At the moment there are limited ways to buy Zcash as exchanges are waiting for a decent amount of volume to be mined before adding it as a trading pair. If you want to invest in Zcash, we currently recommend Zcash mining. There are two ways to mine Zcash: you can build your GPU rig with good mining software or you can mine Zcash in the cloud. Cloud mining (also cloud hashing) is a concept, which allows users to buy mining power of the hardware placed in remote data centers and in return users get Zcash currency (short ZEC).
Tested Zcash cloud mining providers
- Crypterra – new company, offering mostly 2-year cloud mining contracts.
- MyCoinCloud – they offer lifetime ZEC mining contracts with weekly payout, low electricity cost and small maintenance fee; mine until its profitable.
- ZeroPond – out of stock [2017-09-08].
- Genesis Mining – back in stock [2017-09-26]. They offer Zcash 2 year mining contracts and no maintenance fee is applied for the whole contract time. Starter pack is 47.99 for 25 H/s.
- HashFlare – after a long break, Zcash one-year contracts are back online at $2.00 per 1 H/s with payouts in ZEC.
- OXBTC – out of stock [2017-09-08].
- NiceHash – hashpower marketplace where you can buy or sell hashing power without contracts from other providers.
How does Zcash cloud mining work?
As soon as you purchase H/s (a unit of Zcash mining facilities), the process of mining will start right away. Unlike buying your hardware, with cloud-based H/s, you will not face such problems as waiting for the delivery, installation problems, dealing with equipment maintenance, etc. In other words, you are leasing a set amount of computer power for some time.
We believe cloud mining is the best option to generate Zcash at the moment, especially if you do not own a lot of hardware. Service providers have designed hardware and software specifically for Zcash mining so that their equipment uses less power and makes the mining process faster and more efficient.
Our cloud mining plan at OXBTC has 25 H/s mining power (ZEC-HOST01) and gives us approx 0.00044655 ZEC or 0.1 US$ cloud mining revenue daily (current Zcash price is approx 211$). The same plan currently costs 40$, meaning that you will get your investment back in more than 1 year. As mining contract last as long as it is profitable, everything after this period is your profit.
Bitcoin and Zcash: How do they compare?
Zcash is the first permissionless decentralized cryptocurrency that allows to completely hide not only the value of a transaction but the participants as well. It utilizes advanced new cryptographic techniques to offer optional improved privacy and transparency. Many people see Zcash as improved version of bitcoin. It offers better payment confidentiality, while still maintaining a decentralized network using a public and its own unique blockchain.
Unlike bitcoin, Zcash transactions can hide the sender, recipient, and value of all transactions. Only those with the correct view key can see the contents. Users have complete control and can opt-in to provide others with their key at their discretion. Zcash transactions do not depend on the cooperation of other parties. Z cash’s monetary base is the same as bitcoin’s as 21 million Zcash currency units will be mined over time.
OXBTC Zcash mining farm
Zcash Mining Algorithm
Zcash is using the so-called Equihash algorithm for the production of new coins. It is a proof-of-work algorithm, based on a computer science and cryptography concept called the Generalized Birthday Problem. This means the best hardware for mining Zcash tokens is standard GPUs and RAM. The hope is this will lead to a more decentralized set of miners.
As mentioned, 21 million ZEC will be mined over time, and 10% of that amount will be distributed to the stakeholders in the company as founders reward – employees, founders, and investors. Every four years, the rate of Zcash units being created will halve.
- Other Zcash cloud mining providers: Toomim, Eobot.
- Lifetime contract means that the duration of the contracts are not fixed, contract will be active until it is profitable to mine, and will be canceled when it cannot pay it’s own electricity costs in continuation of some period, usually 14 days.
- Interested in mining bitcoin or altcoins? Try bitcoin or ethereum cloud mining.
- If you are interested in Zcash mining on your own, be sure to visit official forum.
- To buy some Zcash directly without mining head to: Changelly. They have a reasonable fee of 0.5% for crypto to crypto exchange (better than more popular Shapeshift.io).
- Platforms that support trading Zcash: SimpleFX, HitBTC, Poloniex, Kraken, BitMEX, Bittrex.