How to Buy Zcash (ZEC) – Beginner’s Guide

Zcash (ticker symbol – ZEC) is a “privacy protected” cryptocurrency that made huge waves when it was launched in 2016. Its privacy-centric nature is supported by the use of zk-SNARK zero-knowledge proof technology that allows nodes to identify transactions without the need to reveal any sensitive information.

That aspect allows Zcash to burst into the crypto scene, reaching its all-time high of $5.9k before retracing by more than 100%. Bitcoin’s bull run in 2016 and 2021 allowed this Bitcoin fork to cross the key threshold, but the crypto winter pushed its value below the $40 level.

However, the market is still wondering whether it is a good investment in an age where the call for regulations and transparency within the crypto space is high. Considering that many have the cryptocurrency being rigged in favor of creators due to its 20% founder fee presents another cause of wonder.

This guide reviews how to buy Zcash in 2024 and also touches upon whether it is a good investment and where it could be within the next few years.

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Where to Buy Zcash – Best Platforms of 2024 Reviewed

Zcash is an OG crypto that, to many, is still considered open to the flagbearers of anonymity. That factor gravitated to multiple cryptocurrency exchanges towards the token during its early years – the most prominent among them being eToro, OKX, and Binance. Below is a detailed review of these crypto trading platforms that make a suitable place to trade ZEC.

1. eToro – Overall the Best Place to Buy ZEC in 2024

eToro was one of the first cryptocurrency exchanges to have listed Zcash, having added support for it in early 2019. While the listing didn’t cause any significant movement in the price charts, it did put Zcash on the radar of privacy-centric cryptocurrency enthusiasts.

eToro is one of the world’s oldest trading platforms that added support for cryptocurrencies shortly after the introduction of Bitcoin. What made eToro a favorite of many cryptocurrency investors, however, was not the fact that it added support for crypto but its inclusion of social trading mechanics.

The trading platform runs its website in a way similar to most social media platforms, allowing traders to communicate with each other and comment on the news. Borne out of this mechanic is copy trading, which allows traders to copy the investment strategies of more successful traders on eToro. eToro ranks these successful traders by tracking their ROI and risk-taking habits for over a month. That approach keeps the trader list upgraded, allowing beginners to tap into the success of only the most prevalent traders.

Another positive about eToro is the smart portfolio. Cryptocurrency investments must be diversified if one seeks to hedge their bets against the volatility of the crypto market. With a smart portfolio, eToro bundles up particular types of tokens. For instance, Zcash is a tradable asset with no discernible utility other than its privacy-focused approach. Thus, eToro may bundle this token with other similar tokens like Bitcoin and Bitcoin Cash.

eToro doesn’t have a standard fee but charges on a spread-only basis. Investors are only required to pay the difference between buying and selling prices when they buy Zcash or any other crypto, for that matter.

Along with cryptocurrencies, eToro supports ETFs, FX, Indices, and other traditional assets. The platform does so under the regulation of the SEC (Security Exchange Commission) and FINRA.

Check out our eToro review to learn more about this trading platform.

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2. OKX – Offering Multiple Ways to Buy Zcash

OKX is one of the more recent platforms to have listed Zcash, and similar to eToro, the list didn’t cause any “listing pump” effect for Zcash. Along with supporting basic trading of Zcash, OKX also supports derivates & margin trading for ZEC/USDT, ZEC/USDC, ZEC/BTC, and ZEC/ETH pairs.

This platform is the seventh biggest cryptocurrency exchange by market capitalization. Supporting hundreds of cryptocurrencies, including popular tokens like Bitcoin, Ethereum, Bitcoin cash, etc., and other niche-based cryptocurrencies like Tamadoge.

Due to its many capabilities and offerings, OKX is suitable for both basic and advanced traders. Its UI and UX are friendly. However, engaging with some of its more advanced features would take some getting used to – especially the derivatives & margin trading module.

Buying and trading ZEC aren’t the only functions OKX supports. Under the earn mechanic, users can open earn interest on cryptos, including ZEC, by opening an interest account. At the time of writing, ZEC holders would receive 1% APY (Annual Percentage Yield) for holding ZEC.

When it comes to fees, OKX has divided them into several fee tiers depending upon Spot Trading, Futures and Perpetual Contracts, and Options trading. The maker/taker fee ranges from 0.080%/0.15 to 0.060%/0.080% per slide. The fee can be reduced further by holding OKB, the native cryptocurrency of the OKX exchange.

To access the entirety of this platform’s offerings, check out our OKX exchange review.

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3. Binance – Buy Zcash at Just 0.10% per Trade

Binance added support for Zcash before eToro and could have been the first one to cause a listing pump on the token. Users can invest in ZEC/BNB and ZEC/ETH using spot trading and margin trade ZEC/BTC. ZEC/USDT, and ZEC/BUSD on 3x leverage.

Binance is an industry-leading cryptocurrency exchange known for its inclusive trading practices and low fees. Users can buy ZEC on the platform by paying only a 0.1% fee. Other than Zcash, Binance supports upwards of 700 assets – all of which are major-league tokens that have proven to be profitable for investors.

That said that low fee is only suitable for Bitcoin deposits since buying ZEC or any other crypto through fiat comes with a 4.5% transaction fee. A 0.5% extra charge is levied on those who use USD to buy cryptos on this platform.

While the platform is not available in the US, Binance.US is. However, the number of cryptocurrencies and the added facilities on this US version of the platform is limited.

Once an investor has bought Zcash, they can store their assets in their hardware wallets or use Binance’s Trust Wallet program – which gives users a way to access Pancakeswap, one of the leading DEXs operating in 2024.

Our Binance review offers more insight into this platform.

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What is Zcash?

Zcash is a security-focused blockchain that was forked from the original Bitcoin chain to provide a more private way for people to interact with the ecosystem. The platform considers financial privacy the most important factor in the economy and thus shields all financial information through a variety of methods.

It sports itself as the world’s only “really” anonymous cryptocurrency created by Zooko Wilcox O-Hearn, the founder of ECC – Electronic Coin Company to Manage Zcash’s development.

However, O’Hearn was only one of the founders of Zcash, as the official website says that the team that conceived this token are scientists from MIT. John Hopkins and other scientific institutions. The token was created on the top of Bitcoin, but many improvements were made to make the transactions and the tokens truly private.

It is one of the leading proof-of-work tokens that mimics Bitcoin’s and Litecoin’s functionality in a number of ways. For one, it has 21 million tokens in total – the same as Bitcoin. Secondly, blocks of the Zcash blockchain propagate every 150 seconds, just like Litecoin.

Zcash is being supported by a community development fund, in which 20% of the mining rewards are dedicated to three organizations.

1. 8% of the tokens go to the Zcash Open Major Grants, which funds independent third-party developers for their work on Zcash-related projects.
2. 5% of the tokens go to the Zcash Foundation. It is a public charity organization building a financial privacy infrastructure that aims to help users make the most out of Zcash protocol and blockchain.
3. The final 7% of the tokens are for the company behind Zcash, Electric Coin Co., which leverages its holdings to continue to build the Zcash ecosystem, adoption, and demand generation.

Zcash is a tradable asset that ensures privacy for a transaction. Thus, investors can use it to buy goods and services or exchange it for other currencies while leveraging the utilities of a truly decentralized blockchain.

While the initial rendition of Zcash was complex and stopped many from integrating with the platform, 2022 has seen it develop a unified address format. It adds homogeneity to the wallet addresses while also promoting interoperability.

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Is Zcash a Good Investment?

In order to answer whether Zcash is a good investment, its features must be deciphered to assess whether the same features would be valuable in the current volatile cryptocurrency market.

It is Efficient in the Current Space

One of the biggest roadblocks to Bitcoin’s mass adoption is its speed. Zcash removes that bottleneck by being faster and more reliable. It offers an inexpensive means to send money to buy goods and services and has the support of leading cryptocurrency wallets.

Audit Friendly and Regulation Friendly

The cryptocurrency market has changed, and privacy is the last factor people are about. That said, OG cryptos banked upon their approach to privacy to grow – the same is true with Zcash. However, the changing regulatory norms have caused Zcash to introduce upgrades where Zcash users can disclose their information for auditing and other regulatory requirements.

Attack Resistant and Decentralized

Being a Bitcoin fork, Zcash is truly decentralized. A wide network of people and high-end machines maintain the Zcash network. The absence of a centralized entity allows Zcash to be protected from hacks due to a single point of failure. Furthermore, developers have created Zcash in a way that no authority can shut it down.

That being said, being protected against hacks doesn’t mean that it is protected against misuse. In 2019, Zcash developers found a highly dangerous vulnerability that could allow a hacker to create infinite Zcash. While devs took care of that vulnerability by implementing the Zcash Sapling Network Upgrade, the threat may still remain.

Focus on Privacy And Transactions

Zcash’s biggest focus is privacy, which allows people to send money without disclosing the name of the sender or telling how much money is being transacted. Now, while most of the crypto market admires that inclination to protect privacy, authorities don’t since it opens the project to a myriad of legal complications.

For instance, Dubai has taken a stand against privacy coins and has banned cryptos that enhance anonymous transactions.

However, while privacy settings are default, Zcash allows people to change them and opt for transparent addresses and transactions as well.

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ZEC Price

Zcash (ZEC) has maintained its position as a noteworthy player since its inception on October 28, 2016. Significant price fluctuations have marked Zcash’s journey. On October 29, 2016, the cryptocurrency achieved a monumental milestone, reaching an all-time high (ATH) of $5,941.80. However, as is characteristic of the cryptocurrency market’s volatility, ZEC later experienced a notable price downturn, reaching its all-time low (ATL) of $18.53 on March 13, 2020.

Interestingly, the lowest price since its ATH also aligns with the ATL at $18.53, indicating a potential cycle low. On the other end of the spectrum, the highest price following the most recent cycle low was recorded at $368.22, marking a cycle high.

As of now, with a recent price of $27 and a 24-hour trading volume of $70.43 million, Zcash’s market capitalization stands at $437.86 million, accompanied by a market dominance of 0.04%. In the past 24 hours, ZEC’s price has surged by 7.00%, hinting at potential shifts in the market sentiment.

Zcash’s circulating supply stands at 16.33 million ZEC, accounting for 78% of the maximum supply of 21.00 million ZEC. Notably, the cryptocurrency has experienced a yearly supply inflation rate of 7.80%, resulting in the creation of 1.18 million ZEC in the last year alone. From a market capitalization perspective, Zcash holds the #8 position in the Proof-of-Work Coins sector, secures the #2 rank in the Privacy Coins sector, and is positioned at #39 in the Layer 1 sector.

The sentiment surrounding Zcash’s price prediction currently leans towards bearish, likely influenced by recent market dynamics and trends. The Fear & Greed Index, a reliable indicator of market sentiment, presently indicates a reading of 39, corresponding to a state of “Fear” in the market. This sentiment is rooted in various factors, including recent price movements, overall market trends, and macroeconomic indicators.

Performing a thorough analysis of Zcash’s recent performance reveals several key insights. The cryptocurrency has demonstrated oversold conditions, potentially paving the way for a price rebound in the near future. Moreover, ZEC boasts an impressive record of 15 green days in the last 30 days, reflecting a 50% occurrence rate.

Zcash’s liquidity position is bolstered by its substantial market capitalization. Trading on Binance, one of the leading cryptocurrency exchanges, provides ZEC with exposure to a wide range of traders and investors.

Considering potential risks associated with Zcash’s performance, it’s essential to note that the price has undergone a significant decline of -58% over the past year. It places ZEC in a challenging position, as it has been outperformed by 89% of the top 100 cryptocurrencies in terms of market capitalization during this period. Furthermore, Zcash’s price is currently trading below the 200-day simple moving average, indicating a potential bearish trend.

It’s important to highlight that Zcash’s price has retraced by -100% from its ATH, underscoring the substantial price volatility that characterizes the cryptocurrency market. Additionally, the cryptocurrency’s yearly inflation rate of 7.80% can impact its supply dynamics and overall market perception.

While the sentiment remains bearish and certain performance metrics raise concerns, Zcash’s historical resilience and position within the cryptocurrency market merit continued observation.

Zcash Price Prediction

In accordance with technical indicators, the present sentiment surrounding Zcash (ZEC) is assessed as “Neutral,” with the Fear & Greed Index registering at 39, indicating a state of “Fear.” Analysis of recent market data reveals that Zcash has experienced 15 out of 30 (50%) days of positive performance, coupled with a price volatility of 7.63% over the course of the last 30 days.

Projections for Zcash’s future trajectory suggest that the current period presents a favorable opportunity for purchasing ZEC. As of August 29, the prevailing general sentiment in the Zcash price prediction landscape is neutral. This outlook is further characterized by the presence of 16 technical analysis indicators signaling bullish trends, in contrast to 15 indicators indicating bearish trends.

In light of these technical indicators, it is anticipated that Zcash’s 200-day Simple Moving Average (SMA) will undergo a decline over the upcoming month, eventually reaching a value of $32.72 by September 27, 2023. Similarly, the short-term 50-day SMA is projected to attain a value of $25.83 by the same date.

The Relative Strength Index (RSI) momentum oscillator is a widely utilized tool for identifying overbought (above 70) and oversold (below 30) conditions in the cryptocurrency market. Presently, the RSI value for ZEC stands at 31.73, suggesting a neutral positioning within the ZEC market.

In accordance with technical analyses pertaining to Zcash’s price trends in 2023, it is anticipated that the lowest potential price point for ZEC could be $21.51. Conversely, the uppermost price level that ZEC might attain is projected at $26.76. An average trading price in the vicinity of $32 is envisaged based on this analysis.

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Ways to Buy Zcash

The best ways to buy Zcash are listed below using the top-rated brokers we have listed above.

Buy ZEC using a Debit or Credit Card

For those looking for simplicity and affordability when buying ZEC, eToro is the best choice. eToro supports multiple fiat methods to buy ZEC, including debit or credit cards.

It is a great method as it lets one buy ZEC tokens immediately with a debit card, and then the assets are transferred inside the wallet.

Binance also offers this utility, but it also charges a high fee. Expect to pay a 4.5% transaction fee when buying Zcash on Binance via credit or debit card. An additional 0.5% fee is necessary.

Buy Zcash using PayPal

It is possible to buy Zcash using PayPal on Binance.

The process is simple. It requires validating the Binance account, connecting the PayPal account, and completing the transaction. The fee is determined by many external factors.

Buy Zcash without KYC verification

There are websites that allow users to buy Zcash without providing any KYC verification. Most DEXs follow this route since they don’t need to be registered, and they only allow crypto swaps. Changelly is one of the major DEXs that allow users to buy Zcash without providing KYC details.

OKX-DEX offers the same facility.

That said, transactions through decentralized exchanges carry certain risks. Therefore, it is recommended that people use centralized options since the centralized bodies can then be held accountable for any mishap with the transaction.

Best ZEC Wallet

Once an investor has bought Zcash, they must consider holding their assets inside a good cryptocurrency wallet. Assets like Zcash, since they are so privacy-centric, are mostly held in private cold wallets like Ledger Nano X.

Software wallets like Phantom Wallet, Sollet, and Solflare also offer great security – allowing users to retain complete control over their assets.

That said. Those looking for a more secure and beginner-friendly solution will find the eToro wallet to be the most suitable. They can be downloaded on desktop and most mobile devices and provide appropriate security for the tokens.

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How to Buy Zcash – Step-by-Step Guide

eToro is the best platform from which all can buy Zcash in a safe and cost-effective manner. Here is the step-by-step guide to doing so. 

Step 1 – Create an Account on eToro

The first step is to go to the official eToro website and create your account. The process is simple and involves clicking on the Join Now button upon visiting the website, furnishing the required details, and uploading the KYC documents. 

Step 2 – Deposit the Initial Amount

eToro is a fiat-friendly crypto trading platform that allows users (US-based) to buy Zcash as long they have at least $10 in their account. Depositing the amount is simple, and the options provided are versatile. Users can choose between VISA, Master Card, and ACH. 

Step 3 – Searching for ZEC

Users must enter the term “ZEC” in the search bar available at the top of eToro’s window. Click on the Zcash option in the drop-down and select the “trade” button.

Step 4 – Buy Zcash 

Before clicking the “Trade” button, it is wise for investors to look at the graph and have some preliminary expectations about their investment. The news section and research will also give them pointers to decide whether it is the right time to invest in Zcash. 

After assessing the graph, investors must click the “Open Trade” button and choose how many SRM tokens they want to purchase. 

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Conclusion

Zcash is a privacy-enhancing cryptocurrency that currently faces regulatory blowback in multiple countries. However, it is still a token for blockchain purists who have stood to buy it even during the crypto winter. While the modest uptick it has received doesn’t inspire much confidence, Zcash remains a good token for those who want to diversify their portfolio.

That said, buying the token from a reputed crypto trading platform is equally important. That’s where eToro shines. The platform allows the purchase of ZEC using fiat and has minimum fees and security features to protect an investor’s assets. It also has a great mobile wallet to hold and secure assets. 

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