Maybe to your surprise, transactions with Bitcoin (BTC) aren't completely anonymous. All transaction data is published on a public blockchain. Zcash (ZEC) was developed to tackle this issue. It is a cryptocurrency that allows completely anonymous transactions.
Zcash is a cryptocurrency that allows anonymous transactions. When you make a transaction with Bitcoin, all transaction data such as the amount and public addresses of the sender and recipient are published on the blockchain. For Bitcoin this is essential to prove that all transaction data is correct.
Zooko Wilcox, the founder, and CEO of Zcash, decided to improve Bitcoin's algorithm, creating a completely anonymous blockchain network. This would make it perfect for sensitive transactions like paying taxes. Believe it or not, the technique on which Zcash is based dates back to the 1980s!
That's when computer scientist Matthew Green developed Zerocoin. Thanks to complex mathematical techniques, Zerocoin transactions could be confirmed without the need to release information. Because of the so-called “zero-knowledge proofs,” the recipient can rest assured that the sender indeed has the promised amount in Zcash without having to show his balance
However, not all transactions with Zcash are completely anonymous. Should parties want to release part of the transaction data, for example for use in the financial markets, this can be done through the “zero-knowledge security layer,” a layer on top of Zcash's blockchain which makes it possible to release partial data.
Buy Zcash (ZEC) safely and easily via Knaken+
Zcash, or ZEC for short, is the cryptocurrency of the Zcash network. You can buy Zcash in many places. This can be done, for example, via cryptocurrency exchanges such as Binance, Kraken, and Bitfinex. There are also a number of over-the-counter (OTC) platforms that offer the altcoin for sale.
Sell Zcash (ZEC) safely and easily via Knaken+
Just like buying Zcash, selling Zcash is easy. The cryptocurrency can be sold on the aforementioned exchanges and OTC desks.
Knaken helps you buy or sell Zcash safely and easily. It doesn't matter if you are a beginner or a veteran. These three simple steps apply to everyone.
• Select your cryptocurrency
• Pay via payment methods such as IDEAL.
• Receive and manage your crypto in your Knaken dashboard or your own wallet.
Why do people buy or sell Zcash?+
Reasons to buy Zcash are for example because you want to trade with it or because you think it is an interesting project and you expect the ZEC price to rise. It is of course also possible that you want to use Zcash to make transactions with other parties. In all these cases you must first buy Zcash.
Suppose you trade with Zcash and you see that the price has risen significantly, you may want to take some profit. In that case, you sell your Zcash for the current price to take your profits. Selling Zcash can be done through any of the platforms mentioned above. However, you can also sell your Zcash on a different platform than where you bought it.
Why choose Knaken?+
• Safe & Easy
• No extra costs
• Manage crypto via your Knaken Dashboard or your wallet
• Knaken has its own exchange
Important tips when buying/selling Zcash+
As always, the most important thing to get in order before buying Zcash is your Zcash wallet. This is a piece of software with which you can safely store your Zcash. This can be done in software, hardware or online wallet. The latter wallet is the most insecure since you always need to be connected to the internet to access your Zcash.
It is best to at least ensure that you have access to your own private key, the key with which you can send and sell your Zcash. A hardware wallet, a kind of USB stick, is the safest option since you can put your Zcash on it and then put the wallet in a physical safe for extra security. Hardware wallets are only connected to the internet when you want to send Zcash.
When you have picked a good wallet, start reading about companies that sell Zcash. Search for reviews like on Trustpilot and see if there are any reviews on the internet from users who have used a company's services. Be extra careful when a website looks suspicious.
Lastly, only invest money in Zcash that you can miss. The Zcash price is volatile. It is possible that your Zcash loses much of its value in just a few hours. So think wisely when it comes to the amount you want to put into Zcash.