- The day of the Ethereum merge is getting closer.
- Traders are looking for ways to profit during the shift from PoW to PoS consensus.
- One trader in particular shares their experience on how to profit during the fork.
An experienced crypto trader explains how it is possible for other crypto traders to make a decent profit from the upcoming Ethereum (ETH) fork. The trader shares their experience from the original Bitcoin (BTC) fork and how they made a profit then.
In detail, the trader shares their excitement over the Ethereum (ETH) fork. They begin by expressing how there is serious potential to profit from the blockchain’s shift from a Proof-of-Work (PoW) consensus to Proof-of-Stake (PoS).
The conversation took place on the Reddit thread CryptoCurrency. Here, the trader says that it seems more likely than not that a reasonably well-funded group of miners will attempt to fork ETH on the day of the Ethereum merge.
The trader goes on to explain what this means, saying that anyone holding ETH during the time of the fork will then own original ETH and Miner ETH on two separate and incompatible chains. So, one doesn’t need to do anything to receive this Miner ETH. In fact, they say that no one can predict how much the asset will be worth.
Looking back, the trader reminisces how Bitcoin Cash (BCH) was very volatile around its fork from Bitcoin. They explain saying this was because of the low liquidity which led to massive price swings. Thus, the trader says it was easy to make a profit then.
However, they still believe the potential stands firm even with the ETH fork. To highlight, they encourage the possibility of making a well-timed trade into ETH for a single block period to yield maximum Miner ETH with minimal risk.
Finally, the trader reveals how to make the trade. The first step is to find an exchange that will support the forked coin. After which, one must move the amount of any cryptocurrency they are comfortable moving.
Then, once the snapshot block approaches, immediately swap every coin into ETH ahead of that block. Lastly, wait for the next block and immediately ‘undo’ all the trades back into the chosen currency.
The trades say they did the same during the BCH/BTC fork and made an incredible profit. They said that they increased their BTC stack by almost 25% upon dumping their BCH for BTC during the short trade.
To conclude, the post adds a note stressing on the risks that come with this move. They say that exchange custody are always a risk along with tax reliabilities, and price appreciation of the chosen asset in the event that ETH tanks.
Disclaimer: The message of making a profit in this article simply reflects the view of one trader and does not guarantee a profit. Traders are advised to always do their own research before committing to making any financial trades. This article reflects the interpretation of the writer based on the source material of the story and does not reflect the views of CryptoNewsLand.
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