How to buy Ethereum Classic? Guide to investing in cryptocurrency that reached an all-time high this week
While Dogecoin might be soaring at a record-breaking high this week, another cryptocurrency has also skyrocketed to its all-time high value. Ethereum Classic (ETC) reached a new high and stood at $92.46 at the time of writing this article, according to Coin Market. The price of the cryptocurrency has seen a record rise in the past week, making it more conducive for you to invest now.
Launched in 2015 by Vitalik Buterin, Gavin Wood, Charles Hoskinson and Anthony Di lorio, Ethereum Classic was derived from the Ethereum blockchain. It was created after a hack led to a theft of 3.6 million ether coins. While both the blockchains continue to thrive simultaneously, of late, Ethereum is moving towards an updated Ethereum 2.0 with proof of stake (PoS) mining. However, Ethereum Classic has no plans to convert to PoS. Read on to find out more about investing in a particular cryptocurrency.
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#EthereumClassic has had a remarkable rally. It's now the 19th-biggest #cryptocurrency in the world. https://t.co/pHYpHLImlM$ETC $ETCUSD #Ethereum #ETHUSD pic.twitter.com/pioJp6GKOc
— Crispus Nyaga (@CrispusNyaga) May 6, 2021
Is Ethereum Classic sustainable?
Following a remarkable rise, Ethereum Classic currently stands as the 19th biggest cryptocurrency in the world. To understand how safe ETC is, we have to look at its operational aspects. According to Capital, ETC operates like a smart contract network that can host decentralized applications (DApps). With the rise in its price, miners receive increasing rewards for verifying blocks. Alongside, it incentivizes more miners to be part of the network and thereby strengthen the network security.
Blockchain infrastructure research company IOHK has launched the Mantis project to upgrade the security and protect the ETC community from attacks and hacks. In January 2019, ETC faced a 51% attack resulting in a double-spend of $1 million on the Coinbase cryptocurrency exchange. This prompted Coinbase and other exchanges to stop ETC transactions for the time. However, after that, the price of Ethereum Classic has risen more or less steadily, trading in the range between $4 to $6 for the most part of 2020.
The price of ETC has gone up tremendously in 2021 due to renewed development on the blockchain. Miners' trust in the cryptocurrency has increased following upgrades by the Core-Geth protocol provider and the relaunch of the Mantis. On April 26, 2021, ETC was added to the NOWPayments gateway. After that, developers have also started to launch NFTs on Ethereum Classic.
Forecasters like Digitalcoin predict that ETC will reach an average of $239 by 2025. Alternately, WalletInvestor speculates ETC to trade around $54 by 2025.
How to invest in Ethereum Classic?
Ethereum Classic can be bought on cryptocurrency exchange portals like Binance and Kraken and thereafter stored in a digital wallet. Some of the best digital wallets for ETC include JAXX, Ethecore Parity, Classic Ether Wallet, Mist, and Ledger Nano S.
You can buy ETC with Fiat currencies like USD, EUR, GBP etc from cryptocurrency exchanges like Kraken and Bitfinex. One should opt for this method when a miner only has fiat currency and no other cryptocurrency investment. In case a trader owns cryptocurrencies like Bitcoin, Litecoin or Ethereum, they can transact Ethereum Classic through Binance, in exchange for his crypto coins.
In addition, the ETC coin can also be traded with other cryptocurrencies through Contracts for Difference (CFDs). This allows you to predict the ETC price without actually holding the coin. Whether the price rises or falls, your prediction will allow you to make a profit even with a price drop. Read more about CFDs here.