Cryptocurrencies are the hottest form of investment out there. Most people are familiar with the names Bitcoin, Ethereum, and DogeCoin but they are not aware there are more coins. In fact, there are more than 11.2k at this time!
This variety of cryptocurrencies is one of the main reasons why their market is so popular among investors right now.
With different projects targeting different industries, investing in crypto can be similar to investing in a stock. Predicting the potential a given cryptocurrency has to revolutionize its industry is essential.
While crypto is still far away from being massively adopted, it offers an incredible array of opportunities.
Not only can you use them to invest and generate returns but also to improve your personal finances in other ways. If you are out of the loop, I would recommend you to check out why crypto personal finance is the latest craze!
As with all tips we share in Turbowallet, investing in crypto is about improving your finances, not the opposite. For this reason, make sure you understand what cryptocurrencies are, how you can use them, and what risks are involved. You know what they say: “By failing to prepare, you are preparing to fail.”
Do you know what you are getting into? Great! Let’s talk about why you might want to buy Zcash using a debit/credit card.
What Are Privacy Coins?
While crypto can be used as a transactional currency, there are so many more functions to them. You might be surprised to learn that not all cryptos are as private as they are told to be, especially coins like Bitcoin. Zcash is entirely more private than many tokens, as most of them only offer partial anonymity.
Let me explain: When transferring with crypto, you are always using what is known as a crypto address. This is a string of characters that represents your wallet, the “place” where your crypto is stored.
While this number will not directly be associated with you, let’s say you transfer a friend $100 worth of crypto… Now, he knows that address belongs to you and he instantly gains access to all your transaction history.
While this might not be a problem for everyone, businesses and certain people might see it as a concern. To deal with this, privacy coins were created. They obscure the identity of both parties participating in a transaction using different methods to protect their privacy.
This approach not only results in higher privacy but also in lower costs, faster settlement times, and lower environmental impact.
Cryptocurrencies like Monero, Dash, and Zcash, are some of the most popular privacy coins. While all of these coins use different and effective methods, there are many reasons that set Zcash apart.
What Sets Zcash Apart?
Launched in 2016, Zcash was designed to provide a higher degree of privacy than pseudo-anonymous currencies like Bitcoin.
Zcash was the first cryptocurrency to introduce “shielded addresses”, which encrypt the transaction and address data, while also offering transparent addresses.
The use of these 2 types of addresses makes Zcash extremely versatile. It can be used by organizations and individuals to protect their identity when needed… All while also allowing transparent transactions, which also have their own benefits.
Zcask uses a cryptographic technique known as zk-Snark for shielded transactions. This ensures that shielded transactions are private, settled fast, transactions can’t be manipulated, and the security of the network.
If you want to learn more about shielded and transparent transactions, you can check out this article on Zcash’s website.
All of these features provide Zcash with perceived value, increasing its value as the coin grows in adoption. This is the same principle of fiat currency, as their value depends on adoption and the trust in the organization behind them. However, unlike fiat, Zcash only requires internet access and an internet device to be acquired and used.
This approach seems to have worked, as Zcash’s value over the past year has increased by over 65.7%!
How To Buy Zcash
Have you decided to buy Zcash? Great! If you are not familiar with crypto, you might be wondering how you even buy them. There are many methods and platforms out there but I will guide you through one of the most popular: Using Binance.
Binance is one of the most popular cryptocurrency exchanges out there, which makes it fairly versatile when it comes to payment methods.
While Binance is not the only exchange you can use, it has a huge community, making it easier to find guides and tutorials. If you don’t want to use Binance, the next steps will be similar for any other exchange such as eToro, Gemini and Kraken. However, make sure to do your research!
Step 1: Get A Crypto Wallet
If you already know what a crypto wallet is and you have one, feel free to skip this step. If you are still here, let’s talk about what a crypto wallet is and why you need one.
A crypto wallet is a tool that allows you to store your crypto. There are 3 different types of crypto wallets: Paper, software, and hardware wallets. However, paper wallets are no longer recommended as they have become an outdated method to store your crypto.
Hardware wallets provide the most protection from hackers and scammers as all of your crypto is stored offline. This means that no one will be able to touch your crypto unless they have your physical wallet and your password. Since you have to actually purchase the wallet, this option comes at a cost. If you have a lot of crypto, it may be a good idea to get this extra protection.
The only downside when it comes to Zcash is that hardware wallets do not have shielded transaction support.
Software wallets are apps that you can access through a browser, mobile device, or computer. This makes them a convenient way to store and interact with your crypto securely and easily. They do not provide the same protection as hardware wallets however, they are still a safe option. Most software wallets come at a cost of $0! Some of the most popular wallets (with shielded transaction support) to store and use your Zcash are:
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If you are not interested in performing shielded transactions but will limit yourself to transparent transactions, some options are:
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Once you have decided on one, make sure to securely store the passphrase provided in the setup process. This passphrase will be the only way to recover assets to your account if needed… Which means no one else should gain access to it. You have been warned!
Step 2: Create A Binance Account
Head to Binance, fill in your preferred email and password, and click on the “Create Account” button. Fill in any other information you are required to provide and follow the instructions.
Once your account has been created, you will need to verify your identity. Click on the profile icon in the top-right corner, and then on “Identity Verification”. While you will have 3 different ways to verify your identity, I recommend going with the advanced/full verification to remove any limits the exchange has at the time.
Now that your account has been created and verified, you are good to buy Zcash!
Step 3: Buy Tether (USDT)
The reason to buy USDT first is that most exchanges (Binance included) don’t allow Zcash to be bought directly. However, while this workaround might seem tedious, it is easier than you might think at first.
Locate the “Buy Crypto” button in the app or website’s main menu and click on it. You now have two options: To decide how much United States Dollars (USD) worth of USDT you want to buy or how much USDT you want to buy. As USDT is a stablecoin with a price that will always be almost 1 dollar, this is practically the same.
Fill in one of the fields with the amount of USD you want to spend or USDT you want to acquire, then click “Continue”. Choose the Visa/Mastercards option and then click on “Continue”. Fill in the required information before clicking “Next”.
Now, just review the information and confirm the transaction. The money will be charged to your card and the USDT added to your Binance Wallet.
Step 4: Trade USDT Into Zcash
Now that you have crypto, it is finally time to buy Zcash. Go to “Trade” in the main menu, followed by “Classic” (or just click here). Now, make sure to select the “Market” option to make your trade instantaneous. Fill in how much USDT you want to spend on buying Zcash (ZEC) using the form over (Buy ZEC).
As usual, review the transaction parameters to ensure everything is correct, and click “Buy ZEC”. The Zcash will be immediately added to your Binance crypto wallet.
Step 5: Transfer Your Zcash To Your Wallet
There are many reasons why you don’t want to keep your Zcash in your Binance wallet… But the main reason is that centralized platforms like Binance are especially attractive to hackers. While Binance’s security has never been breached, it is better to be safe than sorry.
Go to your wallet of choice and choose the “Receive”/”Deposit” option. If your wallet supports other currencies, make sure to choose “ZEC” or “Zcash”. You will be given a string of characters, this is your wallet’s address. Copy it and go back to Binance.
Locate the “Wallet” button in the menu and then head to “Spot”. In the new interface, you will need to click on the “Withdraw” option at the right of “ZEC”. Paste your wallet’s address, fill in the amount of Zcash you want to transfer, and finally, click on “Withdraw”.
You will now send 2 verification codes: 1 to your email and 1 via SMS. Fill in the fields and confirm the transaction. After some minutes (or seconds) you will receive the Zcash in your wallet. It’s done!
As you can see, buying crypto for the first time can be a daunting task! However, next time you want to buy Zcash or any other crypto, it will be easier.
This is because you will not need to create an account or wallet, as well as being already familiar with Binance. As you continue to invest in crypto and interact with your portfolio, this process will become second nature.
We recommend you look at some of the other articles we have on Crypto to learn about other coins you can invest in. We also have guides on how crypto can improve your personal finances! You can check all of them here.
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