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How to Invest In Ethereum Classic In 2021

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Ethereum Classic is an open-source blockchain platform that came about in July 2016 after a ‘hard fork’ from Ethereum. The platform serves as a smart contract network that can host and support decentralized applications (dApps), with ETC serving as the native token. Since the split took place, Ethereum Classic and Ethereum road maps have diverged over time. 

Ethereum Classic hosts the original Ethereum blockchain, with supporters claiming this makes it truer to blockchain principles than the new Ethereum chain, and the maximum supply of ETC is capped at around 210,700,000 ETC. This piece will take you through various strategies that you can utilize to invest in Ethereum Classic. 

4 Ways to Invest in Ethereum Classic

1. Buy Ethereum Classic Through an Exchange 

Before embarking on your Ethereum Classic journey, you have to acquire a crypto wallet that will allow you to secure your coins. Crypto wallets exist as websites, mobile apps, and desktop applications. They help store your private keys that are used to lay claim to ETC tokens on the blockchain. Crypto wallets exist in hardware and software formats.

Software wallets come in the shape of websites, mobile and desktop wallets. They are convenient for people who need regular access to their tokens like trading, since they are mostly online, making them easily accessible. However, this makes them less secure. Examples of software wallets include BitGo, MetaMask, Guarda, Exodus, and Atomic Wallet.

Hardware wallets are physical devices that resemble USB flash drives. They store your private keys offline, making them highly secure, and are convenient for holders that own a large amount of ETC. Examples include offerings from Ledger, Trezor, Corazon, and KeepKey. 

After acquiring a wallet, visit a reputable exchange and register an account. Then complete the KYC process to be allowed to buy Ethereum Classic. You will have to upload a photo of your ID/passport, proof of address, plus a selfie. Secure the account by activating the two-factor authentication (2FA), then you can fund the account and purchase ETC. After you are done, transfer your tokens to a private wallet. 

Our Recommended Exchange

Below is a list of top reputable exchanges that will allow you to purchase ETC with ease and without having to worry about losing your funds. 

1
Min. Deposit
$50
Exclusive promotion
Our score
10
Accepts customers from the USA
Offers 15 crypto coins to buy&sell including BTC, LTC, ETC, NEO and more
Trade on the world's leading social trading and investing platform
Start Trading
Payment Methods:
Wire Transfer, Bank Transfer
Full Regulations:
CySEC, FCA

2. Buy Fractions of Ethereum Classic Through an Exchange

Currently, one ETC trades for around $35. The good thing is you don’t have to buy a full token when starting. The token is divisible by several decimal places, making it possible to receive tokens worth cents. All cryptocurrency exchanges listed above will allow you to buy fractions of ETC, and you can build your portfolio slowly with time. However, since network fees are involved, most platforms will stipulate that you buy at least ETC worth about $10. At the current price, that will get you 0.285 ETC. 

3. Trade Ethereum Classic Through a Broker 

These platforms are convenient for users who don’t want to store their coins themselves - crypto brokers will hold your coins for you, allowing for much more convenient access. Brokers allow users to trade Ethereum Classic frequently, in order to generate frequent profits. 

Many platforms offer derivative products such as contracts for difference (CFDs), which allow users to speculate on slight price movements, whether positive or negative. Many brokers also accommodate leverage trading, which can multiply your profits when used effectively.

Our Recommended Broker

Below is a list of top brokers where you can trade ETC with confidence in the security of your investment. 

1
Min. Deposit
$50
Exclusive promotion
Our score
10
Accepts customers from the USA
Offers 15 crypto coins to buy&sell including BTC, LTC, ETC, NEO and more
Trade on the world's leading social trading and investing platform
Start Trading
Description:
eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro users can connect with, learn from, and copy or get copied by other users.
Payment Methods
Wire Transfer, Bank Transfer
Full regulations list:
CySEC, FCA

4. Invest In an Ethereum Classic ETF

The last way to invest in Ethereum Classic is through an exchange-traded fund (ETF). ETFs are financial instruments that track an asset or a selection of several different assets. ETFs can be purchased and sold on stock exchanges, meaning they are highly scrutinized and regulated, making them the most secure option for the average investor. 

Some ETFs will comprise several coins in an effort to spread risk across a portfolio. Such an ETF is created and controlled by selecting a basket of various coins, emphasizing those that have performed strongly in the past. Even if some coins within the basket don’t perform as anticipated, the overall performance of the fund will make the investor a profit. 

The combination of stock market-level regulation and an expertly managed risk profile mean that an Ethereum Classic ETF will make sense to the investor that finds themselves interested in ETC, but is keen to manage the risks associated with the asset.

5 Ethereum Classic Investment Strategies

The section above outlines four ways you can easily access ETC. Now we will explore five strategies you can utilize to make a profit while dealing with the asset. 

1. Buy and ‘Hodl’

What is it?

The first (and perhaps the easiest) way to profit from ETC is through buying and ‘hodling’. The term ‘hodl’ is a misspelling of hold that is part of the crypto community’s slang, and represents keeping faith in an asset for years. This strategy doesn’t require much technical know-how to get started. All you need to do is sign up on an exchange or any other platform that offers you access to ETC, make your purchase, and move your tokens to a private wallet, keeping them there for years. 

If you check cryptocurrency price charts, you will realize that for a well-established coin, its value will rise with time as more people adopt the platform. So far, ETC has registered an ROI of over 1900% in less than five years. This trend is expected to continue as cryptocurrencies experience mass adoption. True ‘hodlers’ will hold on to a token for years, and they will be handsomely rewarded for keeping their faith in the project. 

What is the benefit of using this strategy?

You don’t have to worry about the daily price volatility like a short-term investor does. Also, little technical knowledge is required to execute this strategy. You can slowly build your portfolio and see your investment multiply with time as the asset’s value appreciates. 

2. Day Trading

What is it?

This strategy involves buying and selling ETC within short periods. Day traders frequently trade on timescales of hours, or even minutes, and aim to take advantage of short term price volatility that exists within the cryptocurrency market (it’s not uncommon to see daily double-digit movements in percentage, either positive or negative). 

This strategy requires some technical know-how to execute successfully. You need to understand how to read charts and keep tabs on all the latest developments in the crypto space to watch out for events that could shift the price of ETC. 

What is the benefit of using this strategy?

Unlike long-term investors or ‘hodlers’, you will not be too concerned about buying and safekeeping your tokens - the exchange or brokerage you choose will take care of this for you, and this removes the burden of holding and securing your coins. The main benefit of day trading, however, is that you can earn profits more quickly and more often than long-term investors.

3. Shorting

What is it?

Shorting is a strategy that works well in a ‘bear market’, where market trends are unfavourable, as it allows you to profit from falling prices of an asset. Imagine that based on your analysis, you believe the price of ETC is likely to drop soon. Employing a shorting strategy, you borrow 1 ETC from a broker at the current price of $16 and sell the token. If your analysis was correct and the price drops, let’s say to $10, you repurchase the token and repay your debt. In this scenario, you get to keep $6 as your profit. 

The concept is simple, but the process of identifying when the price of ETC is likely to drop can be difficult. Shrewd investors will learn to read charts by conducting technical and fundamental analysis, as shorting will lead to losses if the price of ETC goes up instead of down.

What is the benefit of using this strategy?

Most importantly, this strategy will help you make money even when the market isn’t performing so well. You can use brokers that give you access to leverage in order to multiply your profits, and additionally, using brokers means that you don’t have to worry about dealing with the actual asset and the complications involved. 

4. Using a Trading Bot for Trading

What is it?

Trading robots are software programs that help you to trade cryptocurrency markets. They are made up of sophisticated computer algorithms which are integrated with artificial intelligence (AI) and machine learning (ML) protocols. This enables them to analyse market data in real time, and make predictions on the price movements of the ETC market. You can even allow the bot to make the decisions on your behalf and place trades for you. AI helps the bot to make accurate market predictions, whereas ML helps the bot learn and improve with time, making it more efficient. 

To get started, all you need to do is visit a reputable platform and register an account. Complete the KYC process before funding it, and you are ready to go. Most robots will offer a demo account where you can use virtual funds provided by the platform to learn how to set up strategies and execute them.

What is the benefit of using this strategy?

Trading bots are great for both experienced and inexperienced traders. Veteran traders can delegate repetitive and arduous tasks to the robot for greater efficiency, and newbies can profit easily as they learn how trading works. Robots will save you time since only a few minutes are required to adjust your strategy daily. This creates a low-effort source of passive income since the robot can trade Ethereum Classic markets all day and all night. 

5. Hedging Ethereum Classic

What is it?

Hedging is an ideal strategy for cautious investors. It involves opening new positions to cover potential losses from existing investments. You can hedge your ETC investment by using CFDs, shorting, and futures contracts. 

A straightforward way to do this is opening a new trade in the opposite direction to your initial investment - if you hold ETC, you can open a short position against it. In this scenario, no matter which direction the market takes, you are sure to receive some profits and not lose money. 

Futures contracts can be used to guarantee profits in the future by agreeing to sell tokens at a profitable price, ahead of time.

What is the benefit of using this strategy?

One of the top benefits of using this strategy is you get to limit your exposure to risk. This allows you to be ready for any market outcome and maximize your profit potential while minimizing your downside. If used well, this strategy should protect you from ETC price volatility, which can be scary to new investors. 

Buy Ethereum Classic Today!

What to Consider Before Investing in Ethereum Classic

The section below will cover three vital factors you need to pay attention to as you join exchanges and other platforms that offer exposure to ETC since they have the potential to impact your profitably and even make or ruin your investment experience. 

Fees

The first kind of fees you are likely to encounter are network fees associated with transferring, buying, or selling tokens. This project suffers the same fate as Ethereum, and its fees can inflate significantly if the network is clogged. The exchanges will charge some fees, even though they may be minimal, for making purchases and selling coins. Brokers will not charge any fees, as you won’t be dealing with the actual asset, but there are commissions for conducting trades. Brokers will also charge inactivity fees if you go for long without using your account. 

The last type of fees you are likely to encounter will come from the payment processor you opt to fund your account with. These fees will vary depending on the mode. It’s up to you to analyze these and choose the best service with the lowest costs for your needs. 

Risks

As a digital asset ETC carries a few risks. First of all, the crypto market isn’t adequately regulated yet. This has created a loophole that has been exploited by bad actors extensively. Scammers steal millions from unsuspecting investors each year, and it is vital that you conduct thorough research before entering into any investment within the space. ETFs offer a safer alternative investment strategy for those that might be alarmed by a lack of regulation. 

Your brokerage and exchange accounts, as well as your private wallet can also be hacked, and you can end up losing all your funds. To protect against this, you need to set a strong password, enable 2FA, and avoid sharing your login details with anyone. Hardware wallets offer the best security if you are going to be holding the coins yourself.

The last kind of risk associated with ETC is price volatility. Crypto assets are highly volatile, and price swings can lead to losses if investors buy or sell at the wrong time. The ‘buy and hodl’ strategy offers some protection against this, but the savvy investor will take further precautions and mitigate their risk with hedging strategies. 

Payment Methods

Various platforms will offer support for different payment modes. An ideal ETC investment platform should support the most common payment modes, making it easy for one to deposit and withdraw funds from their account. These include bank transfers, credit/debit cards, e-wallets, third-party payment modes, other cryptocurrencies, and so on.  

There are trade-offs between payment modes to bear in mind: some options charge low fees but take longer to transfer funds, whereas others may be fast but less secure. You should always consider your needs and choose a suitable option accordingly.

Why Invest in Ethereum Classic?

2021 is proving to be the year of cryptocurrencies. First of all, large institutional investors have decided to join the space, which has helped push the entire market capitalisation over $2 trillion for the first time ever. This embrace by institutions is also inspiring confidence among retail investors who don’t want to miss out on the action. Expect to see the price of digital assets continue to grow over the year. Ethereum Classic’s current ROI of about 1900% seems impressive, but it looks like this asset has plenty of room to grow further.

Summary of Investing in Ethereum Classic

By following this guide, you should be able to enter into ETC investment with ease and make the most of the opportunities this digital asset offers. Ensure you secure your account, acquire a private wallet, and keep your login details secret. You can also combine the various investing strategies we have covered in order to make some profits from trading, or if you are a ‘hodler’, ensure you move your tokens to a private wallet every time you make a purchase. 

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