5 Things to Consider If You Want to Purchase Ethereum Classic
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.
Carefully choose your preferred secure payment method
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.
Will you need to set up your own wallet?
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.
Safety and security
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.
Can you understand and navigate the platform?
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.
What Fees Are Involved?
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.
Safely Storing Your Ethereum Classic
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.
What Other Coins Can I Trade or Use to Purchase 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.
What’s the Smallest and Largest Amount of Ethereum Classic I Can Buy?
The smallest amount of Ethereum Classic that can be reasonably purchased is 0.0001 coins. There is no upper limit for cryptocurrency.
Can I Buy Anonymously with no ID? Is it Safe and Legal?
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.
How to Spend Your Ethereum Classic
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.