For good example, many people did not buy How to profit from Bitcoin fork at $1, or Ether at $, because engineering science seemed to be sanely expensive. But some months later on these prices appear to have been A expert moment to start. Jun 25, · One unique feature of the Bitcoin gold hard fork was a "post-mine," a process by which the development team mined , coins after the fork had . Oct 23, · The fork could have an impact on the Bitcoin community, Bitcoin’s adoption, and even Bitcoin’s price (we’ll get to that later on). Finally, you may want to profit from the fork by selling the new coins that can be claimed by every Bitcoin holder at the time of the fork.
Profit from bitcoin forkCan You Profit from the Next Bitcoin Fork Date? | More Than FinancesMore Than Finances
Thus, only forks like Bitcoin Cash require the best practices noted above to be followed. Move every token : Move all your funds after a fork, and never move them back. The private key associated with your old wallet now only has one use, claiming the new forked coin.
Malware : Some forks are scams, and almost every major fork will have malware wallets launched along side of it by malicious developers preying on confused users. If you are unsure how to protect yourself from replay attacks, you may simply want to avoid sending your coins between wallets until the dust settles and replay protection has been confirmed.
If you are unsure, do nothing : If you are unsure about anything, it is probably best to do nothing. There is no rush to claim a forked coin, if you are in for the snapshot, you own the coin on the new blockchain forever. Super simple version of claiming coins from an airdrop from any coin like Ethereum this works regardless of why an airdrop is happening :. That is all there is to it, but to really follow best practices and know every detail, you should at read the rest of the information below.
Doing that should result in you having balances of the new coin in proportion to the old coin in a address for the new coin, where you now own the private keys of the new coin.
From here you can do anything you want with the new coin. TIP : You should no longer use your original wallet address after this, do keep your keys, but never put funds in it again. This results in the private keys used to claim for the fork now being associated with no funds, this means if somehow your private key got compromised in the process of claiming the fork, there is nothing anyone can do with it.
TIP : You can wait to claim a coin. I almost always wait because new software tends to be wonky. However, sometimes selling a forked asset on the initial pump is a good move. If you are going to HODL, consider waiting until everything is stable.
As you can see, it is much simpler to have an exchange or platform do the heavy lifting for you. However, exchanges and platforms can be fickle. If you want access to your forked asset right away, and if you want to ensure you get it no matter what, it is almost always best be in control of your private keys. Above was the simple TL;DR version of dealing with forks, below is a detailed step-by-step guide that uses Bitcoin as an example essentially all forks for all cryptos work the same way.
Anyone in Bitcoin before that block height will end up owning equal parts of the forked coin by default if they are in control of the private keys. Meanwhile, if one has their Bitcoin on a platform that supports the fork, they should by all means be credited for that as well although its at the discretion of the platform.
With all that said, being in for the snapshot block is only step 1. Bitcoin and the forked coin no longer have any relation after the snapshot block.
With forks the block height AKA block number matters, the date is just an approximation. For example Binance and hitbtc have done this in the past. Futures can be great, they allow you to trade a coin before it even goes live! However, if the fork occurs and is stable, you could end up trading away a coin with a hefty future price tag for pennies on the dollar by trying to unload it right out of the gate.
Thus, taking advantage of early access to a coin via this type of future product is a mixed bag. Once you trade away your futures, you no longer get the coin. Step 2 is waiting. You have to wait for the chain to go live the main network should go live around the same time.
The idea here is that the developers need to double check everything went as planned before taking the main network online. The only way around the waiting step is if you were on exchange that offered futures of the forked coin described above.
Remember, if you get futures and you trade them, realize that you are trading away your forked coins. Sometimes, like with Segwit2x, this is great.
The Segwit2x fork never occurred, so only users who traded futures benefited holders of Bitcoin did not. However, this can be pretty rough if the fork ends up doing well. TIP : Some may want to wait for a stable wallet and not just any wallet to go live.
Some forked coins I have seen have had rather wonky first attempts at full node wallets. For every fork, there is a fake wallet and a fake set of instructions attempting to trick you. If you are in control of your private keys : Once the devs announce that the new forked chain is live and thew wallet is live, you are ready to claim your coins.
Because this is how forks work, it is important to retain access to all wallets in which you held Bitcoin during the snapshot. It is also important to wait until you know the new chain and wallet software is stable. Second, Bitcoin holders get to access new coins with each fork. For instance, if you have five Bitcoins, you get a chance to claim five Bitcoin fork coins by default. Now, you do have to take steps to claim these new coins, and each fork has a unique process for doing that.
However, once you do, you have the ability to hold or potentially sell these new Bitcoin fork coins. If you already have Bitcoin, then you could profit from the next Bitcoin fork date by selling the new coins you receive when the fork occurs.
Usually, to sell a coin, it has to be on an exchange. Not every cryptocurrency ends up on an exchange quickly, and some exchanges may never list the new Bitcoin fork coin. This may limit your ability to profit. Additionally, many exchanges have fees. Finally, even though the new coin is based on Bitcoin, there is no guarantee that it will be a success.
The cryptocurrency market is highly volatile, so a new Bitcoin fork may not end up with much value. Bitcoin forks often seem safer because they are associated with Bitcoin, allowing them to capitalize on the name.
Bitcoin Platinum is one example of a Bitcoin fork that was actually a scam. It appears that the creator, said to be a South Korean teenager, actually wanted to use Bitcoin Platinum to decrease the price of Bitcoin, giving the creator a chance to profit by shorting Bitcoin. Additionally, there have been dozens of Bitcoin forks over the past two years. However, the decision to get involved in a Bitcoin fork is a personal one. There is potential to profit from the next Bitcoin fork date, but most would say that your chances are minimal.
But, if you are uneasy about the coin or any part of the claiming process, it may be best to let the next Bitcoin fork date pass unnoticed.