The Ultimate Guide to Trading Ethereum Classic With eToro
A hack by a third-party project in 2015 forced a split or hard-fork to be performed to secure the Ethereum network. This created a newer blockchain called "Ethereum", leaving the "Ethereum Classic" to maintain the original characteristics of the network.
As the result of the split, both the Ethereum and Ethereum Classic became two totally different cryptocurrencies which are both available for trading on the eToro online investment platform.
Simply say: Ethereum Classic is a decentralized, open-source, blockchain-based distributed cryptocurrency platform running smart contracts. "Smart Contracts" was developed based on the principles of "Code is Law". Smart Contracts are described as self-executing independent digital applications, capable of processing on their own as programmed. Such examples of smart contracts are the Bitcoin system and ATM machines.
If you're considering investing on Ethereum Classic right now, then you better visit the token's trading page on eToro and get started. Should you wish to continue, just create a new account and don't hesitate to explore all of the platform's features.
78% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
History of Ethereum Classic
The Ethereum Blockchain was originally developed as a singular network that processes transactions using its native currency the ETH. In July 2016 though, the Ethereum blockchain was hacked causing $50 million worth of funds to be stolen. To safeguard the network, the governing council of the Ethereum community, the Ethereum Foundation decided that a hard fork or split is needed to be performed.
Emerging from the division are two different cryptocurrencies: the Ethereum, which is the newer network using the ETH token and Ethereum Classic, which uses the ETC as its native currency.
How Does Ethereum Classic Work?
Developers and crypto purists describes the Ethereum Classic platform as:
"...one of the purest decentralized projects in the cryptocurrency space."
The main reason for this bold claim is due to the assertion that its protocol has remained untampered since its creation.
ETC's blockchain operates as a smart contract engine by supporting the implementation and creation of smart contracts.
Proof of Work (PoW) is the mechanism used by miners in validating transactions made in the network. For every validated transaction, miners are rewarded with ETC and the information about the transaction is saved in a new block. These new blocks come after the earlier ones. It is then secured by unique cryptography algorithm links into single chain of blocks.
How the ETC Gets Its Value?
The chief purpose of the Ethereum Classic or the ETC token is to operate and maintain the ETC network. Users provide value to the cryptocurrency by participating or engaging in various transactions on the ETC network. Earning ETC allow users to make transactions on the network, use smart contracts, interact with dApps and participate in community and governance decision making.
What Makes ETC (Ethereum Classic) Different from the Others?
Probably the most popular blockchain hard fork creation in the history of cryptocurrency, Ethereum Classic has its unique ideology even different from Ethereum itself and most blockchains. Remaining immutable, the ETC also provides a permanent Proof-of-Work validation method for its users.
ETC Coins Circulation
To date, Ethereum Classic has a current circulation of more than 130,600,000 and a total maximum supply of 230 million tokens. The cap on the total supply is expected not to increase. ETC tokens are earned by miners who secure, maintain and manage the network.
Bear in mind: Staking is not supported in ETC. Instead, the Proof-of-Work (PoW) consensus akin to Bitcoin's is utilized.
Key Differences Between Ethereum Classic and Ethereum
Ethereum Classic utilizes the Proof of Work (PoW) while Ethereum implements a Proof of Stake system. Another integral difference is the circulation of its native coins. ETC opted to follow Bitcoin's example by setting a hard cap 230 million tokens while the ETH's circulation continues expanding new Ethers without any limit set on how many ETH can be mined in the future.
Types of Investors Who Could Be Interested in ETC
Cryptocurrency traders: Despite being an offshoot of the newer and more popular Ethereum (ETC), ETC remains as among the top 10 cryptocurrencies in the world today.
Forex traders: A growing number of foreign currency traders are now using cryptocurrency as buffer or a hedging tool in instances of market volatility.
Day traders: The high volatility of ETC especially in a 24-hour period, makes it an appealing option among day traders looking to capitalize on wild price swings.
Blockchain enthusiasts: One cannot be a full-fledged crypto enthusiast without taking a serious look at ETC as an investment option.
How to Trade or Buy ETC?
The easiest way to buy and invest on ETC is through a broker or a trading platform. Especially useful for those beginning to invest on cryptocurrencies are trading platform apps like eToro that allow investors to trade on stocks and cryptocurrencies via the Contracts for Difference (CFD) trading method.
How to Trade Ethereum Classic (ETC) on eToro?
On your eToro dashboard, click "Discover".
Scroll down to look for "ETC".
Click "Buy" and set the amount you want to invest.
"Click "Open Trade".
Future of Ethereum Classic
Ever since the hard fork, the wheels of Ethereum Classic remain on the road to become the world's main payment network using smart contracts even without the need for a centralized governance.
Another plan by the community is to turn the ETC as one of the strongest crypto that can be used in most purchases by increasing its buying power and to also allow it to be converted into cash or any other asset—the same way one can do with a physical money.
Are you interested now to trade Ethereum Classic?
Most likely, you are. There's really no need to go anywhere if you want to get started. All you have to do is click on the button below and this will take you to eToro's ETC trading page where you can explore the platform and quickly open an account.
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.
Copy trading is a portfolio management service, provided by eToro (Europe) Ltd., which is authorised and regulated by the Cyprus Securities and Exchange Commission.
Cryptoasset investing is unregulated in some EU countries and the UK. No consumer protection. Your capital is at risk.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.