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 own 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 centres and in return users get Zcash currency (short ZEC).
Tested Zcash cloud mining 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 own hardware, with cloud-based H/s you will not face such problems as waiting for the delivery, installation problems, dealing with hardware 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 hardware uses less power and makes the mining process faster and more efficient.
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 view key at their discretion. Zcash transactions do not depend on the cooperation of other parties. Zcash’s monetary base is the same as bitcoin’s as 21 million Zcash currency units will be mined over time.
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.
- New Zcash cloud mining providers: ZeroPond, Toomim, MyCoinCloud.
Untested, so please use at your own risk.
- NiceHash maintains a network of miners. It has grown so much that they are currently owing 1/5 of all hashing power for Zcash. Meaning, they are handling over 1,000 kSol/s with more than 30,000 active miners.
- Interested in mining bitcoin or altcoins? Try bitcoin or ethereum cloud mining.
- To buy some Zcash head to: Shapeshift.
- Platforms that support trading Zcash: SimpleFX, HitBTC, Poloniex, Kraken, BitMEX, Bittrex.