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Best Forex Brokers Ethereum Classic
Ethereum Classic is a blockchain computing platform founded by Vitalik Buterin. This platform has the aim of being an innovative Internet structure, much like the Internet of Things. Just as Ethereum now does, Ethereum Classic provides a decentralised platform for smart contracts and executing applications. ETC is the digital token or coin associated with this platform.
As the original Ethereum cryptocurrency, ETC started off as a user community rejection of a hard fork of the Ethereum code in July of 2016, after a vulnerability was discovered that allowed a $60 million hack that needed to be undone to restore coin investments to their rightful holders.
This resulted in Ethereum’s value token Ether or ETH becoming the new forked cryptocurrency with the larger market capitalisation, while Ethereum Classic’s ETC remained the original cryptocurrency that retained its previous un-forked blockchain.
ETC is made up of two components referred to as the world computer and the world database. The world computer is a virtual machine that is part of a global network of computing machines, or nodes, that execute scripts to host and manage the cryptocurrency’s associated globally distributed database.
Together ETC’s world computer and database have these six key characteristics:
- Censor-proof:Stopping code execution or denying information access is virtually impossible.
- Secure:The entire system is secured with cryptography.
- Pseudonymous:All ETC users operate under pseudonyms providing them with a degree of anonymity in making transactions.
- Open Source:The necessary software is open source and constantly ready for inspection.
- Reliable:The platform is exceptionally difficult to shut down, so it is generally always ready for transactions.
- “Trust-less”:No individual person or entity needs to be relied upon or trusted.
Making transactions in ETC is generally far more secure when operating through a regulated online broker. Investors who want to hold ETC can also purchase the cryptocurrency online using payment services like Paypal to purchase bitcoins and then bitcoins to purchase ETC, through one the many available e-currency exchanger services. Note that when selecting a e-currency exchange it is wise to choose a reputable one with a good market standing.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74% and 89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Best Forex Brokers for Trading Ethereum Classic
Here are the best forex brokers for trading Ethereum Classic.
- 9.7/10 Overall
- 8.8/10 Overall
- 8.7/10 Overall
- 8.4/10 Overall
- 7.5/10 Overall
How to not get Scammed When Trading ETC
Trading ETC generally takes place over the Internet, so anyone interested in making transactions in this popular digital token should first make themselves aware of the various scams to look out for.
Make sure to steer clear of companies that charge an initial fee to exchange ETC for fiat currency like U.S. dollars. Also remain sceptical of investment management offers suggesting investors can multiply the value of their invested assets within an unrealistic time frame.
Remember, if something seems too good to be true, then it most likely is.
Another prevalent email and social media scam to look out for involves phishing. This is where someone impersonates a well-known brand to obtain access to a person’s cryptocurrency wallet. Avoid getting involved in financial arrangements using emails or direct messages, and steer clear of fake cryptocurrency exchanges, cloud ETC mining scams and fraudulent investment programs.
An unfortunate example of what can go wrong when trading in ETC occurred to traders who held bitcoins at Mt Gox. Mt Gox. was hacked in 2014 resulting in a loss of 850 thousand bitcoins. To make matters worse, since the crypto exchange’s clients were unprotected, they have largely not yet been compensated for this loss.
As a rule of thumb, it generally seems best to select a well-regulated, capitalised and established broker to trade ETC through. Dublin, Ireland based AvaTrade was founded in 2006 and offers an excellent example of a forex, cryptocurrency, CFD and spread betting broker that is regulated in several jurisdictions, including the European Union (EU), Australia and Japan. It is also owned by a well-capitalised parent company, which can make a big difference in case of insolvency.
Another example of a well-regulated online broker is eToro, which also operates subject to European regulations under the Markets in Financial Instruments Directive (MiFID). This broker specialises in providing social and copy trading services that include cryptocurrencies like ETC.
In short, regulated brokers generally provide traders with greater security and a more reliable transaction service for ETC and other popular cryptocurrencies.
Trading ETC Through AvaTrade
Of the various brokers that allow cryptocurrency trading, AvaTrade offers a very popular and easy to use trading platform called MetaTrader 4, or MT4. This free platform was developed by MetaQuotes and can be used by traders of all levels of experience. Different versions can be downloaded for Windows or Mac desktops, as well as for Android or iOS tablets and smartphones.
The MT4 platform has a variety of advanced technical analysis features, in addition to a news feed and a customisable interface. It also facilitates automated trading and boasts a very broad and enthusiastic user base that has developed many expert advisors (EAs) and custom indicators.
AvaTrade offers an execution service in thousands of tradeable assets. It is a simple procedure to sign up with the online broker as a trader and fund a live account. Demo accounts are also available.
As with any currency transaction, significant risks are associated with trading ETC, which is often far more volatile than fiat currencies manged by central banks. ETC’s value can also go up or down depending on several key factors as described in the section below.
Key Influences on ETC
Ethereum classic trades actively and has numerous factors that influence its value in fiat currency terms. Cryptocurrencies such as Ethereum tend to behave in a somewhat democratic manner since if a large trader buys a lot of the cryptocurrency, then its relative value will generally rise since the available supply has fallen.
Several key factors can have a notable impact on the value of Ethereum, including:
- When governments step in to regulate or prohibit the trading and/or use of digital currencies it can cause the value of these currencies to decline.
- If people need to store their wealth in socio-economic environments where they seem to have lost faith in their governments, such during the banking crisis in Cyprus 2013.
- More big payment companies starting to accept ETC in exchange for goods and services.
- Technological changes that alter the function and/or security level of ETC’s blockchain.
- Overall movements in the cryptocurrency market as its popularity rises and falls.
ETC Quick facts:
- Date Ethereum Classic started: July 30, 2015.
- Daily volume of ETC exchanged (July 2, 2019): $898,389,337
- High closing price in U.S. dollars: $45.51 on January 13, 2018.
- High closing price in bitcoins: 0.00886437 BTC on June 18, 2017.
- Market Capitalisation (July 2, 2019): $840,916,585.
- Estimated Circulating Supply: 111,645,640 coins.
- Maximum Supply: 210,000,000 coins.
- Top social trading broker to include ETC as a trading instrument: eToro.
Chart of ETC in U.S. dollars and bitcoins (BTC) during ETC’s entire trading period from July 2015 up until July 2, 2019 including daily volume and market capitalisation numbers. Source: CoinMarketCap
BrokerNotes.co 2023 Overall Rankings
To recap, here are our top forex brokers for 2023, sorted by Overall ranking.
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