How to Claim Forked Coins

How to Claim Forked CoinsIn order to claim any forked coin, you must first hold the cryptocurrency on its original blockchain before any branching takes place. More specifically, the currency must exist before a “snapshot” of the pre-branch blockchain is taken at a predetermined “block height”. Here, a copy of the exact ledger containing all the transactions and existing coin accounts are recorded and used to designate new forked coins to those who have original preprint ownership. Then there is a waiting period before the newly forked chains go live, and once this happens, the claim process can start

Assuming the forked coin is supported by a wallet or exchange, one can transfer funds to one of these service providers before the official “snapshot” is taken. This involves handing over the private key to the service provider and is seen as a risky option as a result. In some cases, forked coins are only available to users after a long period of time (weeks to months). 

Run the Fork Claim Software

If the source code of the forked blockchain is public, one can download and run the forked software locally and use the provided interface to claim any forked coins. The method of claiming this fork also involves a high level of risk given that certain software can contain malware that can steal personal funds or information.

Send Manual Transactions

The safest but technically most complicated way to get forked coins is to connect to a forked coin network and send manually signed transactions. This requires knowledge of signing transactions in a format compatible with the new network.

Transaction fees

In the case of bitcoin, all transactions are included by default a network transaction fee. The amount of this fee depends on the size of the transaction in bytes which is determined by the number of inputs and outputs, not the amount of money sent. This will vary based on the wallet as well as the transaction time required. The reason for this to be a relevant fee is for security reasons it is recommended that one empties the wallet of all cryptocurrencies present on the original forked blockchain in the event of an attack, before claiming any forked coin using the private key associated with it. purse.

Risk

One of the main risks associated with hard forked coin claims is that financial privacy can be significantly harmed by this process, given that data from any bitcoin holdings can be disclosed to various networks, exchanges, and services that you may use in the process. The obvious implication is that a person can be exposed to attacks and fraudulent activity. For example, the private key is used to configure the wallet to claim new forked coins. There have been cases of fraudulent wallets or websites that accept the user’s private key (required to transfer funds), only to steal the cryptocurrency in the account. Other than that,

How to Reduce Risk

  1. Transfer funds

Before exposing existing private keys to new wallets or exchanges, it is often necessary to empty the associated wallet containing cryptocurrency holdings before claiming forked coins. In the case of a security breach, this eliminates the possibility that ownership of the original wallet is stolen.

  1. Only Use Trusted Wallets / Exchanges.

Only use trusted wallets that support any relevant forked coins when exposing private key information. These trusted wallets often have stricter policies that help reduce the risk of breaches. Also, get tired of installing and running certain software when claiming forked coins – malicious software can use your old private key to steal other unclaimed forks.

  1. The cooling period.

Wait for the new live blockchain to be stable and protected for a specified period of time before claiming new forked coins. A forked blockchain may not yet have replay protection, which could result in the loss of cryptocurrency due to unwanted transactions or attacks.

 Step by Step Guide to Claiming Fork

Step 1 – Essential Guidelines

Claiming fork coin involves considerable risk, and requires advanced knowledge. Before going any further to claim a coin from a fork, be sure to read the safety tips and general guidelines below:

GUIDE # 1: TRANSFER YOUR COINS TO A NEW WALLET

I can’t stress this enough (and will probably repeat it later), but one rule you should always follow before trying to claim any forkcoin is to move your Bitcoin to a new Bitcoin wallet with a new seed phrase ..

At some point, you will need to share your private key with a fork wallet or fork claiming tool. You don’t want to share the private keys of an active Bitcoin wallet.

Since you can never be sure of new software, the only safe way to claim fork coin is to move all your bitcoins to a new wallet first. Once BTC is safely transferred, they cannot be harmed. Taking this step will eliminate the risk of your Bitcoin being stolen.

Note: If you’re still using a Legacy Bitcoin wallet (with addresses starting with 1), claiming this fork is an excellent motivation for moving your coins into a SegWit wallet. Doing so will reduce all your future transaction costs, and prepare you to use the Lightning Network.

GUIDELINE # 2: KNOW THE RAMIFICATIONS

As a general rule of thumb, I recommend reading a little about a project, before you take any steps to claim its coins. Find out who the developers are, what their track record is, how far along they are on their roadmap, what other publications have written about them, and the like.

If all of that makes sense to you, then maybe the ramifications are legitimate.

GUIDE # 3: RISK VS. APPRECIATION

Even though the fork is real, that doesn’t mean you need to bother claiming the coins. The claim process is usually complicated, and you run the risk of losing coins if you don’t know exactly what you are doing.

Say you hold 0.5 Bitcoin, and you qualify for 0.5 Bitcoin Gold. I’m not sure the immediate benefits are worth the risks. This is a personal decision that you have to make.

In order to determine your risk-reward ratio, there are several aspects you should check:

Fork height

This is the time and date (measured in Bitcoin block Height ) when the fork took place. Any address in a Bitcoin wallet containing any value at the time of the fork will be eligible for a fork coin reward. Bitcoin addresses that receive value after the fork will not be eligible for any fork coins.

Rewards Ratio

Fork coins are often awarded in proportion to the number of bitcoins at each address (eg 1,582 fork coins to 1,582 BTC) but this ratio can vary. For example, Bitcoin World gives 10,000 BTW for every 1 BTC.

Transaction replay protection

In some forks, someone with bad intentions can broadcast on the original network the transactions you sent on the forked network, and in doing so steal your coins. Make sure the fork has counter-transaction protection to protect you from such cases.

Available market

You need to determine where you can sell or trade your fork coins once you claim them. The fork is small and unknown, maybe not even traded at all. Ultimately, you don’t want to bet your Bitcoin for coins that can’t be traded for real money.

GUIDELINE # 4: CHOOSE YOUR GUIDE WISELY

Follow guides only from well-known wallets (e.g. TREZOR, Ledger, etc.) or credited publications. However, keep in mind that in the end, it’s your money, and no publication can be held responsible if you get it wrong during the process

Step 2 – Initial Preparation

EXPORT YOUR PRIVATE KEY

In order to claim most fork coins, it is important to export the private keys from your old wallet using a format that the import tool can read (described below). Please refer to your specific wallet documentation for instructions on how to export your private key.

In most cases, a file containing all your addresses and private keys will be generated.

Certain wallets, especially hardware wallets, do not allow you to export private keys. In such a case, you will need to enter the initial phase of your hardware wallet into a tool (such as Ian Coleman’s BIP39 Tool ), which must be run offline. Another option is to import your seeds to a compatible HD wallet, such as Electrum.

CHECK BALANCES AND CREATE LISTS

To save time, don’t import private keys that don’t contain a value. You can use a tool like find coins. ninja to check the claimable fork coin balance of your old Bitcoin address.

Record all valid addresses and private key combinations in a text file or spreadsheet. Use any file type that allows you to easily copy, paste and replace text. The record format must be a private key, followed by an address.

Also, number each entry, and note the approximate amount of Bitcoin it contains on the earliest branch date you are entitled to. The numbering of each key pair will prove useful for ordering purposes.

Paying attention to size may also be useful. For example, you can pull up the address with the largest value for fast exchange funding or the address with the smallest value for testing purposes.

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