What Is Zcoin?
Zcoin, also known as Zerocoin, is an open source and decentralized cryptocurrency with a very strong focus on achieving privacy and anonymity for its users. The project has made numerous headlines during its lifetime thanks to one of the most advanced cryptography, zero-knowledge, protocols to date.
In short, the algorithm that makes it possible for one party to prove to another party that a given statement is true. However, it does this without actually conveying potentially sensitive information, but by simply confirming that the stamen is indeed true.
How Zcoin Works
For starters, it’s important to note that Zcoin is, just like most cryptocurrencies depended on the blockchain, a public ledger where all transactions are kept. As mentioned before, Zcoin also works on the Zerocoin protocol by enforcing zero-knowledge proofs. The protocol itself was created in 2013, and the private transactions which it allows involve three steps: mint, spend, repeat.
Minting refers to a situation when a user wants to send a private transaction with Zcoin. The process involves users having to choose the number of coins they want to mint. A corresponding number of old coins in their ZCoin account are burned cryptographically. The account is then credited with new coins that have no transaction history attached to them.
Spending is the process of sending the newly “minted” Zcoins to someone else anonymously because they do not have any transaction history. Of course, this process of “minting” and “spending” can be repeated for as many as the users want.
What to Consider Before Buying Zcoin
Before actually commit to buying Zcoin, there are a few things that any smart investor should consider. First of all, it’s the demand for it. One aspect that is important to be known is the fact that there are more and more privacy-coins out there, such as Monero, Komodo, Verge, PIVX, to name a few. This high level of competitively in the market might affect the price and the demand for Zcoin in the future.
The total supply of Zcoin is about 21,4 million XZC and it should also be taken into consideration. At the time of this writing, there are only 6,836,563 XZC in circulation. At every 10 minutes, a Zcoin block is mined, and 50 coins are generated which makes it 72,00 Zcoins per day. Finally, by considering Zcoin’s roadmap and future developments users can get a better idea of the coin’s potential growth over time.
Where to Buy Zcoin from?
Currently ranked 90th by total market cap, one could argue that Zcoin is not exactly a very popular cryptocurrency. Be that as it may, the project has shown its potential, and the token has been picked up by a great number of professional crypto exchanges.
According to its official website, the best possible exchanges where you can buy Zcoin (XZC) are as follows: Bittrex, Binance, CoinExchange.io, Bitsquare, BX Thailand (THB pairing), Cryptopia, LiteBit.eu, Nova Exchange, UPBit.com, and AEX.com.
A full list of exchanges can be found on the Markets section on CoinMarketCap. Unsurprisingly, Binance has the best 24-hour volume out of all exchanges, with the XZC/BTC trading pair.
Even though the process of buying Zcoin varies slightly in relation to the exchange you choose, the process is fairly straightforward.
Step 1: Create and confirm an account
The first step requires users to create an account on the chosen exchange. Usually, this implies them having to provide a valid email address and to enter a password of their choice.
Subsequently, the account needs to be validated (via a link sent on the provided email). Some exchanges may ask for various contact information, such as address and telephone number, while others might require a complete AML and KYC verification which usually implies providing copies and images of national ID, driver license, and other similar documents.
Step 2: Deposit funds into the account
Chances are users will want to find an exchange that deals with US Dollars. Changing the Dollars into more acceptable crypto equivalent is the best choice. Users can change Dollar into either BTC or ETH which can be then traded for Zcoin.
To deposit the funds, users are required to find a section on the exchanges interface (either the Dashboard or the toolbar) called generically something like “Transfer Funds,” and select the appropriate transfer method (bank transfer, ACH, wire transfer, etc.).
Step 3: Buy BTC or ETH
Depending on what pairs the exchange has listed, users can purchase the crypto in question (BTC or ETH) after the deposit has been submitted.
Step 4: Buy XZC
Once the newly exchanged funds arrive in the wallet, users can trade them for XZC.
Wallets for Storing Zcoin
After the purchasing of XZC, the token will appear in the exchange wallet. It’s recommended that users don’t rely on them to store the tokens. The safest way to ensure control over your newly acquired XZC tokens is to use a personal wallet.
The most obvious choice is to opt for the official wallet which can be easily downloaded from the Zcoin website. The wallet works on macOS, Linux, and Windows. Of course, if absolute protection is what users are looking for, then nothing beats the security of Ledger Nano S and Trezor, two of the most popular hardware wallets on the market.
As far as web wallets are concerned, users can opt for Electrum Light Wallet. In the mobile wallet department, the two best choices include Coinomi (Android and iOS) and Edge.
Considering the ever-increasing interest towards privacy coins and the fact that Zcoin is still a very young project, it might be a very good investment option for the future. We hope this guide provided you a basic idea of how and where to buy Zcoin.