Ethereum Classic (ETC)
The essence of Ethereum Classic, is very confusing to newcomers in the cryptocurrency space. It is often mistaken for being Ethereum, which in a way, it is…but it can be thought of as an older/original form of the Ethereum blockchain protocol. The reason why Ethereum changed, thus leaving Ethereum Classic as the original Ethereum, is because there was a hack in one of Ethereum’s smart contracts called the “DAO.” During the DAO smart contract, a hacker managed to steal $50 million worth of DAO tokens due to a flaw in the smart contract itself, but not the Ethereum blockchain. In order for everyone who lost money to get it back, the Ethereum blockchain had to go through what’s called a hard fork. This hard fork separated the Ethereum blockchain just before the DAO hack, which then created the new “Ethereum” and left “Ethereum Classic” on the original blockchain. A refund smart contract was created on the new “Ethereum” blockchain, and everyone who had 1 DAO, received 1 ETH in replace. Not everyone agreed with the separation of the blockchain by creating a new one, so the ones who were opposed, stayed with the original blockchain and named it “Ethereum Classic”.
Now that we understand why there is an Ethereum Classic and an Ethereum, what else is there to know about Ethereum Classic? Well, what most people first notice is the price difference. Ethereum Classic is worth significantly less than Ethereum. This is because all the big developers moved to the new Ethereum blockchain, thus leaving Ethereum Classic behind with less developments. However, this does not mean Ethereum Classic is worthless. The price continues to rise at a slow and steady pace as developers build upon the Ethereum Classic network. Therefore, cryptocurrency traders are still investing in Ethereum Classic and turning profits as the software and technology grows.
Ethereum Classic Chart
The current live price of ETC/USD:
How to Trade Ethereum Classic
Though Ethereum Classic is not nearly as popular as Ethereum, the cryptocurrency has a large following due to its ties to Ethereum. It can be found traded for Bitcoin, Ethereum, or fiat money on most of the big exchanges. However, many exchanges have removed the option to purchase Ethereum Classic with fiat money as it is not as popular as Ethereum. Therefore, the most common way to trade Ethereum Classic is to first purchase Bitcoin or Ethereum from a cryptocurrency exchange and then later use your newly bought cryptocurrency to exchange it for some Ethereum Classic. Once you have obtained ETC, you can trade and exchange it for Bitcoin or Ethereum on most exchanges, and for fiat money on some exchanges as well.
In order to do this, you must either store your Ethereum Classic on a cryptocurrency exchange so it’s ready to be traded, or hold your ETC in your personal wallet and send it to an exchange when you are ready to place a trade. The latter option is your safest bet, as cryptocurrency exchanges maintain possession of your coins when they are held on the exchange. Hacks and various issues have happened in the past where traders lose their cryptocurrency by holding them on exchanges.
CFD Trading with Ethereum Classic
A relatively new and popular method for trading cryptocurrencies like Ethereum Classic is through CFD trading, (Contracts for Difference). This method allows traders to simply speculate on the price of ETC by putting down a certain amount of money, rather than buying Ethereum Classic itself. The trader will need to speculate on which way they believes the price of Ethereum will move, up or down. On that basis they will need to buy or sell ETC.