Ethereum Classic is an open-source cryptocurrency, with its own smart contract-based blockchain. It supports a modified version of Nakamoto consensus but is very much based on the original Ethereum network. However, this was altered in July 2016 following the hacking of another network.
Ethereum Classic is traded under the ticker symbol ETC. It is a mineable cryptocurrency, which has a similar monetary policy to Bitcoin, aiming to deliver a mechanical, algorithmic, and capped currency.
Ethereum Classic has become a very credible cryptocurrency contender, so in this article, we will discuss everything that you need to know about this token, and how to buy Ethereum Classic in adequate quantities.
Relying on cryptocurrency exchanges is the ideal choice when you are going after a long-term investment.
Just like you have to consider many factors when determining your broker, you will also need to take a multitude of factors into account to finalise your preferred exchange including user-friendliness, cost of transactions, holding fees, withdrawal and deposit charges, and customer support.
Keep in mind that many exchanges are not regulated and offer quite tempting returns; however, they are more exposed to risk as well.
When you are going for a long-term investment approach, you need to get a dedicated cold or software wallet to hold your ETC tokens securely.
It is not exactly a complicated process, and you can self-educate yourself on how to transfer coins from the exchange’s wallet to your personal wallet. Since ETC is an ERC-20 based token, you can store it on a wide range of wallets including the following:
Exchange/Web Wallets – Wallets that can be accessed through a website, come in the form of a browser extension, or are integrated in an exchange are called web wallets. They are the most convenient to use, but the least secure as well.
Software Wallets – These come in the form of either the desktop software or mobile applications and offer reasonable security along with the luxury of portability. You can take your coins anywhere with you and trade anywhere you want.
Hardware Wallets – If you want to secure your ETC tokens for months, then the best choice for you are hardware wallets. They look like flash drives and have dedicated hardware as well as software features to keep your tokens safe. These are portable and highly secure.
When you are looking to sign up on an exchange, there are many leading services such as Binance, Coinbase, and CEX.io. You need to evaluate the pros and cons to ensure that the one you choose meets your requirements in the best way possible.
For instance, there are exchanges where fees might be a bit high, but their security and service quality would be better. Similarly, there are exchanges where trading fees are low, but other aspects are subpar. It’s your duty to assess all the factors, go through online reviews, check regulatory compliance, and other aspects to ensure that the exchange you’re choosing is the right fit for you.
Just like the trading platforms that give you a wide range of payment methods, so do the top crypto exchanges. Instead of getting overwhelmed, you need to identify the payment mode that will keep your transaction expenses minimal, offer reasonable speed and convenience, and ensure secure transfer of funds.
You may also need to find out if a certain payment method is accessible in your region or not. For instance, many traders would love to use PayPal, but due to regulatory limitations, its availability is quite restricted to only a few regions.
When it is time to buy Ethereum Classic (ETC), you might not be able to do so directly. You will need to purchase another popular token like Bitcoin or Ethereum, and then you can go on to exchange it for ETC.
There are a few exchanges that will let you buy ETC directly, but they can be quite expensive. To place the order, you should choose your preferred fiat currency and the amount. A calculator will display the number of ETC tokens that you can buy for that amount. If you are satisfied, you can send the purchase order through. Otherwise, you can make adjustments to your order.
Remember that if you have enabled two-factor authentication on your account, you will also receive a one-time password (OTP) that you will need to enter to process the transaction.
After you have purchased ETC, you can transfer it to your wallet by providing the public key associated with your tokens.
Keeping your ETC coins in the exchange’s wallet might be fine if you are going to have them for a couple of days, but if you are going to hold them for a longer period, say for weeks or months, then a cold wallet is a must. The website can become a victim of cyberattacks or may experience technical issues which can lead to locking of assets.
Long-term investment in Ethereum Classic should be undertaken by those traders or investors who believe that the price of the coin will continue to rise in the coming months or who believe in the Ethereum Classic project. Such traders should rely on crypto exchanges to buy ETC so that they can store, exchange, sell, or hold ETC tokens the way they want.
Short-term investment in ETC is made by those traders who are looking for an alternative source of income or want to make day-trading their profession. It is highly profit-oriented as a trader attempts to make money by opening short-lived positions. For such kinds of investments, trading platforms like eToro or brokerage services are a better fit.
Purchasing Ethereum Classic, or any other cryptocurrency, for the first time can be a slightly intimidating proposition. There is a huge amount to take into consideration, and you want to ensure that your transaction is completely safe, while also attracting the best deal possible.
In order to do this, you need to take several factors into consideration, particularly the following five.
The location from which you are purchasing Ethereum Classic will have a huge impact on the payment methods available and it is impossible to provide all of the variables here. What you should pay particular heed to is the speed and cost of each payment method, as this will massively impact the purchasing process.
Before buying Ethereum Classic, it is important to implement your own wallet system. This will help you secure your funds once the transaction has been completed. There are many wallet options available, and we will discuss many of these later in the article, but the first thing to bear in mind is that many exchanges have their own wallets. These are built into the systems for convenience.
There’s nothing necessarily wrong with using wallets based within exchanges, but you should bear in mind that they can be more vulnerable to theft. Thus, they are not as ideal as a long-term solution. It’s also worth knowing that when investors enter into CFD agreements via recommended brokers, their transactions and funds are secured. This negates the need for a wallet.
When purchasing any cryptocurrency, it is always important to consider fees and costs, and that definitely applies to Ethereum Classic. However, it’s also important to remember that cryptocurrencies actually attract very small fees compared to traditional currency. This is one of the reasons that cryptocurrencies have become popular as a medium for foreign exchange and it is expected that this will expand further still in the future.
Nonetheless, there can be fees associated with Ethereum Classic, and you should definitely inform yourself of any such costs.
Ethereum Classic is effectively the original version of Ethereum, and as such, retains the system that was included in this cryptocurrency from day one. Cryptography and encryption are built into the Ethereum Classic project, and the system relies upon a Proof of Work (PoW) mining algorithm.
Ethash is the current PoW for Ethereum Classic, but several others are currently under consideration. These include:
ECIP-1070 — ProgPoW: Programmable Proof of Work
ECIP-1049 — Keccak-256: A variant of the Sha3–256 algorithm
ECIP-1043 — Restrict the Dag: Restrict the size of the Dag in Ethash
ECIP-1047 — Reduce Gas Limit: Reduce the gas limit by 8x
The debate over these is highly complex but continues to rage in the Ethereum Classic community.
There was also significant discussion over a mechanism that was referred to by the founders of Ethereum as the Difficulty Bomb. This was intended to help the Ethereum Classic blockchain evolve from its current Proof of Work status to a Proof of Stake system in the foreseeable future. Part of this process would see ETC mining become increasingly complicated.
This so-called Difficulty Bomb was added to the Ethereum network on block 200,000 in an upgrade named Ice Age, but was not accepted by Ethereum Classic users. Indeed, this cryptocurrency upgraded its network in order to permanently eliminate the mechanism. Thus, Ethereum Classic has committed itself to an ongoing PoW consensus system.
There has been some debate over which of these two systems is superior, but there are many enthusiasts within the Ethereum Classic community that remain committed to the original concept.
Ethereum Classic is one of the most popular cryptocurrency platforms available and is known for being especially user-friendly. Navigating all of the functionality related to Ethereum Classic is straightforward, and it is notable that its community has opted to retain a mining system that is simpler than its offshoot Ethereum. Overall, this is definitely one of the easier cryptocurrencies to understand.
Purchasing Ethereum Classic can attract fees, particularly when using the many digital exchanges available but these tend to be pretty small in scale. Nonetheless, before buying Ethereum Classic, you should probably take the following issues into consideration.
Transaction fees for Ethereum Classic are low, and certainly significantly cheaper than Bitcoin. At the time of writing, Ethereum Classic transactions cost around 40 cents. Some exchanges also charge dynamic fees for holding Ethereum Classic in wallets, but these can certainly be avoided by shopping around.
Deposit fees are dependent on the exchange in question and do not vary from one cryptocurrency to another. It may even be possible to find an exchange that doesn’t charge deposit fees if you search diligently enough.
The same essentially applies to withdrawal fees, which are set by particular exchanges. However, it is far more common to encounter exchanges that allow free withdrawals, so it’s certainly worthwhile to seek out these particular establishments.
It is essential to set up a compatible wallet to store your ETC securely. These will allow you to hold your investment and protect it from potential thieves.
Web wallets are included with broker and exchange platforms. They provide convenient ways of storing Ethereum Classic and other cryptocurrencies but are not as secure as some of the other options available. Furthermore, it should be noted that sometimes exchanges go out of business completely, so this should also be taken into consideration. An easily accessible option, but not the most secure wallet available.
Mobile wallets are intended to be used with mobile devices, and have become increasingly popular as trading cryptocurrencies via mobile has exploded. There are superior security provisions built into these mobile products, but mobile wallets can be vulnerable to hackers breaking into and taking control of your devices.
Ethereum Classic (ETC) Wallet is the official mobile wallet for Ethereum Classic, but there are others available as well. Exodus is another popular mobile wallet, and you can even create your own at etcwallet.net.
Desktop wallets are designed for use with desktop computers, which can be less convenient than mobile equivalents. But they are also far more secure than mobile wallets, with a range of security enhancements and protocols built into them.
Guarda, Atomic, Ledger, TREZOR One, Metamask, and Mist are some of the many desktop wallet options that are compatible with Ethereum Classic.
Of all of the wallet options available for Ethereum Classic, hardware wallets are the most obviously secure. There are fewer vulnerabilities for these products than some of the others listed here.
Furthermore, hardware wallets store private keys in secure hardware devices, making any serious transfer of data almost impossible. And hardware is immune to any form of virus or worm, while users have the option of validating the entire operation of their wallets.
Nano X has established itself as the most popular hardware wallet for Ethereum Classic.
Most of the major crypto can be used to trade or buy Ethereum Classic, while a range of fiat currencies are also available. Most digital exchanges embrace both options.
The smallest amount of Ethereum Classic that can be reasonably purchased is 0.0001 coins. There is no upper limit for cryptocurrency.
It is certainly safe and legal to buy Ethereum Classic, and an anonymous system has been proposed for this cryptocurrency as well. However, at the time of writing it is difficult to purchase Ethereum Classic while retaining your anonymity.
Ethereum Classic can be exchanged for other cryptocurrencies and fiat currencies online, and there is a range of other assets, commodities, products, and services that can be purchased with this token.
In real-world locations, Ethereum Classic is less recognised than some of the other cryptocurrencies, but this is beginning to change, as the medium becomes more mainstream.
If you have read the guide to this point, you must have understood the basics of ETC trading and cryptocurrency trading in general. You are now in a much better position to start trading, and we have a few tips for you, which you shouldn’t forget.
Don’t believe in a single source of news and learn everything about the coin that you are going to invest in. Keep an eye on the news and see what the experts, especially opinion leaders and influencers, are saying about the coin. Don’t buy when there’s a price rally since the market correction is more likely to consume your capital. Pick a low spot and wait until there’s an upward tick.
It is often an overlooked metric of cryptocurrency investment, especially by amateur investors. You need to keep track of the costs of trading while buying your ETC tokens. There are multiple types of fees, including spreads, commissions, and other expenses that can reduce your profit. Pick the right platform and payment method to ensure that your profit margins aren’t affected heavily.
If you are going to get into the crypto investment game, you need to learn how to ensure the security of your funds and ETC tokens. Choose different passwords for different accounts, pick strong passwords, enable 2FA, use passphrases, and ensure that you check addresses carefully every time you are purchasing or transferring funds, whether fiat or crypto.
Buy Ethereum Classic with Cash – First, you need to buy Bitcoin using your cash through a Bitcoin ATM, and then you can exchange it for ETC. a popular method to buy ETC but quite drawn out and tedious.
Buy Ethereum Classic with Credit/Debit Card – One of the most mainstream payment methods to buy Ethereum Classic but a bit on the expensive side. Secure and convenient.
Buy Ethereum Classic with Bank Transfer – Highly convenient and economical as far as transaction charges are concerned; however, it is slow and the deposits take some time to reflect in the account.
Buy Ethereum Classic with Bitcoin – Simply exchange Bitcoin for Ethereum Classic.
Buy Ethereum Classic with PayPal – Swift and efficient payment mode but restricted accessibility.
The above methods to buy ETC coins are mainstream. They are highly reliable, secure, and offer convenience to you as an investor. However, there are some other ways you can get your hands onto the Ethereum Classic. These are rather unconventional or lesser-known ways to buy ETC. If you don’t want to go through an exchange or a broker, following are your options:
Peer-to-Peer (P2P) Exchanges – They are exactly what they sound like. A platform where buyers connect with sellers and decide their own set of terms. This way, you can find a seller that offers your preferred payment method, amount of coins, and other requirements. However, you need to be careful and must check the reviews of the seller before buying.
You can also use ETC mining to get the tokens in the form of a reward. Since it is based on the proof-of-work protocol, you will need immense computational power to find the right hashes.