The digital project ETC cryptocurrency is an advanced platform for creating decentralized applications based on blockchain technology. In addition, within the framework of this platform, the digital cryptocurrency Ethereum Classic is generated. Ethereum Classic is a kind of platform for creating applications. Because the cost of the Ethereum Classic coin, in contrast to the usual Ethereum, is significantly lower. It allows many users to invest in this asset, hoping to receive profit in the future due to the growth of the exchange rate quotes of the digital coin.
The community of miners provides all possible support to the Ethereum Classic crypto coin to maintain its decentralization and stabilize its rate, which should lead to an increase in the popularity and value of this crypto asset. Despite its relative youth, coin ETC managed to enter the Top of the largest crypto assets with a daily trading volume of $ 100 million. Based on this fact, it is worth carefully studying the features of this coin, as well as finding out if it is profitable to trade this coin in 2021.
A bit of history of Ethereum Classic
At the end of 2017, the Ethereum Classic cryptocurrency acquired the status of one of the most actively discussed coins in the crypto market. At the same time, among the majority of participants in the cryptocurrency market, an ambiguous opinion was formed regarding this project as it arose as a result of a hard fork.
Cryptocoin Ethereum Classic appeared on July 20, 2016, after the collapse of the second most popular and capitalized cryptocurrency Ethereum. This split occurred following a hack of a large cryptocurrency fund TheDAO.
As a result, this led to the fact that the coin holders had to choose their next steps. One of the ways to solve this situation was the organization of a soft fork. True, opinions were divided among market participants, which ultimately led to the emergence of a new ETC coin.
Features and characteristics of Ethereum Classic
After the final separation of the blockchain network Ethereum and Ethereum Classic, there was a split within the cryptocurrency community. The Ethereum Classic Project is the original Ethereum coin. This coin managed to preserve the principle of observance of the supremacy of the crypt program code and ensure the impossibility of external interference in the operation of the crypto network.
As a result, such steps by the authors of ETC led to a moral separation between miners and investors:
- some of the users who support the centralization of processes within the crypto platform decided to remain faithful to the Ethereum coin;
- users, who remained fans of the decentralization of the cryptocurrency and the impossibility of interference in its work by third parties decided to go over to the side of Ethereum Classic.
Ethereum Classic is gaining record values
Ethereum Classic, which was trading at just $ 35.11 on April 28, soared to an all-time high of $ 100 on May 5. This is an increase of 223%. The reason for the jump in prices for Ethereum Classic is a mixture of hype on social media and excessive attention to its more expensive sibling Ethereum (ETH).
Ethereum Classic trading
Although Ethereum Classic is a digital currency, different from the fiat currencies that we all use to pay taxes, cryptocurrencies still have financial value.
The financial value of digital currencies like Ethereum Classic changes every second during one trading day. It is due to supply and demand in the market, which, like any traded asset, naturally fluctuates.
When considering how to trade Ethereum Classic, the first thing to note is that your ultimate goal will be to correctly predict the rise or fall in the price of ETC coins. If the demand for Ethereum Classic grows, the price of the digital coin will rise. If the opposite happens, the price will go down. The ability to predict market sentiment opens up huge profit opportunities.
Below you will see a simple example of how to trade Ethereum Classic:
- Let’s say Ethereum Classic was priced at $ 4 in October.
- It is illustrated as ETC / USD.
- Assuming Ethereum Classic is undervalued, you place a buy order for $ 1,000.
- By December, the digital asset is worth $ 6.50.
- It shows a 62% increase in value.
- Given your profit, you have decided to close the trade by creating a sell order.
- As you can see, in our example, Ethereum Classic went from $ 4.00 to $ 6.50 in two months, resulting in a 62% return. On your $ 1,000 purchase order, you made a $ 620 profit!
This example shows that when you can forecast the markets correctly and on time, you can profit from trading Ethereum Classic. If, however, you made the wrong prediction, you would have suffered financial losses. Therefore, you shouldn’t even think about, how to trade Ethereum Classic without first learning all the intricacies of how the market works. And only after you become familiar with all the nuances of Ethereum Classic trading, it can be very profitable for you.
