Bitcoin And Next Week’s Hard Fork - Forex News by FX Leaders

Bitcoin And Next Week’s Hard Fork

Posted Thursday, October 19, 2017 by
Shain Vernier • 2 min read

If you are actively trading Bitcoin (BTC), then next week will be an important one for your account. On Wednesday, Oct. 25, Bitcoin will undergo a “hard fork,” creating a new cryptocurrency Bitcoin Gold (BTG).

BitcoinTime For Another Shakeup To The World Of Bitcoin.

 

What Is A Hard Fork?

I readily admit that I am not a programmer, so my explanation will appear rudimentary to those of you fluent in computer science. A “hard fork” is a split of Bitcoin’s blockchain. Basically, it is an alteration of Bitcoin’s driving algorithm. The Oct. 25 split will create a brand new cryptocurrency called Bitcoin Gold (BTG).

Hard forks are nothing new. In August, Bitcoin underwent a hard fork to create Bitcoin Cash (BCH). In November, another fork is scheduled to create something called SegWit2x.

The beauty of the upcoming fork is that all holders of Bitcoin will receive an equal number of BTG. There are many nuances involved with successfully claiming the BTG. I highly recommend consulting a qualified broker or social trading platform to figure out exactly how to perform the procedure correctly.

 

Bottom Line

Like I said earlier, I am not a computer programmer. If you ask me about the intricacies of cryptocurrencies and how they work, my knowledge base is limited.

However, I am a trader. Here are my observations and few pieces of advice going into Oct. 25:

  • Currently, BTC is trading at $5700. It is very possible that institutional players are getting in ahead of the split to secure claims on Bitcoin Gold.

  • The hard fork will be a big event in the cryptocurrency marketplace. If you are actively trading Bitcoins during this period, be absolutely positive that you have risk controls in place!

  • Fundamental changes to market dynamics are certain to create volatility. As traders, we love volatility. Be ready to trade the aftermath.

Cryptocurrencies are gaining popularity and respect from the financial establishment. Be sure that you are in a position to gain market share from their rise. Check out FX Leaders trading signals page for ideas on how to trade these up-and-coming markets.

 
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About the author

Shain Vernier // US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.
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