Since its creation by Zooko Wilcox in 2016; he and his team have pushed Zcash into the top 10 most used cryptocurrencies. As with other cryptos, the more people who use it, the more others want to become involved. So, it is only natural that so many people are now looking into the different ways they can get their own Zcash to HODL and spend.
Let us preface this exploration with one of our own cardinal rules: CRYPTOCURRENCIES ARE CURRENCIES, NOT INVESTMENTS. A currency is money; not stocks and bonds. So, trading cryptocurrencies is generally not advised. However, no matter how often I say that, the popular perception is the opposite and there are millions of trades daily bringing hundreds of thousands of dollars in profit. And, the fact remains that, if you are observant (and have a bit of luck on your side) cryptos can be profitably traded just like any other commodity. It's a simple matter of buying low and selling high to get your own piece of those profits.
Over the past year Zcash trading has shown a solid trade value,
particularly back in January and February 2018, a time when BTC and ETH were bottomed out. So, if you had purchased Zcash before that time, you could have sold for BTC or ETH, then HODLed for a few months, and had a tremendous profit. Like We said, there is a bit of luck involved. But, if you pay attention to the markets and learn a little about how to implement your own arbitrage strategies, you can make a ton of money with Zcash as it holds a fairly solid value that is not necessarily connected to the Bitcoin-led roller coaster.
AND THEN THERE'S MINING
Conversely, mining is another method of packing your Zcash wallet with value, over time. While We never get into the in depth math so many people tend to love, there are a number of factors to consider when you contemplate setting up a crypto mining operation you need to think about these issues.
Zcash uses the Equihash algorithm. This is unique in the crypto world. So, the hardware and software must be specifically programmed to accommodate this protocol.
Don't know what that means? Then mining may not be for you as this process gets a bit technical. So, if you do not have that technical knowledge and ability; you might want to stick with trading. However, if you are willing to learn the lingo, and the code, you can be up and running with your very own mining rig in just a few weeks (unless you build your own).
Once your rig is powered up and properly configured you need to think about the electric bill. Will your Zcash mining rig give you the profit you want after you pay the light bill? Maybe; but that really depends on your area's normal electricity charges. Then there is cooling. Air conditioning is essential; and costs money. And, since a Zcash mining rig creates immense heat; it will require a significant amount of cooling to combat that heat in order to keep the rig running, and, more importantly, running efficiently. And this is going to jack up your electric bill much more than the mining rig itself. This also goes back to the rig setup itself. Properly assembled, with the heating / cooling issue in mind, you can maximize profitability while keeping costs as low as possible.
Again, it is impossible to give an estimate on how much profit you will make with your specific mining setup, using the electric rates in your locale. But, we can see mining general Zcash mining profitablity here (add mining profit img here).
As you can see, as a general rule, mining Zcash is not very profitable; especially considering the the cost of purchasing or building your mining rig, setting it up and configuring it properly, installing a cooling system, and keeping it all running efficiently.
ASSESSMENT OF THE QUESTION OF MAXIMUM PROFIT
When you look at the difference between trading and mining; We'd have to go with trading for maximum profitability. Zcash's better than average stability gives it a better trade profit margin than the more technical mining operation.
We are not saying that mining cannot be profitable. If you are in this for the long run, and you have the technical skills to setup and configure a rig; or, the money to purchase a ready made rig; you will make money eventually. However, if you aren't the kind of person who will take the time to bend down to pick up a penny when you are walking across a parking lot; you likely don't have the patience or personality to become a Zcash miner.
But, this choice is a matter of long term profit versus more immediate gains.
Like We said, in the short term; to get profits this week, We'd have to choose Zcash trading. There is nothing needed other than a wallet, a few dollars in investment funds, and a keen eye for price fluctuations; oh, and that bit of luck We keep mentioning.
This endeavor will bring you profit either way. Joining the crypto revolution on any level is always a positive move. Making Zcash part of your own portfolio; or even your chosen form of currency, is a plus for you (in terms of security, stability and sustainability); as well as being a good thing for the Zcash community.
In short, if We were to dive into the Zcash pool to grab those profits, We'd choose trading. There is simply too much potential profit for very little start up costs; especially when you compare that to the startup cost and slow return on investment that you will see from mining.
Since We are that guys who will go out of their way to pick up a penny in the parking lot; We'd likely maximize our strategy by HODLing a portion of our trading profits in order to get one of those preset mining rigs; allowing us to enter the mining arena within a few months. But, the quick profits here are in leveraging the stability of Zcash against the volatility of Bitcoin and Ethereum to make your money in trading.
Thanks for joining us in this exploration. Good luck on your crypto journey. Happy HODLing!!!
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