Ethereum Classic (ETC) Complete Guide: Cryptocurrency Investment Made Easy for Beginners
Hello! Recently, as interest in the cryptocurrency market has increased, more and more people are curious about Ethereum Classic (ETC).
Today, we will explain Ethereum Classic from A to Z in detail so that even beginners can easily understand it.
It is full of practical information that will be helpful to those considering investing, so read until the end!
What is Ethereum Classic (ETC)?
Ethereum Classic (ETC) is a cryptocurrency derived from the Ethereum (ETH) blockchain, and has powerful functions that can execute smart contracts on a decentralized platform.
Many people wonder, ""Is it the same as Ethereum?"" The basic technology is similar, but There are differences in philosophy and direction. Ethereum Classic follows the original philosophy of the early Ethereum network and aims to be a completely open system that anyone can freely access and use.
💡 Good to know: Ethereum Classic adheres to the principle of ""Code is Law"" and has the philosophy that once deployed, smart contracts should be executed as is without any external intervention.
The interesting birth background of Ethereum Classic
The birth story of Ethereum Classic is really interesting. After Ethereum first appeared in the world in 2015, one of the biggest controversies in the history of cryptocurrency, the 'DAO incident', occurred in 2016.
DAO (Decentralized Autonomous Organization) is an Ethereum-based decentralized autonomous organization, and at the time, it was a large-scale project in which about 150 million dollars worth of Ethereum was invested. However, an incident occurred in which a hacker stole about a third of the funds by exploiting a vulnerability in the smart contract.
After this incident, the Ethereum community was divided into two groups. One side said, ""Let's change the blockchain to restore the hacked funds,"" and the other side said, ""Let's keep the original chain as it is to protect the immutability of the blockchain."" In the end, the former became the current Ethereum (ETH), and the latter became Ethereum Classic (ETC).
How does Ethereum Classic work?
Ethereum Classic operates on the same blockchain technology as Ethereum. Simply put, it is a system in which multiple computers are connected to a network and jointly manage transaction history.
A blockchain is like a ledger, but this ledger is stored in multiple places at the same time, making it almost impossible for someone to arbitrarily manipulate it. Each transaction is grouped into a unit called a 'block' and connected like a chain, and once information is recorded, it is very difficult to change.
In particular, the core function of Ethereum Classic, smart contracts, is truly innovative. For example, if you write a condition in code that says, ""If A sends $100 to B, automatically ship the product to C,"" it will be executed automatically when the condition is met. There is no need for anyone to intervene in the middle, and there is no possibility of mistakes.
🔧 Technical Features: Ethereum Classic uses the Proof of Work consensus algorithm, and the total supply is limited to about 210 million, making it scarce.
Various Applications of Ethereum Classic
Ethereum Classic has the potential to be utilized in more areas of our lives than we might think. The most representative application area is the development of decentralized applications (dApps).
In the gaming industry, it is used to prove item ownership through blockchain or to link in-game currency to real-world value. The recently popular NFT games are examples of this technology.
In the financial services sector, it is used to build a decentralized finance (DeFi) platform that provides services such as loans, deposits, and insurance without traditional banks. It is receiving a lot of attention because it can significantly save on intermediary fees.
In supply chain management, the entire process from the production of a product to delivery to the consumer can be transparently tracked. It is especially useful for ensuring the safety of food and medicine.
Of course, Ethereum Classic itself, like other cryptocurrencies, is widely used as a means of investment and trading. It is particularly gaining attention as an alternative to Ethereum and is showing steady trading volume.
Major exchanges where Ethereum Classic can be traded
If you want to trade Ethereum Classic, you can use the following reliable exchanges:
Overseas exchanges: Representative exchanges include Binance, Coinbase, Kraken, and Huobi. These exchanges have high trading volumes and ample liquidity, making it easy to trade at the desired price.
Domestic exchanges: ETC trading is also possible on Upbit, Bithumb, and Coinone. It is convenient for domestic investors because it supports Korean language and allows direct trading in Korean Won.
When choosing an exchange, it is recommended to comprehensively consider fees, security levels, and customer service quality. Also, check the deposit and withdrawal policies of each exchange in advance before trading.
💰 Trading Tips: If you are a beginner, it is recommended to start with a small amount and become familiar with the exchange interface before starting full-scale trading.
Active Ethereum Classic Community
Another strength of Ethereum Classic is its strong and active community. Developers, investors, and general users from all over the world gather and actively discuss the direction of the project.
Information is exchanged in real time on various platforms such as the official forum, Reddit, Telegram, and Discord. It is especially useful for investors because they can quickly obtain information on technical updates and market trends.
The community is actively engaged in various activities such as suggesting new features, discussing security issues, and establishing marketing strategies. If you are interested, you can participate directly and share your opinions.
The Korean community is also becoming more active, creating an environment where you can obtain information and share opinions without language barriers.
Wallet Guide for Safe Ethereum Classic Storage
One of the most important things in cryptocurrency investment is safe storage. Here are some different wallets that can safely store Ethereum Classic.
Software wallets: MetaMask is the most representative, and you can use it easily by installing it as a browser extension. Mobile apps are also provided, so you can access it anytime, anywhere.
Dedicated wallets: There are also wallets dedicated to Ethereum Classic. They provide functions specialized for ETC, providing a more convenient user experience.
Hardware wallets: Hardware wallets such as Ledger and Trezor can greatly reduce the risk of hacking by storing private keys offline. We strongly recommend using a hardware wallet when storing large amounts of money.
When choosing a wallet, you should comprehensively consider security, ease of use, and supported functions. Also, be sure to download only from the official website, and never share your private key or seed phrase with anyone else.
⚠️ Security Precautions: If you lose your private key or seed phrase, you may lose your assets forever. Be sure to back them up in a safe place.
Important Things to Know Before Investing in Ethereum Classic
If you are considering investing in Ethereum Classic, please be sure to familiarize yourself with the following and approach it carefully.
Understand High Volatility: The cryptocurrency market is much more volatile than the stock market. It is not uncommon for prices to fluctuate by more than 20-30% in a single day. Invest only as much as you can afford to lose emotionally.
Thorough research: Before investing, carefully review the project's technical development, partnerships, and roadmap. Investments based on rumors or speculation can result in big losses.
Verify security level: Always check the security level of the exchange and wallet. It is important to follow basic security rules such as setting up 2-step authentication (2FA) and changing passwords regularly.
Diversification principle: Do not invest all your funds in one asset. Diversifying your portfolio to spread your risk is a smart investment strategy.
Keep a long-term perspective: Focus on long-term technological advancements and market growth potential rather than being swayed by short-term price fluctuations.
⚠️ Investment Warning: All investments involve the risk of losing your principal. Never invest living expenses or emergency funds, and only invest with spare funds that you can afford to lose.
Ethereum Classic's future prospects and development potential
Ethereum Classic is showing a positive outlook for the future through steady technology development and community growth.
In particular, as Ethereum transitions to Proof of Stake, Ethereum Classic's unique position of sticking to Proof of Work is being highlighted. Some developers and investors still prefer the security and decentralization characteristics of the Proof of Work method.
In addition, as companies accelerate their adoption of blockchain, demand for stable and proven platforms is expected to increase. Ethereum Classic has the advantage of being a proven platform that has been operating stably for many years.
In conclusion
What do you think of Ethereum Classic (ETC) today? You must have felt that it has the potential to be an innovative technology platform beyond a simple cryptocurrency.
However, I would like to emphasize once again that investments should always be approached with caution. I hope that you will make a wise decision through sufficient learning and preparation, and I hope that this has been of some help to you on your investment journey.
We will continue to share useful information about cryptocurrency and blockchain technology in the future, so please show us your interest and support!
📚 If you have any further questions, please leave a comment at any time. I will answer you sincerely!