Prophecy with a C is the noun: a prediction. Prophesy with an S is the verb: to make one. Unlike practice/practise, this pair differs in both varieties of English, and it also sounds different — the verb ends "-sigh".
The core difference
A noun and a verb, distinguished in spelling and in sound.
- prophecy (noun, ends "-see") — an ancient prophecy.
- prophesy (verb, ends "-sigh") — he prophesied disaster.
Why this one is easier than practice/practise
Because the pronunciation differs. If you can hear whether you are saying "-see" or "-sigh", the spelling follows. And unlike practice/practise, American and British English agree here, so there is no variety to consider.
Related words
Prophet is the person, and is a separate homophone trap with profit. Prophetic is the adjective.