Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of BitMaden. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

The Difference Between Cryptocurrency Hard Forks and Airdrops

In the world of cryptocurrency, airdrops and hard forks are common. Though in distinct ways, they both introduce new currency. Investors and users can manage changes in blockchain networks more easily if they understand these ideas. What Is a Hard Fork? A hard fork occurs when a blockchain splits into two distinct networks. It happens as a result of modifications to the blockchain’s code that render the previous version incompatible. Developers, network users, or the community may suggest modifications to improve functionality, security, or speed. The network can break up if the community is not entirely in agreement. The fork allows both cryptocurrencies to share the same blockchain history up until the block where the fork occurred; thereafter, each independent blockchain continues on its own. Reasons for Hard Forks: Fix security vulnerabilities. Improve transaction speed or efficiency. Add new features to the network. Resolve disagreements within the community. One famous example is Bitcoin Cash. It split from Bitcoin in 2017 because some developers wanted larger block sizes for faster transactions. Another well-known hard fork is Ethereum Classic, which split from Ethereum after a major hack in 2016. What Is an Airdrop? Airdrop means free distribution of new cryptocurrency into the wallets of users. Developers do this to promote their project and gain new users. Airdrops can happen for many reasons, such as marketing campaigns or rewarding loyal users. Unlike hard forks, airdrops do not require a blockchain split. Instead, developers send new tokens to existing wallet holders. Sometimes, users must complete tasks like signing up for a newsletter or following a social media account to receive the tokens. Reasons for Airdrops: Promote a new project. Reward loyal users. Increase awareness and adoption. Encourage trading and market activity. Some well-known airdrops that gained value include UniSwap (UNI), dYdX, Arbitrum (ARB), and ApeCoin (APE). However, many airdrops end up worthless because they fail to gain interest or utility. Key Differences Between Hard Forks and Airdrops Feature Hard Fork Airdrop Blockchain Split Yes No Requires User Action Sometimes Often (to claim tokens) Purpose Improve or change a blockchain Promote a new project Coin Distribution Users get new coins from the fork Users receive free tokens Example Bitcoin Cash, Ethereum Classic UniSwap, Arbitrum , ApeCoin Are Airdrops Worth It? Many airdrops end up worthless. When people get free tokens, they often sell them immediately, causing prices to drop. However, some airdrops become valuable if the project succeeds. If an airdrop token gains utility and demand, it may increase in value over time. Can You Make Money from Airdrops? It is possible, but not guaranteed. Some airdrops, like UniSwap’s UNI token, gained significant value. Others became worthless because they failed to attract enough users or investors. Researching projects before participating in an airdrop is essential. Are Hard Forks Good or Bad? Hard forks can be both positive and negative. Changes might strengthen a blockchain if the improvements are observed and supported by the community, while on other occasions, a fork can just lead to more confusion and fragmented user bases. Success in this respect is about adoption and, ultimately, market demand. Hard forks and airdrops both introduce new cryptocurrencies but in different ways. Hard forks result from blockchain changes, while airdrops are marketing tools to distribute new tokens. Understanding these concepts can help crypto investors make better decisions. Investing always requires research, be it new coins coming from a hard fork or an airdrop, since not all projects end in success but just disappear in a puff of smoke. Know the risks. BitcoinSistemi

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Ripple’s XRP Eyes Strong Move to $16, Repeating 2017 Surge… But There’s A Surprising Catch

XRP experienced a dramatic surge last month, surpassing $3 for the first time since 2018 amid a broader rally in the cryptocurrency market. This move saw XRP’s 24-hour transaction volume soar by 127.7%, per Coinmarketcap data, signaling heightened investor interest. Notably, South Korean exchange Upbit reported a trading volume of $4.895 billion on Tuesday, with the XRP/KRW pair capturing a 22.2% market share, leading Bitcoin. In a tweet , Santiment analysts attributed the resurgence to XRP’s efficiency, low transaction costs, and potential for banking and cross-border payments. According to the firm, positive sentiment surrounding the token has been further fueled by former President Donald Trump’s upcoming plans to introduce friendlier SEC regulations and clearer crypto token guidelines after his inauguration next week. Additionally, speculation over the potential approval of an XRP Exchange-Traded Fund (ETF) has added to the bullish sentiment. Earlier last month, JPMorgan analysts estimated that Solana (SOL) and XRP ETFs could attract up to $14 billion in new investments, with XRP potentially drawing between $4 billion and $8 billion. As the surge continues, many analysts are drawing comparisons to XRP’s meteoric rise in 2017. On Wednesday, popular analyst Javon Marks highlighted that in 2017, XRP briefly faced resistance at the 1st Fibonacci level before surging to the 1.618 Fibonacci level. As per the pundit, presently, the 1.618 Fibonacci level sits at $16.57, over 400% higher than XRP’s current price, suggesting a major surge may be underway. “A massive XRP surge can be commencing,” Marks tweeted. Notably, on December 30, the pundit had projected an even more ambitious price target of over $100, expecting a breakout move with a more than 45X increase from current levels, following a break above XRP’s 2018 peak. Meanwhile, analyst Cryptobull shared with his 155,000 X followers that XRP could surpass $20 in this bull cycle, reaching $13 within weeks. Based on Elliott Wave theory, the pundit pointed to the five-wave pattern that drove XRP from $0.002 to $3.84 in 2017, a 70,000% gain. He believes the current wave could propel XRP from $0.50 to as high as $26, yielding a 6,000% gain. Elsewhere, Digital Asset Investor pointed out that Google search trends for XRP have seen more than double the interest over the past two months compared to the 2017 run, when the coin surged over 60,000% to reach its all-time high, suggesting a similar bull run could be underway. However, analyst Alex Thorn offered a word of caution, noting that despite the surge, XRP has yet to surpass its 2018 all-time high of $3.31. Adjusting for inflation, Thorn stated that XRP would need to reach $4.24 to exceed its previous peak in 2018. At press time, XRP was trading at $2.42, reflecting a 1.87% surge in the past 24 hours. BitcoinSistemi