How to Buy and Mine Zilliqa (ZIL)
Zilliqa (ZIL) is a special blockchain that intends to create an ecosystem of decentralized applications (DApps) by scaling thousands of transactions per second via its high-throughput network. Zilliqa aims to bring scalability and speed to blockchains by employing sharding as a Layer 2 solution. Zilliqa’s unique approach to scalability, as well as its hybrid consensus model that allows for mining and staking, has attracted many investors to the network.
In this guide, we will explain how you can buy and mine Zilliqa (ZIL).
How and Where to Buy Zilliqa (ZIL)
You can buy Zilliqa (ZIL) through several cryptocurrency exchanges by following the steps below:
- Set up a crypto wallet: First, you must set up a crypto wallet that is compatible with Zilliqa.
- Choose a crypto exchange: You can browse and compare cryptocurrency exchanges to find the one that’s perfect for you. Some factors you may want to consider include fees, deposit options, user experience, among others.
- Sign up on a crypto exchange: Sign up for a trading account on your preferred exchange and undergo the KYC process.
- Deposit funds: Fund your account by transferring crypto from your wallet to your exchange wallet. If you don’t have any crypto assets yet, transfer fiat money from your bank account to the exchanges. Alternatively, you can link your credit card to the exchange for cash purchases.
- Buy ZIL: Purchase ZIL tokens by using crypto, fiat, or your credit card.
- Transfer the tokens to your wallet: Send the purchased ZIL tokens from your account to your preferred wallet.
You can buy Zilliqa on centralized exchanges (CEXs), and fiat-to-crypto onramps. Also, Zilliqa-based assets can be swapped on decentralized exchanges (DEXs). Here is a list of the top five crypto exchanges where you can buy Zilliqa (ZIL).
Centralized Exchanges (CEXs):
Binance is the world’s leading crypto exchange. Binance is a custodial platform that allows you to trade buy and sell cryptocurrencies. You can buy ZIL on Binance using your credit card or use the Binance P2P service to purchase using cryptocurrency. The benefit of purchasing ZIL on Binance is the relatively low fees and high liquidity it offers you to trade a vast variety of tokens.
KuCoin is a leading cryptocurrency exchange that offers a peer-to-peer (P2P) trading service for users. You can also use your credit card to buy ZIL on KuCoin. The crypto exchange supports a ZIL/USDT trading pair and offers low-cost trading fees.
Huobi Global is a leading digital-asset exchange that offers Zilliqa trading opportunities. You can buy ZIL using a credit card or access the tokens on the P2P market.
crypto.com is a crypto-trading platform that enables you to buy and sell over 200 cryptocurrencies using bank transfers or your credit card/debit card. You can buy ZIL tokens using over 20 popular fiat currencies and store them in your in-platform secure wallet.
Liquid is a comprehensive crypto-trading platform to buy and swap cryptocurrencies using fiat currency or crypto. You can also buy gZIL tokens (Zilliqa’s governance token) using your credit card and trade them for ZIL on the spot and in margin markets.
Decentralized Exchanges (DEXs)
ZilSwap allows you to swap wrapped tokens on the Zilliqa network to ZIL and vice versa. The marketplace also allows you to provide liquidity using your ZIL tokens and earn fees. At the same time, ZilSwap is a good decentralized exchange for buying into gZil.
What Wallets to Use With Zilliqa (ZIL)
Crypto wallets are used for storing, sending, and receiving digital assets. There are several wallet options for you to take self-custody of your ZIL tokens. Remember, you can also store your ZIL tokens on the exchange but this poses several risks. The old but gold mantra still holds true: “Not your keys, not your coins.” In the past, prominent crypto exchanges have been hacked and large amounts of crypto assets have been stolen.
Generally, you are advised to transfer your tokens to a self-custody wallet for security. In this case, the wallet has to be compatible with ZIL tokens. Crypto wallets can be classified according to mobile, web, and hardware wallets.
A mobile wallet is a hot wallet that can be downloaded as a mobile app. A hot wallet is any wallet that is connected to the internet. Mobile wallets are a convenient way to store tokens on the go. Examples include Trust Wallet and SimpleHold. A web wallet is a crypto wallet that stores your crypto online and can be accessed through your browser or installed as an extension. Examples of such wallets include Zillet and Moonlet. Both of these wallets belong to the category of hot wallets.
Lastly, a hardware wallet is a form of offline storage. A hardware wallet is a cryptocurrency wallet that stores your private keys in a secure hardware device. One such wallet is Ledger Nano X.
How to Mine Zilliqa (ZIL)
Zilliqa aims to become one of the leading smart contract networks that can work at scale. This is partly achieved through a unique mechanism that combines proof-of-work (PoW) for Sybil resistance and practical byzantine fault tolerance (pBFT) for consensus.
Zilliqa’s modified proof-of-work consensus mechanism reduces the cost of transactions when compared to Ethereum (ETH). Another benefit of the PoW consensus mechanism is that Zilliqa can be mined on the Ethash algorithm, which is also used by Ethereum.
There are some benefits to mining ZIL. For one, ZIL is very energy efficient when it comes to mining. Also, mining ZIL can easily be done with GPUs, which are consumer hardware. If you want to keep general wear and tear on your mining rigs at a minimum, you may want to consider mining ZIL.
To start mining ZIL you will need to run a Zilliqa client. The minimum requirements to run a Zilliqa client include:
- x64 Linux operating system (e.g., Ubuntu 18.04.5)
- 8GB DRR3 RAM or higher
- Recent dual-core processor @ 2.2 GHz. Examples: Intel Xeon (Skylake)
- 50GB solid state drive
- Public static IP address
- 100MB/s upload and download bandwidth
- Any GPUs with at least 2 GB RAM
You can learn more about setting up the GPU here.
In order to start mining Zilliqa (ZIL), you can follow these steps:
- Download ZILMiner: Get the ZILMiner by accessing the ZILMiner GitHub repo and downloading the latest version that is compatible with your operating system.
- Choose a ZIL mining pool: Select an appropriate ZIL mining pool. You can view the list here.
- Configure your batch file: You will need to configure a batch file so that you can run the ZILMiner. Thereafter, you will need to create a mining script. Lastly, you will copy the script you have created and paste it onto your ZILMiner directory, then click to commence the mining process.
- Check your pool rewards: From your pool’s website you can get a holistic view of your mining performance.
Can Zilliqa (ZIL) Be Staked?
Zilliqa is one of the few blockchains that allow for both mining and staking. Staking ZIL is a great way for you to earn rewards while contributing to the network. The APR for staking depends on the total amount of ZIL in circulation at any given time.
To begin staking you need to choose a wallet and staking seed node operator (SSN). You can connect your wallet and start staking using your ZIL using the Zillion portal. Alternatively, stake your ZIL directly by downloading apps such as Atomic Wallet or Moonlet.
How to Stake ZIL Using Atomic Wallet:
- Access the Atomic wallet.
- Deposit ZIL into your wallet.
- Choose a validator and stake your ZIL.
- Claim your rewards after an initial 48 hours and thereafter every 24 hours.
The minimum amount for staking is 10 ZIL to ensure that it outweighs the gas fees required for withdrawal. The minimum lock-up period for staking is approximately 2 weeks. This encourages ZIL owners to secure the network appropriately.
You can unstake your ZIL by waiting for the unbonding period (roughly a day) to expire. After that, you can unstake ZIL and claim back the tokens, which then get moved from the contract to your wallet.
Zilliqa Ecosystem: What There Is and What’s to Come
Zilliqa’s prominence as a blockchain network with a Layer 2 scaling solution has made it perfect for the future. The protocol has attracted developers who have made Zilliqa a vibrant ecosystem of decentralized applications (DApps).
In DeFi, applications such as Zyro, a liquidity provider, and Pillar, a stablecoin-lending service, are gaining traction among investors. Moreover, Zilliqa has its footprint in the NFT space through its ZRC-6 token standard and popular NFT marketplaces such as Mintable and Okimoto.