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How to Trade Ethereum Classic: A Step-by-Step Guide

25 Min Read
Last Updated July 23rd 2021

The cryptocurrency trading scene is making headlines worldwide, as it continues to gain in popularity. 

You can trade Ethereum Classic against fellow cryptocurrencies like Bitcoin and Litecoin. Alternatively, you can trade the digital currency against a fiat currency such as US dollars.

Want to trade this highly speculative asset yourself? If so, stay tuned. 

In this guide, we talk about how to trade Ethereum Classic online.

This includes the bare bone basics of how to trade Ethereum Classic, running all the way through to order types, fees to expect, and how to find a decent broker.

How to Trade Ethereum Classic in 5 Easy Steps:

To trade ETC, the first step is to open an accout with a regulated exchange, depost funds, select Ethereum Classic from the platform list, and lastly Buy ETC (go Long) or sell ETC (go short).

This guide on how to Trade ETC will break everything down in Layman’s terms so that you do not trade blindly. But, if you don’t quite have the time to read it all of the ways through, this is what you need to do to trade Ethereum Classic now. 

Step 1: Open an account with a regulated broker

Step 2: Funds your account 

Step 3: Choose how much Ethereum Classic you want to trade 

Step 4Buy ETC (go long) or sell ETC (go short)

Step 5: Confirm the trade

 

Contents

What is Ethereum Classic Trading?

How Does Ethereum Classic Trading Work?

How to Trade Ethereum Classic Online - Setting up a Trade

How to Make Money Trading Ethereum Classic

How to Trade Ethereum Classic 2021 - Step-by-Step Walkthrough

FAQs

 

What is Ethereum Classic Trading?

Although Ethereum Classic is a digital currency - different from the ‘fiat’ government-issued currencies we all use to pay our taxes - cryptocurrencies still hold financial value.

The financial value of digital currencies like Ethereum Classic changes with every second, throughout a single trading day. This is down to the supply and demand of the market, which like any tradable asset naturally fluctuates.

When considering how to trade Ethereum Classic, the first thing to note is that your end goal will be to correctly predict the rise or fall of the price of ETC coins.

If demand for Ethereum Classic is soaring, the price of the digital coin will increase. If the opposite is happening, the price will decrease.

Being able to predict this market sentiment is how cryptocurrency traders turn a profit.

You will see below a simple example of how to trade Ethereum Classic:

  • Let’s say in October Ethereum Classic is priced at $4.00
  • This is illustrated as ETC/USD
  • Believing Ethereum Classic is undervalued, you place a $1,000 buy order
  • By December the digital-asset is worth $6.50
  • This shows an increase in value totalling 62%
  • Please with your gains, you decide to close your trade by creating a sell order

As you can see, in our example Ethereum Classic increased from $4.00 to $6.50 in two months, resulting in a 62% profit. From your $1,000 buy order, you made gains of $620!

This example illustrates that when you are able to predict the markets correctly, and in good time - you can make a profit when trading Ethereum Classic. If, however, you had predicted incorrectly, you would have been left with a financial loss.

Consequently, you shouldn’t even consider thinking about how to trade Ethereum Classic without first teaching yourself the ins and outs of how the market works.

How Does Ethereum Classic Trading Work?

If you have traded in any capacity before - Ethereum Classic trading will be second nature to you.

However, unlike stocks and commodities - which have been active for centuries, cryptocurrencies have only been around for a little over 11 years.

For those who are inexperienced, or in need of a recap, let’s have a look at some Ethereum Classic fundamentals.

Ethereum Classic Trading Price Movements

Having a firm grasp on what drives the cost of Ethereum Classic can only help you when it comes to trying to predict shifts in value.

If the market sentiment towards Ethereum Classic is leaning in the direction of traders going long, this will be shown in the price. If traders are going short in their droves, this will also affect the perceived value of the digital currency.

Moreover, at online brokers, you will notice that prices quoted on ETC will differ. For instance, one trading platform might quote you $6.0950 on Ethereum Classic, whilst another quotes $6.0947. Either way, the price difference tends to be minuscule and of no concern.

Ethereum Classic Trading Pairs

trading ethereum classic

As we touched on earlier, you can either trade against fiat currencies like the Euro or US dollar - or against another crypto-asset like Bitcoin.

Beginning with ‘crypto-fiat’ - this means that you will be trading Ethereum Classic against a government-issued currency like US dollars. For instance, when you see the pair ETC/USD - ETC is the ‘crypto’ currency, and USD is the ‘fiat’ currency.

Whilst the majority of people prefer to trade Ethereum Classic against the super-strong USD, some trading platforms offer alternatives. For example, this might include the Euro (ETC/EUR), British pound (ETC/GBP), Japanese yen (ETC/JPY), or Australian dollar (ETC/AUD).

It has to be said that by trading Ethereum Classic against a currency, such as USD, you are highly likely to experience better spreads - thanks to such high liquidity.

Therefore you will not be surprised to hear that crypto-fiat pairs are much more suitable for beginners. Not only is it easier to quantify your gains and losses from trading Ethereum Classic against a fiat currency, but it is much easier to speculate on its future value.

To summarize our section on pairs - whether you decide to trade Ethereum Classic against a fiat currency, or another crypto-asset - you must predict the rise or fall in the value respective exchange rate.

Long or Short-Term Trading

When contemplating how to trade Ethereum Classic, it’s important that you pay consideration to which financial instrument is most suitable to your trading goals.

For instance, if you want to trade Ethereum Classic because you think the asset is going to increase in value over a longer period of time - consider purchasing ETC coins on a direct basis.

This way you will store them in a crypto-wallet, and hold onto the digital currency for weeks or months, even years at a time. In turn, you will cash out when you feel the time is right to achieve the biggest gains.

If you are a newbie, you will likely find the chart reading and technical analysis side of things a little complex. This in turn could make the decisions needed to make a profit very difficult for you.

With this in mind, you might find a ‘buy and hold’ strategy more suitable. This is because by holding onto your crypto-asset, you no longer need to concern yourself with the short-term volatility of Ethereum Classic.

In terms of the short-term way to trade Ethereum Classic, your aim is to make smaller profits on a regular basis. You might find yourself placing many buy and sell orders throughout the day - especially if you fancy yourself as a cryptocurrency day trader

If you choose this route, it’s advised to stick to trading ultra-liquid pairs like ETC/BTC and ETC/USD.

Trade and Own Ethereum Classic

If you choose to utilize the aforementioned ‘buy and hold’ strategy, we advise doing so via a well-respected and regulated online broker, instead of a crypto-exchange.

If you have yet to research the hundreds of brokers in the online space - we can recommend eToro. The social trading platform looks after over 13 million clients. Not only can you store your Ethereum Classic safely for no extra charge, but the broker offers commission-free cryptocurrency trading.

With that said, the buy and hold strategy isn’t reserved just for beginners - as it is suitable for people possessing any level of trading experience. As we said, a long-term strategy cuts out the need to keep an eye on short term price fluctuations.

Ethereum Classic Trading

If you prefer the idea of popular short-term trading strategies such as ‘day trading’ or ‘swing trading’ - you can opt for an ‘Ethereum Classic CFD (Contract for Difference).

At this point, we should mention that if you live in the USA then CFDs are strictly prohibited, as per US securities law. If you live in the United Kingdom you can get your hands on CFDs for most assets - apart from digital currencies, like Ethereum Classic.

Here is a quick walkthrough of what CFDs are all about:

  • CFDs track the real-world price of the financial asset in question - this time, Ethereum Classic
  • Ethereum Classic CFDs invite competitive fees and leverage on trades
  • You can go ‘short’ or ‘long’ on crypto-assets - meaning you can make gains from bearish and bullish markets

If you are able to access CFDs where you live, you can trade Ethereum Classic against both fiat and cryptocurrencies.

If you are intent on using leverage regardless of whether it is legal in your country - there will always be a third-party crypto-exchange willing to offer it to you.

However, it is paramount that you are aware these are more often than not unregulated spaces - and therefore your capital is at risk. It is also unlikely that you will be able to deposit funds into your account using a fiat currency like US dollars.

Furthermore, if you are looking to trade Ethereum Classic against US dollars you will likely have to settle for ETC/USDT instead of ETC/USD. For those not in the know, USDT is a digital currency called Tether, pegged to the USD.

Would you consider trading Ethereum Classic ETC?

How to Trade Ethereum Classic Online - Setting up a Trade

how to trade ethereum classic

To learn how to trade Ethereum Classic efficiently, you need to have a firm grasp on trading orders. Ultimately, without placing an order, your online broker won’t know what your position is on your Ethereum Classic trade!

If you happen to have traded forex and such like before, you will already know the procedure. For those who haven’t - you place an order depending on your prediction, and the trading platform actions this order for you. You then sit back and hope for the best.

Below, we run through a list of easy to use orders when trading Ethereum Classic online.

Buy or Sell Order

Starting with the most basic of orders, ‘buy’ and ‘sell’ are compulsory.

In essence:

  • Place a buy order if you think Ethereum Classic will increase in value
  • Place a sell order if you think Ethereum Classic will decrease in value

As you can see, buy/sell orders are super simple. Every single order you place to trade Ethereum Classic will need a buy and a sell order.

In a nutshell, If you enter the market with a buy order - a sell order will close your trade. If you enter with a sell order - a buy order will close your trade.

Entry Price

Now that you know the basics of how to trade Ethereum Classic, we can walk you through some other helpful orders.

The online trading platform will invariably ask you whether you want a ‘limit order’ or a ‘market order’ - which indicates your ‘exit strategy’ to the broker.

Find below a simple explanation of each order to clear the mist:

  • Market order: Ethereum Classic is valued at $6.5020. Pleased with the price on offer you place a market order with your broker. Your broker executes this order immediately at this or the very nearest price available. Due to supply and demand, the price you get might differ ever-so-slightly.
  • Limit order: Ethereum Classic is valued at $6.5020, however, you do not want to enter the market until the price reaches $6.6970. With this in mind, you place a $6.6970 ‘limit order’. This position will remain pending until ETC coins hit that price target, or you decide to cancel your limit order manually. 

Limit orders are hugely popular amongst traders of any asset, due to the level of control gained over the position.

Exit Strategy

After covering how to enter the market, it’s only natural we move onto exit strategies. This is where ‘take-profit’ and ‘stop-loss’ orders come in use.

Find below a simple explanation of each order to clear the mist:

  • Take-profit: If you want to lock in your profit at say 3% on your Ethereum Classic trade - set your take profit order 3% above or below the current price. If, or when ETC coins reach that price point - your broker will close your trade for you.
  • Stop-loss: If you want to avoid losing more than 1% on your Ethereum Classic trade - set your stop-loss order to 1% above or lower its current value. If, or when ETC coins reach that price - your broker will close your trade for you.

To explain further, please see below an example of how both can be used on the same trade:

  • You are trading ETC/USD at $6.5020
  • Believing the price will rise, you place a buy order
  • Unwilling to lose more than 1%, you place a $6.4369 stop-loss order
  • If your position makes a profit of 3% you are looking to cash out
  • As such, you place a take-profit order of $6.6970

As is evident from our example, it is possible to use take-profit and stop-loss orders at either side of Ethereum Classic’s price. Whichever direction the price of the digital currency goes, the broker will close the trade automatically - on terms previously determined by you.

There are only two possible outcomes here, and they are as follows:

  • If ETC/USD increases to $6.6970 - the broker executes your take-profit order automatically. This locks in your 3% profit and consequently, your trade is closed.
  • If ETC/USD decreases to $6.4369 - the broker executes your stop-loss order automatically. This stops your loss at 1% and consequently, your trade is closed.

Ready to dive into Ethereum Classic ETC market?

How to Make Money Trading Ethereum Classic

As is clear from our above examples, there are orders which cut out the need to manually close your trade at the right time. However, that doesn’t denote that it’s easy to make money trading Ethereum Classic.

On the contrary, there are many other considerations before you know the ins and outs of trading digital currencies - see below.

1. Stake

Got a grip on orders and ready to trade Ethereum Classic right now? First, you need to select your stake. It’s worth bearing in mind that the higher your stake is, the greater your profit or losses could be.

For instance, if you stake $50 on Ethereum Classic and make gains of 3% - this is the equivalent of $1.50. On the flip-side, If you wager a higher stake on your trade, say $1,000 - a profit of $30 would be realized.

This is why many traders include a bankroll management strategy in their trading endeavours.

When contemplating how to trade Ethereum Classic, bear in mind that your account balance will change week in week out, especially if undertaking a short-term strategy.

With this in mind, it’s sensible to use a percentage as a guide. A popular bankroll management strategy is to never stake more than 2% of the available trading account.

For example, if you have $1,500 in your account, don’t stake more than $30 on an Ethereum Classic trade. If you had $10,000, that maximum stake would be $200 - and so forth.

The good news is that hugely broker platform eToro will enable you to trade Ethereum Classic from $25 - making this strategy easily achievable.

2. Ethereum Classic Trading Leverage

We mentioned earlier that some people aren’t able to access Ethereum Classic CFDs. If you don’t fall into that category - you can access the leverage that CFDs invite. Although leverage sounds great, it’s important to be wary of it.

If you trade Ethereum Classic and make the right call with your broker (resulting in a profit) - the aforementioned leverage can boost your gains significantly.

As such, if you apply leverage, but the trade goes the wrong way (resulting in a loss) - leverage will magnify your losses.

For clarity, see below an example of an Ethereum Classic trade with leverage:

  • You create a sell order of $1,000 on ETC/USD
  • You apply leverage of 1:2 on your trade
  • Your profit is 10%
  • With no leverage, your gains are $100
  • With 1:2 leverage applied, your gains are $200

As you can see above, if you can get your hands on leverage, you can magnify your profit. You will find that some trading platforms offer clients leverage as much as 1:100. We advise steering clear of such brokers, as they are likely unregulated.

Fess to Trade Ethereum Classic Online

You might have already decided how to trade Ethereum Classic - whether against a fiat currency or a crypto-asset, in the long or short-term. Either way, you should be aware of potential fees.

A trading platform is after all a business. The fees charged by such brokers can and will vary by quite a distance. For this reason, it’s important you check the fees of each individual broker.

See below a list of commonly found fees to give you an idea of where what to look out for.

Ethereum Classic Trading Commission

Most online brokers will charge a commission to enable you to trade Ethereum Classic. This tends to be a variable fee against the value of your order.

To give you an idea of what to expect - cryptocurrency broker Coinbase charges clients 1.49% for every single trade action. That’s 1.49% when entering the market, and 1.49% when exiting the market.

In stark contrast - over at eToro, you can expect to pay 0% commission when electing to trade Ethereum Classic. There are 15 further digital currencies available too!

Ethereum Classic Spread

The spread charged by online brokers is comparable to an indirect fee. Put simply, the spread is the difference between the buy price and the sell price of the asset - in this case, Ethereum Classic.

The larger the price gap, the bigger the ‘fee’. On the other hand, if you see that a broker offers a ‘tight spread’ - this is better for your wallet. To put a finer point on it - if the spread is 1.90% on your Ethereum Classic trade, you are starting your trade at 1.90% in the red.

This means if your position makes 1.90%, this is actually break-even - whereas anything over 1.90% is considered profit.

Other Ethereum Classic Trading Fees

Now that we’ve made you aware of the most commonly seen fees, it’s crucial to know that in order to trade Ethereum Classic, other charges might come into play.

We have listed a few more to look out for below.

  • Deposit/Withdrawals: Some online brokers charge deposit/withdrawal fees as standard. For instance, crypto platform Binance charges 2% on each debit card transaction, while at Coinbase it is 3.99%. In contrast, to trade Ethereum Classic at eToro, the only funding charge is 0.5%, chargeable for clients if not depositing US dollars.
  • Inactivity: Inactivity fees are common at online brokers. This fee is usually charged on a monthly basis - after not actively trading for 12 months. Some trading platforms begin charging after just 3 months. The monthly fee will be taken until your account has been cleared or you place a trade.
  • Overnight Funding: If you are not from the US or UK and able to access CFDs where you live - you will be liable to pay overnight funding fees. This fee is charged for each trade left open overnight, with a higher fee charged at weekends. This is also referred to as a ‘swap-fee’.

Always check the pricing table of any trading platform before signing up, as fees can soon eat away at your profits.

At crowd-pleaser eToro, you can trade Ethereum Classic commission-free. Not only that but the regulated broker offers competitive spreads and a mere 0.5% fee for non-USD deposits.

How to Trade Ethereum Classic 2021 - Step-by-Step Walkthrough

By now you are no doubt chomping at the bit to start trading Ethereum Classic.

To complete your journey in learning how to trade Ethereum Classic, we have put together a step-by-step walkthrough to guide you.

Step 1: Choose an Ethereum Classic Trading Site

The first port of call when choosing an Ethereum Classic trading site is to find a decent trading platform. There are hundreds of platforms online falling over themselves to sign you up - so choose wisely.

This is why we think it’s paramount that you check our list of important factors to look out for when searching for an online crypto broker.

  • Regulation: Is the trading platform licensed and regulated by organizations such as CySEC, FCA, or ASIC?
  • Fees: What broker fees are you liable for when trading Ethereum Classic?
  • Payments: What payment types does the crypto platform accept?
  • Account Minimum: What is the minimum stake, and deposit, required on the trading site?
  • Ethereum Classic Pairs: What crypto and fiat currencies can be traded against ETC?
  • Trading Platform: Is the Ethereum Classic trading platform easy to use and newbie-friendly?
  • Mobile: Does the online broker offer a mobile application for trading on the go?

As you can see, there is a lot to think about, so it shouldn’t be a slapdash decision. The trading platform is not only responsible for carrying out your Ethereum Classic orders. But, will likely be storing your digital currencies for you too.

eToro shines in various ways, as many of its 19 million clients would agree. Below we have listed the best aspects of trading Ethereum Classic at eToro.

  • The social trading platform is heavily regulated in various jurisdictions, including licenses with ASIC, FCA and CySEC. For US residents, eToro is registered with FINRA
  • Clients benefit from commission-free Ethereum Classic trading, with tight spreads
  • eToro processes deposits immediately and accepts credit/debit cards, and e-wallets like PayPal, Skrill, and Neteller
  • The broker offers a variety of both fiat currencies and digital currencies to trade against Ethereum Classic
  • The minimum stake to trade ETC is just $25

Step 2: Open an Ethereum Classic Trading Account

Go over to the trading platform of your choice and look for the ‘join now’ or ‘sign up’ button. At eToro, this process takes less than 10 minutes on average.

You will be asked to fill in some basic details such as your name, address, email, telephone number, and date of birth. You will also be required to upload a copy of your photo ID such as a passport. The online broker must learn who you are as per KYC rules.

eToro uses automated ID tech to validate client details - meaning you will be trading Ethereum Classic in virtually no time at all.

You can trade Ethereum Classic prior to uploading your photo ID, however, you will have to complete this step when you request a withdrawal or deposit more than $2,250. 

Step 3: Deposit Funds

At this point, you can fund your new trading account to trade Ethereum Classic from the comfort of your own home.

As we mentioned, eToro is compatible with a range of payment methods. This includes a credit/debit card, Skrill, Neteller, and PayPal. Funding your account is super fast, safe, and convenient.

Step 4: Choose Ethereum Classic Trading Market

investing in ethereum classic, etc price

Once you have completed step 3, you can choose a market at the platform. Simply head over to the category titled ‘Trade Markets’ to browse what’s available.

If on the other hand you already know what Ethereum Classic pair you want to trade, you can use the search facility. You might search for ETC/USD, or ETC/LTC for instance.

Step 5: Place Ethereum Classic Trade

Now it’s time to place your Ethereum Classic trade. This is where the orders we covered earlier come in. If you need a refresher course, feel free to scroll back up to the ‘Setting up a Trade’ section of our guide.

Depending on which way you see the price of Ethereum Classic going, you can go ahead and place a buy/sell order. Next, hit ‘open trade’ - this will execute your order.

How to Trade Ethereum Classic Guide - The Verdict

To trade Ethereum Classic in a safe and efficient way - you are best advised to stick to a regulated broker that offers good fees and heaps of markets.

It is for this reason that we like eToro. The broker is super beginner-friendly, setting up orders is easy, and you can trade financial assets like Ethereum Classic with 0% commission.

The social trading platform allows you to trade Ethereum Classic against other crypto-assets like Bitcoin and Litecoin, as well as fiat currencies such as the US dollar, the Euro, and the British pound.

Probably most importantly of all, the broker is regulated in various jurisdictions. All in all, by sticking with a decent and trustworthy broker, and researching guides like ours - you can easily trade Ethereum Classic yourself safely.

eToro – Best Broker to Trade Ethereum Classic ETC

etoro broker

eToro have proven themselves trustworthy within the crypto industry over many years – we recommend you try them out.

Virtual currencies are highly volatile. Your capital is at risk.

FAQs

Is trading Ethereum Classic safe?

Yes. Trading Ethereum Classic is safe - provided you do so via a licensed and regulated broker like eToro. The trading platform is registered in the US and regulated in Australia, the UK, and Cyprus.

How do I trade in Ethereum Classic?

The most convenient way to trade Ethereum Classic is via an online broker like eToro. Fund your account with $200 minimum, and place an order for as little as $25.

Can you get rich by trading Ethereum Classic?

If you correctly predict the short-term price movements of Ethereum Classic - you will make a profit. If you predict incorrectly, you make a loss. Never stake more than your budget allows and consider a bankroll management strategy.

Is Ethereum Classic trading legal in the US?

Ethereum Classic trading is legal in the US. However, you will not be given access to leveraged CFDs.

Can you trade Ethereum Classic with Leverage?

If you live in the US or the UK, you cannot access Ethereum Classic leverage via a regulated broker. Unregulated trading platforms will offer leverage - however, this is best avoided.

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    67% of retail clients lose money when trading CFDs with this provider.