Cryptocurrency offers us lots of opportunities to have lots of ways to have some amount that we needed and wanted to have and Binance Exchange adds on that opportunities.
Binance, as the leading cryptocurrency market now in the crypto space, offers us ways to have a potential passive income and lead us to an opportunity of having some amount that we can possibly have with a much lesser risk as possible. And in this article, I'll show you one of the best ways to receive free cryptocurrencies in Binance Exchange.
Participating in a Crypto Network Upgrade and Hard Fork.
This method is one of the best ways to have a new cryptocurrencies in your Binance portfolio. Whenever a certain project or coin announced that they will have an upgrade in their network and a hard fork in that certain coin will happen, and that coin is listed on Binance, the exchange will usually support it and will announce about it inside the exchange and in their Binance Twitter page.
When you participate in that event, you will eventually receive that newly forked coin in your spot account.
How to do it?
However, this comes with a little risks. In order for you to have that newly forked coin, you need to have the coin, where the new coin will be forked out, and hold it until the the snapshot time is over.
What is a snapshot?
To explain this briefly, this is an act where the exchange will review your account and records all the amount or quantity of the coin that is in your spot account and be eligible to receive the forked coin.
What will happen after the snapshot?
After the snapshot, your account and the amount that you have is already recorded and will distribute the new coin in your account depending on what time the exchange decided to distribute it with a ratio depending on the network's decision - example, a 1:1, 1:2, 1:3 ratio.
How to lessen the risk?
To explain and demonstrate this clearly, let's have a scenario:
Bitcoin Cash will have a network upgrade and there will also be a hard fork that will be called Bitcoin Cash Blue with a ticker BCHB. The upgrade will happen on April 30, 2021 and the snapshot time will be on 7:30 P.M.
Usually, when Binance announces about its support in this kind of events, the price of the cryptocurrency can pump higher. And because it's already high, buying the top is unnecessary because overtime, the price of that coin can lose some of its value and you can possibly be at loss even after the upgrade and snapshot. And if you really want to buy that coin days before the upgrade, you can just wait for its price to go down a little bit or apply your own technical analysis to find a good entry.
But, whenever you are lucky and fast enough to be updated about that announcement and immediately bought the coin in a very low price before it skyrocketed, it will be much more worthy to hold it until the upgrade is finished or you can just hold it untill you are satisfied enough to sell it.
But, the smart way to do this is to buy the coin 4 to 5 minutes before the actual upgrade. Then, when you have bought it already, all you need to do now is to wait for the snapshot to finish.
If the snapshot will happen on 7:30 P.M, you can sell your bought cryptocurrency on around 7:32-7:35 P.M. That way you have already participated in the snapshot and the last you need to do is to wait for the distribution.
To summarize it:
Don't buy the coin when it's high already after the announcement.
Use your own technical analysis to find a good entry or wait for it to go down a bit if you are eager to buy the coin.
You can hold the coin if you were early in buying it in a low price.
Buy the coin 4-5 minutes before the hard fork and sell it 2-5 minutes after the snapshot time.
Final Thoughts.
Before participating in this, it will be much better for you to have your own research before buying the certain coin. With this, whenever something goes wrong, is the coin is fundamentally strong and you were at loss after the upgrade, it will be much reassuring that it will eventually go back to its original in time.
Helpful and related articles:
https://read.cash/@Kryptlook/the-5-crypto-investing-mistakes-that-everyone-should-avoid-3320feed
https://read.cash/@Kryptlook/the-skyrocketing-bnb-how-high-can-it-go-by-the-end-of-the-year-52505c7a
FIN.
Really informative and helpfull read it was. I request you please write about technicalities to be considered before crypto trade.