You’ve likely heard about Ethereum(ETH). What about Ethereum Classic (ETC)? The first step to differentiating between them is getting a quick history of the Ethereum fork, which we describe in greater detail elsewhere on the site. Like Ethereum, Ethereum Classic is a decentralized Blockchain technology for smart contracts and currency. Ethereum Classic is actually the original. After a now infamous hacker took advantage of a glitch in a new Ethereum development, the community voted to fork the Blockchain into two in order to erase the losses from the hack. The new version would restore the Blockchain to its state before the hack, and the old version (ETC) would continue on as it was, with the hack transactions intact. The result is two types of Ethereum.
Ethereum Classic (ETC) currency is based on value tokens called Classic Ether, which you can store in your ETC wallet, exchange, or use to pay for products and services. Opening a wallet is the first practical stage to getting started. Here is a simple step by step guide to opening an ETC wallet:
1. Choose an Official Ethereum Classic Wallet
To begin, visit the websites of official Ethereum Classic wallets and do some preliminary research. Some of the popular wallet solutions available for Ethereum Classic users include Jaxx, Classic Ether Wallet, Ledger Nano S, Ethereum Parity, and Mist. Deciding which you want to use will depend on what options you require and whether you want a hardware or software solution.
2. Download and Save Your Private Key
The wallet you choose will provide you with an encrypted private key. As soon as you download your private key, copy and store it in a safe place. It could be your hard drive, documents folder, external USB, or any other place you feel is the safest place you could put it. Also, make sure you have a backup. This is important because a lost private key cannot be retrieved.
Your Private Key will look something like this: “UTC--2017-14-20T17-00-45.922Z--bbccb11990575fdfed93faa41b18f12a368cfd97”. It is for you, and you alone. Do not share it with anyone. Should a fraudster get access to your password and private key, your funds can easily get stolen.
3. Use your Private Key to Unlock Your Wallet
Now that you have a key, the final step is unlocking your wallet. Select and paste your private key on the space provided on your Ethereum Classic wallet, and click unlock.
Congratulations! You have successfully created your Ethereum Classic wallet. To use it for products and services, you will need to first buy some Classic Ether and load it in your wallet.
Read on, for tips on how you can buy Ethereum Classic.
How to Buy Ethereum Classic
If you are wondering how to buy Ethereum Classic, there are several avenues you can explore, such as exchanges, brokers, and OTC markets. Below is a brief explanation for each, to enable you to choose an option that works best for you.
An exchange is a live market for trading Ethereum Classic with other cryptocurrencies or fiat currencies. Buying or selling Ethereum Classic on an exchange is like trading on the Foreign Exchange (Forex). Users either begin with a fiat currency or a crypto such as Bitcoin or Classic Ether and then place bids based on current exchange rates between any two currencies. Just like the Forex, there are different available order types, such as simple limit orders, stop-loss orders, and margin trading. To benefit from more advanced trading options, you’ll need to have prior knowledge of the financial markets.
Ethereum Classic brokers are companies or individuals that can execute buy and sell orders on your behalf. In return, they receive a fee for their service. The idea is that the broker knows better than the average Joe how to make profitable trades and can make your money work for you.
Ethereum Classic OTC Markets are simply decentralized exchanges, which occur remotely or through face to face meetings. In a face to face exchange, an interested buyer and a willing seller will meet at a chosen time and location and trade cash or another cryptocurrency for Classic Ether at a rate agreed upon.
Creating an Ethereum Classic wallet is a simple three-step process:
- Visit an official Ethereum Classic wallet website
- Download and store your private key
- Use your private key to unlock your wallet.
Once you unlock your wallet, you can now buy Ethereum Classic from Exchanges, Brokers, and OTC Markets of your choice.