Introduction to Ethereum Classic
You might have heard about Ethereum Classic if you are familiar with the world of cryptocurrency. There are many different types of cryptocurrencies and it turns out that Ethereum Classic actually is considered to be one of the most active when it comes to trading. It also has some of the largest network activity on the blockchain when compared to dozens of other popular cryptocurrencies.
We are going to take an in-depth look at several important details and topics that relate to Ethereum Classic. It is important to understand the fundamentals of this cryptocurrency before trying to break it down into various categories. We will start by exploring the basics before proceeding into some of the more important topics.
What is Ethereum Classic all about ?
What is Ethereum Classic all about ? That is a tough question to answer without first explaining some of the difference between it and other cryptocurrencies like Ethereum. We will start the following section by taking a direct look at the comparison between these two reputable cryptocurrencies. They obviously share the name of Ethereum in their title but we will explain how Ethereum Classic became connected with the name of Ethereum.
Ethereum vs Ethereum Classic
Ethereum | (Ethereum vs Ethereum Classic)
Ethereum as a system officially released five years ago in July of 2015. The idea was to use a smart contract system to establish one of the largest cryptocurrency networks in the entire industry. Ethereum is currently only second-place behind powerhouse Bitcoin in terms of the market cap metric.
The popularity of Ethereum cannot be questioned but there was one significant problem that popped out in 2016 that would case Ethereum to change forever. It would be incredibly challenging to explain all of the inner-workings of the Ethereum and every little technological system that is in-place to keep it operating appropriately. With that being said, we are going to focus on the basics and important details that are connected with this significant 2016 event.
In 2016, a major exploit was used to hack $50 Million Dollars. The glitch existed within The DAO’s smart contract software and it resulted in an event known as a hard fork. The original blockchain evolved into the name Ethereum Classic and the new Ethereum Blockchain was recognized as Ethereum.
Ethereum Classic | (Ethereum vs Ethereum Classic)
Ethereum Classic is still considered to be the original Ethereum Network, even after the hard fork took place as a response to the multi-million dollar hack in 2016. It uses the same open-sourced smart contract scripting design that Ethereum uses but has the slightly different name due to the events of 2016.
There are several other minor differences that separate these two cryptocurrencies but they are basically considered to be siblings in the world of crypto. They both have their own respective symbols that are used for trading markets and Ethereum Classic uses ETC, while Ethereum uses ETH.
What is Ethereum Classic worth?
The value of Ethereum Classic is currently determined by crypto trading markets where millions of users have the opportunity to buy and sell Ethereum Classic through crpytocurrency exchanges and markets. The value is generally determined by supply and demand but the price of Ethereum Classic has recently followed some of the other major cryptocurrencies in the market.
Ethereum Classic (ETC) might still inherit the original network but it trades for significantly less than Ethereum (ETH) does. As of September 25th, 2020, Ethereum Classic trades at a market price of $5.40. Ethereum comparatively trades at a value of $355.40.
Ethereum Classic currently has the 31st largest cryptocurrency market cap in the entire industry at $627 Million. There are still 116,300,000 ETC in regular circulation and these metrics have a significant impact on the active trading price for Ethereum Classic.
This might seem like of a lot of different market statistics and numbers that can be extremely confusing for the average person. The fact of the matter is that Ethereum Classic is currently valued a market price of $5.40. The price is always moving based on the traders within the market and there is no real way to determine what the value could be in the future.
Most cryptocurrencies will do well if Bitcoin does well. If Bitcoin made a new rally to all-time highs, then there is a fairly good chance that other cryptocurrencies like Ethereum Classic would also make a significant rally upwards in value.
How can you trade Ethereum Classic?
We are now going to take a look at some of the different ways that you can trade Ethereum Classic in the crypto market. There are several popular exchanges and platforms that you can sign-up for to start trading. These four platforms are some of the most popular options that you could use and a convenient list of pros and cons will be included for each platform to help you to compare your options.
Coinbase Pro is an exceptional crypto-exchange that supports dozens of the most popular types of cryptocurrencies. The really nice thing about Coinbase Pro is the fact that it has a great user-interface and tons of ways to deposit funds to make trades. Ethereum Classic is completely supported for trading and you can easily start as soon as your account passes the verification process.
This crypto-exchange has a reputation for great security. There is also an insurance plan that covers every single account on the platform if something does happen. The fee structure is based on ‘Maker‘ and ‘Taker‘ fees that fluctuate depending on the pricing tier of the trade.
The funding process can take a while because of the bank transfer time period that takes several business days. There are some alternative platforms that have instant deposits like Robinhood but they lack some other important features.
If you are looking for a low-fee crypto platform with a great user-interface and plenty of different types of crypto to trade, then you will definitely be a fan of the Coinbase Pro exchange.
- Low Fee Structure
- Great Interface and Website Design
- Plenty of Cryptocurrencies to Trade (Including Ethereum Classic)
- Extremely Secure Platform with an Insurance Plan
- The only coinbase platform that can be used for buing cryptocurrency with a self-directed IRA
- Lengthy Funding Process (No Instant Deposits)
Kraken is definitely one of the most popular exchanges for cryptocurrency. This platform sort of flies under the radar compared to some alternatives but it has an excellent reputation. The really nice thing about Kraken is that you know exactly what to expect. The entire exchange is extremely transparent in terms of fees, security, and crypto transactions.
It doesn’t really matter what your experience level is with trading when using Kraken. The platform is well-known for having new traders, average traders, and professional traders all using the same tools.
The security of Kraken’s crypto exchange is impressive. The 2-Factor Authentication system is used regularly to try and reduce fraud, hacking, and other security breaches.
The only problem with Kraken is that the servers seem to be really slow during peak hours of trading. Transactions can take many minutes to finalize and it can be extremely frustrating when this type of situation happens. This is still one of the best crypto platforms to use when trying to trade Ethereum Classic.
- Great for Traders of All Skill Levels
- Several Popular Cryptocurrency Markets
- Extremely Transparent Crypto Exchange
- Can open accounts in the name of a self directed ira llc
- Slow Verification Process
- Slow Servers during Peak Trading Hours
The really nice thing about Binance as an exchange is the fact that it is so easy to get started. You can transition from the registration process to the trading process in four simple steps. You simply fill in your personal details and sign-up for an account. At that point, you will need to pass the verification process to verify your account. Just like that, you are halfway there and you can fund your account through the third step. After your funds clear into your balance, then you can start trading and just like that you are ready to go on the Binance crypto exchange.
There are so many different assets that you can trade on Binance. There are dozens and dozens of popular crypto assets to choose from. Ethereum Classic can conveniently be traded on Binance with very little difficulty.
- Fast Registration Process
- Plenty of Crypto Markets to Trade In
- Great for Experienced Cryptocurrency Traders
- Not Ideal for Beginner Traders
- For customers in the US, not all states are eligible to use the platform
- Binance US doesn’t have as many cryptocurrency choices as the international Binance platform
Robinhood is highly-recommended for new traders that want to get started in crypto trading. They have a very limited list of tradeable crypto markets. Ethereum Classic is one of the supported currencies and it can be traded around the clock on the Robinhood website or on the mobile app. The high-quality mobile app is probably one of the best things about this platform. You can also trade stocks on weekdays because your Robinhood account will also allow you to do that if you wish.
Robinhood is great for beginners but there are a few major problems that prevent some people from trading on Robinhood. There are technically no up-front fees for trading cryptocurrency on Robinhood’s platform. The off-set margins on each transaction is where you really start to notice the indirect fees. You basically have to pay a few extra dollars per transaction to ‘lock-in’ your trade in the crypto markets. This is technically not a fee but it basically has the same effect.
Another problem is that you don’t actually get to withdraw the Ethereum Classic as a currency. You would never be able to do anything except trade Robinhood’s collection of Ethereum Classic. You don’t have the option to withdraw it to a digital crypto wallet or personal crypto wallet. For experienced crypto-collectors, this is a major problem. It might not be a problem for somebody that simply wants to trade Ethereum Classic on a safe and secure exchange and cash out their US currency on profits or losses.
- Easily Export and Download Capital-Gains Tax Documents
- Great Mobile App and Desktop Interface for Trading
- Great for Beginner Traders
- Robinhood Also Allows for Stock Trading on Weekdays
- Very Limited Crypto-Trading
- High Off-Set Margins
- Lots of Maintenance Time
In addition to these exchanges, BitIRA offers a service to invest in cryptocurrency. Allowing an IRA to grow returns tax free. They offer a free guide on how to safely and securely get started. They also offer many cryptocurrency investment options, including Ethereum Classic