Learn Where & How to Buy Ethereum Classic (ETC) - A Beginner's Guide
Ethereum Classic is the original network that was launched by Vitalik Buterin in 2015. It is known as Ethereum Classic as some of the early developers and community members weren't in favour of correcting a technical error through a hard fork. The native cryptocurrency of the network is known as Ether or ETC. Currently, Ethereum Classic has a very loyal community that supports and contributes towards the platform. You can either go to crypto exchanges or brokers if you are looking to buy or sell ETC.
Keep in mind that if you are a long haul investor, you will need to have a cryptocurrency wallet, either hardware like Nano Ledger X or a software one such as Atomic Wallet to ensure your funds are safe.
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3 Things to Consider Before Buying Ethereum Classic
Loyal & Dedicated Community
Ethereum Classic has very loyal community support as the developers and software engineers along with the token backers have remained true to the cause since the project's inception. Despite the founder siding with the hard fork variant which is now commonly as Ethereum, the community around Ethereum Classic remains committed. This means that from a technical standpoint, the developers will continue to build and grow the ETC network and its token.
We all know how volatile the crypto market can be. That being said, ETC, in the last six months or so, has remained quite stable as compared to mainstream cryptocurrencies like BTC making it a perfect investment option for both short and long-term traders. Less price volatility means that there is a decreased risk of losing your money. However, you should keep in mind that there's nothing 100% guaranteed when it comes to any token including ETC.
It is interesting to note that even after all these years, the number of circulating ETC tokens is around 120 million. It means that there are almost 90 million tokens left that haven't been mined as of yet. As the supply grows and the crypto market expands, even more, it can also have a price impact on ETC tokens.
Where to Buy Ethereum Classic in 2021?
You can't just go ahead and start investing in Ethereum Classic or ETC. Prior to investing in any cryptocurrency, you need to learn different strategies and identify the one that suits your needs. Maybe you simply want an asset that you can hold on to for a long time or you just want to short a token that can maximise your profits in the short run. The intent behind investment determines which strategy you should go for.
If you simply want to earn a passive income to support your primary earnings, you are a short term investor and you need to find a cryptocurrency broker. You don't need to own the ETC tokens as you can simply buy financial instruments of ETC such as CFDs that are quick and more convenient to use for short term investment purposes. This way you won't have to deal with all the issues associated with owning ETC.
On the other hand, if you are a long-haul investor who is searching for a crypto asset, then you need to own the ETC tokens. Instead of going to a broker, you will need to find an exchange that directly sells crypto coins. This way you will be able to own and hold ETC coins so you can sell them whenever you want. You will also need to have a dedicated wallet to hold your coins in a secure manner.
Our Tutorial to Buy Ethereum Classic in 5 Steps
You now have developed a basic understanding of investment strategies. Let's find out how you can go about investing in ETC and other cryptocurrencies.
Step 1: Find an Appropriate Platform to Buy Ethereum Classic
Now that you know what kind of investor you're going to be, you need to identify a broker or an exchange that will meet your needs in the best way possible. What you need to do is evaluate the user-friendliness of the platform, cost and fee structure, customer care, available payment modes and user feedback to find out whether the platform you are leaning towards offers the combination of features you are interested in. Make sure you scour the internet to check all the reviews to ensure the reputation of your preferred broker or exchange.
Step 2: Registration/Create a New Account
Once you have chosen your platform, you need to sign up to make your own account by providing basic information such as name, phone number, email and password. It is recommended that you go with a regulated broker or exchange. They will verify your personal identity through official documentation but they will also prove to be safer and more secure when it comes to your personal and financial information along with your ETC tokens.
You can always find unregulated crypto platforms on the internet if you prefer anonymity above everything else but they can be quite risky as they are not bound by any laws.
Step 3: Deposit Funds
Once you are done making your account, the one final step, you need to take before you can invest, is making your deposit. This will act as your working capital for buying financial instruments of ETC or directly purchasing the coin. You can choose from many payment methods including credit and debit cards, bank transfer and other e-payment methods. Make sure that you choose the one that offers the right balance of affordability and convenience.
Also bear in mind that many cryptocurrency platforms have a minimum deposit limit which means that you have to deposit a certain sum prior to investing. For example, Skilling's minimum deposit ask is $100 while Pepperstone doesn't ask for any deposit at all.
Step 4: Start Trading or Buying Ethereum Classic
Going through all the above steps means you are now ready to invest in Ethereum Classic or ETC. Short term traders will be buying financial instruments like CFDs of ETC on their chosen brokerage website while long term investors will purchase and own ETC tokens directly so they can hold them for as long as they want. If you are just a trader who wants secondary income, you should go with a broker since it's easy and more affordable to buy and sell financial instruments as you don't have to deal with all the issues associated with owning ETC tokens.
Moreover, there are some platforms like eToro that have positioned themselves as both crypto exchange and brokerage websites. You can carry out all types of investment activities from this platform.
Step 5: Optional Steps
After you have purchased ETC tokens, there is a multitude of options available to you. Some are mentioned below:
- Move assets to a wallet:
Short-term investors don't need to deal with this issue but if you're a long-term investor, you should find a dedicated wallet to store your ETC coins in a secure manner.
- Participate in mining:
If you have trust in Ethereum Classic and what the network stands for, you can transfer your ETC coins to certain wallets to support the Ethereum Classic network.
- Sell high, rebuy low:
The best strategy to go with is buying low and selling high which is easier said than done. You'll need to keep an eye on the price movement. Do not invest when the price is bullish and is going through a surge. Let the price correct itself and when it comes down, it's your time to purchase. Always manage your risk. One way to do so is by diverging your capital towards more than one cryptocurrencies so you aren't putting all eggs in a single basket.
Available Payment Methods for Buying Ethereum Classic
There are many payment methods accessible to all types of investors offered by a wide range of crypto exchanges and brokers. The leading payment methods are listed below:
- Buy Ethereum Classic with Cash
If you want to buy Ethereum Classic with cash, you need to find the closest ETC teller or ATM. You can use the CoinATMRadar.com website to identify the location of the closest ETC ATM for buying ETC coins.
- Buy Ethereum Classic with Credit/Debit Card
You have the option to rely on your bank card i.e. debit or credit card to purchase Ethereum Classic as almost every crypto platform offers that option including Coinmama, eToro, Binance and Coinbase.
- Buy Ethereum Classic with Bank Transfer
For buying Ethereum Classic tokens with bank transfer, you first need to find out whether your chosen platform supports the payment mode in your country. Our recommendation is to go with Coinmama as they offer the widest coverage and support practically all countries.
- Buy Ethereum Classic with Cryptocurrency
- Buy Ethereum Classic with PayPal
While all types of investors would love to have PayPal as a payment mode for purchasing ETC, currently, it hasn’t been made available in many countries except the US because of regulatory compliance issues.
What Are the Fees for Buying Ethereum Classic?
That depends on where you live, what platform and payment mode you choose, and how much ETC you're going to buy. Bank transfers are quite affordable with charges being less than 2% while credit or debit card payments can set you back up to 7-8% of the total order amount. Make sure that you know your charges and expenses related to deposits, withdrawals and transactions so you can maximise your profits as an investor.
Expert Tip to Buy and Sell Ethereum Classic
If you are an emotionally-driven investor, you tend to lose more than you can win. This is why it is important for investors to be rational and level headed even when they have missed an opportunity. Keep reading the news, do your homework, listen to the experts and observe price movements to ensure that you are making an informed decision about buying ETC and not just shooting in the dark.
How to Find the Best Time to Buy Ethereum Classic
The best time is when the price of ETC coin can no longer go any lower. How will you know that? Well, you wouldn't know that for sure ever but you can get really good at predicting when the price has reached the floor. Keeping an eye on price charts, how it moves, and reading news and articles can help you develop a keen eye for identifying the moments where investing in ETC tokens can be highly profitable.
What Drives the Coin's Cost?
As Ethereum Classic is a decentralised platform, it doesn't have any central organisation or authority that has influence over the price of ETC. The only factor that matters, in the end, is supply and demand dynamics which can be influenced by many market forces including opinions of cryptocurrency analysts, political developments, strict or lenient regulations and new innovations.
How to Sell Ethereum Classic
Once you think that the price can’t go any higher, you can sell your ETC tokens to make your profits. There are more than one ways to do so:
- Cryptocurrency Exchange – For long-haul investors who own ETC tokens, they will need to rely on an exchange to sell their coins.
- Trading/Broker Websites – For short term day to day traders who just have the CFDs or other financial instruments, they can sell them off on their preferred broker website.
- Peer-to-Peer (P2P) Network – Those investors who own ETC tokens but don’t want to sell their coins on an exchange can also use P2P networks which are neutral marketplaces that connect crypto buyers and sellers.
Not at all. Ethereum Classic is one of the most decentralised networks out there that even refused to go down the path of a hard fork since the community believed it undermines the authority of code.
ETC tokens aren’t the most popular digital currency but there are websites that accept it as a valid currency.
If you have invested in ETC and have a dedicated wallet, your assets will remain secure.
The cryptocurrency market is still in its infancy and there are no clear winners yet. Ethereum Classic has lasted for years so it’s not really past that point.
It depends on the investor, his or her strategic ability and the amount they are investing.
Once again, this is a question you will need to answer yourself by looking at your country tax laws. Most countries don’t have any regulations around cryptocurrency or its trading.
Only market forces such as demand and supply are driven by social, legal, technical and political developments.
Nobody can guarantee that your investment will lead to profits. However, Ethereum Classic is unlikely to fail as it has a robust community of developers and financial backers.