Buy ZCash (ZEC) in India
Cryptocurrency Zcash (ZEC) - what it is and why is it needed in simple words
The privacy of transactions is one of the reasons for the popularity of cryptocurrencies and the widespread adoption of blockchain technology. But in reality, not all digital money is completely confidential. So, through the blockchain, you can trace transactions in the Bitcoin network by calculating the wallet address of the alleged sender and recipient, and the transfer amount is known initially. This calls into question the competition of cryptocurrencies with standard bank payment systems.
Well-known entrepreneur and crypto investor Steve Waterhouse made a good comparison: if Bitcoin is the http data transfer protocol for the financial world, then Zcash is the https protocol (a protocol with encryption support for increased security). Most users agreed with the apt analogy.
Zcash is traditionally considered the first fully private, secure cryptocurrency.
History of cryptocurrency
Zcash owes its origin to the ZeroCash cryptographic protocol. The method was developed by Professor Matthew Green and his graduate students Christina Garman and Ian Myers of Johns Hopkins University in Maryland. Initially, the project was meant as an addition to the Bitcoin protocol. Therefore, in May 2013, the paper "Zerocoin: Anonymous Distributed E-Cash from Bitcoin" was presented at a scientific symposium in San Francisco. Later, the protocol was implemented in the form of an alpha version for the existing Bitcoin network.
In January 2014, it was announced that Zerocoin would appear as a separate project based on the first cryptocurrency blockchain. But later, the team was unable to agree with the Bitcoin developers about granting permission to work with the working protocol. The community of miners and users of the Bitcoin network that had already formed at that time prevented. At the same time, it was not possible to create an addition to BTC - this required the expansion of existing developments.
On January 20, 2016, the developers announced the creation of a new cryptocurrency Zcash.
They assured that this currency would become an ideological continuation of ZeroCash and an attempt to implement the protocol in isolation from Bitcoin. On September 28, the release of the Zcoin coin took place - a cryptocurrency that had a semblance of a concept of confirmations with a zero level of knowledge. At the same time, the rest of the points: notes, keys and addresses, the transaction protocol, were poorly worked out. The coin has not gained the same popularity as the completely confidential Zcash.
Exactly one month later, on October 28, 2016, the Zcash cryptocurrency based on the ZeroCash protocol officially appeared. At the conference timed to the opening of the project, the developers spoke in detail about the principles of transactions in the network and provided data on the zk-SNARK cipher. The crypto ceremony drew a lot of attention to the coin, causing the ZEC to briefly hit $ 4,000, according to CoinMarketCap. After balancing supply and demand, the value of the digital asset took its normal state - 40-50 USD per coin.
Thanks to its outstanding technical qualities, in April 17th, Zcash hit the TOP-10 digital assets in terms of capitalization - a direct reflection of the popularity of the cryptocurrency. The first serious surge in capitalization and market value of the coin occurred in May of the same year, when the developers entered into a partnership agreement with the American financial holding JPMorgan. This resulted in a price increase of 84% from the previous rate.
The peak of the market capitalization was reached against the backdrop of the general popularity of the cryptocurrency market at the beginning of the 18th year. The figure equated to over USD 2.5 billion. At the same time, the price of one coin reached 600-700 US dollars. After the recession of the excitement, the exchange rate bounced back and leveled off to the previous values. Now the currency is consistently high in the ranking of the best digital assets, and is in the TOP-30 of the most significant coins.
Despite the emergence of new competitors, ZEC remains one of the most investment-attractive digital currencies.
Investors highly appreciate the possibility of private exchange of coins and the high speed of transactions - a block is created in an average of 2.5 minutes (faster than Bitcoin). At the same time, the development and maintenance of the currency is carried out by a team of qualified mathematicians and cryptographers of the Zcash Foundation. In this regard, Zcash has tremendous trust among netizens.
If you've already decided you want to buy ZEC, let's figure out where to store your coins.
What is a crypto wallet?
Cryptocurrency is stored in crypto wallets. Essentially, a crypto wallet is a program that contains your public and private cryptographic keys. Keys allow you to work with the blockchain on your behalf and perform cryptocurrency transactions.
The public key is like your wallet address, and the private key unlocks the storage. If someone wants to send you money, he must reassign it from his address to yours (that is, he needs to know your public key) using his private key. In order to receive and spend the money sent, you must enter a private key that corresponds to your public key.
It is important to understand that the currency in a crypto wallet is not the same as ordinary money in your pocket. Your wallet is, in fact, just two keys, it does not contain any money. The digital money itself is on the blockchain and never leaves it. When they are transferred from wallet to wallet, only one action occurs: only the next block describing this transaction is added to the blockchain.
But let's get back to wallets. They come in several types, and each has its own advantages and disadvantages.
The most popular crypto wallets are:
1. Iq Wallet
Types of crypto wallets
Since your cryptocurrency account is your private and public keys, the easiest way to save them is to write them down on a piece of paper. This will be the paper wallet. Some people actually use these wallets.
But in a paper wallet, cryptocurrency can only be stored. To pay for something, you will have to create a different type of wallet and transfer funds from a paper wallet to a new one. Entering long keys manually is not an easy task, it is easy to make a mistake, so they began to be written in the form of a QR code. Special programs are used to generate keys and save them as QR codes.
Pros: security (if someone does not steal the sheet, and the inscription, for one reason or another, does not become unreadable).
Cons: inconvenience, limited options.
The easiest e-wallets to use are hot. They are served by various online services, and they are called hot because you can use money anywhere and from any device - you only need an Internet connection. To start a hot wallet, you just need to register on the service website or install a special program - and you can manage your digital savings through the interface.
Hot wallets are very convenient, but when you use them, you trust all the money in your account to an online service. For example, cryptocurrency exchanges offer customers hot wallets for every cryptocurrency they trade, but keeping a lot of money in such wallets is not safe.
Popular crypto exchanges:
Some specialized hot wallet services do not deal with cryptocurrency trading and pay more attention to security, but still working with them is solely based on trust.
Some hot wallet services allow you to see your keys and store them elsewhere, while others do not. In the second case, if something happens to the service, most likely you will have to say goodbye to your money. And in the first - you can always switch to another wallet. Hot wallets are great for storing small amounts of money that you plan to spend.
Pros: convenience, availability.
Cons: Less security, dependence on a third party.
Warm wallets: thick or light
Unlike hot wallets that run in the cloud, so-called warm wallets (aka software or mobile wallets) reside on your device but are connected to the Internet. A software or mobile wallet is a utility installed on a computer, smartphone or any other device that stores public and private keys and processes transactions. Such local wallets are generally good for both storing cryptocurrency and paying for goods and services.
Here, as with hot wallets, there are two options to choose from - thin or thick (also called "full-knot wallets"). Thick wallets store the entire blockchain in the device's memory, while light wallets use third-party resources for this. In practice, this means that a fat wallet will not "fit" into a smartphone. Initially, the cryptocurrency was stored just in thick local wallets, but now they have given way to thin and hot wallets. On the other hand, thick wallets are independent of third parties and are therefore generally safer than thin or hot wallets.
Pros: Safer than hot wallets.
Cons: still insufficiently secured and tied to a specific device.
Cold wallets also exist. These are separate physical devices - usually a cold wallet is a flash drive that plugs into a computer or smartphone.
In general, even the most ordinary USB flash drive can be used as a cold wallet, but it is better to entrust your crypto keys and transactions to specialized devices with a Secure Element chip. These wallets are safer than software wallets, because the keys are stored in devices that are not connected to the Internet. Cold wallets are great for safely storing and using cryptocurrencies. But you need to buy a specialized hardware wallet, and besides, you will have one more electronic device at home - it's good that it doesn't need to be charged.
Pros: The safest kind of wallet.
Cons: price, one more device.
How to invest in Zcash?
You can profitably invest in Zcash in India through CFDs.
Cryptocurrency CFDs - what is it?
Crypto CFD works in the same way as the classic CFD. In this case, the coin does not actually change its owner. However, one of the parties to the agreement undertakes to pay the price difference depending on the change in the value of this asset.
For a more illustrative example, consider the following example: A trader or investor buys shares of a particular company in the amount of $ 100. Over time, the value of the shares of this company rises to $ 120 per unit. This means that the seller agrees to pay the buyer $ 20, in other words, the price difference of the asset.
Benefits of CFDs when trading cryptocurrency
There are many benefits to using CFDs. Especially when it comes to cryptocurrency trading. The most important advantages include:
- Leverage.CFD trading usually involves margin trading. Brokers often provide leverage for trading CFDs. This allows the trader to trade assets in an amount exceeding the funds on the trader's personal account.
- No transfer of rights. When buying Zcash through a CFD contract, the trader does not transfer the funds involved in the transaction to the broker. Zcash or part of it does not come into the possession of the trader. The parties only undertake to compensate for price changes depending on price movements. In addition, in the case of Zcash, this approach allows you to enter the market with a small amount of funds.
- Lower fees.Initially, CFD contracts were designed specifically to reduce risks for brokers who do not have a lot of capital. As a result, CFD fees are always much lower. Needless to say, low commissions are beneficial for the trader.
- Adaptability. CFDs provide the trader with the opportunity to earn both on the rise in Zcash prices and on the decline in value. To do this, it is enough to find the appropriate contract for the purchase or sale of cryptocurrency.
How to buy Zcash?
You can buy Zcash in India on different platforms. If you are a beginner, we advise you to choose a platform that has a demo account.
Go through a simple registration, you only need to provide your name and email address. Click the "Demo Account" button and you will be credited with a certain amount so that you practice without fear of losing real money. And when you are confident in yourself, just fund your account. Usually the minimum deposit is just a few dollars.
Try it and you will succeed!