cryptocurrency, go to the platform dashboard and select the ‘buy’ tab. You will be able to click on the Zcash symbol, enter the amount you wish to spend of your chosen cryptocurrency and submit. The tab for the number of Zcash you are buying will auto-populate. By clicking the submit tab, your order will be completed.
What’s the Smallest and Largest Amount of Zcash I Can Buy?
If you want to know the minimum purchase for Zcash, the answer is provided here. The smallest amount of Zcash you can buy is 00000001 ZEC, also known as Zootoshi.
The largest amount of Zcash you can buy in a single transaction is not stated and like Bitcoin, you can buy as much as you can afford. For security purposes, most investors buy Zcash without limit only by using multiple wallets.
Individual platforms have limits on the transaction value and users are expected to complete more KYC requirements for larger transactions. Unverified users are limited to lower transactional thresholds.
Can I Buy Anonymously with no ID? Is it Safe and Legal?
To buy Zcash without verification, you need to look for an unregulated broker or platform. While Zcash is safe and legal to buy, most platforms require you to be verified before you can carry out transactions. The good news is that the process of verification is simple and quick to complete these days.
However, you can purchase Zcash anonymously if you use the z-addr (fully shielded transaction), and no one can trace the transaction to you. But t-address transactions are transparent and can be viewed like Ethereum transactions on the eth-explorer.
Any transaction between two z-addresses falls under the fully shielded class while across z-addr and t-addr can be deshielded or get fully shielded respectively. The anonymity in the last class of transactions depends on what address type is used by the recipient. If our recipient wallet is az-addr type, your transaction details will be shielded. If you provide a t-addr wallet, the transaction details will be deshielded and available in Zcash transaction explorer public view.
Will Buying Zcash Make Me Money?
One of the common questions asked by intending investors is, does Zcash make me money? The answer might not be absolute. The reason is simple. There are different seasons in financial markets, and this means that there will be upswings and downswings. However, people do make money trading crypto as seen with the most recent major bull run in February 2020.
A few weeks back, there was a noticeable price surge that saw Zcash peak at $70 from a low of $28 as of December 2018. For investors who were unfazed by the low of $28, it was a time to reap a 250 percent return.
There is a detailed price history in our Zcash Price Page that chronicles the progress made by this crypto. You will be better placed to make an informed investment decision when you read through.
How to Spend Your Zcash
Zcash is accepted by merchants in exchange for goods and services in many countries around the world. Some of the merchants include:
- Agora Outfitters
- Ballistic Bodyboards
- 1.9 Bracelets
Merchants that accept Zcash can convert their collections to fiat or some other crypto of their choice by using third-party functionalities or plug-ins. People who live in countries where access to foreign currency is not possible can access global markets with crypto as a payment method.
In like manner, the anonymity of Zcash will allow access to a wider market for people who otherwise might be unable to make remittances in fiat currencies.
How to Sell Your Zcash
To sell your Zcash, you need to send it across to your exchange wallet or the platform provided by your broker. You have to list your token for sale by clicking on the sell tab available on your account dashboard. Such details as the number of units up for sale as well as the sales price should be provided before the sale is completed.
While the pattern of sale might vary from one platform to another, it is important that the seller has a functional account to be able to make a sale and receive the sales proceeds.
If you invested in a CFD, it becomes a lot easier to complete your sale since there is no need to physically move your units between wallets. You will only state your preferred sale price and wait for it to be liquidated and on completion of the sale, you can make your withdrawal as you may desire.