Update: The Segwit2x hard fork has been suspended for the time being. I'll make sure to update this post if this changes. The good news is the the price of Bitcoin soared on the news.
eToro is a popular trading platform, which added support for various cryptocurrencies over the past 12 months or so. Up to know, none of the major trading platforms have supported the bitcoin forks, but that isn't the case with the upcoming Segwit2x hard fork.
So if you're a trader on eToro, it's important you're prepared for this event. Here's a bit more on what's happening:
A hard fork happens when new software is introduced into the bitcoin blockchain that isn't compatible with the old blockchain. This means the blockchain needs to split. The old blockchain will continue supporting the old set of rules while the newly created blockchain will retain use the new rules and software.
After the hard fork event, there will be to blockchains and essentially two different currencies.
B2X is what people are calling the newly created blockchain currency. It doesn't exist yet, but will do sometime in mid november. People have proposed calling the old blockchain BTC and the new one B2X. However, if the new B2X blockchain gains the majority of support, it may be called BTC. No one really knows whats going to happen.
Will I get free coins from the Fork?
Quite possibly. When the new blockchain is created you'll have the same amount of Bitcoins in the new B2X currency. So essentially you get a bunch of coins for free. How much these coins will be worth, and how much your existing bitcoins will be worth is hard to tell. Many people ( including myself) see this is a time to make a profit.
When will the Bitcoin Hard Fork Happen?
It's impossible to say exactly when the hard fork will take place. It's set to take place when a certain block on the blockchain is mined. And because the time taken to mine a block varies slightly, the exact time can't be given. But it's easy to give a rough time and date. Just check out this countdown timer which is counting down to the event.
What do I need to do on eToro to take advantage of the hard fork?
Hold bitcoins! eToro will halt trading of Bitcoin prior to the fork, so you need to get in early. Trading needs to halt as there will be a period of extreme volatility as well as potential for replay transactions. So eToro is doing this to protect your funds.
eToro will credit your account with a 1:1 ratio of BTC to B2X. So after the trading event you'll have a bunch of B2X coins if you help and open Bitcoin position. Obviously you won't get anything for short positions.
How I will be trading this event
Leading up to the fork, I'll be putting most of my crypto into Bitcoin. And probably buying some more on eToro and Coinbase. Then I'll wait for trading to happen again and play it by ear as to whether I cash out my B2X straight away. I'll be doing lots of news watching over the fork period just to make sure i'm on top of things.
How are you planning on trading the fork?
Disclaimer: eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Past performance is not an indication of future results.
Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.