A Step-by-Step Guide to Buying Zcash (ZEC) in 2022
Where To Buy Zcash & Find the Best Rate
Founded in 2016 and based on Bitcoin's codebase, Zcash is a cryptocurrency and blockchain project with a market capitalization in excess of $2 billion.
If you are looking to learn the ins and outs of how to buy Zcash, then you have landed on the right page.
In this beginner’s guide, we detail all of the essential aspects of buying Zcash. This includes everything from potential fees and storage, to investment plans and regulation.
Additionally, we explain how to create orders when buying Zcash and what steps you need to take in finding a trustworthy crypto broker.
How To Buy Zcash (ZEC) Today In 5 Easy Steps
In case you lack the time to read this guide in full - find below a 5 step rundown of how to buy Zcash right now.
1. Sign up with a trusted crypto platform offering Zcash
2. Deposit funds into your account
3. Choose Zcash (ZEC) from the dropdown list of digital currencies
4. Enter the amount of Zcash you wish to purchase
5. Confirm that all details you’ve entered are correct
Ready to buy Zcash right now with a debit/credit card or e-wallet?
How To Buy Zcash (ZEC) Today – Step by Step Guide
if you’re looking for a step-by-step walkthrough, check out the below. We show you how to buy Zcash today with the best crypto exchange!
Step 1: Choose An Online Zcash (ZEC) Broker Or Exchange
As is clear from the above 5 step rundown, it’s advised to buy Zcash via a regulated online brokerage.
By signing up at eToro you will not only be able to buy Zcash directly. But, under the secure conditions that only a regulated broker can provide, too. This is because the highly regarded platform is regulated by not one, but multiple jurisdictions.
This isn’t the only route, as you can buy Zcash at a crypto exchange if you wish. The problem is that these third-party exchanges are commonly unregulated and therefore not supervised by any authority.
The striking difference between an exchange and eToro is that this broker is registered with strict financial authority FINRA in the US.
eToro is also regulated by reputable bodies like the FCA, ASIC, and CySEC. Ultimately, this ensures that you are buying Zcash from a broker with integrity.
When researching how to buy Zcash, you will notice there are hundreds of online brokers active in this space. And, you had better believe that many of them are dishonourable.
Regulatory bodies - such as those mentioned above, help to keep the cryptocurrency sector free from shady operators. As such, you can buy Zcash with confidence at eToro.
As we touched on before, if you are thinking about buying digital coins from an exchange, the chances are you won’t have the luxury of such protection.
The harsh reality is that unregulated exchanges are hacked more and more every year. In fact, a couple of years ago over 500,000 crypto wallet logins were hijacked in a single year, resulting in the theft of almost $300 million.
You can also opt to buy Zcash from an exchange and instantly withdraw them to a private crypto wallet. This does mean that you are tasked with ensuring the safety of your own crypto-assets, not to mention safeguarding your long multi-character ‘private key’.
Should you elect to buy Zcash at eToro, you can store your digital currencies via the safety net of this regulated platform.
2. Payment Methods
In terms of accepted payment methods, you shouldn’t have any problems when looking to buy Zcash online.
Buying cryptocurrencies in the early days usually meant having to do so via wire transfer. Although this method is still used today, it is one of the slowest payment types to process. This means it will likely delay your ability to buy Zcash by up to a week.
eToro accepts a variety of convenient payment methods. In respect of debit/credit cards, there is the option of Visa, Visa Electron, Mastercard, Maestro, and more. The broker also allows you to buy Zcash with e-wallets such as PayPal, Skrill, Klarna, and Neteller.
3. Fees and Commissions
As with any new journey involving financial investment, it’s crucial to be mindful of any fees and commissions that might be expected of you.
Crypto providers need to make money in order to keep the wheels in motion. After all, a business is unable to operate without turning a profit.
This is often achieved via trading fees and commissions. Let’s face it, without this access to the market you would be unable to make a profit yourself - and that’s the whole point.
Our How to Buy Zcash Guide found that the lion’s share of online brokers will charge you a variable fee. This is worked out against the value of your order.
To clarify, you will find below a brief explainer of a variable Zcash commission:
- Crypto platform Coinbase charges a 1.49% fee for each trade - to enter and to exit the market
- As such, if you were to buy $2,000 worth of Zcash at Coinbase, you would have to pay $29.80
- If the position was $500, the fee would be $7.45, and so on.
Now, take a look at how this fee could influence your potential profits when buying Zcash:
- You place a buy order worth $1,000 on Zcash at Coinbase
- You need to pay a 1.49% fee, which is $14.90
- When it’s time to cash out, your Zcash coins are worth $2,000
- As such, you pay a 1.49% fee again, which this time is $29.80
- All in, you paid Coinbase $44.70 in fees for this Zcash investment
As you can clearly see, 1.49% seems reasonable. However, if you consider how much you might be paying over the course of a year, it’s not a cost-effective way to buy Zcash.
If you had instead signed up to buy Zcash via online broker eToro, you would have saved $44.70. This is because the platform is 100% commission-free.
When it comes to ‘deposit fees’, Coinbase charges 3.99% when opting to use a debit card. Therefore the above buy order would have resulted in a charge of $39.90.
Whilst eToro does charge a deposit fee, this amounts to just 0.5%. This is an exchange fee and is only incurred if you are using a currency other than US dollars.
4. Other Important Factors
Whilst we’ve discussed many topics in terms of finding a good broker to buy Zcash, there are other important factors to be mindful of.
- User-Friendliness: A user-friendly website is often overlooked when people are electing to buy Zcash. The easier a platform is to navigate, the better your experience will be when it comes to placing orders and cashing out your digital coins.
- Minimum Investment: Another important factor when considering how to buy Zcash is - what is the minimum investment amount? Think of it like this, if the platform insists on investments of $500 and up, this could make regular investments unconducive for beginners.
- Storage: When you elect to buy Zcash, it’s pivotal that you consider how you are going to store it. For newbies, it’s best to give unregulated platforms and exchanges a wide berth. They offer little to no protection. We recommend eToro, as you can store your coins in a safe and regulated place at no extra cost.
Read Also: Should You Buy ZCash?
Step 2: Come Up With An Investment Plan
When contemplating how to buy Zcash, it’s a good idea to come up with an investment plan. This is a strategy utilized by investors at all levels of expertise.
Moving forward with a plan is a no brainer in such a volatile arena as the cryptocurrency market.
If you have no idea where to start with such a plan, see below a list of commonly adopted strategies.
1. Long-Term or Short-Term
When considering how to buy Zcash - do you see yourself as a short-term or long-term investor?
As the name suggests, short-term investors tend to buy and sell digital currencies within a shorter time frame.
This means you might buy Zcash, and then sell it within minutes, hours, or days. All with the view of making gains from price fluctuations in the marketplace, of which there are many.
This highly speculative asset can shift in price by 5 times that of fiat currencies or gold. As such, if you speculate and time it correctly, you could stand to make some decent gains from your initial purchase.
In contrast to the above, long-term investors enter the market with the goal to buy Zcash and hold onto the purchase for weeks, months, or sometimes years.
This is commonly called a ‘buy and hold’ strategy. A long-term strategy is often used by beginners due to the absence of concern for temporary price spikes.
Check Out: 15 Reasons Why You Should Buy Zcash Today
2. Target Zcash Price
Another element to consider is setting a ‘target Zcash price’.
To throw some more light on what this means - if you were to buy Zcash at $60.00 and wanted to increase your investment 3 fold, the digital coins would have to increase to a value of $180.
If you were looking to mushroom that same investment 5 fold, the digital currency would need to rise to $300 - and so forth.
Admittedly, this sounds improbable.
November 2016, Zcash was priced at $65 per coin. Fast forward to January 2018 and the same digital currency was worth over $900. This represents an increase of $1,200 in just over two years of trading.
3. Consider Regular Investments
As is evident from above, digital currencies fluctuate dramatically. This happens on a second by second basis and is down to the supply and demand of the market.
When learning the ropes of how to buy Zcash, it’s worth giving low, but regular investments a thought.
This is a very popular strategy amongst investors of all shapes and sizes, lending itself particularly well to the investment plan of a newbie.
This enables you to build up your cryptocurrency portfolio in a methodical way. Best of all, you aren’t in the risky position of putting your entire budget into one purchase.
eToro makes this particular method of investing effortless - enabling you to buy Zcash from $25!
Would You Consider Investing In Zcash?
Step 3: Open A Zcash (ZEC) Broker Account
If you have traded stocks or forex before, opening a Zcash broker account will be instantly recognizable.
All you need to do is head over to a crypto broker of your choosing and fill out an online application form.
At this step, you will need to enter your full name, address, email, phone number, and date of birth. To prove the aforementioned information you will be required to upload a photo of a government ID like your passport or driver's license.
Next, you will need to provide the platform with a copy of an official letter to validate your address. Most people use a utility or bank account statement.
This must match the details previously entered and include your full name, address, and date of issue. This may seem invasive but it is an important part of KYC and comes hand in hand with regulation, and the safety it offers.
As we said earlier, you can of course look to buy Zcash at an unregulated exchange. Just remember that without regulation, your capital and indeed crypto-assets are at risk. Not only that but the company doesn’t have to keep to any standards or rules.
Beginner-friendly platform eToro upholds a high standard of customer service, as well as jumping through hoops to satisfy multiple regulatory organizations.
The broker uses automated technology to validate client ID - meaning you can usually open an account in less than 10 minutes!
Step 4: Deposit Some Funds
You can now deposit some funds into your new eToro account. This will enable you to buy Zcash. The fastest payment methods are invariably debit/credit cards and e-wallets.
As we mentioned, at eToro you can buy Zcash using Skrill, PayPal, Neteller, and more.
If you prefer wire transfer you can buy Zcash this way at eToro - but remember it will delay your purchase by some days.
Whilst on the subject of funding your account, it’s key that you are aware of the minimum deposit amount expected at the platform. Our guide found that whilst some online brokers have a reasonable minimum deposit, some require in excess of $1,000.
Back to eToro, the minimum deposit is $200, but you only need to buy Zcash from $25 upwards!
Step 5: Set Up A Trading Order
Having completed steps 1 to 4, you can go ahead and let your broker know where you stand by placing an order.
For beginners or crypto investors who need a refresher course, you will see a list of orders below.
All orders can be easily utilized when grappling with how to buy Zcash.
You will often place a buy order to enter the market and purchase Zcash.
In layman's terms, if you predict that the price of Zcash will rise - create a buy order with your online broker.
You may notice that some crypto providers also offer something known as ‘short-selling’. For those unaware, this means that if you think Zcash will fall in value you can place a sell order. Thus reaping the rewards if you are correct.
Limit or Market Order
As we touched on earlier in this guide, heaps of investors take advantage of the highly volatile environment of cryptocurrencies.
With the value of digital coins fluctuating to such a degree, this can be a breeding ground for impressive profits.
Starting with a simple ‘market order’;
- If you are quoted $60.07 for Zcash and are happy with that price - place a market order with your broker.
- In this scenario, the broker actions your order straight away.
Be mindful of the aforementioned price fluctuations of digital currencies as this will affect how much you actually pay.
For instance, you might have confirmed your market order at $60.07, but the amount you get is something like $60.05. This difference is unavoidable but minuscule.
If you would like to be a bit more specific when entering the Zcash market, then a ‘limit order’ has its uses.
You will see below a practical example of how you can use a limit order when looking to buy Zcash:
- Using the above price for continuity, Zcash is valued at $60.07
- You do not want to enter the market until the crypto-asset hits $64.00
- As such, you create a $64.00 limit order
- If the price of Zcash reaches $64.00 - the broker will action your order
- Only two possible scenarios will change this order - either Zcash hits that price point, or you cancel your order manually
As is crystal clear, a market order is a fast and simple way to get the current market value of Zcash. Whereas a limit order enables you to enter the market at a price you aspire to.
Now that you have a good grasp on placing orders to buy Zcash, you can consider what your stake will be.
You will be asked for a monetary value each time you fill in an order to buy any financial asset.
Put simply, how much Zcash would you like to buy? You can of course stake as much as you want on digital currencies.
Nonetheless, as we advised, a methodical way to build your Zcash coins is to invest small amounts on a regular basis. This way you are not risking too much at a time.
At this point, you can double-check all of the particulars you have entered - meaning the buy/sell, market/limit, and stake value.
If you are happy to go ahead - confirm your order. The online broker will now execute your orders.
The stake amount you entered will be taken from your account. You will then see that the Zcash coins from your purchase have been added to your eToro portfolio.
Don't Miss: Pros and Cons of Investing in ZCash
Ready To Invest In Zcash?
Step 6: Storing Your Zcash (ZEC)
Whilst fiat currencies like US dollars and such are kept in bank accounts, storing your Zcash is quite different.
We briefly covered storage further up this How to Buy Zcash Guide. But, to clarify, there are a few options.
Although it’s your choice to buy Zcash at a crypto exchange, to reiterate, this is best avoided. If you are a novice when it comes to dealing with cryptocurrencies, storing your own can be a minefield as it is. Let alone in an environment free from regulation.
At eToro you don’t need to worry about storing your own Zcash coins or the safety of your crypto-wallet passwords.
This is because the popular crypto broker will allow you to buy Zcash and then store it for you in an easily accessible and transparent way.
eToro operates with great professionalism under the watchful eyes of the FCA, CySEC, and ASIC. The company is also registered with FINRA, which is a core requirement to accept US investors.
As we said, this level of regulation means that you are able to buy Zcash in a newbie-friendly and secure environment.
Step 7: Selling Your Zcash (ZEC)
Having made it to this point in this beginner’s guide, you will be all too aware that the objective of buying Zcash is to sell it for more than you originally bought it for.
These gains obviously come at a later date. Albeit within minutes, days, or months of your purchase.
At the risk of drawing attention to the obvious - this should be done when you feel you will make the most money upon cashing out your investment.
If you decide to take the crypto exchange route against all advice, be aware this can be a cumbersome process for beginners. You will likely have to transfer the Zcash coins from your crypto-wallet and put them in the unregulated wallet at the exchange.
Next, you will be required to exchange Zcash for another crypto-asset such as Bitcoin. Don’t be surprised if this comes at a cost. The final step of selling your digital coins is to make a withdrawal request via bank transfer (if supported at all).
In comparison, eToro makes the cashing out process a walk in the park. All that you need to do is to sign in to your account, head over to your portfolio, and click sell next to Zcash (ZEC).
The cash will be sent to the same payment method you used to buy Zcash initially.
Read Also: Will ZCash Make Me Rich in 10 Years?
Other Ways To Buy Zcash (ZEC) In 2022
Please see below a few other options when you are considering how to buy Zcash.
1. Buy Zcash Debit Card
A debit card is a safe and speedy way to make purchases online. Fortunately, you can buy Zcash using a debit card at eToro.
When making a deposit at eToro simply fill in your debit card particulars, enter the amount of Zcash you want to buy, and confirm.
2. Buy Zcash Credit Card
You can also buy Zcash using a credit card at eToro. Enter your credit card information and a monetary value - before confirming the transaction.
It’s important to check with your credit card provider if a ‘cash advance fee’ is likely to come into play, before committing to buying crypto-assets with this method. We found some companies charge as much as 3-5%.
3. Buy Zcash Paypal
PayPal is a super convenient and popular way to pay for goods online.
Interestingly, not too many platforms accept PayPal deposits. However, At eToro, not only can you buy Zcash with Paypal - but other e-wallets like Neteller, Skrill, and Klarna.
4. Zcash ATM
Unlike regular ATMs, Zcash ATMs allow you to insert printed fiat money in exchange for digital coins. If you haven’t seen any, it's because there may not be any in your area yet.
Crucially, these machines often charge hefty fees in excess of 10% for each transaction anyway. For this reason, it’s wise to stick with a regulated broker like eToro where you will pay 0% commission to buy Zcash - all from the comfort of your home.
How To Buy Zcash (ZEC) In 2022 - The Verdict
Hopefully, by this point in our How to Buy Zcash Guide, you feel confident enough with the end to end process of buying cryptocurrencies.
It’s important to avoid unregulated spaces, so only trust your money with a broker under strict regulation. Without this safety net, you are responsible for the security of your own Zcash coins.
At eToro, you are able to buy Zcash in a super user-friendly space, safe in the knowledge the broker is regulated by ASIC, the FCA, and CySEC. The platform is also approved by FINRA in the US.
Signing up takes less than 10 minutes, and there are a plethora of payment types accepted.
eToro – Best Broker To Buy Zcash
eToro have proven themselves trustworthy within the crypto industry over many years – we recommend you try them out.
Virtual currencies are highly volatile. Your capital is at risk.
How easy is it to buy ZCASH?
It is super easy to buy ZCASH. Educate yourself on the market, sign up with a regulated broker, fund your account, and place an order.
What is the safest way to buy ZCASH?
The safest way to buy ZCASH is via a platform holding a license from a regulatory body. eToro is regulated by the FCA, CySEC, and ASIC. US clients are offered a high standard set out by FINRA
Can I buy $100 of ZCASH?
You can buy $100 worth of ZCASH. However, if you are a newbie in the space, you might want to take it easy and utilize smaller, regular investments. At eToro, you can buy ZCASH from $25 upwards.
Can you lose money on ZCASH?
Yes, you can lose money when investing in any financial asset. Time the market correctly and you will make a profit. But, if the value of ZCASH goes down and you sell the coins - you’ll make a loss.
Is ZCASH regulated?
No, ZCASH is a decentralized cryptocurrency - so it is not regulated.