How to Buy Zcash (ZEC) – Beginner’s Guide ByJohn LadelucaPRO INVESTOR Updated: 17 February 2023 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 99% to $44. Bitcoin’s bull runs back in 2018 and 2021 allowed this Bitcoin fork to cross the $200 threshold, but the crypto winter pushed its value below the $40 level. 2023 saw Zcash opening at $37 before climbing to trade sideways in the $40 zone. 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. And 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 2023 and also touches upon whether it is a good investment and where it could be within the next few years. How to Buy Zcash (ZEC) – Quick Guide Zcash is one of the OG cryptocurrencies that are sought after by crypto purists who still covet privacy more than anything. In light of this, major cryptocurrency exchanges have listed this token – including eToro. Here is a quick guide on how to buy Zcash from eToro. Step 1 – Create an Account on eToro – The process begins by creating an account on eToro. It involves navigating to the official eToro website, filling out the relevant details, and uploading the KYC information to get authentication to start trading. Step 2 – Deposit Funds – eToro is a beginner-friendly platform that offers crypto and fiat deposits. However, it is recommended that first-time traders use fiat options like debit/credit cards or bank transfers to complete the process. US and UK-based users are required to deposit $10. Step 3 – Search for ZEC Coin – Users must “ZEC” in the search bar to search for the token and click on the “Trade” button. Step 4 – Buy ZEC – Users must then assess the price chart before clicking on the “Trade” button. They must then enter the number of tokens to buy and click on the “Open Trade” button to complete the transaction. Buy Zcash Now Your capital is at risk Where to Buy Zcash – Best Platforms of 2023 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 2023 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. Pros Offers More than 79 cryptocurrencies – new assets are added regularly Charges on a spread-only basis Offer Copy Trading for beginners to follow investing strategies of successful traders Offers Smart Portfolios to those who want to diversify their investments Social trading mechanics allow trading in a social environment It has a robust, mobile-friendly wallet Paper trading available Cons Only available in some states in the US The high deposit requirement for regions other than the US and the UK Advanced trading options not available Withdrawal charges levied Penalizes inactive investors Visit eToro Now Your capital is at risk 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 is beginner friendly. However, engaging with some of its more advanced features would take some getting used to – especially the derivaties & 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. Pros Suppers hundreds of cryptocurrencies Have an affordable fee structure Reductions available on fees based on OKB holdings A mobile-friendly platform OKX DEX available for traders across the globe A solid Earn program to earn 1% APY on ZEC Fiat and crypto payment supported ZEC derivatives available Cons Not available in the US Advanced trading features may not be beginner friendly The fee structure can be confusing ZEC’s addition to the Earn program could have been better Visit OKX Platform Now Your capital is at risk 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 they can 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. And 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 2023. Our Binance review offers more insight into this platform. Pros Offers a fast account creation process Only charges a 0.1% fee Supports upwards of 700 cryptocurrencies Offers a safe crypto wallet Leading exchange in terms of liquidity Tons of educational sources are available Allows purchase of tokens through fiat Cons The original version is not available in the US High transaction charges for buying crypto using fiat methods Buy Zcash on Binance Now Your capital is at risk What is Zcash? Zcash is a security-focused blockchain that was forked from the original Bitcoin chain a way 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 that was created by Zooko Wilcox O-Hearn, who is also 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. 8% of the tokens go to the Zcash Open Major Grants, which funds independent third-party developers for their work on Zcash-related projects. 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. And 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. Visit Zcash on eToro Your capital is at risk 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 with Zcash. But 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 an infinite number of 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. Visit Zcash on eToro Your capital is at risk ZEC Price After going through a major bearish turn in 2022, Zcash, much like other assets, is making a comeback riding the wave of Bitcoin crossing its $22k resistance. ZEC is currently accumulating above $42. and price amplitudes show that the token might not fall from this value. Looking back, Zcash is still far cheaper than its all-time high of $5.5k. Zcash has gone on 2 bull runs in its lifetime after dropping from its all-time high. The first one happened in late 2017 when ZEC peaked at $756 before falling in Q1-2018. The second one happened in late 2021 when it peaked at $328 before retracing. The token has followed a bearish trend since then unless one excludes the recent wick of 2023. Zcash Price Prediction Zcash recent uptick has made the market believe that it may establish an uptrend soon. However, it is too soon to say. Therefore, to make an accurate Zcash price prediction, one has to look at both the technical analysis and development aspects of this token. Looking at the weekly candle charts, we can see that Zcash is still trading inside a bearish zone. The token is trading a bit lower than its 20-day moving average. And the RSI of 41 puts it inside the neutral zone. Also, in order to test its post-listing all-time high, which is $385, Zcash has to move to find support at $301 (0.236 fibs), which means that it must go up by more than 8x its current value. On the development side of things, we don’t see much happening in the background. In its most recent tweet, the Zcash Foundation announced the addition of the Zcash Foundation AV club. It would establish a network of content creators to broadcast fresh news about the developments of the Zcash ecosystem. The @ZcashFoundation is excited to announce a new addition to the #Zcash ecosystem: @ZFAVClub Our vision is to establish a network of capable, ready, & funded content creators broadcasting & sharing fresh news about Zcash and online privacy. pic.twitter.com/eDpEY7J1rd — Zcash Foundation ?️ (@ZcashFoundation) January 12, 2023 We might end up with more news about Zcash’s development once this club starts giving us information. But till then, we don’t see make this token making much headway when it comes to development. Also, Zcash is a Proof-of-Work token, which might push away investors looking for environmentally-friendly crypto options. Visit Zcash on eToro Your capital is at risk Ways to Buy Zcash Listed below are the best ways to buy Zcash 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 allows one to buy ZEC tokens right away with the 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. Checkout eToro Wallet Now Your capital is at risk 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 if 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. Buy Zcash on eToro Your capital is at risk 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 still remains a good token for those who want to diversify their portfolio. That said, it is equally important to buy the token from a reputed crypto trading platform. 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. eToro - Our Recommended Trading Platform Our Rating CySEC, FCA & ASIC regulated - Trusted by Millions of Users Trade Crypto, Forex, Commodities, Stocks, Forex, ETFs Free Demo Account Deposit via Debit or Credit card, Bank wire, Paypal, Skrill, Neteller Copytrade Winning Traders Open Free Demo Account 81% of retail investor accounts lose money when trading CFDs with this provider. FAQ Where can I find ZEC at the best price? eToro is the best crypto trading platform from where you can buy Zcash. It has a simple UI, and only charges on spread-only basis. Is it a good idea to invest in Zcash? Zcash has gone through the effects of crypto winter but has still managed to stay above the $30 mark. However, its privacy-enhancing features are not welcomed by many regulations. Keep this fact in mind when investing in Zcash. Does Zcash have a future? Zcash's main USP is its focus on privacy. So, for investors who still seek privacy in their investments, Zcash is a worthy investment. Is Zcash worth mining? Zcash is worth mining. However, investors must select a mining pool that saves electric bills and other overheads associated with mining.