How to Prepare for the Bitcoin Hardfork

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It’s happening. The historical day is now just hours away and it’s expected to be probably the busiest day bitcoin has ever had in its 8 years long experience.

All industry will likely stop bitcoin deposits and withdrawals tomorrow. Certainly for bitcoin, but just to be super safe they may suspend eth and other currencies too. So you want to get everything ready today.

How to do so depends on your aims. If you are a medium to long term investor that doesn’t plan to get burned in trading, then life is a bit easy for you. Just pick a nice wallet, preferably a hardware wallet like Ledger or Trezor, otherwise a paper wallet or a light wallet like Jaax, and send your bitcoin there.

Then sit tight and enjoy the show. Initially, much of it will happen on the fork monitor. It’s not as cool as the one eth had. They had chains moving around, visualizing the split, but it should give you the necessary information and the basic stats.

Technically it should all go smoothly. Hash-power is something to keep an eye on. Currently it’s at around 0.26% of the total bitcoin network, but the Bitcoin Cash chain doesn’t exist yet so we’ll have to wait for the day and see how much hash it attracts.

It would probably depend on price. So if you are a trader, speculator, want to make a point, or just think one coins is better than the other, then you probably have quite a big role to play.

Since deposits and withdrawals will be frozen generally 12 hours before 12:20 UTC and 12 hours after the fork, while trading will continue in the meantime, you might want to keep a small portion of your bitcoins on an exchange while securely keeping most of it on a wallet where you control the private keys.

There are quite a few exchanges that will list Bitcoin Cash trading. In the west, Kraken is probably the busiest, so they may have a field day. Although there are suggestions Gemini will list it too, but they have made no such definitive statement.

While Bithumb is a good place to be if you are in South Korea. ViaBTC, one of the OKcoins, or Huobi if you are based in China, with ViaBTC probably your best bet.

Current support for Bitcoin Cash

Volatility is expected to be very high on the day and soon after as everyone rushes to buy, sell, or flip flop like a two year old.

It is probable the two currencies will develop an inverse correlation on the day as bitcoiners sell one and buy the other. With price movements likely fast and sharp both up and down probably in both currencies.

But, eventually, after some weeks or maybe by autumn, price should settle, with the two developing a more long term relationship which may be a peg of sorts or may be an inverse correlation.

During the first few weeks, however, everyone will probably be watching to see whether there might be a flip of sorts. If you’re a holder, it probably wouldn’t matter as you hold both coins. If you are making bets, make sure to keep an eye on things and see if they are going your way.

Because there are many different opinions out there, but no one can predict the outcome except with hindsight. Bitcoin Cash may rise even above BTC’s price or Bitcoin Core may maintain price dominance, or eth rises to overtake them both in marketcap.

The combined market cap of the two, however, should eventually settle higher than bitcoin’s current price because there may be more value in two different visions, free to follow their own roadmap in their own projects.

But whether that is indeed the case remains to be seen with just tomorrow left to go now before bitcoin’s very big day when the currency splits into two and all current bitcoin holders get an equal amount of both.

Unless you’re on Coinbase, in which case you’ll unfortunately have to join the queue and wait in line for the exodus.

 

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