The devs for Bitcoin Cash (BCH) have scheduled a hard fork for the cryptocurrency on November 15, 2020. Because this platform provides 100% of its gratuities in BCH, the upcoming change will impact every user.
Related reading: What is a hard fork?
Why is this happening?
One dissenting group of devs, referred to as Bitcoin Cash ABC, want to create a separate pool of funds using 8% of each block reward that is mined. The idea is that this would be automatically set aside to help fund future improvements to the Bitcoin Cash project. The rest of the group, known as Bitcoin Cash Node (supported by Roger Ver notably), do not agree with this vision as evidenced by his recent article.
Three tips for success
The next two weeks will be tumultuous for anyone who is invested in BCH. Here are three tips on how to navigate the upcoming change successfully.
Tip #1 - Beware of BCH price volatility in the near future
Historically, prices for many cryptocurrencies become increasingly volatile in the weeks leading up to a hard fork. This is due to the uncertainty surrounding the change. It's possible that the newly forked coin does not survive!
Unless you are a seasoned crypto investor, I suggest you stay on the sidelines until things stabilize.
Tip #2 - HODL your BCH
If the hard fork is successful, all customers who owned BCH before the fork would be eligible to receive the newly forked coins on a 1:1 basis to match the value of your pre-forked BCH.
For example, if you owned 0.359 BCH before the fork, you would be eligible to receive 0.359 of the new coin after the fork.
The more BCH you own before the fork, the more of the new coins you may receive. Try not to spend or exchange your BCH until after November 15!
Tip #3 - Find out which wallets will support the new coin
If you wish to collect your new coins after a successful fork, you will need to deposit them into a wallet that supports the new forked coins. It's notable that the Trezor cold storage wallet will not support the new coins.
However, Binance has confirmed they would. This means that you would automatically collect the new coins by transferring your BCH funds into your Binance account.
One other advantage of depositing your BCH into Binance is that you would be eligible to earn interest on your deposit. Binance currently offers a Flexible Savings account that pays 0.61% Annual Percent Yield (APY). You are able to withdraw your funds at any time.
If you would like to register for a new Binance account, please consider using my referral code OXY60HLV.
Thanks for reading, and stay safe!
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Cover image by loufre (modified by the author) from Pixabay
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Thanks for your support!
Lead image: Bitcoin Cash logo modified by the author
Graphic 1: Image by Steve Buissinne from Pixabay
Resources:
https://medium.com/poolin/bitcoin-cash-hardfork-plans-f8570234e1ad
https://www.binance.com/en/support/announcement/ade106fd65974a9982fc5a32e063d0b0
https://cointelegraph.com/news/fork-in-the-node-bitcoin-cash-node-on-track-to-oust-bitcoin-abc
https://cointelegraph.com/news/trezor-s-failure-to-support-upcoming-bch-fork-comes-under-fire
Thanks for information dear