How to Buy Ethereum Classic

What is the difference between Ethereum and Ethereum Classic? Should you invest in the latter and what do you need to know? To understand this, you’ll need to know why Ethereum hard forked away from Ethereum Classic, and why there are fundamental differences between the two cryptocurrencies.

(ETC)

Ethereum Classic

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The Difference Between Trading and Buying

1

Ownership:

To buy cryptocurrency, you must create a wallet for yourself to hold the tokens. Trading does not require this.

2

Different Goals:

If you wish to support the ethos of the cryptocurrency, buying is better. If you are looking to profit on investment, trading offers more options.

3

Regulation:

Trading through a CFD is much more likely to provide more regulation to protect investment. Buying does typically offer this added security.

The ultimate beginner's guide to trading Ethereum Classic

Why Should You Buy Ethereum Classic?

Ethereum’s initial idea was to offer an autonomous network where ‘computer code is law’. The aim was to remove the possibility of fraud or control by others. All was moving along well, up until a single hacker exploited an error in the codebase and drained all of the investor’s money. The majority of the investors agreed to roll back the network to make it impossible for the hacker to use the stolen money. Even though it worked, some felt this was against the initial protocol. Therefore, they continued to work on the initial idea leading to the creation of a new blockchain, Ethereum Classic. Therefore, technically, ETC is the original Ethereum. Today, ETC is the same pool of promising altcoins as the namesake ETH. In most new coins, you have to store the coins in a universal e-wallet or the exchange’s wallet. It exposes you to the risk of higher losses in case hackers access your wallet because you will lose more than one type of crypto. Consequently, most established coins have their wallets. Ethereum Classic is one of them with its Emerald Wallet. ETC has promised that it shall mine the last coin in 2025 when the totals supply reaches 210 million. It is unlike Ethereum which has no cap on the number of coins. As a result, Ethereum Classic seems like a more stable coin for long term investment purposes. Another reason why many experts in the crypto industry are considering ETC is its corporation of sidechains. Sidechains are a new technology that allows interoperability between blockchains such as running Ripple on Ethereum blockchain and vice versa.

Pros and Cons of Buying Ethereum Classic

Pros

  • Strong History: Ethereum Classic is not only established but also has a plan for its future. Creating a cap on the maximum coins is part of its strategy to ensure its stability in the market.
  • Partnerships: ETC partnered with the developer of payment solutions, for major altcoins such as Bitcoin, Ethereum, Litecoin, Ripple and UTrust. The arrangement guarantees an increased demand for Ethereum Classic, which will improve the coin’s trading value.

Cons

  • Lack of Regulation: Most of the exchanges platforms are not under any regulation increasing the risk of scamming and hacking.
  • Highly Volatile: The effects of overall volatility are even more significant on individual coins such as Ethereum Classic because they are a smaller coin than the top 3.

What are the Best Payment Methods to Buy Ethereum Classic?

You have to buy ETC either through an independent exchange or peer-to-peer exchange. Payment methods vary platform to platform. We’ve outlined some of the main methods that you’re likely to make a fiat payment with;
  • Buying Ethereum Classic with PayPal: Traditionally, PayPal generally don’t accept any cryptocurrency transactions, but you can purchase Ethereum Classic through a regulated broker via this method instead.
  • Buying Ethereum Classic using cash: It is only possible if you find a friend, family member, or someone you trust trading Ethereum Classic for cash. It is, however, not among the most common ways of buying cryptocurrencies, nor the safest.
  • Buying Ethereum Classic  with a credit card: This is the most popular way of buying ETC. Nearly all exchanges that accept payment through credit cards sell ETC directly. Create an account in a credit card accepting exchange, deposit your EUR or USD from your credit card then purchase ETC.
  • Other payment methods: Several exchanges accept more than one payment method. Some of the acceptable alternatives include debit cards, wire transfers, SEPA, and e-wallets such as Skrill, Neteller, and Payeer. Conduct in-depth research on these payment options before using them.

Buying Ethereum Classic in Your Country

Most countries have allowed the buying and selling of cryptocurrencies. However, certain countries have imposed a total ban on all cryptos. In such places, it is an offence to buy, sell, or mine cryptos. If you are buying ETC to use them as a legal tender to make payments, then you might also have to take a closer look at the laws of your country. Most nations that allow buying and selling of altcoins prohibit their use as payment media. The other concern is if you plan to pay via PayPal. PayPal prohibits transfers to other countries from accounts located in certain countries. Is there a Difference Between Buying and Trading Ethereum Classic? Yes. When you buy ETC, you own it and can resell it, give it out as a gift, use it to purchase other cryptos or keep it as a souvenir. Not to mention you will have to pay the entire price of the amount you buy. Trading, on the other hand, involves speculating on the price of ETC in the exchange market. You do not have to own any coin. All you need is an investment amount which you use to leverage on the fluctuating prices. The two also have different taxing structure. You do not pay profit gains for trading on cryptocurrencies, but you do if you make any profit through direct buying and selling of ETC.

What are the Fees Involved in Buying Ethereum Classic?

  • Transaction fees: These are the fees charged for every transaction, their total value depends on the total number of operations you need to get your coins. Some exchanges allow you to buy directly using fiat currency, while in others you have to purchase Bitcoin then convert it to ETC.
  • Deposit fees: These are the charges you pay when you deposit fiat currency or cryptocurrencies into an exchange. Some exchanges such as Bittrex do not charge deposit fees. The fees also vary depending on the payment method you use.
  • Withdrawal fees: Nearly all exchanges charge a fee when you withdraw your coins or money from their wallets.
  • Spreads and commissions: This the additional value that an exchange adds on the coin. The spread ranges between 0.2% to as high as 1% in some exchanges. Coinbase, for example, has a spread of 0.5%. Therefore, if the price of ETC is £100, it displays £100.5.

Broker Fees Vs. Exchange Fees

The transaction fee when using an exchange is higher than when using a brokerage. This because it takes at least two transactions on the exchange to buy the same amount of ETC coins that you get from a broker in a single deal.

Alternative Cryptocurrencies

FAQs

  1. Ethereum Classic came into the world in May 2016. Disaster had just struck the Ethereum network. Ethereum had recently launched a venture capital project called the DAO (pronounced "dow"), which stands for Decentralized Autonomous Organization. Part of Ethereum's MO is the creation of decentralized applications (Dapps) and Smart Contracts: useful algorithms that run apps and websites, without the need for active human management. The DAO was the biggest and most impressive example of this philosophy in action. It was all going according to plan. The DAO contained $216 million in Ethereum, until...it can hacked. 3.6 million Ethereum were lost forever from wallets all around the world, never to be recovered. Never to be recovered, that is, unless the network took drastic measures. It turned out that the coins could be returned to their rightful owners if the network would just perform a Hard Fork. Basically, the core software would be cloned and broken away from the original chain, at a point before the hack took place. In the new chain, everyone would have their Ethereum back, just like the attack had never happened. The attack would still exist on the old chain, but the hope was that this chain wouldn't be used by anyone so it wouldn't matter.

  2. The two chains were identical when the hard work of 2016 occurred, but major changes have been instituted since. Ethereum has WAY more ICOs and Smart Contracts being developed on it than Ethereum Classic, and you see this reflected in the Ethereum Classic price. This has made Ethereum much more congested as a network, but it has also caused the value to go much higher than Ethereum Classic. Ethereum Classic has decided to continue to be minable for the foreseeable future, while Ethereum is going to set off its "difficulty bomb" that will make mining unprofitable in a push to institute its new Proof of Stake financial and security system. Ethereum Classic has decided to cap the number of ETC coins that can ever exist at around 92 million as a way of supporting the Ethereum Classic price in the long term. Ethereum (ETH) plans to introduce new coins at roughly 13 million per year forever! ETC fears that this will dilute ETH's price in the long term because it violates principles of supply and demand. ETH counters that Ethereum coin is not meant to be a currency so much as it is a payment vehicle for network transactions, and that staking and coin loss remove Ethereum from the markets at a rate equivalent to the rate at which new coins are produced. That has yet to be proven correct in the real world, so Ethereum Classic and the Ethereum Classic price don't have this problem.

  3. We love Ethereum, but there is a strong argument to invest in Ethereum Classic. We're not saying ETC is better than ETH, just that someone could intelligently choose ETC over ETH, and that portfolios that contain both might have the right idea. Here are Ethereum Classics best features for investors. It's cheap. You can buy 20 ETC for the price of 1 ETH. If you think the Ethereum Classic price has good potential, a larger position would make sense, and the current price makes that more than possible. Ethereum Classic benefits from the "Ethereum" in its name. Every day people invest in Ethereum Classic thinking they're getting some version of Ethereum, but not knowing exactly why they do it. The low Ethereum Classic price is another factor, sometimes making it seem like this is just a discounted Ethereum. This will continue. It is true to its original purpose. If you are the kind of person for whom "code is law" rings a bell, ETC is for you. The steady Ethereum Classic price reflects the commitment and idealism of its user base. Ethereum Classic has most of the capabilities of Ethereum. If Ethereum gets as congested as Bitcoin and businesses have trouble using it, they could fairly easily use Ethereum Classic for enterprise solutions instead. It's stable. The Ethereum Classic price has proved it can sustain its value well. This is a hard thing in cryptocurrency, when coins pump and dump all the time. If you want to keep your money in crypto, but don't have anywhere else to put it, you could do a lot worse than ETC. Ethereum Classic has a better financial model for a currency. Capping the maximum coins that will ever exist, and keeping the coin minable, will insure scarcity which could be a good thing for the Ethereum Classic price long term.

  4. There are many exchanges with different rules. If you want to trade CFDs on AvaTrade, you can essentially buy Ethereum Classic with credit card. But if you want to buy on a site like Binance you can't buy Ethereum Classic with credit card.

  5. There are many exchanges with different rules, but there are not any options we know of where you can buy Ethereum Classic with USD. The closest thing to being able to buy Ethereum Classic with USD would be to buy Ethereum on Coinbase with USD, then transfer it to Binance and use it to buy Ethereum Classic.