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How to Buy Zcash - Where to Purchase ZEC?

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Author: Ali Raza

Zcash (ZEC) is a privacy-centric cryptocurrency or “altcoin”. It is based on Bitcoin’s codebase and shares similarities with Bitcoin, such as a 21 million total coin supply. The biggest difference between the two is that Zcash uses zero-knowledge proofs (zk-SNARKs) to give users the option to make transactions public or confidential on the blockchain. 

Since its launch in 2016, Zcash has grown to become a popular privacy coin that serves a critical niche in the market. It is popular among long-term investors who value privacy and fungibility in crypto tokens. This guide covers everything you need to know to start buying Zcash. 

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Why Trade Rather Than Buy Zcash?

1

You Don’t Need a Wallet

You trade on the price movement of the coin without having to buy and store it.

2

You Can Use Standard Payment Methods

All regulated brokers accept popular methods of payment such as credit/debit card and bank transfers.

3

Trades Are Fast and Withdrawals Are Easy

Trades are executed within seconds and withdrawals will reflect instantly in your account.

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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. 

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. 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.  

Ultimate Beginner’s Guide to Trading Zcash


What is a Zcash Broker?

A cryptocurrency broker is a platform where traders can buy or sell digital assets and financial derivatives. A broker is an intermediary for contracts that speculate on the price of a digital currency. Cryptocurrency derivatives include options, futures, and CFDs. As one of the popular privacy coins, ZEC tokens and derivatives based on Zcash are available to trade on many broker platforms.

What is a Zcash CFD?

A CFD, or Contract for Difference, is a financial derivative that enables investors to speculate on the price movements of an asset without actually having to buy the underlying asset. The contract lasts for a predetermined amount of time. The investor turns a profit or loss depending on the correctness of their price prediction.

CFDs tied to Zcash allow traders to speculate on the market price of ZEC. The contract is typically bought and settled in fiat currencies like U.S. dollars, so you don’t need to own any ZEC tokens to obtain a CFD. 

What is the Benefit of Zcash Regulation?

Cryptocurrency trading has grown to become a billion-dollar global industry, and it was only a matter of time before financial authorities attempted to regulate it. Regulation protects investors and makes investing in cryptocurrencies much safer. It also legitimises crypto trading and gives investors the legal right to hold broker platforms accountable for their actions. 

It’s a good idea to only deal with platforms that comply with regulations. That way you’ll at least be legally entitled to compensation if a platform is hacked or shut down for whatever reason. 

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. 

Buying 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. 

Buying 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. 

Buying 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. 

Zcash: Long vs Short Term Investment

There are two core investment strategies: 

  • Short-term investment: Involves buying and selling Zcash based on short-term market fluctuations. It takes advantage of the changes in market price that happen over the course of several hours or days to turn a profit. 
  • Long-term investment: Involves buying and selling Zcash based on long-term market fluctuations. This strategy involves holding on to ZEC tokens with the expectation that their value will increase in the future. It is a longer-term strategy that requires a good understanding of the market.

Short-term investments are more likely to deliver quick profits, but they’re also riskier because of the volatile nature of the cryptocurrency market. On the other hand, long-term investments are less risky, but they require patience and a good understanding of market factors that can affect the price of Zcash. Which of the two strategies works best for you largely depends on your goals.

Why Buy Zcash rather than Trade?

Should you buy Zcash directly or trade derivatives? Buying ZEC tokens means you actually own the asset. You can use the tokens for transactions or “hodl” them as a long-term investment, which shields you from the volatile market. 

Buying Zcash has many advantages. If you own the tokens, then you have complete control over your assets, and you can safely store them in a secure offline wallet. While brokers and exchanges have come a long way in terms of security, their web wallets are still vulnerable to hacks and theft. 

All that said, buying and holding Zcash is a much more involved process than trading derivatives. Even if all you want is the fastest Zcash purchase, you still need to perform some research to see if ZEC is compatible with your setup. You also have to figure out how to set up a wallet for securely storing your tokens. 

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.   

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 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 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.  

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 your 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.

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Frequently Asked Questions

  1. Yes, Zcash is private. It uses zero-knowledge proofs (zk-SNARKS) to allow two users to exchange information over the blockchain without revealing their identities. Shielded transactions are confirmed without revealing the sender, receiver, or transaction amount.

  2. Zcash is not illegal. It has been criticised for its potential as a currency for illegal activities, but its use hasn’t been banned.

  3. Zcash is a mineable cryptocurrency that uses a proof-of-work algorithm. The Zcash team recommends joining a Zcash mining pool instead of mining solo. Due to the increasing mining difficulty, you may need to invest in a dedicated ASIC miner if you want to turn a profit.

  4. Zcash has had a bumpy history, but it has still managed to maintain its position as a top 100 cryptocurrency by market capitalisation. No one can predict its future with absolute certainty, but it has a lot of promise in a world where privacy is valued more and more all the time.

  5. Yes, the Zcash team has released and endorsed two wallets: the ECC Zcashd wallet (Linux exclusive) and ZecWallet.

  6. Most exchanges and brokers have a minimum purchasing threshold of 0.001 ZEC, which was equivalent to $0.144 at the time of writing.

  7. There is no better time than the present to invest. Zcash has managed to maintain some measure of stability when compared to other popular cryptocurrencies.

  8. Cryptocurrency CFDs can turn a huge profit, but they’re also incredibly risky and could cause you to lose a lot of money quickly. Understand the risks before you commit.

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