What is Ethereum Classic and why is it important to traders?

Ethereum Classic is a decentralized blockchain-based platform designed for executing smart contracts. This is a distributed network, which consists of a blockchain ledger, a robust ecosystem of applications and services, and its native cryptocurrency – ETC coin.

Ethereum Classic hosts an extended and constantly growing collection of decentralized applications and protocols. They are programmed to run without downtime, third-party interference, and any censorship. ETC Classic provides the opportunity to manage digital assets without intermediaries, including financial institutions and banks.

What is Ethereum Classic and why is it important to traders?

ETC Cryptocurrency is the continuation of the original Ethereum chain. The split was the direct result of a hack on Ethereum’s Decentralised Autonomous Organisation (DAO) in 2015 that resulted in the theft of 11.5 million ethers, or around $50 million.

As a result of the Ethereum’s hard fork, Ethereum Classic was born. From now on Ethereum Classic (ETC) is completely independent of Ethereum (ETH) and acts separately. 

How to invest in Ethereum Classic CFDs

An individual has two options when investing in Ethereum Classic in the cryptocurrency market. Firstly, they can buy actual cryptocurrency on exchanges, such as buying Ethereum Classic on an exchange like Bitfinex, so they own the Ethereum Classic coin itself. This is considered a long-term investment, as the individual is waiting for the price to rise significantly, so they can sell their crypto coins on an exchange.

Alternatively, they can trade a contract for difference (CFD) on Ethereum Classic crypto, and speculate on its price difference. A CFD is a financial instrument, which is a contract, typically between a broker and an investor, where one party agrees to pay the other the difference in the value of a security, between the opening and closing of the trade. 

You can either hold a long position (speculating that the price will rise) or a short position (speculating that the price will fall). This is considered a short-term investment as CFDs are used within shorter timeframes. For instance, to trade Ethereum Classic CFDs, you can speculate on the ETC/BTC pairing.

Why trade Ethereum Classic CFDs with Capital.com

Advanced AI technology at its core: A Facebook-like News Feed provides users with personalized and unique content depending on their preferences. If a trader makes decisions based on biases, the innovative News Feed offers a range of materials to put him back on the right track. The neural network analyses in-app behavior and recommends videos, articles, news to polish your investment strategy.

Trading on margin: Providing trading on margin (up to 2:1 for cryptocurrencies), Capital.com gives you access to the cryptocurrency market with the help of CFDs.

Trading the difference: When you invest in Ethereum Classic through a CFD, you don’t buy the underlying asset itself, meaning you are not tied to it. You only speculate on the rise or fall of the Ethereum Classic price. CFD trading is nothing different from traditional trading in terms of strategies. A CFD investor can go short or long, set stop and limit losses and apply trading scenarios that align with his or her objectives.

All-round trading analysis: The browser-based platform allows traders to shape their own market analysis and forecasts with sleek technical indicators. Capital.com provides live market updates and various chart formats, available on desktop, iOS, and Android.

Focus on safety: Capital.com puts a special emphasis on safety. Licensed by the FCA and CySEC, it complies with all regulations and ensures that its clients’ data security comes first. The company allows to withdraw money 24/7 and keeps traders’ funds across segregated bank accounts.