Zcash (ZEC) is one of the most popular private cryptocurrencies available. It harnesses cryptography technology to offer anonymity to its users and their transactions.
With digital currencies like Bitcoin, the sender’s address, the recipient’s address, and the amount are recorded in a public ledger. This means that the data can be linked to the individuals involved. So, although cryptocurrencies are said to be private, it is not always the case.
However, privacy coins provide a higher level of anonymity. In particular, Zcash offers ‘shielded addresses’ intended to encrypt user addresses and transactions stored in the blockchain. In this guide, we’ll show you how to buy Zcash, whether it is a good investment, and much more.
#1 Broker to Buy Zcash – Avatrade
How to buy Zcash in South Africa – Quick 4-Step Guide
Are you short on time? Then, check out these quick and simple-to-follow steps to purchase Zcash in South Africa.
- Get a trading account – We recommend Avatrade as the process of registering a trading account is very easy. The platform will only require you to generate a username and password as well as provide your email address.
- Verification – Avatrade enforces a Know Your Customer (KYC) protocol that calls for identification according to South African laws. This means you’ll have to provide documents that prove your identity and your residential address.
- Fund the account – Once you have successfully created an account, it’s time to make a deposit. Avatrade allows a minimum of $100 which is equivalent to 1500 SA rand, to start trading. Fortunately, it supports a wide range of payment options.
- Purchase Zcash – Look for Zcash on the search function on Avatrade, choose the amount you want, and exchange with your fiat currency.
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What is Zcash?
Bitcoin’s success and popularity laid the foundation for other cryptocurrencies such as Zcash to emerge. The development was started by John Hopkins professor Matthew D. Green and his students in 2013. However, it was introduced in the market by Zooko Wilcox-O’Hearn in October 2016. The coin was received positively, and within the first week, the value for one piece rose to $5000.
This cryptocurrency pursues to maintain Bitcoin’s open ledger system but improves fungibility, security, and privacy. Fungibility is the ease of a commodity to exchange with another. For example, fiat currency such as the US dollar is fungible as you can substitute it with anything of value.
Digital currencies like Bitcoin provide anonymity to its users by assigning private keys. This is a code built with alphanumeric characters that you’ll need to access your funds. There is also a unique public address that users require to send or receive funds from other users. If many transactions are made over time, the address can be linked to the transactions, potentially revealing the holder.
On the other hand, Zcash uses a Zero-Knowledge Proof tool called zk-SNARKs. It enables the buyer and the seller to engage in a transaction without revealing their identities. The tool also makes the transactions untraceable on the blockchain network by scrambling the payment addresses and the amount involved. As a result, it is almost impossible to trace the sender, receiver, or the path of the funds.
Although Zcash (ZEC) is relatively new compared to other digital currencies such as Bitcoin, the market is essentially the same. This means you can buy or trade it through exchange platforms such as Avatrade.
Another option to get Zcash is by mining the blocks. It uses a proof-of-work algorithm that depends on the RAM on your device. The supply model looks similar to that of Bitcoin. For example, it caps the tokens at 21 million, and the mining reward is reduced by half every four years. The only difference is that 20% of the mined units will go to Zcash shareholders, also known as the ‘Founder’s Reward’.
The zero-knowledge proof makes Zcash highly fungible. This is because the parties involved in the transactions are unaware of each other’s identity or even payment history. As a result, coin payments won’t be rejected based on suspicion (or knowledge) of money used for criminal activities.
Highly anonymized crypto such as Zcash and Monero are accused of abetting illegal transactions. However, this is not the case, as these coins are useful for legitimate purposes. For example, you may have a terminal medical condition and want to purchase medication anonymously. Also, businesses and organizations can use these currencies to protect their trade secrets and sensitive information from competitors.
Where to buy Zcash in South Africa
As mentioned earlier, Zcash is very popular and is available on most crypto exchange sites. However, there are hundreds of trading platforms in South Africa, and choosing the right one can be an uphill task. That’s why we have compiled the best options to make it easier for you.
1. AvaTrade – Great place to Buy Zcash
AvaTrade is a reputable online broker that will enable you to buy Zcash in South Africa. In fact, the platform is regulated by the South Africa Financial Sector Conduct Authority (FSCA) and other bodies like FCA and FSA. A regulated status proves that the broker is legitimate.
This trading platform is popular due to its competitive spreads that are continually reducing. Recently, the broker slashed cryptocurrency spreads by 50%, becoming one of the lowest spreads on the market.
Avatrade offers a demo account where you can test your trading strategies before investing your money on the live market. It also provides a standard version with a minimum deposit of $100 using a credit card and $500 through a wire transfer. In addition, Muslim traders are catered for with the ‘swap-free accounts’ that comply with the Sharia laws.
The most remarkable aspect about Avatrade is the number of trading platforms it offers to both beginners and experienced traders. They include MetaTrader 4 (MT4), MetaTrader 5 (MT5), MetaTrader for Mac, MetaTrader for mobile trading, Meta Trader for web trading, and its proprietary platform the AvaTradeAct. In addition, it also provides automated trading software applications like Mirror Trader RoboX, MQL5 Signal Service, Duplitrade, and API Trading.
AvaTrader supports numerous cryptocurrencies, including Zcash, with a leverage of up to 20:1. Fortunately, there are various ways you can deposit and withdraw funds, such as bank wire transfer, credit/debit cards, PayPal, Skrill, etc.
Pros
- Regulated by renowned agencies
- Offers a free demo account
- Superior mobile trading platform
Cons
67% of retail investor accounts lose money when trading CFDs with this provider.
3. Binance – Simplest way to Buy Zcash
Buying and trading Zcash on the Binance is like a walk in the park for beginners. Furthermore, it also caters to advanced traders with a variety of trading tools.
The process of registering a trading account is quite simple, especially for the first level. There won’t be a need to verify your account, but the features will be limited. So, you’ll have to submit your photo ID to access all the features and exceed the withdrawal limit.
Binance allows you to exchange fiat currency with Zcash or other supported coins in several ways. The first option is the peer-to-peer trading service, where you will meet with sellers directly. Fortunately, it supports a variety of payment methods for convenience. The second option is using credit/debit cards, although at a premium fee of 3.5% of the transaction. Finally, Binance has recently integrated with third-party providers, which allows you to buy Zcash with fiat currency through SEPA and Wire transfers. This option is desirable as you won’t be charged anything.
Pros
- Low trading fees
- Numerous payment options
- Nicely designed interface
Cons
- Does not have phone support
67% of retail investor accounts lose money when trading CFDs with this provider.
4. Coinbase – Most reputable place to Buy Zcash
Coinbase is a trustworthy platform to buy Zcash in South Africa. It is ranked among the top cryptocurrency exchange sites in terms of liquidity, traffic, and trading volume.
Creating a trading account on Coinbase is straightforward by just submitting your name, email address and creating a password. After verifying your email address, you’ll be asked to input your phone number to receive a two-factor authentication code. After that, the platform requires you to upload identity and location verification documents to start trading and investing.
Pros
- Numerous deposit and withdrawal options
- Intuitive interface
- High liquidity
Cons
67% of retail investor accounts lose money when trading CFDs with this provider.
Why buy Zcash – comprehensive analysis
Zcash has become very successful since it was launched in 2016. In fact, Grayscale, one of the world’s biggest digital management firms, predicted that Zcash value could reach up to $60,000 by 2025. Because Grayscale is involved with multiple crypto Trusts, investors started wondering whether Zcash is a viable investment option.
Currently, there are over 4,000 Zcash related transactions every day. This makes it scale much faster than its competitors, resulting in relatively low fees. The average transaction fee at the time of writing this article is $0.039616.
Over the years, the Zcash development team has made notable partnerships. For example, during the 2017 Consensus event by Coindesk, JP Morgan announced that it would start using Zcash’s zero-knowledge security layer.
Many crypto and financial analysts say that Zcash can surpass its competitors, such as Monero (XMR) and Dash (DASH). As a result, it has the potential to become the primary private crypto to make transactions worldwide.
Moreover, blockchain experts and enthusiasts believe that Zcash’s development team can provide innovative solutions that will help it continue to remain competitive. Therefore, we have looked at Zcash’s strengths and weaknesses to help you make an informed decision.
The pros of investing in Zcash
Zcash is forecasted to have a great future, making it an attractive financial instrument. These are some of the reasons why you should invest in ZCcsh.
Highly undervalued
Zcash is a capable digital currency with over 10,000 coins in the market, but it is highly undervalued. As of 30th July 2021, ZEC is trading at $109.94. This is 98% less than the all-time high price the coin clocked one week after being launched in 2016. Furthermore, due to the effects of the 2020 coronavirus pandemic, ZEC reached a new low of $18.94 around March.
The main competitors of Zcash in the private coin category are Monero (XMR) and Dash (DASH). When writing this article, XMR is trading at $233.92 while DASH is at 154.55. Besides the two, Zcash also competes with Bitcoin (BTC) and Ethereum (ETH). These are the two most popular digital assets, and ZEC’s price is inconsequential compared to them.
Zcash provides impressive innovative products, has forged crucial partnerships, and the trading platform is highly secure. According to cryptocurrency experts, ZEC should be commanding prices of at least $1000 with these features. Nonetheless, with a trading volume of 198 million, the coin attracts investors who could make the price rise.
Some analysts indicate that Zcash trading price will increase between $250 to $550 by the end of July. In fact, this could be fueled by positive crypto market sentiment, favorable comments on cryptocurrencies by Elon Musk, and bullish correction. Thus, by the end of the year, the coin is estimated to be trading for $350 to $750.
Finite supply
One of the common questions by investors and traders is the amount of ZEC in circulation. This is because low supply gives the coin’s value better chances of growth as the demand increases.
Bitcoin is an excellent example of how supply affects cryptocurrency growth. It has been capped at 21 million, and mining it has become even more difficult. As a result, the demand continues to grow and the value now stands at $38,903.
Zcash adopts a similar supply method as Bitcoin. It has limited the maximum supply to only 21 million coins, with the current supply at 12,315,556. Over 57% of the total coins mined so the supply is getting thin. This means that Zcash could experience significant growth as the demand is also increasing.
Immune to attacks
A cryptocurrency should have top-notch security or become worthless. Actually, any crypto whose security has been compromised never gains back its value.
Zcash is highly decentralized, which makes it difficult to attack. Moreover, there isn’t any central authority that can even shut it down. In addition, it uses a Proof-of-Work mining algorithm that helps to enhance security. Also, similarly to Bitcoin, the network of miners has expanded over time.
So, anyone trying to attack Zcash will require a tremendous amount of power to do it successfully. This could have been possible during the early days, but now it is almost impossible. The combination of these blockchain security features increases Zcash’s long-term potential.
Available on most exchange platforms
ZEC is a highly-regarded digital currency alongside Ethereum and Bitcoin, so you’ll find it on major crypto exchange sites. As a result, millions of traders are buying and selling it at the same time. Therefore, the price will remain stable. Although it may increase or reduce with the market behavior, there won’t be a surprise spike from single trading activity. This is a vital factor as it helps to draw in big money. A crypto asset without liquidity does not attract investors.
Low regulatory risk
While privacy coins are highly innovative, most governments despise them. This is because they are unable to access the activities of the users. As the world grapples with complex problems like drug trafficking and terrorism, many governments will continue to crack down on privacy coins.
In fact, some countries have already started to shut them down. For example, recently, Japan forced local crypto exchange sites to delist privacy coins. In addition, the US has harsh stands against privacy currencies.
Principally, cryptocurrencies get their value from speculation. Therefore, the regulator’s pessimistic reactions can affect the privacy coin’s long-term value rise.
Zcash is not affected by this issue. Although it offers robust privacy features, you have the option to disclose your transactions for auditing. Therefore, apart from being the best privacy coin, it is also regulatory friendly.
The cons of investing in Zcash
As you can see above, Zcash has a promising future. This is backed by price predictions from cryptocurrency experts and analysts. However, investing in the coin without evaluating the negatives can result in significant losses. Because there isn’t a perfect digital asset, let’s look at the cons of investing in Zcash.
Suspicion as a privacy coin
One of the biggest strengths of Zcash is the ability to maintain user anonymity. It is not an impossibility, but anyone trying to track the transactions will use a lot of time, energy, and research. Therefore, it’s difficult to know if some people are using the coin to do unlawful activities. For example, Alphabay, the most popular marketplace on the dark web, contemplates supporting ZEC as the primary payment option. There are concerns that Alphabay is a criminal enterprise, and this could harm Zcash’s future.
Founders reward
The 20% tax on the mined coins to pay developers, founders, and early investors does not sit well with many traders. However, the recent Canopy upgrade redistributes the reward. Initially, the founders and early investors took 15% while the Electric Coin Company 5%. After the change, the miner takes 80%, Electric Coin Company 7%, Zcash foundation 5%, and Grants for independent third-party development 8%.
Zcash price – How much does it cost to buy Zcash in South Africa
Zcash has been on a bearish correction in the recent past. For example, in the first quarter of 2021, the ZEC/USD pair gained +$35 to trade at $89.78. The pair have had an outstanding performance in the last few months, and most live charts show it is currently trading at $109.94.
Lately, the entire cryptocurrency industry has experienced a rebound, with even Zcash breaking through the $100 level. This is one of the most promising coins due to the privacy it provides its users and their transactions. Also, it is among the digital assets with an open-source code on the blockchain network. Therefore, as more investors show interest in the coin, the value is predicted to continue improving.
How to buy Zcash in South Africa
Basically, there are several ways you can purchase Zcash in South Africa. While every option has its pros and cons, Bitcoin is a better method because of the low trading costs. However, some people still prefer to use credit/debit cards and PayPal.
Buy Zcash with a credit/debit card
This is perhaps the simplest way to purchase Zcash. Although some crypto exchange sites don’t accept credit/debit cards as a payment option, it is the most prevalent method in the industry. All you have to do is link the card with your trading account, indicate the amount you want, and buy. The major disadvantage is that it is a bit costlier because of the transactions and processing fees.
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Buying Zcash with PayPal
PayPal is catching up with the cryptocurrency industry. In fact, the mobile app offers an option to buy some crypto such as Bitcoin, Ethereum, and Litecoin directly. Unfortunately, you can’t buy Zcash with this method. However, you can purchase any available options and exchange them with Zcash on a crypto exchange site. Also, platforms such as Avatrade simplify things as it supports direct trade of Zcash and PayPal is a payment method.
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Buying Zcash with Bitcoin
It is very easy to buy Zcash if you already have Bitcoin in your account. Go to Avatrade, navigate to the trade tab, and select convert.
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CFDs are complex instruments and carry a high risk of losing money quickly through leverage. 75% of retail investor accounts lose money when trading CFDs from this provider.
CFDs are complex instruments that have a high risk of losing money quickly due to leverage. 72.6% of retail investor accounts lose money trading CFDs with this provider.
CFDs are complex instruments and carry a high risk of possible rapid loss of capital due to their leverage. 71% of retail investor accounts lose capital when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take high risk in losing your capital.
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Conclusion
South Africa has embraced cryptocurrencies on an impressive scale. In fact, it is the second-biggest consumer of crypto after Nigeria. This is alleged because of the political and economic uncertainty, so most citizens are looking for new ways to invest. More important, an option that is not heavily regulated by the government and can be done promptly. The easiest way to buy Zcash in South Africa is through an exchange. Our top choice is Avatrade as it offers a unique copy trading feature and the trading fees are low.
FAQs
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