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ZCash Day Trading Tutorial, Brokers and Buying Guide

ZCash (ZEC) is a cryptocurrency based on a decentralised blockchain. Where it differs from the likes of Bitcoin (BTC) is its use of cryptography to provide enhanced anonymity. This page will break down everything you need to know about ZCash, including its history, wallets, mining and future price forecasts. Finally, this page will wrap up with guidance on how to go about day trading with ZCash gold coins.

ZCash Brokers & Exchanges

  1. Eightcap
  2. eToro
  3. LQDFX
  4. Skilling
  5. BDSwiss

#1 - Eightcap

Why We Chose Eightcap

Eightcap’s crypto offering is best-in-class with 250+ crypto derivatives, surpassing that of almost every alternative. Testing also reveals Bitcoin spreads of 12 pips, coming in lower than most competitors, while it offers real-time trading ideas through the Crypto Crusher market scanner. Add in convenient deposits and withdrawals in digital currencies, and Eightcap offers the complete package for serious crypto traders.

"Eightcap delivers in every area for day traders with a growing selection of charting platforms and AI-powered tools. Now sporting 250+ crypto CFDs and the Crypto Crusher market scanner, it's also become a stand-out choice for crypto trading, winning our 'Best Crypto Broker' award two years in a row."

- DayTrading Review Team
  • Coins: BTC, ETH, LTC, BCH, XRP, XMR, DSH, EOS, XLM, ADA, TRX, DOGE, BNB, DOT, MATIC, VET, AXS, NEO, SOL, UNI, AAVE, KSM, THETA, CAKE, SUSHI, ATOM, XTZ, SNX, COMP, FLOW, EGLD, PUNDIX, RAY, ZIL, QTUM, BAND, OMG, FIDA, BADGER, NEAR and many more
  • Crypto Mining: No
  • Auto Market Maker: No
  • Crypto Spread: $12 (BTC)
  • Crypto Lending: No
  • Crypto Staking: No
  • Platforms: MT4, MT5, TradingView
  • Minimum Deposit: $100
  • Regulator: ASIC, FCA, xCySEC, SCB

Pros

  • Having excelled across all key areas for day traders, Eightcap outperformed more than 490 competitors to win our 'Best Overall Broker' award for 2024, also securing our 'Best Crypto Broker' title.
  • Eightcap stands out with a selection of powerful trading tools, including MT4 and MT5, the innovative algorithmic trading platform Capitalise.ai, and more recently the 50-million strong social trading network TradingView.
  • With tight spreads from 0 pips, low commission fees, and high leverage up to 1:500 for certain clients, Eightcap provides cost-effective and flexible trading conditions that can accommodate an array of strategies, including day trading and scalping.

Cons

  • In spite of an increasing variety of tools, Eightcap doesn't offer industry favorites like Autochartist or Trading Central, which offer cutting-edge charting analytics, live news, and market insights for short-term traders.
  • The demo account expires after 30 days and can only be extended upon request - a notable inconvenience compared to the likes of XM with its unlimited demo mode.
  • Despite a useful library of educational guides and e-books, Eightcap still trails IG’s comprehensive toolkit for aspiring traders with its dedicated IG Academy app and 18 course categories.
Visit Eightcap

#2 - eToro

Why We Chose eToro

eToro leads the way in cryptocurrency trading, offering competitive spreads and a fixed 1% commission, plus their own wallet service. The broker offers a vast list of 95+ tokens which is continually being updated. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more

"eToro's social trading platform leads the pack with a terrific user experience and active community chat that can help beginners find opportunities. There are also competitive fees on thousands of CFDs and real stocks, plus excellent rewards for experienced strategy providers."

- DayTrading Review Team
  • Coins: BTC, ETH, BCH, XRP, DASH, LTC, ETC, API3, CRO, SKL, IMX, ADA, MIOTA, XLM, EOS, NEO, TRX, ZEC, BNB, XTZ, DOT, MKR, COMP, LINK, UNI, YFI, DOGE, AAVE, FIL, ALGO, ATOM, MANA, APE, LRC, ENJ, BICO, BAT, BNT, OGN, MATIC and many more
  • Crypto Mining: No
  • Auto Market Maker: No
  • Crypto Spread: BTC 1%
  • Crypto Lending: No
  • Crypto Staking: Yes
  • Platforms: eToro Web, CopyTrader, TradingCentral
  • Minimum Deposit: $50
  • Regulator: FCA, ASIC, CySEC, FSA, FSRA, MFSA

About eToro

eToro is a top-rated multi-asset platform which offers trading services in thousands of CFDs, stocks and cryptoassets. Launched in 2007, the brand has millions of active traders globally and is authorized by tier one regulators, including the FCA and CySEC. The brand is particularly popular for its comprehensive social trading platform. Cryptoasset investing is highly volatile and unregulated in the UK and some EU countries. No consumer protection. Tax on profits may apply. 76% of retail accounts lose money.

Pros

  • Exciting investment portfolios are available covering traditional market trends as well as tech, crypto and more
  • There's a comprehensive online training academy with accessible resources, from bitesize articles to comprehensive courses
  • The web platform and mobile app perform better in user reviews and app rankings than top competitors, including AvaTrade

Cons

  • There is a $30 minimum withdrawal amount and a $5 fee, which will affect novices with low capital
  • Traders will face currency conversion fees for account denominations other than USD
  • The lack of additional charting platforms like MT4 will reduce the appeal for seasoned day traders accustomed to using third-party software
Visit eToro

#3 - LQDFX

Why We Chose LQDFX

You can trade 16 well-known cryptos including Bitcoin, the majority paired with USD or EUR. Spreads are low, starting from 1.02 pips. You can also deposit instantly via crypto with minimum deposits from $20 and no fees.

"LQDFX is best for active day traders looking for ultra-tight spreads, low fees and high leverage up to 1:1000. Forex traders will particularly appreciate the strong range of 70+ currency pairs with minimum deposits starting from $20."

- DayTrading Review Team
  • Coins: BTC, LTC, ETH, DSH, XRP, BCH, NEO, ZEC, XMR, ADA, BNB, SOL, LUNA
  • Crypto Mining: No
  • Auto Market Maker: No
  • Crypto Spread: 1.02 - 28.0 pips
  • Crypto Lending: No
  • Crypto Staking: No
  • Platforms: MT4
  • Minimum Deposit: $20

About LQDFX

LQDFX is a straight-through processing (STP) broker based in the Marshall Islands. The offshore trading firm offers competitive spreads from 0.0 pips, free deposits, 24/5 support and access to the hugely popular MetaTrader 4 platform. LQDFX also runs a competitive bonus program for short-term traders.

Pros

  • The broker offers the industry favorite MT4 platform and mobile app, with 30 technical indicators for chart analysis
  • There are multiple STP account types with fast execution speeds, plus an Islamic swap-free option and PAMM accounts
  • Tight forex spreads from 0.0 are available in the raw spread account and the $3.50 per lot commissions are in line with competitors

Cons

  • It's a shame that there's no copy trading platform for beginners or experienced strategy providers
  • There are no additional charting platforms available, such as MT5 or a proprietary solution
  • The lack of regulatory oversight is a concern, although the broker does claim to use segregated accounts and balance protection
Visit LQDFX

#4 - Skilling

Why We Chose Skilling

You can trade 50+ crypto pairs via leveraged CFDs. The list of tokens is longer than many rivals, including Vantage with only 30+, and you can get started easily with just $100.

"Skilling maintains its position as a top pick for beginners looking for a competitive zero commission account with direct access to a copy trading feature. It will also serve experienced strategy providers looking to earn commissions, or anyone looking to trade forex during extended hours."

- DayTrading Review Team
  • Coins: ACM, APE, AVE, ATM, AVA, AXS, BTC, BAR, BNB, BTC, BSV, XBN, ADA, CHZ, ATOM, CRO, DASH, MANA, DOGE, EOS, ETH, ENJ, XET, ETC, FTM, ONE, HT, IOTA, JUVE, LTC, LNK, XLC, XMR, NEO, OMG, PSG, CAKE, DOT, MATIC, QTUM and many more
  • Crypto Mining: No
  • Auto Market Maker: Yes
  • Crypto Spread: BTC 0.5
  • Crypto Lending: No
  • Crypto Staking: No
  • Platforms: Skilling Trader, MT4, cTrader, TradingView
  • Regulator: CySEC

About Skilling

Skilling is a multi-asset broker founded in 2016 and based in Cyprus. The brand offers hundreds of day trading instruments with competitive spreads from 0.1 pips and beginner-friendly platforms. Skilling are also regulated in Europe and beyond with a transparent pricing structure. You can sign up and start trading in three easy steps.

Pros

  • Skilling continues to strengthen its investment offering recently introducing weekend forex trading on 7 currency pairs
  • The broker has a solid global reputation and is regulated by top-tier authorities including the CySEC
  • Excellent third-party charting platforms are available for serious day traders, with dozens of technical indicators and advanced order types

Cons

  • Skilling trails alternatives like IG when it comes to research tools that can help day traders make informed decisions
  • You can only access shares in the Skilling Trader platform and fewer instruments are available overall in the MT4 accounts
Visit Skilling

#5 - BDSwiss

Why We Chose BDSwiss

BD Swiss traders can access CFDs on 22 different cryptocurrencies paired with USD, while BTC and ETH can also be traded in pairs with GBP and EUR. The 26.57 BTCUSD spread is higher than the cheapest crypto brokers but there are zero commissions.

"BDSwiss will suit active day traders looking for raw pricing, fast execution and powerful trading software with a range of pre-included analysis tools. That said, the range of 250+ assets is smaller than most top competitors."

- DayTrading Review Team
  • Coins: BTC, ETH, DASH, EOS, BCH, ZCASH, MON, IOTA, XRM, NEO, OMG, ZEC, XMR
  • Crypto Mining: No
  • Auto Market Maker: No
  • Crypto Spread: BTC from 1%
  • Crypto Lending: No
  • Crypto Staking: No
  • Platforms: BDSwiss Webtrader, MT4, MT5
  • Minimum Deposit: $10
  • Regulator: FSC, FSA

About BDSwiss

BDSwiss is an award-winning forex and CFD broker founded in 2012. The firm offers 250+ instruments to clients in over 180 countries. With spreads from zero pips and three powerful charting platforms, they offer a rounded day trading package for beginners and seasoned investors alike. The broker is regulated by the Mauritius FSC and Seychelles FSA.

Pros

  • The knowledgeable support team is available 24/5 in 20 languages and the live chat service is responsive based on tests
  • BDSwiss maintains its position as a fast execution broker, with speeds averaging 0.06 seconds plus 78.3% zero/positive slippage at the time of writing
  • The broker continues to offer superb market research with daily expert insights, the Autochartist market scanning tool, and a forex heatmap

Cons

  • There's a $30 inactivity fee after 90 days which is higher than several top competitors, including XM which only charges $5
  • The lack of a top-tier regulator like the CySEC or ASIC brings down the trust score a little
  • The range of 250+ assets is mediocre compared to most leading brokers which typically offer 1000+
Visit BDSwiss

What is ZCash?

ZCash is the first open-source, permissionless cryptocurrency. Essentially, ZCash is Bitcoin but with some important improvements. Instead of your entire payment history being public if someone has your address, ZCash encrypts all information using zero-knowledge cryptography. As a result, users can’t see the:

Much of the cryptocurrency’s value and potential profitability centres around this promise of enhanced privacy.

Day trading with ZCash

Supply

According to the website, there is to be a limited total supply of 21 million units. However, in the first four year period, 20% of the coins generated were to be allocated to a ‘founders reward’, which would be shared with investors, developers and a non-profit.

ZCash also uses the same insurance rate as Bitcoin with 21 million ZEC to be brought out over 131 years. Although, instead of 10-minute block transaction times, ZCash will use a 2.5-minute block average with four times greater block rewards that halve every four years.

Privacy

Understandably, a difficulty this cryptocurrency is facing comes from law enforcement, who distrust the uses brought about by the privacy features. In fact, the founder has held numerous virtual meetings to emphasise “they did not develop the currency to facilitate illegal activity“.

However, ZCash does facilitate a ‘selective disclosure’ process. This enables private transactors to prove payments for auditing purposes. This gives clients the option to comply with anti-money laundering and tax regulations. As the developers explained, “Transactions are auditable but disclosure is under the participant’s control“.

So while the network’s usage may be questionable, long-term scalability looks promising and is set to attract considerable investment.

History

ZCash came to life in October 2016 when founder Zooko Wilcox-O’Hearn wanted to tackle privacy issues online using an open financial system. As laid out in the white paper, instead of offering the open ledger system of Bitcoin, ZCash wants to provide an encrypted open ledger.

The founder appears to be the right man for the job. He has over 20 years of experience in decentralised systems and cryptography. In fact, his highly regarded works include:

Also among the founding team is cryptographer Mathew D. Green and initial investor Roger Ver. Of course, a huge number of other people helped build the system too. In fact, it began with the Zercoin protocol bring improved and turned into the Zerocash system. This was then enhanced and turned into the ZCash cryptocurrency in 2016. Protocol evolution is implemented by the Zerocoin Electric Coin Company, also known as the ZCash company.

The year after its launch there was a clear upward trend in favour of ZCash, as the currency was trading at $68.7 by April 2017. Price analysis shows it also boasted a market capitalisation of $80.2 million, ensuring it ranked on the list of top ten cryptocurrencies. This rise continued into the start of next year, as 2018 price predictions were met and often exceeded. In fact, the cryptocurrency regularly reached new all-time highest prices.

Overall, news of ZCash’s worth and reviews of the coin have helped shaped its history so far and continue to drive future forecasts.

ZCash Live Chart

ZECUSD Chart by TradingView

How it Works

Head over to cryptocurrency forums and anonymity will often feature in discussions. Fortunately, ZCash uses sophisticated software and code to ensure privacy.

A special proof, zk-snark secures the network. The zero-knowledge proof basically allows two users to transfer capital without either party having to reveal their addresses. Obfuscation also ensures the value of the transaction is kept a secret. The addresses that are stored on the blockchain are shields, making it virtually impossible to trace the path between sender and receiver.

Whereas with Bitcoin, each full masternode stores details of what is held by each address in the UXTO or unspent transactions output database. Each transaction is then verified in order to unlock the output.

The approach taken by ZCash essentially implements an additional layer of privacy into transactions. Having said that, by the end of 2017, only about 4% of coins were in the shielded pool. At this point, most wallets did not actually support Z-addr and there were no online web-based wallets that did either.

Uses

Aside from cybercriminals on the darknet, there are a number of reasons users may want to use ZCash, including:

On balance, the long-term outlook and uses for ZCash look both positive and legitimate.

Benefits

For those deciding whether to buy and sell ZCash, there are several serious advantages to consider, including:

So for many reasons it has become accepted ZCash has a lot to offer potential investors and cryptocurrency explorers. In addition, the advantages are only likely to increase as the roadmap is followed and updates are made.

Drawbacks

Despite the benefits outlined above, there are also risks to consider, some of which may lead to a drop and even crash in ZCash prices, including:

So despite promising stats so far, there are a number of factors that could cause ZCash rates to start falling.

How to Buy ZCash

There are a number of exchanges where you can buy ZCash online either directly with a debit card or by purchasing BTC and transferring it to ZEC. Popular options include:

Regardless of whether you’re from the UK, the US or Europe, look for the lowest quotes, rates and transaction fees. For example, USD exchanges may offer accounts with better prices to USD than GBP and Euro. Remember also that many brokers offer single click access to cryptocurrencies (IQ Option offer over 20) – allowing trader to speculate and day trade on price movements, with needing to own the asset itself.

Alternatively, you can try ZCash on the test network for free by heading to a faucet.

Wallets

Once you have your gold coins, you will also need a secure wallet to store them in. Fortunately, you can download a number of wallets. The official wallet is built for Linux. However there are also iOS app wallets, Mac wallets, other desktop and hardware wallets, plus you can get offline paper wallet generators. But perhaps the most popular option is the Ledger Nano S.

Although you now know where to buy ZCash, effective intraday trading with these coins will require careful price analysis of graphs and the following of the latest news.

ZCash Mining

Cryptocurrency mining is becoming increasingly popular. Unsurprisingly joining the best GPU ZEC mining pool is a high priority for many. ZCash will use the hashing algorithm Equihash. This is an asymmetric memory-hard PoW algorithm. It works much like Ethereum. It comes with high hardware requirements, including significant RAM to narrow the generation of proofs and ensure ASIC development isn’t possible.

You can test ZCash with a free cloud mining contract from the Genesis. Flypool has also attracted a number of perspective USB and other miners.

However, it’s worth bearing in mind you need to do more than learn how to mine. There are also risks to consider. For example, CPU Linux and Mac mining rigs will require an expensive amount of electricity. You will need to consider this price in your earnings calculator. Also, conduct a hardware comparison before you start to ensure you explore the most viable route.

Fortunately, detailed guides can walk you through everything you need to know, from network hashrate calculators and hashing power to mining hardware and pool lists.

What’s Next for ZCash?

It has been clear since the launch date that this cryptocurrency had potential and historical prices so far have confirmed that. In fact, some even suggest the digital currency remains undervalued.

Having said that, the crypto world has set a high benchmark. Furthermore, the Zerocash protocol’s zk-SNARKS is relatively untested. As a result, many classic price forecasts have been purely speculative. Therefore, it is likely that future prices will depend on supply and demand, with the former rising while the later remains unclear. Thankfully this promises intraday traders precisely the volatility needed to yield profits.

For more crypto guidance, see our cryptocurrency page.