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7 Ways How to save yourself during Bitcoin Fork on 1 August 2017

Jul 19, 2017 Posted /  5455 Views

7 Ways How to save yourself during Bitcoin Fork on 1 August 2017

7 Ways How to save yourself during Bitcoin Fork on 1 August 2017:

By the advent of the Bitcoin, the industry of cryptocurrency started. Among the thousands of other cryptocurrencies, Bitcoin is the most popular among the people and it is the cryptocurrency with a maximum number of investors. The only problem with the Bitcoin is its scalability. It has a limited block size of 1Mb which cause its transaction almost 10 minutes, especially when there is a heavy load on the network. While most of the other coins allow transaction speeds of mere seconds, Bitcoin goes backward in this one aspect and it allows only 3 to 4 transactions in a second. In order to rectify this defect, Bitcoin is going to a major fork, ie a User activated Soft Fork by combining two algorithms SegWit2x and BIP 148. BIP stands for Bitcoin Improvement Proposal. THe change will come into existence on August 1st.

The whole world is excitedly looking into this new improvement in the field of Bitcoin. Many people and organizations are supporting the new concept, but there are people in the community who are against the concept. Due to this, there may be a chance for a chain split. If it arises, that will cause a lot of confusions and trouble in the community and for the investors. By this article, Applancer gives the outline of how to save yourself during this Bitcoin fork and the split, if it occurs.

1. Exchange your Bitcoin to other reputed crypto coins:

If you are an investor who is not at all ready to take any risks in the investment, then the best way to protect your investments in Bitcoin is by exchanging all your Bitcoins with any other reputed cryptocurrencies like Ethereum, Litecoin, Waves, etc. By this way, you will not be affected at all by the Bitcoin UASF or any of its after-effects.

2. Make sure that you do not hold Bitcoins than what you are willing to lose:

The coin split is a situation with lots of risks for the investors. There may even be chances that you will lose your money forever if you are not willing to shift to the new version of the software. So make sure that you are not holding value in Bitcoin that what you are willing to lose. 

3. Control your own private key:

This is the most important thing you can do to save yourself during the Bitcoin fork. If you are storing your Bitcoins in any of the wallets like Coinbase, or Xapo, or you are using any services for storing your private key, there is a chance of not receiving the coins on both ends. There are no guarantees offered by any of the exchanges or wallets regarding this. The best thing you can do here is to create your own wallet and hold your private key. Or you can use any hardware wallets like Trezor which can also help storing your private key.

4. Don't do any transactions soon after the fork:

Bitcoin unlimited does not include the "replay protection". ie after the fork, transactions on both sides of the fork will look identical. While spending coins on one side of the chain, you may accidentally send the equivalent coin on the other side of the chain. Instead of paying someone only BTC, you may unintentionally send BTU as well — or vice versa. This is called the "replay attack". THe best way to overcome this situation is to do any transactions post fork till the situation is quite clear.

5. Careful about whether BTC or BTU ultimately stays:

Bitcoin Unlimited does not offer the "wipeout protection". If the amount of mining power in the old BTC chain ever exceeds the new Bitcoin unlimited chain, then the BTU chain will completely be eliminated or discarded. So till its perfectly clear that the Bitcoin Ultimated chain will override the BTC chain, it is best not to accept any of the BTU Coins. That is a better way to safe guard your investments in Bitcoins.

6. Coin-splitting service from exchanges:

If after the UASF, both BTC and BTU coexist, then there will be chances for replay attacks as mentioned above. Then you have to do coin splitting, which will be a bit complex task. Many exchanges will come up with the coin splitting services after the fork. You may take help from that for avoiding unnecessary confusions.

7. Accept the UASF:

This is an optional thing. To be on the safe side during the fork, one of the ways is to accept the UASF and upgrade your Bitcoin. That way you will be able to do transactions with very high speed and the block size will be changed to 2MB. THe number of blocks that can be processed in one second also increases.

Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .

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Tags: bip 148 bitcoin what is bip 148 what is bip148 bip 148 coinbase uasf guide bip 148 support uasf bitcoin uasfguide bip148

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