How to Buy ZCoin
Zcoin is a form of cryptocurrency that aims to increase the privacy and anonymity of transactions on the blockchain while still maintaining the benefits that other forms of cryptocurrency offer, such as Bitcoin (BTC) and Ethereum (ETH).
With the majority of digital currencies, coins can be used to trade the transaction history of users, which minimizes privacy and anonymity On the Zcoin network, tracing the transaction history of users via their coins is not possible.
What is ZCoin?
Zcoin is a decentralized form of digital currency that’s primary objective, as stated, is to increase privacy and anonymity of users. With most cryptocurrencies, such as Bitcoin, user privacy and anonymity is a concern, as their coins can be used to trace the transactions they have made. Zcoin aims to resolve these issues by hiding the identity of users via advanced technologies.
Zcoin is based on the Zercoin protocol, a protocol that was initially intended to be an extension of Bitcoin. Zercoin enables users to send digital coins without a transaction history.
On the Bitcoin network, the history of all transactions are kept and on a ledger that anyone can view. Addresses of wallets on the Bitcoin network are pseudo-anonymous, which means that others have the ability to access the identity of a user to his or her wallet address.
The process of sending Zcoins works just like Bitcoin in that transactions are kept on a public ledger. The difference is, however, the Zercoin protocol; to mint Zerocoins, the protocol destroys Zcoins. As such, transaction histories are not linked to Zerocoins.
Essentially, when digital coins are sent through the Zerocoin protocol, their transaction history is completely erased and users receive completely clean coins that have transaction history linked to them. The clean Zerocoins can then be used in a ‘spend transaction’, which changes Zerocoins back to Zcoins. Because so many people are minting Zerocoins, there is no way to tell who the spent coins originated with, therefore providing anonymity and increasing privacy.
In order to create Zerocoins, users choose the amount of coins they would like to mint and include a 0.01 Zcoin fee to the amount. In order to enhance anonymity, users can mint a predetermined amount of Zcoins.
Users are required to wait a specific period of time (approximately 70 minutes) before they are able to send their Zerocoins. Once a user selects an address and sends Zerocoins, the coins are sent with no transaction history attached to them.
Where to Buy Zcoin
Zcoin (XZC) can be purchased at a number of online cryptocurrency exchanges. Some of the most popular exchanges that offer Zcoin include:
- Coin Exchange
Why Buy ZCoin?
There are a number of reasons to consider buying Zcoin. Some of the benefits include:
- It’s a Zerocoin-based cryptocurrency, which means it utilizes a zero-knowledge proof that allows users to send and receive coins without having to identify which coins belong to them.
- Minting Zcoins also offers anonymity, as users must burn their coins before they can gain access to Zerocoins.
- No previous transaction history is linked to Zcoins when they are spent, which further ensures anonymity. Furthermore, users can spend their new coins in any denomination they wish.
Because of the privacy and anonymity issues that are associated with so many other types of cryptocurrency that Zcoin addresses, it is presumed that many people will shift to using this type of digital currency. As such, the value is projected to substantially increase.
How to Sell ZCoin
Zcoin can be sold for other types of cryptocurrencies. If you want to sell it for a fiat currency, it first needs to be sold for a cryptocurrency that can be transferred to fiat. To do that, follow these steps:
- Establish an account on the altcoin exchange
- Load your altcoin account with Zcoin
- Sell your Zcoin for a widely accepted form of digital currency, such as ETH or BTC
- Sell your BTC for a fiat currency
- Withdraw your fiat currency from your exchange account to your bank account
Which Wallets Can I Use for ZCoin?
- Zcoin Core Wallet
- Ledger Nano S
- Edge Wallet
- Electrum Wallet