5 Ways To Invest In Ethereum Classic In 2021
Ethereum Classic (ETC) is one of the leading open-source distributed ledgers that runs smart contracts. The 2016 attack on the original Ethereum blockchain network resulted in its formation in 2016. The decentralised Ethereum was split into Ethereum (ETH) and Ethereum Classic (ETC), with the latter being the original. There have been many upgrades to the Ethereum Classic project, branding it as a top decentralised global payment network with great potential. Its supply is capped. Due to these factors, investors who want to diversify their portfolios see this cryptocurrency as a good investment.
This tutorial guide will explain in detail how to invest in Ethereum Classic.
1. Trade Ethereum Classic
Trading through broker websites is one of the simplest ways to invest in Ethereum Classic. Short-term day-to-day traders with a few financial instruments like CFDs trade ETC on various online crypto brokers.
Since the price of Ethereum Classic fluctuates all the time, you can take advantage of the short-time changes and make money. The trader doesn't have to worry about managing software and purchasing a cold wallet. These hardware wallets are designed to store cryptos for the long term. They are secure but come at a cost. You can use hot wallets for a short period when using this approach. You can find and download a legit one for free.
Since it's a short-term trading approach, one shouldn't expect huge returns. For that reason, it's best for investors who are looking for secondary sources of income. Beginners can also find it appropriate due to the limited trading requirements. However, to avoid losing money, new traders need to start slow and learn how to trade crypto before investing a lot of money. At the same time, they should choose an ETC trading platform that protects their money.
Where to trade Ethereum Classic
Whenever you conduct a simple online search, you can discover plenty of Ethereum Classic trading platforms. You might also notice that their terms and conditions vary significantly. Moreover, some of them are in the business of stealing traders' money and personal information. For this reason, you need to do due diligence before joining a trading website. You should assess their payment options, customer service, transaction fees, withdrawal fees, user interface and compliance with regulatory standards. Moreover, you can visit independent review sites to see what their customers think about them.
We know that the process is time-consuming, and new traders might find it intimidating. Nonetheless, it's worth the effort. If you need help, we've reviewed the most popular trading sites to make the work easier for our readers. You can find the recommended broker that you can work with below.
2. Buy and HODL
The term "HODL" was derived from a misspelling of 'hold.' Investors typically use it to refer to the practice of buying and holding digital assets to make profits. Before traders adopt it, they should study and understand the conditions of the crypto market and the asset's history. The Ethereum Classic price is $76.42 at the time of writing this piece.
In 2013, an inexperienced trader hilariously talked about his intention to "HODL" Bitcoins coins irrespective of the prevailing changes in the crypto market. The price of Bitcoin rose from under $15 in January to over $1,000 by mid-December of the same year. Due to some market forces, it dropped to about $400 by 18th December, promoting the crypto trader to post about his trust in the buy-and-hold principle. The post went viral, and that's the origin of the usage of the misspelt word.
Buying Ethereum Classic
Investing in Ethereum Classic starts by buying the coin from places like a cryptocurrency exchange. Since we know you are interested in learning various ways of doing this and the best payment methods, we've dedicated some pages to guide you through this process. It's important to note that most payment methods depend on your residence and the trading platform.
You can find the relevant links below. After comparing the various payment methods, you'll be able to determine which of them meets your requirements.
- Buy Ethereum Classic
- Buy Ethereum with PayPal
- Buy Ethereum with Credit Card
- Buy Ethereum with Debit Card
3. Invest in Cryptocurrency and Blockchain Companies
Indulging in direct Ethereum Classic trading and investing is not for everyone. Some people need a helping hand, and the only best alternative is to find companies that have invested heavily in ETC or use blockchain technology. With the previous methods, you only capitalise on the success of ETC. In this case, you benefit from this and the success of the crypto/blockchain company.
Bear in mind that to successfully invest in the shares of these companies, you need the service of a crypto broker.
Where to invest in Ethereum Classic shares
A crypto broker will guide you throughout the investment process. The right one should have a detailed understanding of ETC and the crypto market. Any experienced broker with this kind of knowledge can help you to open a trading position.
Since getting an experienced crypto broker is essential for your success, you need to rely on the right factors to minimise the risk of losing money. Ensure the broker is regulated by national bodies and are registered for investment purposes only. They should comply with the regulatory requirements. Other factors to consider are security measures, operational costs, trading data and charts, and more.
We understand that finding the best regulator can be challenging. Some claim they are regulated by national and international bodies but don't understand important market metrics that could mean the difference between your investment success and failure. To help our readers, we've conducted research and found the right crypto broker. You'll find it below.
4. Become a Miner
One way of investing in Ethereum Classic is through mining since the network relies on a Proof of Work (PoW) consensus mechanism. Miners play a critical role in processing transactions and securing the network. In return, they earn rewards in the form of new coins.
After the Thanos hard forked at block 11,700,000, Ethereum Classic's mining algorithm changed from Ethash to Etchash. This means the traditional EThash ASICs and rented Ethash hash power can no longer mine ETC.
Moreover, Ethereum Classic's DAG file size has decreased allowing for ETC mining with 3GB and 4GB GPUs.
With the current mining difficulty of 169.654 T, you can mine one ETC within 1.5 days. This applies if your mining machine has a hash rate of 400.00 MH/s and consumes 750.00 watts at $0.10/kWh. Remember, the current block reward is 3.20 ETC. So, if you have the required equipment, you can become a solo miner. You also have the option of joining a mining pool, which is the best alternative.
You can find out how to mine ETC, including the best hardware for this purpose (miners currently rely on GPU machines). While not the easiest way to get income from your investment, mining can be a profitable venture if done correctly.
Where to Store Ethereum Classic
From the above, you can see that ETC's mining algorithm is an improved version of PoW. Miners use the computing power we've discussed above to solve complex mathematical problems. The first one to find the correct answers receives the block rewards. As a miner, you need a compatible wallet where you'll store your earnings. Find our recommended wallet for storing ETC below.
5. Become an Ethereum Classic Developer to Make Money
If you are looking for the most rewarding means to make money from ETC, you might need to consider becoming an Ethereum Classic developer. This option involves developing a new blockchain that uses ETC to power its network.
The first step to becoming an Ethereum Classic developer is learning computer programming languages that similar projects use. Some of these are C++, Python, and PHP. Besides, you should have a clear understanding of the needs of the crypto industry and meet them. Having these skills and the necessary resources will get you started with a launchpad to make huge sums of money without getting involved in the traditional ways of investing your money.
Expert Tip on When and How to Invest in Ethereum Classic“ Ethereum Classic is highly volatile like other cryptos like Bitcoin, Bitcoin Cash, Ethereum and Zcash. Nevertheless, you can take advantage of this. Many traders make a lot of money by speculating the price of ETC and purchasing the coin at the right time. When the price rises, they sell it and make a profit. To avoid losing your money, evaluate factors like the price, history and potential developments in the pipeline. There is no right or wrong time to invest in Ethereum Classic. As a general rule, base your decision on your understanding of the cryptocurrency market and Ethereum Classic. In case you don't have the required skills, considering investing in the shares of strategic ETC/blockchain-based companies. If that's not your thing, you can learn computer programming languages that blockchains use and start developing a project that uses Ethereum Classic to power its network. ”- Benson Toti