How To Short ZCASH (ZEC)

    • James Page

James HeadshotAuthor: James Page - Last Updated on June 28, 2022

Summary: Shorting ZCASH is pretty straightforward, all you need is a crypto exchange that allows for short selling. While there are a few exchanges out there that have added the ability to short crypto, our recommendation is to use eToro. They’re well-known, have a global presence, and are trusted by millions of users from 100+ countries.

We’ll be using eToro in our guide, you can sign up with one of the sign-up buttons below.

Global: Sign up with eToro

USA: Sign up with eToro US

ZCASH

Before we get started, let’s quickly explain what shorting is (for those that are new to it). Shorting is the practice of selling a cryptocurrency hoping it will drop in price so you can buy it back later for cheaper… which, if successful, will give you a net profit.

It might sound a bit complex but don’t worry, it’s a lot easier than you might think.

How to Short ZCASH

Shorting ZCASH can be done in 4 steps:

  1. Find a crypto broker
  2. Sign up with the exchange
  3. Fund your account with fiat or crypto
  4. Short ZCASH

1. Find a cryptocurrency exchange

As mentioned before, for this guide we’ll be using eToro as they offer the ability to short the most common cryptocurrencies.

You can, of course, use any other cryptocurrency exchange that allows for short selling.

etoro crypto

2. Sign up with the cryptocurrency exchange

Let’s start with creating an account on eToro.

Global: Sign up with eToro

USA: Sign up with eToro US

 

eToro sign up form

The sign-up process is very quick, as is the verification that needs to be completed afterwards so you can get started.

3. Funding your account

Next is funding your account. You have several deposit methods to choose from when depositing funds into your eToro Account. These include a bank transfer, credit card, debit card, PayPal, and more.

4. Short ZCASH

These are the steps to follow to execute a short sell:

  1. Go to the search bar at the top, find ZCASH by entering the name.
  2. On the crypto page/section, on the right side, hit the TRADE button to enter the trading interface.
  3. At the top of the trading interface: Click on sell to short the crypto.
  4. Enter the amount for which you want to sell ZCASH and click on “Open Trade”.

Once you’re ready to close the trade, hopefully when the value of ZCASH has dropped, go to your Portfolio, find the ZCASH trade, and click on the red cross to close the trade.

If your assumption/prediction was right, then the profit will be added to your account after closing the trade. If you were wrong on the other hand, you’ll incur a loss which will be debited from your eToro account.

Congratulations, now you know how to short ZCASH!

Global: Sign up with eToro

USA: Sign up with eToro US

 

Disclaimer: Trading, investing, and dealing with digital and cryptocurrencies might involve a lot of risks. Their prices are volatile and performance is unpredictable. Their past performance is no guarantee of future performance.

Affiliate Disclosure: This site is supported by its users. We may receive commissions for purchases made through the links on our site. This does not impact our reviews, guides or comparisons.

 

Where to Short ZCASH (ZEC)

Aside from eToro, the other major exchange you can use is Binance.

While Binance tends to be a bit more advanced when compared with eToro, they do have a lot more digital assets to trade with.

 

Frequently Asked Questions

Can I short ZCASH on Binance?

Yes, you can short ZCASH on Binance. They have over 300 cryptocurrencies on offer, have a decent phone app and a lot of advanced trading features.

About ZCASH

Zcash is a cryptocurrency that can be used to anonymize and provide transparency for transactions. Zcash payments are posted on a public Blockchain, but sender, receiver, and amount remain private.

Zcash is a peer-reviewed cryptocurrency research project and was built by a security-specialized engineering department on an open source platform based Bitcoin Core's battletested codebase. Our enhancement over Bitcoin is privacy. Zcash uses advanced cryptographic tools, including zero-knowledge probabilities, to confirm the validity and confidentiality of transactions.

How Zcash works

Zcash secures all transactions. Because the payment information has been encrypted, the protocol uses an innovative cryptographic method for verifying their validity.

Zcash uses a zero knowledge proof construction called a zk–SNARK. The construction was developed by our team based on recent developments in cryptography. These constructions allow Zcash to maintain a secure leadger of balances, without disclosing who or what amounts are involved. Instead of publicly demonstrating spend authority and transaction values to the public, transaction metadata are encrypted and zk SNARKs are used for proof that nobody is cheating.

Zcash also allows users to send payments to the public that function in a similar way to Bitcoin. Zcash can be sent privately or publicly by users thanks to the availability of both transparent and shielded address options. Zcash payments made from a protected address to transparent addresses show the received balance. However, payments made from a transparent adress to a shielded one protect the recipient value.

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