What is ZEC?
HOW TO BUY ZEC
Decentralization, anonymity, and privacy have become Zooko Wilcox’s inspiration in developing the cryptocurrency called ZCash. More commonly known as ZEC, it was created to facilitate an untraceable method of information sharing and payment mechanism secured enough to keep networks anonymous. How to buy ZCash?
1. CHOOSING A WALLET
To keep ZEC tokens, a wallet is necessary. It is supported by many crypto wallets but the majority of which do not support the privacy features of ZCash. This came to be one of the system’s downsides since most wallets are designed to disclose transparent addresses. However, there are wallets that come parallel to ZEC’s functions including Guarda, an Android-compatible wallet, and ZecWallet to carry out ZEC’s protocol and blockchain.
2. FUNDING THE EXCHANGE ACCOUNT
Funding depends on what exchange you have opened an account on. For exchanges that do not accept fiat-based payment, one needs to deposit an accepted virtual coin. As this is the case, the safest of which is Bitcoin and Ethereum since these stay as the gold and silver of virtual coins. After doing so, you can now trade it to ZEC.
For fiat-based payments, it comes much easier since you can buy through wire transfers, ACH bank transfers, and credit or debit cards. Note that debit and credit card purchases are more expensive since exchanges charge up to 5% for using such. Under specific circumstances, various charges are applied.
3. BUYING ZCASH
ZEC’s trade mechanics are purely dependent on ZEC purchase. Fiat-based traders can acquire ZCash at a fixed price set by the exchange. As for cryptocurrency-based traders, the selection is much wider similar to how stock purchase works. Note that majority of trade types used in stocks are applicable to exchanges. But since virtual coins are highly volatile, traders opt-out from using the common orders such as stop-loss and limit orders.
4. TRACKING INVESTMENT PERFORMANCE
Now that you’ve already gotten your first ZCash, your next task is to monitor its market performance. Investments can make larger changes and several virtual coin applications can provide chart insights, industry-related and coin-specific updates. If you want to track ZEC’s performance, you can get a portfolio tracker to keep an eye on all of your crypto investments.
To reiterate, you will not find it hard to purchase ZEC as it is available in various exchanges. Moreover, ZCash purchase is fiat-supported and can be bought using U.S. dollars. Below are the exchanges the offer ZCash.
- Beaxy
- Kraken
- Binance
- HitBTC
- Poloniex
- Cryptopia
- Cex.io
- eToro
- Coinbase
- Changelly
- Gemini
- Bittrex
ZEC VALUE AND PRICE
2017 had seen an upsurge in cryptocurrency value and prices. The year was dubbed as the “altcoin season” since cryptocurrencies, including ZEC, made commendable chart increase extending to early 2018. After the so-called golden year of virtual coins, prices began fluctuating in the broader markets. ZEC was also subjected to decline despite sustained gains. The dwindling trend made ZEC lose its value with the past 12 months seeing its price drop by 60%. Though cryptocurrencies trend in groups, ZEC has failed to regain its momentum, losing the pacing that BTC treads in recent months.
Despite this, ZEC has a relatively acceptable market value that competes with other well-known cryptocurrencies. One unit of ZCash equals to $52.88, with a 24-hour trading volume of $277,625,684. Its price managed to reach 0.7% within a 24-hour time frame and it has a total of 9.4 million units in circulation.
Though much needs to be considered, an investment in ZCash is a bet on its future. For a trend that does not hold assurance, investors may be risking much. But news that boosts its prices also enhances its popularity. Sustained usage of ZEC may build acceptance, giving a promise that it can replace the traditional payment method.
ZEC ADVANTAGES AND DISADVANTAGES
PROS
ANONYMITY
Zcash uses the same technology that enables Bitcoin to function. ZCash transactions depend on using t-addresses to create a transparent method of archiving. However, it uses z-addresses to carry out the privacy functions of ZEC. This keeps the public from knowing pertinent and confidential information about the transaction.
FLEXIBILITY
The most common issue about virtual coins is its tendency to be used for malicious purposes. Susceptibility has been traders’ concerns, worrying that it may be held against community standards. With ZEC, traders are secured since coins and transactions are armed. More so, coins used for illegal transactions can be renewed and interchanged, making all coins equal in value.
ASIC RESISTANCE– Virtual coin mining has become more centralized mainly from an increased level of difficulty. This current setup requires ASIC mining through expensive and electric-hungry instruments. This may hinder independent miners from joining other miners. ZCash is ASIC resistant, increasing its level of decentralization.
CONS
MINIMAL Z-ADDRESS SUPPORT
Though ZCash is compatible with a large selection of wallets, most of these wallets do not support privacy-centered z-addresses. This contradicts ZEC’s main objective of providing a private and anonymous communication between networks.
PREFERENCES
As it was introduced just recently, Dash and Monero which offer similar features got a 2-year head start. Since both are privacy-driven virtual coins, ZEC has trouble penetrating the larger markets.
SPEED
Compared to Bitcoin, ZCash has a relatively fast transaction speed. To mention, its block capacity surpasses Bitcoin’s. But with transaction speed taking just minutes to fulfill, it still places behind Monero and way slower than Dash, the tight competitors of ZCash.
HOW TO CHOOSE THE BEST WALLET FOR THIS CRYPTO?
As mentioned above, traders are given large wallet options to store ZEC. The only downside it projects is compatibility since the majority of ZCash-supported wallets do not favor z addresses. With t addresses being the commonly used technology, it would be wise for traders to choose a wallet that would come congruent to ZEC’s privacy features. Electric Coin Company, the company which introduced ZCash, released the ZCash desktop wallet and this remains to be the most ideal storage for ZEC.
Though ZEC has tight market competition, it is highly regarded within the industry and its system is admired by many. Wrapping things up, it would be a wise choice to add ZCash to your trading portfolio since it has so much potential. As for its future, only time can tell whether or not it would beat its historic highs.