ZECBTC is a cryptocurrency pair that consists of ZCash and Bitcoin tokens. The base currency here is ZEC, and it is valued against BTC. It is most often used to make profits in the short term as the volatility of this asset allows one to earn from the rate difference.
The ZCash and Bitcoin cryptocurrencies are often compared: the tokens have similar functions and features. New coins can be mined, not just bought. However, since the issue is limited to 21 million, mining requires more and more power over time, increasing each token's value.
Both digital coins are decentralized and allow transferring assets from one user to another without intermediaries. It implies some privacy and security of transactions. Despite the fact that both cryptocurrencies work based on a public blockchain, ZCash is more anonymous than Bitcoin.
Modern encryption technologies, such as the Equihash algorithm and zk-SNARKs cryptography, ensure the anonymity of ZCash transfers. Transfers can be made publicly, like with Bitcoin, or securely. In the latter case, the system will hide all data except transaction time.
Many analysts believe that ZCash may soon become a full-fledged alternative to Bitcoin as it offers the same features but is more secure and anonymous. So, the two coins' costs may become equal. Exchange rate moves also depend on the level of capitalization and popularity of a currency. Like with other confidentiality-focused cryptocurrencies, pay special attention to cryptocurrency regulation in certain countries when making forecasts for the pair.
Risk warning: Trading in FX and CFDs entails high risk of losing capital.
