What is Zcash?
Zcash (ZEC) is an open-source cryptocurrency that was introduced in October 2016. It uses encryption to provide users with greater privacy. Zcash digital currency employs a mathematical technique called zero-knowledge proofs. This allows for a secure ledger of balances without disclosing the parties and amounts involved in a particular transaction.
Users have the option of selective disclosure in order to prove payment for auditing purposes. This gives those who prefer private transactions the option of complying with anti-money laundering or tax regulations. Thus, there is a balance between offering transparency and user privacy. The financial services company, J.P. Morgan, has integrated the privacy technology of Zcash into its own blockchain.
How is it different from Bitcoin?
Zcash has some similarities to Bitcoin, in that transactions can be transparent and both coins have a fixed total supply of 21 million units. However, Zcash differs from Bitcoin in that it offers users greater privacy. While Zcash payments are also published on a public blockchain, users have the option of enabling a privacy feature. This serves to conceal the sender, recipient, and the transaction amount.
Buying and selling
Zcash is available on many different cryptocurrency exchanges. As such, you should have no problem buying and selling Zcash, wherever you are. It’s possible to find pairs with BTC and ETH as well as with fiat currencies, including USD, EUR, and KRW, for example. While buying and selling cryptocurrencies is legal in most countries, be sure to check the legality of cryptocurrency where you are before investing.
USA: There are a number of cryptocurrency exchanges that offer a Zcash to USD pair, including Bitfinex, Exmo, Kraken, and CEX.IO. Which Zcash exchange you choose is really down to factors such as payment methods, level of fees, and ease of use. It’s worth knowing that CEX.IO accepts payments via debit and credit card, which are quick and convenient. You also have the option of exchanging another cryptocurrency for Zcash, which provides a little more flexibility.
Canada: Unfortunately, there is currently no ZEC/CAD option available. However, it’s still quite easy to buy Zcash if you’re located in Canada. One of the easiest methods is to buy bitcoin, ethereum or litecoin via credit or debit card on Coinbase, and then use ShapeShift or Changelly to trade it for Zcash. Kraken exchange is another good option, as making a CAD wire deposit is free.
UK: The only ZEC/GBP pair option is on Cryptomate which is a smaller Zcash exchange. This is probably the easiest way to buy Zcash if you’re located in the UK. If you’re able to transfer euros, you can make a free EUR SEPA deposit to Kraken and buy ZEC there. As always, using Coinbase to buy another cryptocurrency via credit or debit card is a quick and easy option. You can then trade for Zcash via another cryptocurrency exchange.
Australia: There aren’t any ZEC/AUD pairs available to those of you in Australia. However, it’s still easy enough to buy Zcash by signing up with an Australian cryptocurrency exchange, such as BTC Markets or CoinJar. There you can buy bitcoin and trade it for Zcash on an exchange, such as Binance. ShapeShift allows you to make such an exchange without having to sign up for an account.
Europe: If you’re located in Europe, then your best bet for buying Zcash is making a SEPA deposit to the Kraken exchange, which has a ZEC/EUR pair. Best of all, such deposits are free and relatively fast. Exmo and CEX.IO also have a pair with the euro. In particular, CEX.IO allows for the purchase of cryptocurrency via credit card and debit card so this is another option for you to consider.
Storage options
If you’re planning on holding your Zcash digital currency long-term, it’s a good idea to choose a wallet for its safekeeping. While keeping your cryptocurrency on a Zcash exchange is convenient for trading, it’s not recommended, as your funds are vulnerable. The risks include the cryptocurrency exchange closing, suspending your account, or a hacker accessing your account and taking all your holdings. There are different types of wallets available, so take a look and find out which best suits you.
Wallet options
Desktop: A desktop wallet offers a level of convenience. There are some very good desktop wallets for storing your Zcash funds. One of the best is Jaxx, which is a popular multi-currency wallet. Available on Windows, Mac, and Linux, there’s also a mobile version. It features ShapeShift integration for quick and easy trading.
Hardware: If you’re seeking the utmost security, a hardware wallet is the way to go. That’s because hardware wallets have the benefit of being offline. They’re not vulnerable to viruses or hacking attempts. Both Trezor and Ledger are good options to explore. Keep in mind that this is the only type of wallet that isn’t free.
Mobile: One of the most convenient type of wallets is the mobile wallet. The best options available to you are Jaxx and Coinomi, both of which are multi-coin wallets. Jaxx runs on iOS and Android, as well as on your computer’s desktop (Windows, Mac and Linux), while Coinomi is only available on Android. However, an iOS app for Coinomi is coming soon.
Web/online: Much like a mobile wallet, a web wallet or online wallet allows you to keep an eye on your Zcash balance as long as you’re connected to the internet. In this case, you access the wallet via a website, rather than via a downloaded app. One of the most popular web wallets available is Cryptonator. Keep in mind that web wallets are generally not as safe, since a third party stores your private keys.
Paper: Like a hardware wallet, a paper wallet is a good way to safely store your cryptocurrency offline, free from viruses and the like. However, it’s still vulnerable to being lost, stolen, or damaged. This isn’t the best option for beginners, since it’s not always easy to make a paper wallet.
Buying stuff
At the time of writing, there aren’t many merchants who accept Zcash digital currency. However, the project is still in its early stages and this may well change as cryptocurrency achieves a more widespread adoption. Here are a few places where you can spend Zcash coin:
FortuneJack: An online gambling site, you can play slots, roulette, poker, and more on FortuneJack. Payment is accepted in various cryptocurrencies including Zcash.
BitStickers: BitStickers aims to spread the word about Bitcoin and cryptocurrency in general. They accept dozens of cryptocurrencies for their crypto-themed stickers.
SecPoint: You can buy IT security products with your Zcash coins on SecPoint. In fact, they even offer a 10% discount for those who pay in Zcash cryptocurrency.
Mining
How it works
Zcash mining works much like mining any other cryptocurrency. However, it’s more similar to Ethereum than Bitcoin in the sense that ASICs are not as effective. Instead, you can mine Zcash with your CPU or GPU. Of the two, a GPU is by far the superior option, as returns from CPUs tend to be low. An alternative is Zcash cloud mining which is possible with Hashflare or Genesis Mining. This means renting some mining hardware used by one of these companies instead of buying your own. Use this option with caution, as many Zcash cloud mining companies are scams.
How to set up
First of all, you’ll need a wallet to store the funds you’re rewarded from mining Zcash. Take a look at some of the different wallet types we mentioned earlier in this article. You’ll also need the appropriate Zcash mining hardware. Naturally, the more powerful the hardware you have, the more success you can have when mining. As such, you’ll want a GPU rather than a CPU. AMD and Nvidia are the recommended options when it comes to GPUs for mining Zcash.
Finally, it’s important to take a look at some Zcash mining software. If you’re mining with a CPU, take a look at Zcash Official Software and Gateless Gate. If you’re mining with an AMD GPU, Optiminer, Claymore, and Genesis SGminer are all valid options. Lastly, those using an Nvidia GPU should investigate EWBF Cuda, Nicehash EQM and NEHQ.
Zcash mining pools
One you’ve got a Zcash wallet, Zcash mining hardware and Zcash mining software sorted, your next step is connecting your mining setup to a mining pool. Zcash pool mining means combining your mining resources with others in order to receive more regular rewards. It’s important to take into account that many Zcash mining pools charge fees. Also, some aren’t very trustworthy. Thankfully, there are some good Zcash pools to choose from. These include NanoPool, F2Pool, Coinotron, Suprnova, and DwarfPool.
Calculate mining profitability
Mining cryptocurrencies, such as Zcash, isn’t as profitable as it used to be. For this reason, you’ll want to use a Zcash mining calculator in order to work out how quickly you can profit from mining Zcash. There are plenty of Zcash mining calculators available online. By entering your hashing power and power consumption, you’ll get an estimate of how profitable mining Zcash will be for you.
E-commerce
How to accept Zcash payments
It’s becoming easier to accept cryptocurrency as a payment method, as more options of doing so have become available. In order to do this, your best bet is to choose a payment gateway such as CoinGate or CoinPayments. These are two very popular choices at present, making accepting Zcash and other cryptocurrencies on your website much quicker and easier.
Zcash e-commerce services for merchants
CoinGate and CoinPayments are the two main e-commerce services available for merchants. With CoinGate, you can accept a wide range of cryptocurrencies including Zcash cryptocurrency. These payments can be received in EUR, USD or BTC. CoinPayments works much the same as CoinGate and accepts over 100 different altcoins. Their service can be set up in conjunction with a popular shopping cart such as WooCommerce or Opencart.