How to Buy Zcash (ZEC)
Beginner’s Guide
What Is Zcash (ZEC)?
Zcash is a decentralized cryptocurrency focused on privacy and anonymity. It uses the zk-SNARK zero-knowledge proof technology that allows nodes on the network to verify transactions without revealing any sensitive information about those transactions.
Contrary to a common misunderstanding, the majority of cryptocurrencies on the market, including Bitcoin (BTC), are not anonymous, but rather pseudonymous; while they do not explicitly reveal the identities of their users, each user has their own public address or addresses which can be traced back to them via the methods of data science and blockchain forensics.
Zcash transactions, on the other hand, still have to be relayed via a public blockchain, but unlike pseudonymous cryptocurrencies, ZEC transactions by default do not reveal the sending and receiving addresses or the amount being sent. There is an option, however, to reveal this data for the purposes of auditing or regulatory compliance.
Zcash was first released on October 28, 2016, and it was originally based on Bitcoin’s codebase.
How to Buy Zcash Summary
- Get a Zcash wallet (e.g. Ledger, Trezor , Exodus, Guarda, AtomicWallet)
- Find an exchange that sells Zcash (e.g. OKX , Binance , Coinbase , Bitfinex , Kucoin)
- Deposit money and make the trade
- Withdraw the Zcash to your wallet
Buying Zcash in 3 Simple Steps
Step 1 – Get a ZEC wallet
Zcash Hardware Wallets
Zcash is a privacy-focused cryptocurrency that allows users to shield their transactions from public view. If you’re interested in using Zcash, you’ll need a wallet to store and manage your ZEC. Hardware wallets are considered to be the most secure way of storing cryptocurrencies like Zcash as they offer offline storage and added security features.
Here are some of the hardware wallets that support Zcash:
Ledger Nano S – This is a popular hardware wallet that supports Zcash, as well as many other cryptocurrencies. It’s small, portable, and easy to use.
Ledger Nano X – This is an upgraded version of the Ledger Nano S that also supports Zcash and other cryptocurrencies. It features Bluetooth connectivity and a larger screen.
Trezor Model T – This is another popular hardware wallet that supports Zcash, as well as many other cryptocurrencies. It has a touch screen display and advanced security features.
KeepKey – This is a hardware wallet that supports Zcash, as well as several other cryptocurrencies. It has a large, high-resolution screen and a sleek design.
When choosing a hardware wallet for Zcash, it’s important to consider factors like ease of use, security features, and price. Additionally, make sure to purchase your hardware wallet from a trusted and reputable source to avoid scams and counterfeit products.
The best option for storing any cryptocurrency would be to use a hardware wallet. These are pieces of hardware that store the private key to your coins offline.
Today, there are two leading hardware manufacturers to choose from – Ledger and TREZOR. Both companies have different models of hardware wallets that will get the job done.
If you want deeper insights on specific models, you can read my Ledger Nano X review or my TREZOR Model T review.
Zcash Software Wallets
Zcash is a privacy-focused cryptocurrency that allows users to shield their transactions from public view. If you’re interested in using Zcash, you’ll need a wallet to store and manage your ZEC. There are several software wallets available that support Zcash:
Zcash Wallet – This is the official wallet for Zcash. It’s available for Windows, macOS, and Linux, and is designed to be simple and easy to use.
Jaxx Liberty – This is a multi-currency wallet that supports Zcash along with many other cryptocurrencies. It’s available for Windows, macOS, Linux, iOS, and Android.
Exodus – This is another multi-currency wallet that supports Zcash. It’s available for Windows, macOS, and Linux.
Atomic Wallet – This is a multi-currency wallet that supports Zcash along with many other cryptocurrencies. It’s available for Windows, macOS, Linux, iOS, and Android.
Ledger Live – This is a hardware wallet that supports Zcash. It’s available for Windows, macOS, and Linux, and requires a Ledger hardware wallet device.
Before choosing a wallet, it’s important to do your own research and ensure that it meets your specific needs in terms of security, user-friendliness, and other features.
Hardware wallets cost money, so if you’re not sure how serious you are about cryptocurrencies and just want to get a taste of what they feel like, perhaps you would be better off starting with a software wallet.
A software wallet is a free program that lets you store your coins on your computer or mobile phone.
The easiest Zcash coin software wallets to get started with are undoubtedly Exodus, AtomicWallet and Guarda . All wallets are very intuitive. Exodus, Atomic Wallet and Guarda is available on desktop for Windows, Mac and Linux, as well as on mobile for both iOS and Android. If you want more information you can read my Exodus, AtomicWallet and Guarda review.
Step 2 – Find an Zcash (ZEC) Exchange
Buy Zcash through Okex
- OKX (Chinese: 欧易), formerly known as OKEx, is a Seychelles-based cryptocurrency exchange and derivatives exchange. It was founded by Star Xu (徐明星) in 2017. OKX is owned by Ok Group, which also owns crypto exchange Okcoin. It is not available to US based investors. The company’s CEO is Jay Hao and CMO is Haider Rafique. Initially headquartered in Beijing, China, OKX is now under a blanket ban by Chinese regulators. On October 13, 2021, it issued a “Notice on Regulatory Policy in Mainland China”, announcing that it would continue its policy of “withdrawing from the Chinese mainland market” and would not establish an office or team in the region. However, according to Caixin, although the exchange officially announced that it would no longer set up an office in Mainland China, it still has a large number of R&D staff working in the region, including engineers, who continue to work for OKX in the form of third-party outsourcing companies.
Buy Zcash through Binance
- Binance is a cryptocurrency exchange which is the largest exchange in the world in terms of daily trading volume of cryptocurrencies. It was founded in 2017 and is registered in the Cayman Islands. Binance was founded by Changpeng Zhao, a developer who had previously created high frequency trading software.
Buy Zcash through Coinbase
- Coinbase is a convenient and cheap way to buy Ethereum and the platform is open to 200+ countries). Coinbase will sell you CRO for a variable fee that depends on your payment method (credit cards have a higher fee than wire transfers), order size and market volatility. Here’s how you buy Ethereum on Coinbase: Open a Coinbase account Add your payment method (Credit card or bank account) Go to “Buy/Sell” and select the amount of Ethereum you desire Click “Buy Cronos”
Buy Zcash through Bitfinex
- Bitfinex is a cryptocurrency exchange owned and operated by iFinex Inc registered in the British Virgin Islands.Their customers’ money has been stolen or lost in several incidents, and they have been unable to secure normal banking relationships. Bitfinex was founded in December 2012 as a peer-to-peer Bitcoin exchange, offering digital asset trading services to users around the world. Bitfinex initially started as a P2P margin lending platform for Bitcoin and later added support for more cryptocurrencies.
Buy Zcash through Kucoin
- Kucoin is a global cryptocurrency exchange for numerous digital assets and cryptocurrencies. Launched in September 2017, KuCoin has grown into one of the most popular crypto exchanges and already has over 8 million registered users from 700+ countries and regions. According to Alexa traffic ranking, KuCoin’s monthly unique ranking is in the top 5 globally. Known as the “People’s Exchange”, KuCoin operates in Seychelles, providing users with multi-language and 24/7 customer service. Meanwhile, KuCoin has established local communities all over the world in South Korea, Japan, Spain, Italy, Vietnam, Turkey, Russia, India, and other regions, providing users with the most local services. Currently, 1 out of every 4 crypto holders in the world is with KuCoin.
Step 3 – Withdraw Your Zcash (ZEC)
To withdraw your Zcash (ZEC), you’ll need to have a Zcash wallet and access to an exchange or platform that supports ZEC withdrawals. Here are the general steps you can follow to withdraw your ZEC:
Log in to the exchange or platform where you currently hold your ZEC.
Navigate to the “Withdrawal” or “Send” section of the platform.
Select ZEC as the cryptocurrency you want to withdraw.
Enter the amount of ZEC you want to withdraw.
Enter the address of your Zcash wallet in the designated field. Make sure to double-check the address to avoid any errors.
Review the withdrawal details, including the amount and address, to ensure they are correct.
Submit the withdrawal request.
Wait for the transaction to be confirmed on the Zcash blockchain. The time it takes for the transaction to be confirmed can vary depending on the network congestion and the fee you choose to pay.
Check your Zcash wallet to confirm that the funds have been successfully deposited.
It’s important to note that some exchanges or platforms may have additional security measures in place, such as two-factor authentication, that you’ll need to complete before your withdrawal request can be processed. Additionally, make sure to check the withdrawal fees and minimum withdrawal amounts on the exchange or platform you’re using, as these can vary.
OVERVIEW
Who Are the Founders of Zcash ?
Zcash was founded by a team of cryptographers and researchers led by Zooko Wilcox. The founding team includes:
Zooko Wilcox – Zooko is the founder and CEO of the Electric Coin Company, which develops the Zcash protocol. He has been working in the field of decentralized systems and cryptography for over 20 years.
Matthew Green – Matthew is a professor of cryptography at Johns Hopkins University and one of the leading experts in the field. He was one of the original members of the Zcash founding team and continues to be involved in its development.
Ian Miers – Ian is a computer science professor at Cornell University and was one of the early developers of the Zerocoin protocol, which served as the basis for Zcash.
Christina Garman – Christina is a computer science professor at Purdue University and was also an early developer of the Zerocoin protocol.
Eli Ben-Sasson – Eli is a professor of computer science at Technion – Israel Institute of Technology and was one of the original creators of the Zerocash protocol, which is the basis for Zcash.
The founding team of Zcash has a strong background in cryptography and computer science, and their expertise was instrumental in the development of the Zcash protocol.
What Makes Zcash Unique?
Zcash is a unique cryptocurrency for several reasons:
Privacy: Zcash is designed to provide enhanced privacy and anonymity for its users. Unlike Bitcoin and many other cryptocurrencies, Zcash allows users to shield the details of their transactions from public view, making it much harder for third parties to trace the flow of funds.
Selective Transparency: While Zcash transactions are designed to be private, they also offer a unique feature called “selective transparency.” This means that users can choose to disclose certain details of their transactions, such as the amount, to specific parties while still keeping the rest of the transaction private.
Advanced cryptography: Zcash is built on top of advanced cryptographic techniques that provide enhanced security and privacy. The protocol uses a technology called zk-SNARKs, which allows for transactions to be verified without revealing any of the transaction details.
Governance: Zcash has a unique governance structure that allows stakeholders to vote on important decisions related to the protocol. This helps ensure that the community has a say in the development of the network and that it continues to evolve in a way that aligns with the community’s values.
Overall, Zcash’s focus on privacy and advanced cryptography make it a unique and valuable cryptocurrency. Its innovative features have attracted a strong community of supporters and developers who continue to work on improving the protocol.
How Many Zcash Coins Are There in Circulation?
The maximum supply of Zcash (ZEC) is 21 million coins, which is the same as Bitcoin. However, not all of these coins are currently in circulation. As of February 2023, the circulating supply of Zcash is approximately 13 million coins.
Zcash has a unique monetary policy that involves a slow release of new coins into circulation. The mining reward for each block is halved every 4 years, similar to Bitcoin. Currently, miners receive 3.125 ZEC per block.
It’s important to note that the total supply of Zcash will not be reached until the year 2140, assuming that the network remains active and the current block reward remains unchanged. This gradual release of new coins into circulation helps ensure the stability and long-term sustainability of the network.
How Is the Zcash Secured?
Zcash is secured using a combination of cryptographic techniques and decentralized consensus. Here are some of the key ways that the Zcash network is secured:
zk-SNARKs: Zcash uses a technology called zk-SNARKs (Zero-Knowledge Succinct Non-Interactive Argument of Knowledge) to verify transactions on the network without revealing any of the transaction details. This allows for enhanced privacy and security while still ensuring the integrity of the network.
Proof of Work: Like many other cryptocurrencies, Zcash uses a consensus mechanism called Proof of Work (PoW) to secure the network. Miners use their computing power to solve complex mathematical problems and add new transactions to the blockchain. This helps prevent fraudulent transactions and ensures the integrity of the network.
Decentralized Governance: Zcash has a unique governance model that allows stakeholders to vote on important decisions related to the protocol. This helps ensure that the network is governed in a decentralized and democratic way, which is an important factor in its security.
Active Development: The Zcash protocol is actively developed and maintained by the Electric Coin Company and a community of developers. This ensures that the network is constantly being improved and updated to address any potential security vulnerabilities or other issues.
Overall, the combination of advanced cryptography, decentralized consensus, and active development make Zcash a secure and robust cryptocurrency network.
Where Can You Buy Zcash ?
Zcash (ZEC) can be bought and sold on a variety of cryptocurrency exchanges. Here are some of the most popular exchanges where you can buy Zcash:
Binance: Binance is one of the largest cryptocurrency exchanges in the world and offers ZEC trading pairs with several other cryptocurrencies.
Kraken: Kraken is a popular cryptocurrency exchange that offers ZEC trading pairs with fiat currencies such as USD, EUR, and CAD.
Coinbase Pro: Coinbase Pro is the trading platform of Coinbase, one of the largest cryptocurrency exchanges in the United States. It offers ZEC trading pairs with several other cryptocurrencies.
Huobi Global: Huobi Global is a global cryptocurrency exchange that offers ZEC trading pairs with several other cryptocurrencies.
Bitfinex: Bitfinex is a popular cryptocurrency exchange that offers ZEC trading pairs with several other cryptocurrencies.
It’s important to note that different exchanges may have different fees, trading pairs, and user interfaces, so it’s important to do your research and choose an exchange that best meets your needs. Additionally, you can also buy ZEC directly from some cryptocurrency wallets or peer-to-peer marketplaces, but be sure to do so through a reputable and trustworthy platform.