Ethereum Classic trading
In This Article
Ethereum Classic is essentially the same as Ethereum when one compares the smart contract allowing developers to build and support decentralized applications or Dapps. Ethereum Classic tradinghas found its footing with the traders.
What Makes Ethereum Classic Unique?
The main goal of Ethereum Classic is to preserve the Ethereum blockchain as originally intended, without using artificial means to block the DAO hack.
Although many disagreed with Ethereum’s response, now its fanbase has been ever-increasing and appealing to even Greyscale, a significant cryptocurrency investment firm.
Being a voluntary organization, the developers of Ethereum avoided turning the network into a profitable entity. As with Ethereum, transaction fees are paid by users. As with PoW mining, the transaction fees are collected by miners depending on the work that has been completed.
While several developers continue to work on upcoming enhancements like scaling solutions, Ethereum Classic, unlike Ethereum, has no intentions of switching to a proof-of-stake (PoS) mining algorithm.
How Is the Ethereum Classic Network Secured?
Although proof-of-work is used to secure the Ethereum Classic network, because of its minority chain, it has experienced many attacks.
These include 51% attacks, the most recent of which occurred in August 2020, to seize control of the mining hashrate, carry out erroneous transactions, and double-spend money.
What is Ethereum Classic (ETC)?
Ethereum Classic (ETC) is the product of the hard fork Ethereum (ETH) launched in July 2016. Its primary role is that of a smart contract network, which may host and support decentralized apps (DApps). It uses ETC as its native token.
Since its inception, Ethereum Classic has attempted to set itself apart from Ethereum as, with time, the technology roadmaps of the two networks started to diverge more and more.
Following a significant hacking incident in which 3.6 million ETH were stolen, Ethereum Classic first set out to protect the integrity of the current Ethereum blockchain.
How does Ethereum Classic work?
Ethereum Classic trading works quite similarly to Ethereum, as it relies on a blockchain that is not just designed to replace payments but also allows the creation of smart contracts and apps with the help of which users can own, transfer and interact. In addition, enabling Turing Complete programming languages allow developers to create automated apps that conditional outcomes can control.
Like any other blockchain, a complete record of transaction history is maintained in a shared database. Along with user balances that may be transferred digitally to another user’s wallet, it also maintains a record of the most recent status of any smart contracts supported by the blockchain. The entire activity is based on ERC-20 tokens through the Proof of Work procedure, which can be mined. However, it will not receive the Ethereum 2.0 update due to the split.
Why are traders interested in Ethereum Classic? What is it?
A decentralized blockchain-based platform called Ethereum Classic is intended for executing smart contracts. This distributed network includes an ETC coin native cryptocurrency, a strong ecosystem of applications and services, and a blockchain ledger.
Ethereum Classic hosts a wide range of decentralized applications and protocols, constantly expanding this collection. They are designed to operate continuously, free from censorship, outside intervention, and downtime. Without intermediaries like banks and financial organizations, ETC Classic enables the management of digital assets.
The initial Ethereum chain is continued by the cryptocurrency ETC. The hack on Ethereum’s Decentralized Autonomous Organization (DAO) in 2015, which led to the loss of 11.5 million Ether, or about $50 million, was the direct cause of the split.
Due to the hard fork of Ethereum, Ethereum Classic came into existence. Then, Ethereum Classics became utterly independent and started acting separately from Ethereum.
Ethereum Classic trading hours
You can trade Ethereum Classic CFDs 24 by seven on Blockchain Tradein.
How to invest in Ethereum Classic CFDs
You have the option of either owning Ethereum Classic by buying them straight from the exchange. This can be considered a long-term investment as the price of Ethereum Classic is bound to rise, and then you can sell them for a substantial profit.
However, there is an alternative where you can opt for a contract of difference or CFDs of Ethereum Classic cryptocurrency so that you can trade by speculating on its price difference. A contract of difference is a financial instrument where a broker and an investor agree where one party promises and pays the other the difference in the value of Ethereum Classic between the opening and the closing price of the trade.
You can enter a long or short position depending upon your speculation that the price of Ethereum Classic might increase or decrease. Then, you make a profit or a loss depending upon the outcome of the price trend. If your speculation is correct, you make a profit or a loss.
There is a critical difference between buying Ethereum Classic and trading a CFD in a crypto market. When you purchase Ethereum Classic, you can store it in a wallet, but when you choose Ethereum Classic CFD, it is placed on an account that a financial institution regulates. Since CFDs are not tied to the asset, it is more liquid, as you have only purchased the Ethereum Classic authority. Furthermore, compared to other financial products, CFDs are more established and regulated.
Ethereum Classic Price Index
Although Ethereum Classic is a hard fork of Ethereum blockchain, a network that allows building solutions, in 2016, an Ethereum-based decentralized autonomous organization called “The DAO” suffered a substantial hack. A hard fork into two separate blockchains, each with its assets, was caused by the community’s dispute. By splitting off into a different blockchain and dialing that chain backward, one camp was able to undo the hack. Unfortunately, the opposing side used the Ethereum Classic blockchain, ignoring blockchain manipulation, and continued using the original Ethereum blockchain.
As the price of Ethereum Classic fluctuates, many people speculate on the price whether it will move up or down. When the price of Ethereum Classic is compared with Ethereum, the price of Ethereum has always been higher than Ethereum Classic.
History of Ethereum Classic
Originally the Ethereum blockchain was conceived as a single network facilitating transactions using the ETH or cryptocurrency Ether. However, the popularity of this new network rose very quickly during the initial coin offering, as different developers used the platform to pursue launching their tokens.
The DAO was one of the most successful ICOs, a decentralized venture fund wherein investors would choose investments. The DAO quickly accumulated more than 11 million Ether from roughly 18,000 investors before some hackers discovered a bug in the smart contract, which allowed them to withdraw about a third of Ether accumulated by The DOA.
As the hack was so massive, many investors suggested turning back the Ethereum blockchain to save the impacted investors, but others countered that doing so might pave the way for such bailouts in the future. Finally, 97% of the community decided to restore the lost cash through a hard fork following a hurriedly organized poll.
Thus, the Ethereum blockchain split into two distinct networks, with the new network named Ethereum using ETH or Ether as its cryptocurrency. In contrast, the older one called Ethereum Classic uses ETC.
As a result, two distinct networks were created on the Ethereum blockchain. The more recent network adopted the moniker Ethereum and employed the coin ETH or Ether. ETC is used by the earlier version, also called Ethereum Classic.
Concerns about Ethereum Classic
Even though Ethereum and Ethereum Classic offer the same contracts and compete in the same market, Ethereum is more popular than Ethereum Classic. Ethereum is so popular that it ranks second, next to Bitcoin in market capitalization, as the most valuable network globally.
The main concern with Ethereum Classic trading is the problem of scalability. Generally, the network can handle about 15 tractions per second compared to payment networks like Visa, handling about one thousand transactions per second. Unfortunately, even though Ethereum Classic has undergone countless software upgrades, the scalability problem persists.
Security is another concern that Ethereum Classic faces. The issue with the smart contract has experienced a colossal theft of millions of dollars. These issues may make it impossible for significant financial and real estate transactions to implement smart contracts via Ethereum Classic.
The development of cryptocurrency market regulations may or may not alter how Ethereum Classic and other networks function. Due to the decentralized network of Ethereum and Bitcoin, the Security and Exchange Commission (SEC) fails to recognize them as securities.
Although the SEC fails to recognize cryptocurrencies as financial security, many exchanges allow their trading along with other financial securities like stock, bonds, and ETFs like mutual funds. Thus it is difficult to predict what regulatory uncertainties are surrounding the Ethereum Classic and other cryptocurrencies.
Future of Ethereum Classic
Compared to Ethereum, Ethereum Classic does not have a bright future, as Ethereum is mostly the preferred cryptocurrency among the two, and its security concerns are more robust compared to Ethereum Classic.
Investors have lost faith in Ethereum Classic as hackers regularly targeted it; the only solution for Ethereum Classic is to redevelop the software that could deter future hacks. Nonetheless, only time will tell how the smart contracts within the Ethereum Classic project develop and how it affects its adoption rate globally.
How Is Ethereum Classic Different from Ethereum?
Even though Ethereum Classic and Ethereum have a value as speculative as any other digital currency that allows investors to trade, Ethereum is more preferred and widely traded. For example, the Chicago Mercantile Exchange (CME) in early 2021 approved the trading of Ether futures allowing only Ethereum and Bitcoins for transactions. The futures are derivative contracts based on an underlying asset’s fixed price and maturity date. Not only do Ether futures allow investors to trade for speculation, but they also allow them to hedge an outstanding position of Ethereum or even other cryptocurrencies.
There is a stark contrast to how the investment community views both Ethereum and Ethereum Classic and how they indulge in terms of investment. When you compare both the cryptocurrencies in terms of market capitalization, then Ethereum is the clear winner, as it is the second most ranked crypto after Bitcoin in terms of market capitalization and daily traded volumes. Ethereum Classic is nowhere near it. The market capitalization of a cryptocurrency is determined by multiplying the current price, which is based on a fiat currency like the US dollar, with the total number of tokens or coins in circulation.
At the time of writing this article, the total coins of Ethereum Classic in circulation are roughly 135.6 million, and the price of each token is trending roughly at $15. Compare this to Ethereum, with a rough total of 120 million and the price of each token roughly trending at $1,200.
Even though both networks offer smart contracts, the inherent shortcomings of Ethereum Classics are pretty apparent as it is prone to frequent hacks, and the adoption rate of Ethereum is relatively high compared to Ethereum Classic.
Goals of Ethereum Classic
Since the split, the Ethereum Classic project has undergone various upgrades and improvements. The goal of the Ethereum Classic project is to use smart contracts to become a global payment network without involving centralized governance.
Nonetheless, Ethereum Classic, like any other cryptocurrency, will continuously strive to be a digital store of value. In other words, it will retain its value even when it is saved or exchanged with another asset, like any other fiat currency.
After Purchasing Ethereum Classic, What Should I Do?
Ethereum Classic can be used in the following:
- Storing and holding Ethereum Classic: Many users hold on to their Ethereum Classic, assuming that the price will be appreciated soon. You can save your Ethereum Classic on the Blockchain Tradein wallet safely and securely. It is a mobile-friendly wallet and can be accessed when you wish to trade or carry out any transaction.
- Ethereum Classic Trading:You can trade Ethereum Classic and other cryptocurrencies on a fast and secure trading platform offered by Blockchain Tradein.
- Earning Ethereum Classic: You can earn rewards by staking cryptocurrency coins. So instead of your coins remaining ideal in your wallet, try staking them as it assures a great way to maximize your holdings.
- Sending Ethereum Classic: Blockchain Tradein allows you to transfer Ethereum Classic online throughout the globe.
- Spending Ethereum Classic: More and more vendors and retailers are accepting Ethereum Classic daily.
What Exactly Is Ethereum Classic Trading, and How Is It Distinct From a Regular Purchase?
If you are considering investing in Ethereum Classic, you have two options: either buy and hold them for a long time or trade on the underlying asset’s value.
If you opt for Ethereum Classic, you will buy it at a low price and hold on to it for a long time. Then, once the price of the Ethereum Classic appreciates, you can sell them for a profit.
In addition, some exchanges allow you to take a loan against your Ethereum Classic as collateral.
The second option exposes one to the same volatility risk that the Ethereum Classic enjoys without the need to own the underlying asset. You can exercise these trading strategies through the derivatives that are offered. Remember, these derivative products allow for a short-term method of profits.
Ethereum Classic brokers generally have three options for the traders:
Contract of Difference (CFD): A contract between a broker and a trader allows the trader to take a position on a future price of Ethereum Classic. This contract has a future expiry date on which the contract ends or closes. A strike price is the price of the Ethereum Classic agreed between the trader and brokers. A spot price is the price of the Ethereum Classic on the expiry date.
If the trader speculates that the price of Ethereum Classic will increase at the end of the expiry date, and if the spot price of Ethereum Classic is above the strike price, then the trader makes a profit.
If the trader speculates that the price of Ethereum Classic will fall below the strike price and the spot price falls below the strike price, the trader makes a profit.
However, if the trader speculates that the price will rise and the spot price is below the strike price, the trader loses. And if the trader speculates that the spot price will fall below the strike price and if the price rises above the strike price again, the trader loses.
Futures: There are contracts between the trader and the broker that are binding agreements to buy or sell Ethereum Classic at a pre-decided price and a pre-decided date.
Options: This contract is similar to the Futures, but the traders are not obliged to buy or sell Ethereum Classic if the trade does not go as speculated.
Where Can I Trade Ethereum Classic?
There are several ways for you to trade in Ethereum Classic.
Online Brokers: They offer online trading platforms where you as a trader can speculate the price of Ethereum Classic. There are a few brokers who also provide derivative products.
Advantages of trading Ethereum Classic through brokers: Brokers allow the quickest and the easiest way to trade Ethereum Classic without the need to own them. As a trader, you can quickly trade with the help of derivatives instead of owning them and waiting for the price to appreciate.
As a new trader, you must be aware that there are a lot of bogus online brokers, and you should avoid them. Always go through a regulated broker as you are assured that you can be compensated should the said broker breach any contract.
Other advantages like offering various tools such as leverages that allow you to maximize trade potential and other tools like stop-loss, which helps mitigate losses.
Derivative Exchanges: Online exchanges were mainly used for buying and selling digital currencies in the early years of the cryptocurrency boom. Since then, exchanges have expanded their services to include trading in derivatives.
Advantages of trading Ethereum Classic through Exchange: Although brokers are an excellent choice for trading Ethereum Classic derivatives, exchanges also offer such services. Furthermore, instead of providing advanced features as brokers do, they offer higher leverages than brokers.
Exchanges allow the traders to buy Ethereum Classic rather than trading derivatives. They offer a variety of cryptocurrencies which translates to more deposit or withdrawal methods for users. The more the cryptocurrencies, the more the chances of pairing options available for the traders.
Furthermore, it is easier to use trading platforms offered by the exchanges against brokers. Some exchanges are known to offer demo accounts that allow beginners of cryptocurrencies to trade with virtual money instead of real money.
Our Step-by-Step Guide on Ethereum Classic Trading
As a newbie trader, it would be challenging for you to carry out trade as easily and successfully as a seasoned trader. However, we have compiled specific steps to help you identify and exploit the cryptocurrency market when the opportunity arises.
Combining Fundamental and Technical analysis:
Speculating the cryptocurrency market is challenging as it is highly volatile, and price trends can reverse quickly.
However, combining the Fundamental and Technical analysis can surely mitigate substantial loss.
Fundamental analysis involves assessing industry news and the latest technological developments that could further impact the success of Ethereum Classic. In addition, this method allows the trader to evaluate the intrinsic value of Ethereum Classic. Fundamental analysis can be derived from the following sources of information.
News: Any news regarding the latest development in Ethereum Classic projects or any other cryptocurrency can heavily impact price trends in the crypto market.
Active addresses: The number of active addresses on the network can be used as a gauge for network usage. While it’s not a trustworthy statistic, it can nonetheless disclose details about network activity that can affect how much you value Ethereum Classic.
Network value-to-transactions (NVT) ratio: The NVT ratio makes an effort to determine the network’s value based on the amount of money exchanged. It is derived by dividing the daily transaction volume by the network value. You can determine from the outcome whether an asset is undervalued or overvalued. A smaller ratio indicates an undervalued asset and vice versa.
The technical analysis comprises the historical performance of Ethereum Classic to identify and predict the next price reversal trend. There is a pattern in the price trend changes. Traders use this information to make a profit. The data is represented in the form of charts and diagrams. This helps the trader identify the circumstances that caused the reversal of the price trend or propagated the price trend.
Moving averages: To calculate the average price of Ethereum Classic for the data set, moving averages employ data from a predetermined period. The equation’s objective is to understand trading charts and identify patterns.
Relative Strength Index: The Relative Strength Index is a momentum indicator that gauges the size and rate of price changes. The calculation subtracts the average loss from the average gain price over a specified period (14 days by default), then shows the results on a scale from 0 to 100.
Bollinger Bands: The Bollinger Bands oscillator indicator shows if the market is experiencing high or low volatility. They are made up of an upper, middle, and lower band that respond to price movement in the market. They are used to determine the distribution of prices around an average value.
Combining these analyses is a good idea to speculate on the next price trend as you are speculating the underlying asset price based on research rather than a gut feeling that can lead to substantial losses.
Choosing a trading strategy:
A successful trade boils down to what trading strategy you have employed. There are several trading strategies for you to choose from; we have listed a few of the popular ones.
Day trading: With this strategy, a trader can make multiple daily trades to make a profit. The trader observes the market, opens up a position, and closes when the trend reverses or makes a substantial profit.
News trading: Cryptocurrencies are extremely sensitive to news that floats around the social media platform. Any news regarding the latest development of cryptocurrency, celebrities expressing their opinion about crypto, and so forth impact the cryptocurrency market’s price trend.
Hedging: By adopting an opposing stance, hedging is a tactic to counteract losses and lessen risk exposure.
Swing Trading: Swing trading requires careful monitoring of any market trend corrections. Persistent watchfulness is necessary to spot the early warning indications of a “swing” that will trigger the market to correct itself. Unfortunately, such occasions don’t come around very frequently.
Scalping: It is similar to day trading, but instead of holding a position open for a long time, the Scalper will close the position within minutes. They carry out successive multiple trades making a profit by little change in price trend.
Selection of an appropriate trading platform:
Before starting to trade, you need a trading platform that runs smoothly and does not frequently keep on buffering. Since the entire trade depends upon timing, the chances of you losing a window of opportunity to make a profit due to buffering or low connectivity can be quite frustrating. No matter how many features the platform has, if it hinders your trade, then such a platform is useless.
Before you even think of trading Ethereum Classic, make sure to choose between a broker and an exchange. Opting for brokers is a good choice for experienced traders as they have smaller fees while offering larger trade volumes with advanced tools and derivatives.
If you are a beginner, you might as well opt for an exchange, as they are simpler to use and offer huge leverages for a potential profit. In addition, such platforms are better suited for beginners with high-risk profiles.
No matter which trading platform you settle for, choosing brokers or exchanges registered and compliant with the financial regulator is in your best interest. These agencies protect and offer reimbursement to you against scams or bankruptcy. Scammers who offer bogus trading platforms are unregulated, they are more likely to scam you.
We are a well-known wealth development business that fervently believe everyone has the right to enhance their fortune. And investing in the bitcoin market is the quickest way to increase your income.
We have clients worldwide who connect to and keep their portfolios up to date on strong servers that adhere to security rules imposed by the regulatory bodies. As a result, a data breach is quite unlikely because we believe in protecting our clients’ privacy.
We guarantee that any client at any time zone may connect with us and receive assistance for their problems thanks to our committed customer service.
Why choose us?
- Our team of committed wealth managers is prepared to manage your portfolio and execute trades on your behalf to maximize your wealth.
- Our experts frequently communicate with our wealth managers, who offer their trading advice and help our experts produce well-researched articles for your benefit.
- No trade will be conducted without your consent and awareness since we avoid under handling and ensure transparency while trading.
- Your trading experience will be enjoyable, thanks to our user-friendly trading platform.
- We have a committed customer support team available round-the-clock.
Frequently Asked Questions
The minimum order size of Ethereum Classic you can buy or sell is 0.00000001 Ethereum Classic, which can be traded on Blockchain Tradein.
As such, there are no trading fees charged while trading Ethereum Classic. However, there are charges on the spread while trading. If you wish to know more about the trading Ethereum Classic, then contact us on Blockchain Tradein for more information.
The withdrawal fee for Ethereum Classic is 0.005 ETC. Contact Blockchain Tradein for more information.
Ethereum Classic can be traded throughout the year, in other words, 365 days a year, seven days a week, and 24 hours a day. The only time you cannot trade is during server maintenance.
You will need a place to store it before even buying Ethereum Classic. You can store your coins on a digital wallet with two elements; a private key and a public address. You can access the digital wallet through a private key. The public address is also your wallet address.
When someone wishes to send Ethereum Classic to you, that person will send them to your public address, your digital wallet. And when you want to send some Ethereum Classic to someone, you access your coins through a private key and send them across their public address, which is their digital wallet.
Ethereum Classic, or any cryptocurrency, can function as a secure medium of trade thanks to the wallet. In essence, individuals can access their private key and send Ethereum Classic to specific wallets using the public key. In addition, many crypto exchanges provide mobile apps that make it simple for users to purchase, trade, and spend cryptocurrencies. However, some consumers decide to retain their coins in the exchanges’ wallets.
You do not need a huge amount of money to trade Ethereum Classic. You can even start trading Ethereum Classic as low as 0.1 ETC
Ethereum Classic is a cryptocurrency and has fluctuations in its price. Although the price is relatively stable compared to the other cryptocurrencies, it is prone to cyber-attacks.
It depends upon the trader’s point of view. Although the function and usability of Ethereum Classic and Ethereum are the same, including building a smart contract, Ethereum is more popular and has a high adoption rate compared to Ethereum Classic.
Yes. Before you start trading Ethereum Classic on Blockchain Tradein, or any other coin for that matter, you will have to complete your verification process.
Get on with ethereum classic trading today! Sign up with Blockchain Tradein.