So you decided to obtain a few Ethereum Classic tokens for investment purposes or for trading. Good decision! Today Ethereum Classic has rightfully won the sport of the 5th most valuable token among all cryptocurrencies. Its value is steadily growing due to the increasing adoption of decentralized blockchain technologies.
Buying Ether tokens today is the most straightforward way to enter the cryptocurrency trading market since mining Ether requires a significant financial investment and a skillset to match. In this article, you will learn what makes Ethereum Classic an attractive investment and how can you buy these tokens using common payment methods.
How Did Ethereum Classic Appear?
The coin has been “minted” in 2016. The Ethereum initiative DAO, or Decentralized Autonomous Organization, attempted to create an investment bank on Ethereum platform. They launched a token sale which generated over $140 million worth of Ether tokens backed by smart contracts. This was the most successful crowdfunding campaign in a history of cryptocurrencies.
Very shortly after the end of the campaign, the vulnerability in the DAO smart contract code was found, and hackers used it to breach into the system and transferred a massive amount into another wallet that they controlled. Since according to the condition of the smart contract investors had to wait for one month before they had access to their tokens and start selling them, developers decided to reverse the whole Ethereum blockchain to the point before the breach took place. This way, DAO investors would still hold on to their tokens.
A lot of community members didn’t appreciate the idea of rewriting the original ledger which they believed was against the principles of cryptocurrencies and devalued the idea of blockchain as an immutable database. They also didn’t like that the “turning back the time” event created a dangerous precedent of altering the code and could possibly be exploited again by hackers to rewrite blockchain for their own profit.
But the split went ahead as planned and in the result of this hard fork two coins were created: Ethereum and Ethereum Classic.
How to Buy Ethereum Classic: Complete Instruction
The starting step is to set up a digital wallet if you plan to buy Ether. A trustworthy wallet provided by Coinomi allows to safekeeping your Ether and also hold a stash in numerous types of currencies, ETC among them.
The most reliable solution to store digital coins is a hardware wallet that which many experts consider to be more resilient to cybercrime attacks since it’s not connected to the internet all the time. Trezor and Ledger Nano are some of the excellent solutions to try. If you are ready to become a part of Ethereum network, you will need a native network’s wallet called Mist (downloadable at a GitHub.)
The next step is actually purchasing Ethereum Classic. A beginner can experiment with Coinmama broker because with them you actually receive the coins and then stash them or speculate on them. However, exchanges will deposit your coins in their own exchange accounts. This service has been operating since 2014. Here you can also pay for your coins with cash or with a credit card which is quick and easy to set up. Another good thing is that they have one of the most generous credit card spending limits. Fees are on the expensive side reaching 6% but high fees are typical for brokers since with them you enjoy full anonymity.
Other good destinations to try Kraken (European-based) and Bitfinex.
How to Buy ETC on an Exchange: Step by Step
Here’s a simple guide to buying the coin on any exchange, although the name of clickable links can vary.
- Open up an account on the exchange and receive the validation email into your mailbox. Click the link to bring your account to an active mode.
- Locate the tab that shows the balance on your account and initiate the process of a deposit from your bank account or funding with credit card.
- If you are paying for your coins with Bitcoins, choose your Bitcoin address as a funding source.
- Return to the main dashboard and click the option Exchange. Choose the currency and pick ETC.
- Note the number of coins you receive and double-check the current exchange rate to make sure that you are satisfied with the amount.
- If you want to trade more quickly, you should set up the exchange rate below the market average. This will help you get your buy order to get fulfilled at no time. If you want to trade below market price, your order will appear in the order book. As soon as your order is picked up by an ETC seller, who wants to buy Ether with price your order gets filled and you receive your coins in your exchange wallet.
- One of the most important factors in Ethereum trading is exchange rates, on which the profit is majorly dependent. These are rates at which a coin is bought, sold or converted to another coin. The system of exchange rate allows you to trade your currency for another one for a fixed rate. This is unaffected by the market change or any other factors.
- As a precaution remember to withdraw your coins to your own wallet as soon as you are done trading because exchanges, even with their most recent security policies are a target of cybercriminals. You may wish to withdraw only the amount that you are not willing to trade further. Some exchanges can impose limits on amounts that you can withdraw at any 24-hour or 30-day period.
- For extra safety measures make sure to create a backup copy of your wallet.
How to Purchase Ethereum with Credit or Debit Cards
If you want to obtain tokens and pay with a bank card, you can examine several options but in any way your costs will include paying a higher fee.
Coinbase allows crypto-trading for residents in the USA, Europe, and Canada. After a quick signup process that doesn’t require a lot of personal information, you can trade your coins confidently. The fee structure is on the high side and varies from 3.5 to 3.75 percent. The fees will amount to 3.75% and you can buy instantly. US residents, however, must keep in mind the new rules imposed by American banks. This is because the traditional banking system is rather slow and it takes time for them to accommodate for the new financial models such as cryptocurrencies.
Another broker that accepts European credit and debit cards is Bitpanda, which also trades alt-currencies and Bitcoin. Among their disadvantages is the lack of a clear fee structure because they include fees in the final price.
If you are outside the US and Europe, then CEX.io should be a good choice for you. Residents of some countries including Emirates, Pakistan, Iraq, and Vietnam, cannot still pay for their coins with credit cards, but for the rest of the world, this option is available. You must accept certain drawbacks such as a lengthy authorization process and fees at around 5 percent.
Buying Ethereum with Wire Transfer
If high credit card fees an issue for you, there’s an option to pay for your coin purchase with a wire transfer but this usually takes longer. For example, at CoinBase you will only pay 1.5% fee but the whole operation will take seven days or more if you are not in Canada, UK or EU. An alternative to Coinbase is GDAX where you pay zero fees.
Bitpanda also accepts wire transfers and their fees are on a user-friendly side with 1 percent.
Trading cryptocurrency platforms have recently started to support Ethereum Classic trading and their fees are usually low, with Bitstamp offering 0.25% fee for the first-time traders and these fees even go lower as you trade larger amounts.
How to Buy Ethereum Classic with Cash
There are two ways of doing this: the first one includes locating a broker in your vicinity and arranging a deal where you physically pay cash for the tokens deposited into your own wallet. This method is tricky since you may end up exposing your private keys. Also, make sure to trade in a public place since your will be personally handing out quite a bit of hard cash.
Another method is locating a seller of Ether via social networking groups or platforms where local sellers of Ether offer their coins. The funds are placed in escrow and released only after you confirm that you have received your Ether safely into your wallet. This method may work if you live in the jurisdiction that doesn’t allow other methods of buying.
How to Buy Ethereum Classic and Pay with Bitcoin
If you hold more faith in Ethereum than in Bitcoin, you can purchase some Ether tokens by converting your Bitcoin into them. Any exchange will help you do that because all of the ETH tradings is done by pairing it with Bitcoin and not any fiat currency. Binance is one of the world’s most reputable exchanges and it allows to convert BTC into ETC. Another good option is Changelly and GDAX but you first must open an account on Coinbase to use it since it’s a branch company.
How to Buy Ethereum Classic and Pay with PayPal
While it would be tempting to buy for cryptocoins with the granddaddy of electronic payments, it’s not quite easy. First, you need to buy Bitcoins using PayPal on a platform called VirWoX. Then you can swap your Bitcoins for Ethereum Classic at any exchange.
So which option is the best for you? There is no “best” or “worst” actively trading Ethereum exchange. All you need to know is that any exchange, just like any bank, can become a victim of a security breach. It’s all about where you live and which funding method is acceptable for you to pay for your purchase.
As you gain confidence in buying cryptocurrencies and trading them for profit, you will also work out your own methods to decide when exactly to buy the coin that you want. In the world of foreign exchange, you need to take advantage of it, whether the profit is high or low, still, it is part of your investment. In cryptocurrency market, most of the investors buy tokens at the cheaper price and sell them when the value gets high. That’s how to it works. Crypto market is unstable, meaning, the value of cryptocurrencies fluctuates from time to time. It that will happen, it can bring you gain or loss scenarios.
Speculating what Ethereum will do in the near future is a factor affecting the trading of all currencies. If a cryptocurrency trader understands that the currency will be doing better in the near future, even though the present situation is unfavorable, he will buy those coins. If his prediction is true, he will have the coins that can get him huge profits later. Good traders invest on a cryptocurrency only after taking into account the potential fluctuation and not just the current rate of exchange.
It is important to predict a possible rise or fall of the price of Ether or any other coin you are trading. So, how will you going to predict the rise and fall of a cryptocurrency in the first place? You can do this by conducting technical analyses on the coin and the flow of cryptoeconomy involved in your trading. By doing this, you will be aware of the things that might happen for your trading. And most of all, you will determine the possible fluctuations on the value of each token.
If you are an experienced currency trader, you might know the safe currencies on which you can invest that are unaffected by global changes on the market. It can also happen that when a currency trader is doubtful on which currency to invest, he invests in the currency considered to be safe. Ethereum is considered to be safer than other alt-currencies because of the growing adoption of its solutions.