Ethereum Classic is a project using smart contracts for decentralized applications. Also, like Ethereum, this is a secure and reliable ecosystem to run applications and intelligent contracts. Cryptocurrency was founded in 2016 as a result of the hard fork Ethereum (created by programmer Vitaly Buterin). Recall that today Ethereum is the largest and most active project in the blockchain and crypto community. Ethereum Classic appeared as a result of disagreement with the accepted Ethereum Foundation «The DAO» hard fork. He brought together members of the Ethereum community who rejected DAO Hard Fork for philosophical reasons that were outlined in the Declaration of Independence Ethereum Classic. People who had on the balance sheet ETH, by the time of the DAO hard fork (1900,000 block), received the same number of ETC after the implementation of the hard fork. In April 2017, the market capitalization of the cryptocurrency was $456 million, and in May 2017 exceeded $1.5 billion. Traders can buy Ethereum Classic on such exchanges as: Binance, Bitstamp, EXMO, WEX and others, as well as trade CFDs.
How Ethereum Classic System Works
Ethereum Classic is a decentralized computing platform designed to execute smart contracts, which are applications that run as programmed without the possibility of censorship or third-party interference. It is a distributed network consisting of a blockchain ledger, a native cryptocurrency (called ETC), and an ecosystem of on-chain applications and services. Ethereum Classic is the legacy chain that split from Ethereum following a contentious hard fork, known as The DAO fork, in Jul. 2017. Like its sister chain, Ethereum Classic features an execution engine optimized for smart contract processing (known as the Ethereum Virtual Machine or EVM) and a Proof of Work (PoW) consensus system. While it shares some aspects with Ethereum, Ethereum Classic offers a more defined monetary policy and inflation schedule. New blocks are generated every 15 seconds, on average, and the current miner reward for each new block found is 3.2 ETC which is reduced by 20% every 5 million blocks (about 2.4 years). ETC will be mineable until around 2070 when miners will reach the soft supply cap of between 210 million and 230 million. In addition to miner rewards, ETC rewards miners for discovering «uncle blocks».
ETC used to pay for executing transactions and smart contract functions is referred to as GAS, and the costs associated with these actions are known as GAS costs. ETC is also a native token with a monetary policy that creates a predictable, disinflationary emission schedule with a fixed supply cap. These qualities aim to give ETC store of value (SoV) propoerties. This asset also serves as a reward to miners for contributing resources to the network. It is worth noting that Ethereum Classic (ETC) has a limited maximum number of coins in 210,700,000. Ethereum (ETH) has no maximum supply of coins. Let’s take a look at all the key benefits of Ethereum Classic system:
- Full decentralization of the open source network;
- More opportunities for mining;
- Stability and reliability of the ETC coin;
- Fixed number of ETC coins;
- Smart contracts are executed on the blockchain;
- Many developers and traders participate in the system;
- Currently, this is one of the most liquid coins on the market;
- Higher transaction speeds in comparison with Ethereum.
Main Benefits of Ethereum Classic CFDs
Differences in functionality are noticeable and improving, creating large differences in price and capitalization sizes. ETC has good performance for the future and many experts are confident in the future of the coin and its further growth. Ethereum Classic is still an excellent choice to diversify your investment portfolio in the cryptocurrency market. To understand the situation in the market, traders should be followed by volatility and indicators of oversold and overbought. You can use the coin and trade ETC with CFDs. To protect yourself from potential price jumps and reversals, it is recommended to set stop-loss and take-profit.
It is advisable to start trading on the hourly chart, in accordance with the trend movement of the market, while it is advisable to use support and resistance lines and various technical indicators that help establish the direction of the trend. You can trade breakout strategies, they are quite effective. For all beginners, it is recommended to start trading cryptocurrency on a demo account, since this asset is quite specific and has many different features.