Altcoin Investing

Monero surges ahead of hard fork

Monero prices are rocketing up in anticipation of the upcoming hard fork which will split Monero into a new currency, MoneroV.

Why is the price increasing?

In the space of just one week, Monero prices have increased from $271 to its current price of $365.

This is a common occurrence in the crypto space and happens with most hard forks. This is simply because when a hard fork happens, the amount of coins you have is duplicated and in some cases (such as MoneroV – 10x) the number of coins you have is multiplied.

The creation of a new fork of a cryptocurrency is commonly the cause of the price increasing as many investors and scalpers want to be able to quickly cash in on “free money”

Is it safe?

This is a tricky question as yes, it can be safe, as we saw with Bitcoin Cash, Bitcoin was pumped leading up to the fork and many people cashed out on the airdrop, quickly making extra money.

Timing the inevitable drop of the original currency can be difficult though. Often when people pump extra funds into a currency ahead of a fork, they intend on cashing those funds out immediately after the fork, which causes the price to drop, sometimes dramatically.

Other investors have opted for another strategy, which is to buy in anticipation of a fork and cash out just before the fork, utilizing the inevitable increase in price to turn a profit. This is a very attractive scenario for swing traders as they know they will turn a good profit if they time their purchase and sells well. This can be seen as a type of pump and dump which is seen as an unfavorable technique in trading in any market.

Ultimately any investment in this space is a risk, so please do so with caution and considerable planning.

 

What are your opinions on hard forks, do you think that the newer technique of pump and dump before the fork is unhealthy for the market?
Comment your thoughts below or via the social media buttons!

 

Tiaan Wolmarans is a cryptocurrency investor and trader, airplane pilot, musician, and writer.

Disclaimer: The information presented by Tiaan is for informational purposes only. It should not be considered legal or financial advice. Tiaan is not a financial adviser. You should consult with a financial professional to determine what may be best for your individual needs.

Tiaan does not make any guarantees or other promises as to any results that may be obtained from using his content. No one should make any investment decision without first consulting his or her own financial adviser and conducting his or her own research and due diligence.

Please always only invest within your means and do so responsibly. If you have any questions feel free to contact him via the social media buttons below.