March 26, 2020

How to buy Zcash (ZEC)

ZEC

Zcash Digital Coin (ZEC) is a decentralized platform. This is one of the first cryptocurrencies with open source and a high rate of anonymity. The idea of creating Zcash was to improve the Bitcoin algorithm, making it very difficult to track transactions.

All operations with a digital coin are 100% closed. Blockchain technology is used for money transfers. At the same time, the names of the recipients and senders, as well as the amount of currency is not available for viewing. The principle of the system is based on the method of evidence with zero disclosure. It is called zk-SNARK. The method allows you to confirm the accuracy and veracity of transactions without disclosing information about the participants in the transaction and the volume of the transaction.

Application of the zero-knowledge protocol makes network operations fully encrypted in a blockchain. Secret contracts make it possible to use an open blockchainwhile maintaining 100% anonymity.

ZEC is becoming increasingly popular in the cryptocurrency community. Many analysts are sure that the token is the main competitor of Monero. Many corporations, in particular Digital Currency Group, are interested in the platform. Its developers work to increase its reliability.

Principles of Operation

A key advantage of the system is mathematically secured anonymity. It is protected by a decentralized network. XCATs can also be attributed to the benefits. The technology allows cross-platform “atomic transactions” between two electronic assets without involving centralized exchange platforms.

The advantages of the platform include:

  • 100% confidentiality;
  • prospects for new software development using the nondisclosure evidence method;
  • the ability of a cryptocurrency to function without linking coins to history in chains, giving the currency interchangeability.

The principle of functioning is based on the formation of individual segments by six participants, public/private keys with further recording on DVD. This procedure is called “multilateral computing protocol”. It is carried out following certain rules and requirements for the equipment used. Once all instructions have been completed, participants delete their private key segments. After that, the public key segments are merged. This allows forming the SNARK parameters.

The system has disadvantages, too. Six participants are theoretically able to conspire with each other about saving keys. There is also a possibility of information leakage, which will lead to the creation of another public key. The disadvantages include the need to perform numerous calculations to complete transactions.

How to register a Zcash Wallet

The creation of an electronic wallet in the Zcash network is carried out in several ways. Users can do it in three ways. There are the following types of electronic wallets: hardware, local and registered on the exchange. The last variant is the simplest.  For this purpose, it is necessary to be registered on one of the exchange platforms. The procedure is performed in a few clicks.

Local wallets are created directly on the user’s computer through a special application running under Linux. This software is used for mining. However, it has a built-in wallet that can be used for various transactions.

The safest is the hardware wallet. Visually it looks like an ordinary flash drive connected to a computer. It costs from 40 to 100 USD. It is convenient, practical and safe to use. However, the hardware wallet will be interesting only to those users who have significant amounts of money. You don’t need this gadget to store a small amount of money.

How to sell Zcash (ZEC)

There are many ways to sell and buy ZEC coins. This task is solved through the following services:

  1. Cryptocurrency exchange platforms. Here you can easily purchase or sell ZEC on the most favorable terms. Keep in mind that on various exchanges, the exchange rate of a coin can vary significantly. As a result, some users are involved in arbitrage trading.
  2. Exchange offices. The services allow you to quickly purchase ZEC for fiat money. If you want to buy ZEC, read the instruction carefully. In most cases this process is very fast, 2-3 clicks.

Which option is better, it’s up to you. If you need to learn how to sell ZEC and profit from it, we advise you to study the principles of cryptocurrency trading. Electronic coins are a convenient financial instrument. High volatility attracts many traders from all over the world to the cryptocurrency market. ZEC can also act as a profitable instrument for investment. This cryptocurrency is quite popular and promising. In the long term, it is likely to become more expensive.

Summary

Zcash is an electronic coin, which can be used as a means of payment and financial asset. The key advantage of this cryptocurrency is 100% anonymity of transactions. The platform code includes the zk-SNARK algorithm. It is a zero-disclosure confirmation method. It completely hides data about transaction participants and transaction volume.

Zcash is a fairly promising cryptocurrency platform. To appreciate the quality of its work, create an electronic wallet and buy the necessary amount of coins. Many services have long accepted ZEC to pay for goods. This coin is highly liquid. ZEC is one of the most reliable cryptocurrency assets in the market.