Zcash is a cryptocurrency token that deploys a similar codebase to BTC and focuses on privacy and anonymity. Crypto uses a technology known as zk-SNARKS, better known as Zero-knowledge proof technology.
This technology allows the network nodes to verify transactions without compromising user privacy. The token offers total anonymity, which is the backbone of blockchain technology. The project has had some rough times in recent months.
However, the project remains steady and should see better days as the token has seen an uptick in user engagement in the last few weeks. Today’s guide will look at how interested investors can invest in Zcash. The guide is geared toward newbies and provides a clear overview of the Zcash landscape.
Buying Through a Crypto Exchange Platform
This method is by far the most common method of buying an asset. Zcash can be found on most crypto exchanges, but the best place to find the coin is on the more prominent exchanges. Buying through this method is straightforward and involves selecting an exchange, creating an account, and buying the cryptocurrency.
The most important thing to note when using exchanges is that malicious actors are everywhere, and you must take the proper steps to protect your portfolio. These steps include ensuring you set up 2-factor authentication on your exchange and wallet.
The other crucial aspect to consider is your wallet. There are two types of wallets in crypto.
Software Wallets: Software wallets come compact in browsers, apps, and other online sources. It is important to note that wallets are usually very risky and require all the protection methods available.
Hardware Wallets: Hardware wallets are different because they are not connected to the internet. They provide an extra layer of protection that is easy to come by but hard to breach. Remember to keep your public keys and private keys safe.
Crypto exchanges also offer users the ability to buy crypto in parts. This ability comes in handy, especially when dealing with cryptos like BTC and ETH, which cost over $26,000 and $1,700, respectively.
Trade Zcash Via A Broker
If you are an investor that wants to join the Zcash community and you have no interest in the complexities involved in trading the altcoin, a broker may be the way to go. Research brokers and find reputable crypto brokers to help you in the long run. Joining a broker is standard: create an account, secure your account, and fund the account to start participating.
Brokers typically allow Zcash trading with leverage, offering high returns that beat cryptocurrency exchange returns. The brokers maximize profit for both long and short-term traders, but more so for short-term traders who want to maximize profits without the hassle of technical indicators and fundamental analysis.
Invest Through Zcash ETF
Finally, you can trade Zcash through an Exchange-traded Fund or an ETF. ETFs track cryptocurrencies as they are traded in the market. The ETFs track fewer cryptos than crypto exchanges, which helps them manage the risk. The funds are designed to mitigate risks, and they create a pool of cryptos that can offset losses among themselves.
ETFs usually select the best historically performing crypto and make predictions for prices in the future. The ETFs, like crypto brokers, let you invest in the assets without dealing with storage, security, and trading hassle.
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