Is it profitable to trade Zcash

Cryptocurrencies have been continuing to grow in popularity over the years. We’ve all heard about Bitcoin, Ethereum, and Litecoin. However, other digital assets can open up opportunities for investors. ZEC is one of them.

Zcash is one of the most promising crypto assets with a high level of anonymity. It is the first open-source digital asset based on the blockchain. The coin appeared on October 28, 2016. The Bitcoin framework became the basis for Zcash, so both cryptocurrencies have a lot in common. However, their cost differs significantly. BTC is valued at around $ 20,000, and ZEC is still below $ 100. What determines the price of Zcash? How much will this coin be worth?

Description of Zcash cryptocurrency

Before looking at price movements, let’s answer the question – what is Zcash cryptocurrency? Zcash or ZEC cryptocurrency is a token that is built on a decentralized blockchain that includes open-source code. It is its main similarity with Bitcoin. Another feature that unifies Zcash with BTC is the limitation. Both cryptocurrencies have a limited supply of 21 million units.

However, being a confidential cryptocurrency, ZEC takes the following steps to protect its clients. The system was designed to ensure the anonymity of users and their transactions. ZEC enhances privacy by employing zero-knowledge proof protocols (zk-SNARKs). It allows users to confirm transactions without disclosing information that could affect privacy. At the same time, this cryptocurrency has an interesting feature. ZEC allows users to share addresses and transaction information they can choose to comply with auditing and regulatory requirements.

The key benefits of Zcash are: 

  • low-interest rates;
  • user and transaction anonymity;
  • third-party payment data disclosure;
  • transaction expiration;
  • multiple signatures for transactions.

The main factor that contributed to the development of cryptocurrency is confidentiality. ZEC demonstrates a high degree of privacy and can be called the leading cryptocurrency in this regard.

Profitability of trading Zcash

According to crypto market experts, ZCash could shake the stable position of bitcoin in the coming years. It will happen as a result of the ever-growing popularity of Zcash among miners and investors. Any mining calculator demonstrates that a person can profit from the mining of this coin by using even an average PC power. At the same time, if we analyze the situation on the market, it will be possible to understand that over the next several years, Bitcoin should not be afraid of its leading position.

But one cannot deny the fact that the project has great potential for development and growth. The coin is backed by companies acting as investors. External financial support will help the currency survive the initial stage of conquering a loyal audience of users. Therefore, we can talk about the cloudless future of the crypto coin. But, as in any project, one cannot speak here of 100 percent certainty of a positive outcome.

Analysts disagree on the possible price of Zcash.

  • WalletInvestor analysts believe the price of ZEC will fall in 2021. Does cryptocurrency have a chance in 2022? 2022 is estimated to be a promising year for the ZEC. The price may exceed $ 500 in October-November. The price is expected to hover just above $ 300 over the year.
  • TradingBeasts believes the ZEC price will settle at $ 110 by December 2022. The minimum price of $ 62.61 can be reached at the beginning of the year. Although the minimum price is lower than the current one, this is not too much of a risk for traders.
  • DigitalCoinPrice doesn’t believe in Zcash in 2022. The price of the coin could drop to $ 28.76.
  • Previsioni Bitcoin is bearish on the ZEC for 2022. The platform experts suggest that the crypto asset will fall to $ 290.89 in November 2022. The average price will be $ 450. You may be surprised if we say that the price will fall. But do not forget that according to this source, the price of ZEC will exceed $ 500 in 2021.
  • CryptoGround.com analysts claim the ZEC will be priced at around $ 329. Given the disappointing outlook for 2021, we can conclude that ZEC is a long-term investment that will require your patience and funds to hold open positions.

Thus, we see that Zcash is at the TOP of the largest cryptocurrencies, and it is expected that it will continue to rise in price along with Bitcoin and other coins. But at the same time, you should not forget that trading crypto coins are always accompanied by certain risks.