How to make money on Ethereum forks ?

Experts described ways to withdraw various coins received after updating the network of the leading altcoin, and gave a forecast of what will happen to the price of the ETHW cryptocurrency

On the morning of September 15, The Merge was updated on the Ethereum network, as a result of which the cryptocurrency switched from the Proof-of-Work (PoW) algorithm to Proof-of-Stake (PoS). Ecosystem members committed to mining supported the formation of forks of the Ethereum blockchain, working on the PoW algorithm.

As a result of these forks, the owners of ETH and other network tokens received exactly the same number of coins in the PoW version. The experts told how these tokens can be withdrawn from the hard fork network, and what are the prospects for the price of the ETHW coin.

User assets that were stored on the Ethereum network in an over-the-counter wallet (Metamask, TrustWallet, etc.) were duplicated in the ETH fork blockchains, said Dmitry Fomin, a trader and former employee of Crypto. He explained that, for example, if you had 100K USDT before the Merger, you now have 100K USDT on the new Ethereum POS network and the same amount on the old POW network.

Bonus assets can be withdrawn from the old network, the expert says. However, he noted that this is not easy, and it will only work out with heavy losses. The trader explained how this can be done:

1. Add the old network to your OTC wallet. Network settings (RPC) published on the ETHW Developer Blog.
2. Go to a decentralized exchange (DEX) that has added POW support, such as Kyberswap. There are few such platforms, most of them refused to support the Ethereum fork.
3. Exchange all assets duplicated in the old network for ETHW.
4. Transfer ETHW from the decentralized exchange to platforms that have added support for the Ethereum fork, such as MEXC, Bybit. It is important to check that the platform has a deposit of the PoW version of Ethereum. Many exchanges have opened coin trading without the possibility of replenishment.

Ethereum is currently worth about 16k USDT on the POW network, while it is trading at 13 USDT on exchanges. Thus, when withdrawing 100k USDT from the old network, you can get approximately 81 USDT on the exchange (100k / 16k * 13)

Also, Fomin noted that there may be another way to make money on the Merger. He said that as a result of the Ethereum upgrade, another fork was formed – Ethereum Fair.

According to him, this is a less popular project, and it is much more difficult to withdraw assets from this network, but the premium is higher. The algorithm is:

1. Add the EthereumFair network to your OTC wallet. Network settings (RPC) are in the project’s Twitter account.
2. Find a decentralized exchange that has added support for ETFs. To date, only one such DEX platform has been found – Bitkeep, to work with which you need to download the Bitkeep application to your smartphone and create a new wallet there. For security reasons, it is not recommended to import your personal wallet there. It is not possible to connect an over-the-counter wallet in another way, the browser extension also does not work.
3. Then you need to transfer the assets duplicated in the ETF network from your OTC wallet to the wallet created in Bitkeep.
4. In the Bitkeep application, you need to open Dapp Bitkeep (the built-in swap (exchange) does not support the ETF network, but you can access it if you open the same swap through the built-in browser).
5. Then you can exchange duplicated assets for ETF coins.

Now Ethereum in the ETF network is worth about $5,000. on September 16, the ETF was trading at $18 on the Poloniex exchange. However, she then stopped operations with the asset and renamed it ETHW. Now, in order to withdraw assets from the Ethereum Fair network, it remains to wait until other platforms support it.

“Buy an asset at a discount”

As for the Ethereum PoW token itself, we have already seen similar activity on the previous Ethereum hard fork, when the Ethereum Classic (ETC) token appeared, said TradingView TraderSTI analyst. According to him, we should expect a further fall of the ETHW coin below the low of $8.6, to which the price of the cryptocurrency fell on September 16th.

According to the expert, this will be a great opportunity for many investors to buy an asset at a discount. However, he pointed out that a lot of attention from the audience and traders will make ETHW very volatile in the near future.

The opinions of experts may not coincide with the position of the editors. “Coin Top Secret” does not give investment advice, the material is published for informational purposes only. Cryptocurrency is a volatile asset that can lead to financial losses.