Altcoins

Why You Need To Consider Zcash Token

Zcash is one of the altcoins that have many similarities with Bitcoin. Although Bitcoin is a model for all other coins being the first, Zcash is however more alike.

Bitcoin is the most popular and biggest cryptocurrency that many investors and traders want to own. As it is possible to diversify your crypto portfolio, other alternative coins can be considered for investment.

Zcash is based on Bitcoin’s codebase. It is therefore top on the list of altcoins to choose from due to its features.

In this post, we’ll learn about Zcash and why crypto investors/traders should look into it for investment. Before then, let’s know what crypto traders/investors should consider before investing in a crypto asset.

What Crypto Investors/Traders Should Do Before Investing in a Crypto Asset

Here are important things that crypto investors both beginners and veterans should do.

1. Do your own research- If you’re going to invest in cryptocurrency, it is very important to understand the industry. Do your own research on the token, exchange and keep yourself abreast with the with the happenings in the market.

2. Do not fall for the hype– You’ve to avoid falling for hype in the market. You’ll need to check if an asset is on an upswing on its own or riding a bubble. This is because coin may rise quickly and then loses its gains suddenly.

3. Volatility in price is certain– Asides stablecoins such as USDT, several others are volatile. This is very certain in the crypto market. You need to have this at the back of your mind when putting your money into crypto assets. There’s no guarantee that you’ll have return on investment always as asset will see a dip.

4. Be patient– You need to exercise patience and let your investment grow naturally, over a period of time. This is very important if you’re diversifying your portfolios into small cap altcoins. If in doubt, invest in market leaders like Bitcoin and Ethereum.

5. Beware of scam– You’ve to beware of ponzi schemes if you’re investing in cryptocurrency. Fraudsters often try to take advantage of the numerous beginners who has yet to have full knowledge of the industry. They may lure you with huge return on investment. This may come through emails or text.

What is Zcash Token?

Zcash is a cryptocurrency aimed at using cryptography to provide enhanced privacy for its users compared to other cryptocurrencies.

Zcash is a decentralized crypto that uses the zk-SNARK zero-knowledge proof technology. This allows nodes on the network to verify transactions without revealing any sensitive information about those transactions.

Zcash was first released on October 28, 2016, and it was originally based on Bitcoin’s codebase. The founder is named Zooko Wilcox-O’Hearn, a computer security expert and entrepreneur.

The Zcash token trades by the symbol ZEC in the crypto market.

Zcash Token
Zcash token

Zcash Among Other Cryptocurrencies

Contrary to a common misunderstanding, the majority of cryptocurrencies on the market are not anonymous, but pseudonymous. They do not explicitly reveal the identities of their users, each user has their own public address or addresses. However, they can be traced via data science and blockchain forensics.

Zcash transactions, on the other hand, still have to be relayed via a public blockchain, but unlike pseudonymous cryptocurrencies. Its transactions by default do not reveal the sending and receiving addresses or the amount being sent.

ZEC has many similarities with Bitcoin which include its built on Bitcoin’s codebase, transparent transaction & fixed total supply of 21 million units.

Why Consider Zcash Token?

Different cryptocurrencies have different features which make them unique on their own way. Although most of the cryptocurrency are created using Bitcoin’s model, they also aim to correct its shortcomings.

Zcash’s uniqueness lies in its optional anonymity, which allows for a level of privacy unattainable with regular, pseudonymous cryptocurrencies.

ZEC transactions can be sent in two ways: transparent and shielded. The transparent transaction is like that of BTC.

For its transparent transaction, all essential information about these transactions is available online for anyone to see. This include the sending and receiving addresses and the amount sent.

For its shielded transaction, the zk-SNARK zero-knowledge proof technology is being used. Here, the sending and receiving addresses and the amount sent is not revealed to the public.

This allows Zcash to offer its users the right to privacy. The advantages of a decentralized, permission less digital currency makes it one to consider.

Zcash (ZEC) in the Crypto Market Today

Zcash is listed among thousands of cryptocurrency today by CoinMarketCap. It is currently ranked number 43rd among over fifteen thousand crypto assets.

The current price of ZEC is $87.15 USD with a 24-hour trading volume of $110,739,513 USD. It has a a live market cap of $1,261,994,705 USD.

Zcash has a circulating supply of 14,481,319 ZEC coins and a max. supply of 21,000,000 ZEC coins (same as Bitcoin).

How is Zcash Network Secured?

Zcash network is secured by the Proof-of-Work (PoW) SHA-256 hash function which belongs to the SHA-2 set of algorithms — same as Bitcoin.

Where Can You Buy Zcash?

Zcash is available for purchase like every other cryptocurrencies. You can purchase ZEC on the world’s leading crypto exchanges.

Binance, HitBTC, OKEX, Huobi Global, are few of the top exchanges you can buy Zcash.

Is it Safe To Buy Zcash Token?

Zcash, like every other cryptocurrencies aside Stablecoins are highly volatile. This means that you are not guaranteed a safe landing when you invest in them.

Zcash however aims for privacy when you hold/own the crypto asset. It has several similarities with Bitcoin which is the biggest and oldest crypto today.

If you need to diversify your portfolio by trying out altcoins, Zcash is not a bad asset to consider due to its features. It is one of the fastest growing small cap altcoins today.

Conclusion

Zcash is a decentralized cryptocurrency focused on privacy and anonymity. It has many similarities which makes it a cryptocurrency to consider for investors/traders.

Investment in cryptocurrency is however the most risky form of investments. If you must invest, put what you can afford to lose to avoid stories that touches the heart.

Also Read- Why is Terra (UST) a Hot Commodity Today?

If you ever need to buy crypto assets in Nigeria or Ghana, Prestmit is one of the best places to do so.

BitcoinUSDTDogecoin and Litecoin are available at good rates on the trading platform.

 

 

 

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