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.
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eToro is the leading CFD provider when it comes to cryptocurrencies and buying Ethereum Classic. They were one of the first to launch Ethereum Classic on their trading platform and continue to be a market leader in the cryptocurrency space. If you’re looking to buy Ethereum Classic, then look no further than eToro, see below our 3 step process to getting started!
eToro is free to sign up and has a demo account that you can use to practice before buying Ethereum Classic for real. To sign up, click the button below and fill out the form; name, email, phone and then you’ll need to create a password. Next you’ll be required to verify your account by clicking the link in your confirmation email.
Once you’re account is verified, you’ll need to deposit funds into your account to make it live. We recommend starting with the minimum of $250, start small to get used to it and then begin to add more over time. Choose your payment method, eToro offers several options, pick your favoured and then fill out your details and click submit.
Once you have funded your account, it’s time to buy Ethereum Classic. eToros platform is easy to use, to find Ethereum Classic, click ‘Trade Markets’ on the left, then you’ll see ‘Crypto’ at the top. Once in this section, you will see eToros full list of cryptocurrencies. Hit Ethereum Classic and then ‘Trade’. A ticket will open, manage your risk and then ‘Open Trade’.
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.
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;
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.
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.
If this article has given you the confidence to start investing in cryptocurrencies and you want to buy Ethereum Classic, click the button to get started.
The best way to but ETC in bulk is through a broker. Brokerage networks bring together sellers and buyers interested in ample amount of ETC coins.
You can sell them directly on a peer-to-peer exchange or through an independent exchange platform such as Coinbase or Binance. Peer-to-peer exchange allows you to set your price; however, finding a matching buyer can be a hassle.
Yes. If you have a friend you trust who is selling the coins, you can buy directly from them without going through an exchange. The other way is to accept them as payment for services if your country’s laws allow it.
These are computer programs that use different indicators to determine trends and execute a corresponding trade on behalf of their user. They can really help bridge the knowledge gap for new investors.
It is a risky gamble that requires experience because you will be handing over your money to a third party to use on an immature illiquid industry. Besides, there can be risks of faulty software, flash crashes, and scamming. Therefore, if you have to use bots, start with baby steps and watch the progress. They can be very helpful overall, but you need to pick the right one and monitor very closely when you first start.
Yes. Though most exchanges only allow you trade BTC for ETC. If you’re looking to purchase ETC for fiat currency, your options are a little limited. Overall, you may need to trade these on regulated broker platforms - as there is no limit on these sort of platforms.
Yes, but you will need to have an Ethereum Classic wallet and then use Ethereum/Bitcoin to buy ETC. Otherwise, payment methods such as credit cards and PayPal are traceable.
The easiest way is to buy ETC through an exchange that accepts fiat currency. However, these are few and far between. In reality, buying cryptocurrency is actually relatively complex. The easiest way to invest in ETC is to use a broker platform to trade on the price. These have the simplest user interfaces, the best payment methods and the quickest turnaround times. Perfect for the beginner cryptocurrency investor.
Mainly because it’s always good to diversify your investment portfolio. Having two or more investment vehicles will cushion you if ETC takes a hit from other competitors and market factors. Ideally, you want to spread your investments, and make sure you could profit on the growth of other technologies all whilst reducing losses if only one coin is failing.
To the best of our knowledge you cannot buy Ethereum Classic with Paypal.
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.
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.
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.
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.
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.