Have you ever considered Ethereum? But then changed your mind simply because you do not have enough information on this style of investment? If you have, then you are in the right place!
In this guide, we’ll be taking a look at Ethereum to decide whether, or not, it is a good investment. Keep on reading to find out more!
What Is Ethereum Classic?
Ethereum classic is a cryptocurrency that provides a permission-less means of managing your digital assets without any centralized banks or institutions. Ethereum is the more commonly known cryptocurrency, and it is seen as more secure as a result.
However, Ethereum Classic is a cheaper investment and therefore, it attracts those who want to purchase large quantities of this coin that they would otherwise not be able to purchase if investing in Ethereum.
What Are The Main Differences Between Ethereum And Ethereum Classic?
Ethereum is considered the more established cryptocurrency. In 2021, the Chicago Mercantile Exchanges approved the trading of Ethereum Futures.
More importantly, Ethereum has the support of the Ethereum Alliance, which has over 200 members, including Citigroup.
Most notably, as of 14 Mar 2022, Ethereum’s market capitalization is $309 billion, making it the 2nd largest cryptocurrency behind bitcoin.
Ethereum classic, however, has a market capitalization of $3.4 billion, making it the 34th biggest cryptocurrency.
Ethereum Classic is a cryptocurrency that runs on the blockchain network. It uses a proof-of-work system to validate transactions.
Ethereum Classic has low fees, fast transaction speed, and has smart contracts built into the protocol. Ethereum Classic is used as a medium of exchange, a unit of account, and a store of value.
Ethereum Classic is traded on exchanges such as Coinbase, Binance, Kraken, Bitfinex, OKEx, Huobi Global, HitBTC, and Gate.io. Ethereum is the more established cryptocurrency. It has more than 200 members. It also has the support of Enterprise Ethereum Alliance.
Ethereum Classic is a good investment because it is an offshoot of the popular Ethereum. This means that if Ethereum gets too expensive, Ethereum Classic could become a viable alternative.
Volatility is inherent to the market, so investors need to be careful when making any investments. Past performance is not indicative of future results, so make sure to do your own research before investing in anything. Never invest more than you can lose.
History Of Ethereum Classic
Ethereum Classic has been created as a new blockchain, but it has the same history as Ethereum. A hacker stole $50 million worth of Ethers from the Ethereum Blockchain. As a result, a hard fork was performed to recover those funds.
Ethereum Classic was born as a new blockchain, and it has the same history of Ethereum. Ethereum was created by Vitalik Buterin, who also invented Bitcoin. Ethereum is an open-source platform designed to make developing decentralized applications easier.
Concerns Of Ethereum Classic
Ethereum is the better choice because it is more secure. It also offers faster transaction processing. However, Ethereum Classic is cheaper. It is possible for Ethereum Classic to overtake Ethereum. Ethereum Classic has a lower market cap, but this doesn’t mean it won’t grow.
The Best Way To Invest In Ethereum Classic & Key Facts
Investing in cryptocurrencies is risky. Before buying any cryptocurrency, you should learn about the risks involved.
If you want to invest in Ethereum Classic, then you have to understand what makes it different from other cryptocurrencies. The following are some key differences between Ethereum Classic and other cryptocurrencies:
Ethereum Classic Is Based On Proof Of Work (PoW)
PoW is a consensus mechanism where miners compete with each other to solve complex mathematical problems. Once a miner solves a problem, he receives a reward in the form of newly minted coins.
Ethereum Classic Is A Public Blockchain
Unlike private blockchains, public blockchains are accessible to everyone. Anyone can join the network and use it to send messages to other users or perform calculations.
Ethereum Classic Is Less Centralized Than Most Cryptocurrencies
Because there is no single entity controlling Ethereum Classic, its code is open source. This means anyone can review the code and see how everything works.
Ethereum Classic Is Well Known
Most people know about Ethereum, but very few people know about Ethereum Classic. This gives it a competitive advantage over newer cryptocurrencies.
Ethereum Classic Is Compatible With All Ethereum Clients
Like Ethereum, Ethereum Classic runs smart contracts. These are self executing agreements stored on the blockchain. Smart contracts allow developers to create almost anything such as crowdfunding platforms, digital currencies, decentralized exchanges, and derivatives.
Ethereum Classic Is Cheap
Its price per coin is currently around $10-$15. Other cryptocurrencies cost much more.
Ethereum Classic Is Easy To Mine
Miners don’t need expensive equipment to start mining Ethereum Classic. They just require a computer and internet connection.
Ethereum Classic Is Backed By Big Names
Ethereum Classic was created by Vitalik Buterin, who is considered one of the founders of Ethereum. He is also the founder of Bitcoin Magazine.
Ethereum Classic Is Scalable
As Ethereum scales, so does Ethereum Classic. Ethereum Classic has a maximum transaction limit of 25 transactions per second.
To conclude, Ethereum classic is a good investment if you believe that it will grow significantly in value. However, keep in mind that this is an extremely volatile market. You could lose your entire investment if you make a wrong decision.
It is also important to note that the current price of Ethereum has an impact on the price of Ethereum Classic and thus, you should keep a close eye on the price of both coins in order to ensure that you are investing or selling at the right price.
Ethereum Classic is likely to grow in the future, however, you should make a long-term investment in this coin as there are likely to be dips along the way as the price of Ethereum fluctuates.
As always, you should always invest money that you can afford to lose and seek financial advice where possible. Thanks for reading!
If you enjoyed this article, you might enjoy our post on ‘How To Transfer Money From Crypto Com To Bank Account‘.
- How To Transfer Money From Crypto Com To Bank Account - May 6, 2022
- How To Short Crypto - May 6, 2022
- How To Read Crypto Charts - May 6, 2022