While many holders of different cryptos are celebrating gains, Zcash (ZEC) investors are still waiting for their chosen cryptocurrency to pump. The prices of bitcoin and other digital assets have been surging recently, but Zcash has been left behind. Bitcoin has set multiple yearly highs in recent weeks. ZEC, on the other hand, is traded for less today than it was in February 2020.
It doesn’t mean that ZEC won’t ever experience a rally though, but recent murmurs from regulators might have dampened sentiment around anonymous cryptos. It’s, therefore, important to know how to convert Zcash to USD so that you can exit the market efficiently. This will mean you’re more likely to catch a favorable price!
Zcash Struggling During Crypto Rally
Zcash, and other privacy-enhancing cryptocurrencies, have been in the spotlight recently for all the wrong reasons. In early October, Europol expressed concern about ZEC because of its anonymity features. This might explain why its price has not followed that of bitcoin during the recent rally.
Since many Zcash investors consider ditching their positions, we thought it might be useful to explain how to cash out. Of all digital currencies, those with privacy features are likely to face the harshest regulatory backlash. Indeed, Europol calling them “top threats” is probably not the last we’ll hear on the subject.
USD or Stablecoin?
Perhaps, the most important thing to consider when converting ZEC to USD is whether you actually want to trade your Zcash for US dollars. Or, you may just want to re-invest in another crypto to wait for a better entry point. If this is the case, converting ZEC to ETH might be a good choice. There’s one more option though. Those traders attempting to time the market might find a stablecoin, such as USDT or USDC, more convenient.
Your preference here will dictate which cryptocurrency exchange to use. If you want to fully cash out your Zcash position, you’ll need to use a cryptocurrency exchange that supports fiat-to-crypto trading and has options to withdraw funds to a bank account. In most cases, you’ll need to comply with KYC and AML regulations at such an exchange.
If your exit from the market is temporary, you can convert your Zcash to a USD stablecoin using a much larger selection of exchanges. Depending on the amount you’re trading, you might not even need to provide identification documents at all.
How to Convert Zcash to USD
Converting Zcash to USD is very easy. Just follow the steps below. It’s important to remember that different exchanges will have slightly different requirements. But the generic advice below should be largely applicable.
- According to your preference, choose an exchange platform that offers either crypto-to-fiat conversions or supports Zcash-to-stablecoin trading.
- Register an account at the exchange.
- Find the “Deposit” section at the trading venue.
- Copy the Zcash deposit address and paste it into the “Send Address” field in the Zcash wallet containing the funds you wish to trade.
- Enter the amount of Zcash you want to send to the exchange and hit “Send”.
- Wait for the transaction to confirm.
- When your Zcash arrives at the exchange, navigate to the Zcash/USD or Zcash/stablecoin trading pairs. If your exchange doesn’t have Zcash/USD or Zcash/stablecoin trading pairs, you may need to exchange it for bitcoin or Ether and then, trade BTC for USD/stablecoins.
- The easiest type of order at exchanges for most novice traders is a Market Order. Most users prefer them because they usually fill instantly. Unless you’re trading millions of dollars’ worth of Zcash or want to sell at a specific price, use a Market Order.
- When your order is filled, you can then withdraw your USD or stablecoin in accordance with the trading venue’s withdrawal policies.
