How to earn from forks and smart contract updates
Forks and smart contract updates are not just technical events — they can significantly impact token prices and reshape the cryptocurrency market. For traders and investors, they present opportunities for profit, especially when you know how to respond to these changes correctly.
In this article, we will explore how forks and smart contract updates affect cryptocurrencies, the strategies you can use to profit from these events, and how the CryptoCalendar.ai platform can help you track important events and adapt your strategy on time.
What forks and smart contract updates are
A fork in the blockchain space is a process where the blockchain network splits into two versions: one stays with the original code, and the other receives updates. Forks can be hard forks, where a drastic change to the protocol occurs, and soft forks, where the changes are minimal and compatible with the previous version.
Smart contract updates involve changes to the code of smart contracts, which define the logic of token operations, decentralized applications (dApps), or other cryptocurrency protocols. These updates can relate to functionality, security, tokenomics, or adding new features for users.
Like any other factor affecting cryptocurrencies, forks and updates can trigger sharp price fluctuations. Understanding how this happens will help you use these events to generate profit.
How forks and smart contract updates affect token prices
Sharp price fluctuations after forks
Forks can lead to sharp price movements, especially if they involve popular networks like Ethereum or Bitcoin. For instance, when a new token is launched as part of a hard fork, there can be a significant increase in interest and volatility, creating opportunities for short-term trading.
Improvements and new opportunities with smart contract updates
Smart contract updates can significantly improve the functionality and security of cryptocurrency projects. This can increase user and investor trust, leading to price growth. For example, adding new features or improving tokenomics can influence the supply and demand of tokens.
Increased interest from major players
Forks and updates often attract attention from major players, such as institutional investors and traders. This is because the changes can create new profit opportunities, especially if the updates solve critical security or scalability issues.
How to profit from forks and smart contract updates
Trading based on hard forks
When information about an upcoming hard fork emerges, traders can take advantage of the opportunity to enter the market before the event and exit right after it concludes. This creates an opportunity for short-term profit. For example, during the Bitcoin to Bitcoin Cash fork, traders could have bought Bitcoin before the event and sold it at a higher price, obtaining both Bitcoin and the new token, Bitcoin Cash.
Investing in projects with long-term potential
If a smart contract update involves long-term improvements or the addition of new features, this can signal an opportunity for investors. For instance, after Ethereum updates that improved network scalability, many investors decided to invest in ETH, leading to price growth.
Waiting for results after the fork
After a fork or smart contract update, you can position yourself based on long-term trends. If the changes genuinely improve the project, you can profit in the long run. However, this requires thoroughly studying the changes the fork or update will bring and assessing their prospects.
How to use CryptoCalendar.ai to track events
The crypto calendar platform provides an excellent tool for traders and investors to track important events like forks and smart contract updates in real-time. All events on the platform are organized by categories, such as Fork, Tokenomics updates, Roadmap updates, and many others.
Each announcement is accompanied by an exact date, a timer, and links to official sources. This allows you to always stay informed about key events, such as plans for a fork or smart contract updates, and quickly adapt your strategy. The platform also helps filter events based on your interests, so you can track only the updates that matter to your portfolio.
Example of using the platform:
Suppose you are a trader monitoring new forks of popular blockchain networks. You are searching for blockchain and crypto news and visit the crypto calendar news media platform. There, you see that a hard fork of Ethereum is expected in a few days. The platform provides the exact dates, links to official sources, and additional details about the anticipated changes. You decide to buy Ethereum, expecting an increase in demand for the token due to the update.
Benefits of using CryptoCalendar.ai to profit from forks
Timely notifications: All events on the platform come with exact timers and notifications, ensuring you don’t miss any important moments.
Manual moderation: Each event is vetted, ensuring that no fake announcements slip through, guaranteeing the accuracy of the information.
Convenience and filtering: The platform allows you to easily filter events by category and track only the important events that affect your investments.
Complete data and sources: The platform provides links to official sources, allowing you to dive deeper into the event details and assess their importance for your portfolio.
Conclusion
Forks and smart contract updates are powerful tools for cryptocurrency trading and investing. They open up opportunities for both short-term and long-term strategies. Using CryptoCalendar.ai will help you stay one step ahead by tracking events in real-time and adapting your strategy promptly.
Remember, the crypto market is always full of changes, and having the right information is key to successful investing. With CryptoCalendar.ai, you’ll always be ready for the next big event in the crypto industry.
