- Forex 40 +
Ethereum, which – according to market capitalisation – is eternal number 2 behind Bitcoin, maybe one of the most famous cryptocurrencies or projects that are related to the crypto world. In addition to Ethereum, there is Ethereum Classic.
But what should you watch out for when investing in Ethereum Classic? Is there a difference between Ethereum and Ethereum Classic? And should one instead invest in Ethereum, or might it be advisable to pump part of the savings into Ethereum Classic?
You must deal with the differences here to get an overview at the end. However, this is the only way to make the right decision for you, whether you prefer to buy Ethereum Classic.
When buying the Ethereum Classic cryptocurrency coins, you will primarily have to pay attention to the fees because the fees reduce the possible profit if you plan to invest in Ethereum Classic for the long term.
In addition to how high the fees are, you should also clarify that you are dealing with a reputable provider. Sometimes experience reports being found on the Internet also help know whether it is a recommendable provider.
If you want to buy coins of the cryptocurrency Ethereum Classic, it is advisable to make an exchange comparison in advance. Because every crypto exchange works with a different fee model, some exchanges are convinced with low prices, while others are surprised negatively, as high fees are charged here. Since fees reduce profits, it is important to make an appropriate comparison.
If you make a comparison, you will probably come across the name ETFinance. This broker offers social trading and is also a crypto exchange with an integrated wallet. That means you kill two birds with one stone. ETFinance may be recommended, especially to beginners who have never had anything to do with cryptocurrencies. Because ETFinance is convincing with a very user-friendly interface. ETFinance is also regulated.
Once the decision has been made, and you want to use ETFinance’s services, the next step is to open an account. Again, registration only takes a few moments – this is mainly because ETFinance only needs a few data at the beginning.
Click on the “Register now” button located in the top right corner, and you will be redirected. Subsequently, ETFinance only requires a username (1) and a valid email address (2). Then only the password (3) has to be created. Finally, the registration process is finished – the account is opened.
After opening the account, the first deposit can then be made. You will not face any challenges here, too, even as a beginner.
Especially because ETFinance offers countless payment methods. Many brokers or exchanges only allow bank transfers or stipulate that you need a credit card for the deposit. There is a real variety at ETFinance.
So you can make a classic bank transfer and use the credit card, but you can also use PayPal. And that is not something that can be taken for granted.
PayPal may be an increasingly popular service, but brokers or stock exchanges rarely offer it. However, ETFinance has entered into cooperation so that you can top up your ETFinance account with PayPal.
In addition to PayPal, ETFinance also accepts POLi, Skrill, Neteller. The money is available immediately or after one to three working days in the ETFinance account, depending on the selected deposit method.
Nowadays, you can buy Ethereum Classic with a credit card, but you can also use Sofortüberweisung or PayPal. So the answer to buying cryptocurrency coins depends on which payment method is accepted by the broker or the exchange.
To buy Ethereum Classic with euros, the desired amount in euros must be specified. This is because ETFinance calculates how many coins of the cryptocurrency can be purchased. But you can also set the number of coins of the cryptocurrency Ethereum Classic – then it is calculated how high the euro amount to be invested must be.
Ethereum Classic is a decentralised, secure and censorship-resistant blockchain, representing the continuation of the Ethereum blockchain. After there was a controversy surrounding the DAO hack, the Ethereum project was split in two. For this reason, there is Ethereum and Ethereum Classic today. The goal pursued by Ethereum Classic? The same that Ethereum is tracking. It’s about a public platform so that smart contracts, i.e. intelligent contracts, and decentralised apps and/or apps can be operated.
Ethereum Classic runs on an unchanged version of the classic Ethereum blockchain. The philosophy here is to put the code above everything; If there are exploits or compromises, the aim is not to use hard forks to remove them, which would subsequently damage the integrity of the code. In addition, the team behind Ethereum Classic believes that maintaining the immutability of the ledger does not allow human interference.
The Ethereum Blockchain, which originally came on the market, created a very complex smart contract named ” Decentralized Autonomous Organization ” – or DAO for short. A digital venture capital fund was created to fund dApps. Everyone who wanted to have a say here had to purchase a DAO token with ether, the platform’s cryptocurrency, to decide which dApps should be financed.
To subsequently get the necessary funds for dApps, you needed 20 per cent of all votes of the DAO token holders. The transparency and versatility of this smart contract have ensured that tokens worth more than 150 million US dollars have been sold in a short time. However, after buying into the DAO system, the exit was relatively complex – including a loophole. Because the ” split function ” made it possible to get ether, but this could not be paid out for 28 days. A hacker used this loophole and stole a third of the coins, around 50 million US dollars, from users who tried to leave the DAO system.
To fix this serious bug, it was possible to implement a hard fork. Thus, the blockchain was reset to the previous state – the 50 million US dollars that the hacker stole were recovered and subsequently credited to the stolen. At this point, there was also the ideological split – and Ethereum Classic was born. Because suddenly, the impression was given that Ethereum was an authority that has decisively intervened to reverse mistakes.
You can buy cryptocurrency coins, keep them in your wallet and hope that the price of the digital currency will rise. But you can also purchase Ethereum certificates. That means you opt for CFD trading. In this case, you do not buy coins but only speculate with the price movement.
The advantage? You can make money even if the value of the cryptocurrency falls. Provided that you have opened a so-called “short” position in advance. Then, profits are posted when the price rises and a “long” position has been opened.
There may be one advantage or another, but CFD trading is not without its dangers. The volatility of the market should not be underestimated – it can always go up or down. It is therefore essential to only invest money in CFD trading that is freely available.
If you do not want to buy coins from Ethereum Classic, it is advisable to opt for CFD trading. If, on the other hand, you think you don’t want to take too high a risk, it is sometimes advisable to invest directly in the cryptocurrency. Because even if there is a risk that should not be underestimated, it may not be as extraordinarily high as in the course of CFD trading.
Ultimately, however, it is also about your strategy. If you want to speculate on price fluctuations in the short term, you will probably get excited about CFD trading. On the other hand, all those who believe that the price will rise in the long term would be well advised to invest directly in Ethereum Classic – i.e. buy coins.
If you want to invest in Ethereum Classic shares, you will notice no pure securities here. That means you have to look for public companies that are then related to Ethereum Classic. However, whether the rising or falling price of Ethereum Classic impacts the share price cannot be said.
It is essential to ask yourself in advance what price should be bought and then sold again. Because in the end, investing in cryptocurrencies is about getting the right window of opportunity. It doesn’t matter whether you trade with CFDs or invest long-term and try to credit profit-taking time and again, which can then be reinvested.
There are different approaches and strategies, so you should first recognise your philosophy: Invest for the long term, regardless of the price movements, and only sell when the desired price level has been reached or sell and buy coins again and again when the Price has decreased?
High fees gnaw at the profits. Therefore, it is essential to deal with the fee model of the broker or the exchange in order not to experience a nasty financial surprise when you want to buy or sell Ethereum Classic.
In the beginning, the price of Ethereum Classic moved to 1.05 US dollars – again and again, it went below and above the 1 US dollar limit. Then, on June 17, 2017, there was the first breakout in the direction of 24 US dollars – a correction below 10 US dollars followed a little later. Finally, the next soaring, which could be observed at the end of 2018, brought Ethereum Classic to 44 US dollars (39.74 EUR). This is also the highest rate that the cryptocurrency has been able to achieve so far.
At the current time, Ethereum Classic is between 10 US dollars and 20 US dollars.
Ethereum Classic is a cryptocurrency. If you want to buy coins in this currency, you need a wallet. Storage without a wallet is not possible. If you use the ETFinance service, a wallet is made available.
PayPal is an increasingly popular online payment service. However, that doesn’t mean that every provider accepts PayPal. Therefore, to buy Ethereum Classic, the provider agrees with this payment method with PayPal. Consequently, you should check in advance whether the provider accepts this payment method.
Ethereum may overshadow Ethereum Classic, but it can certainly increase in value if the crypto market gets more robust. Therefore, the price of Ethereum should also be observed from time to time when investing in Ethereum Classic.
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On the one hand, Ethereum Classic can be recommended if you pursue a long-term strategy, but it is also interesting if you want to dust off short-term profits. Ultimately, you have to answer how high the risk you want to take should be.
Because ETFinance is a broker that provides the services of an exchange, the provider is convincing on an entire level. ETFinance is also regulated and beginner-friendly. In addition, ETFinance convinces with a very fair fee model.
To be able to buy coins of the cryptocurrency Ethereum Classic, an active internet connection is required.
The crypto exchange or the broker provides access to the crypto market. Unfortunately, this means that since registration is required in advance, there is no way to buy Ethereum Classic anonymously.
A reputable provider will require verification. Unfortunately, this often has to be done in the course of a withdrawal request.
As already mentioned, it is necessary to use the services of a broker or an exchange. That means buying without registering will not work.
When Ethereum Classic has reached the desired price, you can then enter the euro amount that should be paid out so that ETFinance calculates how many coins have to be sold for it. But you can also specify the number of coins and then convert how many euros you would get for it.
Even if Ethereum Classic is (still) in the shadow of Ethereum, it may be interesting to take a closer look at this Ethereum alternative.
Ethereum Classic can be bought on any exchange, as long as the cryptocurrency is offered.
You buy cryptocurrencies via an exchange. Anyone who uses the services of a broker can also work with other assets and also speculate on price movements.
If the crypto market will gain strength, it may well be that the value of Ethereum Classic can also increase over time.
In this case, it must be checked whether the wallet also allows other crypto currencies in addition to Bitcoin. If this is the case, you can store Bitcoin with Ethereum Classic in one and the same wallet.
A trusted broker will contact you today.