August 1st is, without any doubt, a momentous day in history of cryptocurrencies. Bitcoin community is anticipating two major events aiming to fix the scaling issue. If you haven’t ensured your Bitcoins safety yet, this is the best time to do so. Check out our practical recommendations that will help you avoid possible confusion during upcoming events.
In case you are one of many users all over the world who prefer using Coinbase to store and manage their Bitcoins, here’s some important information for you to take into consideration.
What is going to happen?
Let us recall that User Activated Hard Fork (UAHF) is scheduled to go live on Tuesday, August 1st. Hard fork is incompatible with the current version of Bitcoin and may lead to blockchain split. As a result, a new version of coins will be created that will function on a separate blockchain. Coinbase has announced that the platform will not support such coins.
User Activated Soft Fork (UASF) is scheduled to activate on the very same day, August 1st. Its purpose is to enable SegWit (Segregated Witness) adoption on Bitcoin blockchain. UASF activation doesn’t create new coins, however, it may cause network instability for an unknown period of time.
What do you need to know as Coinbase user
In order to ensure customers safety, Coinbase will suspend deposits and withdrawals, as well as selling/buying Bitcoins 4 hours prior to the scheduled events. According to the developers, there is no risk to any funds you keep on the platform.
If you don’t wish to deal with UAHF coins, you can simply leave your Bitcoins in your Coinbase wallet for the duration of the event. If you do wish to have access to UAHF coins, we recommend that you transfer your Bitcoins to an external wallet by July 31st.
Bitcoins stored on Coinbase will remain the “old” version of coins, and won’t get converted to UAHF Bitcoins. At this moment, Coinbase isn’t planning to support the “new” version, however, they promise to monitor the development of the upcoming events.