AIRDROPS AND FORKS
As promised, this week we’re back at it with cryptocurrency!🤸🏿♀️ We’ll start off by chatting about airdrops and forks - what they are, what’s the difference between them both.
AIRDROP: This is pretty much a marketing trick where tokens/coins are deposited into your crypto wallet by different companies to create awareness of their new cryptocurrency. You pay nothing for it - but the platform may ask you to do something to receive the airdrop: follow them on social media, retweet something they posted, use a particular hashtag, or create an account if you don’t yet have one.
They do this to create awareness of their new coins; to get more people trading the coins when they’re listed on exchanges; to promote a blockchain startup; and/or to get more people involved. Coindesk dot com says, “Legitimate crypto airdrops will never ask users to make any investment. Instead, it is a way to stand out among competitors that have pursued external funding before issuing their tokens.”
FORK: The best way to describe a fork is to remind ourselves that cryptocurrencies are powered by software called blockchains. So the fork occurs when a change is made to the blockchain’s protocol (basic set of rules). If this happens the chain then splits and this causes a second blockchain that takes off in a different direction even though it still shares all of its histories with the original blockchain.
According to Coinbase dot com - “sometimes a fork happens to make a cryptocurrency more secure or add other features, but it’s also possible for the developers of a new cryptocurrency to use a fork to create entire new coins.”
These aren’t necessarily things that we must know before we purchase cryptocurrency, but if you’re serious about being in this for the long haul I’m sure you’ll agree that the more information you have about it, the better able you’ll be to make wise decisions about your asset.
Let me know if you have questions about any of the above, if I don’t have the answer I’ll get it for you! Don’t forget that you can also join me in this most fabulous cryptocurrency and/or Forex trading lifestyle by clicking right here!
Copyright ©2022 Sherma Jacqueline Felix, BLACK ADVANTAGE Publishing™ . The author shall neither be liable nor responsible for any loss or damage allegedly arising from any information or suggestion in this post.