Ethereum Classic: A Guide To Investing For Indians

Ethereum Classic (ETC) is a popular open-source, decentralised, blockchain-based distributed cryptocurrency platform. It was established in 2016 after a decentralised autonomous organisation (DAO) was hacked. It is a blockchain platform that facilitates smart contracts for its users. These smart contracts automate the actions by blockchain.

Ethereum Classic hosts the original Ethereum blockchain, with supporters claiming this makes it truer to blockchain principles than the new Ethereum chain. The maximum supply of ETC is capped at around 210,700,000 ETC.

In India, Ethereum Classic can be purchased through a cryptocurrency exchange such as BuyUcoin, one of the most secure crypto exchanges in the country.

Buy Ethereum Classic through an exchange

Before investing in Ethereum Classic, it is important to understand the process and the associated risks. Ethereum Classic (ETC) is a popular open-source, decentralised, blockchain-based distributed cryptocurrency platform. It was established in 2016 after a decentralised autonomous organisation was hacked.

To buy ETC, you will need to use a cryptocurrency exchange. These are platforms that allow you to buy and sell cryptocurrencies. Examples of well-known exchanges include Binance, Coinbase, and Robinhood. When choosing an exchange, it is important to consider factors such as security, ease of use, and the range of cryptocurrencies offered. It is also essential to research the fees charged by different exchanges, as these can vary significantly.

Once you have chosen an exchange, you will typically need to create an account and verify your identity. This process may involve providing personal information and documents, such as a photo ID, proof of address, and a selfie. After your account has been verified, you can deposit funds into your account using a payment method accepted by the exchange. This could include credit/debit cards, bank transfers, or other cryptocurrencies.

Once your account is funded, you can place an order to buy ETC. You will need to specify the amount you wish to invest, and the exchange will typically charge a fee for the transaction. It is important to review the details of the transaction carefully before confirming the purchase.

When buying ETC through an exchange, it is important to consider the risks involved. Cryptocurrencies are highly volatile and unregulated, so there is a risk of losing money. Additionally, there is a risk of cyber theft when storing cryptocurrencies online, so it is important to choose a secure exchange and consider transferring your ETC to a private wallet for added security.

Buy fractions of Ethereum Classic

Ethereum Classic (ETC) is divisible by several decimal places, meaning you can buy fractions of a token, with values as low as cents. This means that you can build your portfolio slowly over time. However, due to network fees, most platforms will require you to buy a minimum of $10 worth of ETC.

You can buy fractions of Ethereum Classic through any cryptocurrency exchange available worldwide. Examples of software wallets that support ETC include BitGo, MetaMask, Guarda, Exodus, and Atomic Wallet.

• Open your web browser and search for "BuyUcoin".
• Click "Sign Up" in the top right corner and enter your email or password, or use the "Sign Up with Google" option.
• Once registered, go to your profile and verify your email with a one-time password (OTP) or email verification link.
• After email verification, verify your identity through the Know Your Customer (KYC) process. Click "KYC" and then "Start" from your dashboard, read the document requirements, and click "Continue".
• Upload the required documents, such as your PAN and Aadhar cards, and fill in the required details. Then, click "Submit".
• Add your primary bank and UPI to your BuyUcoin wallet by clicking on the wallet and adding the amount and valid UPI.
• Finally, you can buy Ethereum Classic through the Spot market or EZ/OTC. EZ/OTC is the easier option.

Another option is to use Bitbns, a platform that has been in the cryptocurrency market since 2013. To register, sign up with your name, phone number, and email ID. Then, submit your bank account details and a photocopy of your Aadhaar card for identity verification. Once your documents have been verified, you can transfer funds to your Bitbns account and start placing your trading orders.

Trade Ethereum Classic through a broker

Trading Ethereum Classic through a broker is a convenient option for users who don't want to store their coins themselves. Crypto brokers will hold your coins for you, allowing for much more convenient access. Brokers allow users to trade Ethereum Classic frequently to generate frequent profits.

Many platforms offer derivative products such as contracts for difference (CFDs), which allow users to speculate on slight price movements, whether positive or negative. Many brokers also accommodate leverage trading, which can multiply your profits when used effectively.

When choosing a broker to trade Ethereum Classic, it is important to consider the platform's security, fees, and regulatory compliance. It is also essential to research the different types of orders available on the platform, such as market orders, limit orders, and stop orders, to help you execute trades effectively.

• EToro: eToro is a well-known social trading platform that offers a wide range of cryptocurrencies, including Ethereum Classic. It has a user-friendly interface and allows users to copy the trades of more experienced investors. eToro is regulated by the FCA, CySEC, and ASIC, providing an extra layer of security for traders.
• Coinbase: Coinbase is a popular cryptocurrency exchange that offers a wide range of cryptocurrencies, including Ethereum Classic. It is known for its strong security features, such as two-factor authentication, and provides users with an easy-to-use platform for trading.
• Binance: Binance is one of the largest cryptocurrency exchanges in the world, offering a wide range of trading pairs, including Ethereum Classic. It offers low trading fees and a variety of order types to suit different trading strategies. Binance also has a native token, BNB, which can be used to pay reduced trading fees on the platform.
• Robinhood: Robinhood is a regulated brokerage platform that offers commission-free trading on a variety of assets, including cryptocurrencies like Ethereum Classic. It provides a user-friendly mobile app and offers features such as customizable alerts and candlestick charts to help traders make informed decisions.
• Webull: Webull is a brokerage platform that offers commission-free trading on stocks, options, and cryptocurrencies, including Ethereum Classic. It has a user-friendly interface and provides advanced charting tools and technical indicators for traders who want to perform more in-depth analysis.

When trading Ethereum Classic through a broker, it is important to consider the risks involved. The cryptocurrency market is highly volatile, and prices can fluctuate significantly. It is essential to do your own research and only invest what you can afford to lose. Additionally, it is crucial to choose a reputable and regulated broker to ensure the safety of your funds.

Invest in an Ethereum Classic ETF

The last way to invest in Ethereum Classic is through an exchange-traded fund (ETF). ETFs are financial instruments that track a single asset or a selection of several different assets. ETFs can be purchased and sold on stock exchanges, meaning they are highly scrutinised and regulated, making them a secure option for the average investor.

Some ETFs comprise several coins, spreading risk across a portfolio. Such an ETF is created and controlled by selecting a basket of various coins, emphasising those that have performed strongly in the past. Even if some coins within the basket don't perform as anticipated, the overall performance of the fund will make the investor a profit.

The combination of stock market-level regulation and an expertly managed risk profile means that an Ethereum Classic ETF will appeal to investors interested in ETC but keen to manage the risks associated with the asset.

ETFs are a safer alternative investment strategy for those alarmed by the lack of regulation in the crypto market. As a digital asset, ETC carries a few risks. For example, the crypto market isn't adequately regulated, creating a loophole exploited by bad actors. Scammers steal millions from unsuspecting investors each year, so it's vital to conduct thorough research before entering into any investment within the space.

How to Invest in an Ethereum Classic ETF

To invest in an Ethereum Classic ETF, you'll need to follow a similar process as buying ETC directly:

• Acquire a crypto wallet: Before starting your Ethereum Classic investment journey, you must obtain a crypto wallet to secure your coins. Crypto wallets exist as websites, mobile apps, and desktop applications. They help store your private keys, which are used to lay claim to ETC tokens on the blockchain. Examples of software wallets include BitGo, MetaMask, Guarda, Exodus, and Atomic Wallet.
• Register with a reputable exchange: After acquiring a wallet, visit a reputable exchange and register an account. Complete the KYC process by uploading a photo of your ID/passport, proof of address, and a selfie.
• Secure your account: Secure your exchange account by activating two-factor authentication (2FA).
• Fund the account: Fund your exchange account and purchase ETC.
• Transfer tokens to your wallet: Once you've made your purchase, transfer your ETC tokens to your private wallet for safekeeping.
• Research and invest in an Ethereum Classic ETF: Research and select a suitable Ethereum Classic ETF that aligns with your investment goals and risk tolerance. Purchase the ETF on a stock exchange.

Benefits of Investing in an Ethereum Classic ETF

• Regulation and security: ETFs are highly regulated and scrutinised, providing a secure investment option for those concerned about the risks associated with cryptocurrencies.
• Risk management: By investing in an ETF that comprises multiple coins, you can spread the risk across your portfolio. Even if some coins underperform, the overall performance of the fund can still generate profits.
• Expertly managed risk profile: Ethereum Classic ETFs are designed to balance risk and return potential, providing investors with peace of mind.
• Diversification: ETFs allow investors to diversify their portfolios by investing in a basket of carefully selected coins, reducing the impact of any single coin's performance.
• Convenience: ETFs are traded on stock exchanges, making them convenient and accessible to investors familiar with traditional investment markets.

Risks and Considerations

• Volatility: As with any investment, there is a risk of losing money due to market volatility. Cryptocurrencies like ETC are highly volatile, and their prices can fluctuate significantly.
• Cyber security: Your exchange account and private wallet can be targeted by hackers, potentially resulting in the loss of your funds. It's essential to enable 2FA and use strong passwords to protect your accounts.
• Fees: When investing in an ETF, be mindful of the fees involved, such as transaction fees, management fees, and potential withdrawal fees. These fees can eat into your profits over time.
• Tax implications: Investing in cryptocurrencies may have tax implications, depending on your jurisdiction. Ensure you understand the tax laws applicable to your situation to avoid unexpected liabilities.
• Liquidity risk: While ETFs are generally liquid, there may be times when the market for a particular ETF is less active, making it challenging to buy or sell large quantities without impacting the price.

Remember to always conduct thorough research and carefully consider your financial situation and risk tolerance before investing.

Choose a platform to buy Ethereum Classic

There are several platforms that allow you to buy Ethereum Classic (ETC) in India. Here are some of the most popular options:

• BuyUcoin: This is a crypto wallet and exchange platform based in India. It offers a simple and quick way to buy ETC, with a user-friendly interface and robust security features. BuyUcoin also provides a virtual account powered by Yes Bank, enabling users to buy, sell, and hold ETC within seconds.
• CoinSwitch: CoinSwitch is a leading crypto exchange in India that offers a simple and convenient way to buy ETC. It allows users to invest with as little as ₹100 and provides a fast and easy buying experience.
• Mudrex: Mudrex is an Indian government-recognized platform with insured deposits stored in encrypted wallets. It offers zero crypto deposit fees and competitive fee rates.
• EToro: eToro is a well-known and regulated platform that offers a wide range of cryptocurrencies, including ETC. It has a user-friendly interface and supports various payment methods, such as credit/debit cards, online banking, and local bank transfers. eToro also allows users to invest in ETC with a minimum amount of $25, making it accessible to beginners and experienced investors.
• Coinbase: Coinbase is a legitimate crypto exchange that prioritizes security and offers a wide range of cryptocurrencies, including ETC. It has a minimum investment requirement of just $2, making it suitable for those who want to invest small amounts. However, the fees can be expensive, with a standard commission of 1.49% and a 3.99% fee for debit card deposits.
• Binance: Binance is a popular crypto exchange that offers a wide range of digital assets, including ETC. It provides low trading commissions of 0.10% per slide and offers a 25% discount on fees if you use Binance Coin to pay.
• Robinhood: Robinhood is a regulated mobile app that offers commission-free trading for various assets, including ETC. It provides a user-friendly interface and customizable alerts, live news feeds, and candlestick charts. Robinhood also offers fractional investments, allowing users to invest in ETC with a minimum stake of just $1.
• Webull: Webull is a platform that supports fractional investments, allowing users to invest in ETC for as little as $1. It offers 0% commissions on all trades and has the approval of the SEC and FINRA. However, it does not support credit or debit card deposits.

When choosing a platform, it is important to consider factors such as security, fees, payment methods, user interface, and the range of cryptocurrencies offered. It is also essential to ensure that the platform is regulated and compliant with relevant laws and regulations.

Frequently asked questions