What is fork in cryptocurrency?

A fork in crypto is like a major software update, but instead of just updating your app, it creates an entirely new cryptocurrency! The original blockchain splits, resulting in two separate chains: the original and the “forked” version. Both share the same history up to the fork point, but then diverge. This often happens because of disagreements within the developer community about the future direction of the project – maybe they want to improve scalability, add new features, or even just change the consensus mechanism.

There are two main types: hard forks and soft forks. A hard fork is a major, incompatible change that creates a completely new cryptocurrency. You’ll need a new wallet to hold the new coin. Think Bitcoin Cash (BCH) forking from Bitcoin (BTC) – holders of BTC at the time of the fork received an equivalent amount of BCH. A soft fork, on the other hand, is a backward-compatible upgrade. Existing nodes can still process transactions from both before and after the upgrade, so you don’t need a new wallet.

Forks can be incredibly exciting for investors. The new cryptocurrency could potentially skyrocket in value, offering a significant return. However, it’s also risky. The success of the forked coin depends entirely on market adoption and the underlying project’s merit. Do your research before investing in a newly forked coin – not all forks are created equal!

Sometimes, a fork happens unintentionally, due to a bug or vulnerability in the code. These unexpected forks are less common and often don’t result in a long-lasting, successful new cryptocurrency.

How much to invest in crypto per month?

The question of how much to invest in crypto monthly is a crucial one for any prospective investor. The general rule, echoed by most financial advisors, is to never invest more than you can afford to lose. This is paramount, regardless of your chosen asset class, but particularly important in the volatile world of cryptocurrencies.

A common recommendation is to limit your cryptocurrency holdings to no more than 5% of your overall investment portfolio. This diversification strategy helps mitigate the risk associated with the inherent volatility of the crypto market. Significant price swings are commonplace, and a large crypto allocation could severely impact your financial health if the market takes a downturn.

For those new to crypto investing, a more conservative approach is advisable. Starting with a smaller percentage, between 1% and 2% of your portfolio, allows for a gradual introduction to the market. This lets you learn the ropes, understand the risks, and adjust your strategy as you gain experience. This measured approach minimizes potential losses during the learning curve.

Remember, this isn’t just about the amount; it’s about responsible investing. Thorough research into individual cryptocurrencies, understanding blockchain technology, and staying informed about market trends are essential components of successful crypto investment. Consider your risk tolerance, financial goals, and investment timeline when determining your monthly allocation.

Dollar-cost averaging (DCA) is a popular strategy that involves investing a fixed amount of money at regular intervals, regardless of price fluctuations. This mitigates the risk of investing a large sum at a market peak. DCA can be a useful technique to consider alongside the percentage-based approach described above.

Can I make profit from cryptocurrency?

Absolutely! Crypto trading can be incredibly lucrative. Many have become quite wealthy riding the crypto wave. The market’s volatility, while risky, presents huge opportunities for profit.

Key strategies successful traders employ:

Day trading: Capitalizing on short-term price swings.
Swing trading: Holding for a few days or weeks to profit from medium-term price movements.
Long-term investing: Holding crypto assets for extended periods, often years, betting on overall market growth.
Diversification: Spreading investments across various cryptocurrencies to mitigate risk.
Technical analysis: Using charts and indicators to predict price movements.
Fundamental analysis: Researching the underlying technology and adoption of crypto projects.

Remember though:

High risk is inherent in crypto trading. Significant losses are possible.
Thorough research and understanding are crucial before investing.
Never invest more than you can afford to lose.
Stay updated on market trends and news.

Beyond simple trading, you can also profit from:

Staking: Locking up your crypto to support a blockchain network and earning rewards.
Lending: Lending your crypto to others and earning interest.
Airdrops: Receiving free crypto tokens for participating in projects.

What happens to my crypto in a hard fork?

Hard forks are significant events in the cryptocurrency world, fundamentally altering a blockchain’s rules. They often lead to the creation of a new cryptocurrency. Crucially, if you held the original cryptocurrency before the hard fork, you’ll typically receive the equivalent amount of the new cryptocurrency in your wallet.

Understanding the process: A hard fork essentially splits the blockchain into two separate chains, each operating independently. The original chain continues as before, while the new chain incorporates the changes introduced by the hard fork. Your pre-existing holdings on the original chain are replicated on the new chain, resulting in you effectively owning both the original cryptocurrency and the newly-created one.

Why is this not an airdrop? While both hard forks and airdrops can result in receiving free tokens, there’s a crucial distinction. Airdrops are typically distributed by a project team as a marketing or promotional strategy. Hard forks, however, are a result of a deeper, often contentious, change to the underlying blockchain protocol. The new tokens aren’t “given away”—they’re a direct consequence of owning the original cryptocurrency and the blockchain’s split.

What to do after a hard fork:

Secure your wallet: Ensure your wallet is backed up and secured against unauthorized access.
Research the new cryptocurrency: Understand the purpose, functionality, and potential of the new token created by the hard fork.
Manage your holdings: Decide whether to hold, sell, or trade both the original and new cryptocurrencies according to your investment strategy.

Examples of famous hard forks:

Bitcoin Cash (BCH) forked from Bitcoin (BTC).
Ethereum Classic (ETC) forked from Ethereum (ETH).

Important Note: The process of acquiring the new tokens can vary. Some exchanges automatically credit them to users’ accounts, while others may require users to take specific actions, such as claiming the new tokens through their wallets. Always refer to the official announcements from the relevant cryptocurrency project for detailed instructions.

How do beginners trade cryptocurrency and make profit?

Profitable cryptocurrency trading for beginners requires a multi-faceted approach beyond basic market observation. Simply staying informed isn’t sufficient; you need to actively interpret information.

1. Informed Market Participation: Go beyond news headlines. Understand on-chain metrics (transaction volume, active addresses, exchange flows) which often precede price movements. Leverage reputable analytical platforms offering advanced charts and indicators. Don’t rely solely on social media sentiment; it’s often manipulated.

2. Technical Analysis Mastery: Basic technical analysis is insufficient. Learn to identify chart patterns (head and shoulders, double tops/bottoms, flags, pennants), understand support and resistance levels, and master moving averages (SMA, EMA). Explore advanced indicators like RSI, MACD, Bollinger Bands, and learn their limitations. Backtest your strategies rigorously using historical data before live trading. Consider algorithmic trading, but only after extensive backtesting and understanding the associated risks.

3. Risk Management and Portfolio Diversification: Diversification isn’t just about owning different cryptocurrencies; it’s about managing position size. Never invest more than you can afford to lose. Utilize stop-loss orders to limit potential losses on individual trades. Explore hedging strategies using futures or options (after thorough education). Consider dollar-cost averaging to reduce the impact of market volatility.

4. Security and Exchange Selection: Secure your assets using hardware wallets; software wallets are significantly riskier. Choose reputable and regulated exchanges prioritizing security and transparency. Be wary of scams and pump-and-dump schemes. Understand the implications of KYC/AML regulations.

5. Continuous Learning: The cryptocurrency market is dynamic. Continuous learning is crucial for long-term success. Follow reputable analysts, participate in educational communities, and stay updated on emerging technologies (Layer-2 scaling solutions, DeFi protocols).

Fundamental Analysis: While technical analysis focuses on price charts, fundamental analysis examines the underlying technology, team, and market adoption of a cryptocurrency. This is crucial for identifying potentially undervalued projects with long-term growth potential.
Tax Implications: Understand the tax implications of your cryptocurrency trading activities in your jurisdiction. Proper record-keeping is essential.
Warning: Cryptocurrency trading involves significant risk. Past performance is not indicative of future results. Consider consulting with a financial advisor before making any investment decisions.

How much is fork crypto worth?

FlokiFork (FORK) is currently trading at $0.0089825, a 13.89% drop in the last 24 hours, though it’s up 10.39% over the past week. This volatility highlights the high-risk nature of this meme coin. The 24-hour volume of $49,370.67 is relatively low, suggesting limited liquidity and potential for significant price swings on even small trades. A circulating supply of 9.6 trillion FORK results in a market cap of $94,048.25 – extremely low, indicating a highly speculative asset with minimal established market presence. Investors should be wary of pump-and-dump schemes and the potential for significant losses. The extremely large circulating supply also dilutes value significantly. Technical analysis would require deeper investigation into chart patterns and indicators to gauge potential short-term price movements, but fundamentally, FORK lacks a strong underlying project and is heavily reliant on speculative trading.

How do fork tokens work?

Fork tokens, in the context of cryptocurrency, are not directly related to suspension fork bottomless tokens. The term “fork token” refers to a new cryptocurrency created as a result of a blockchain fork. A blockchain fork is essentially a split in the blockchain’s history, resulting in two separate chains.

There are two main types of forks:

Hard forks: These create entirely new cryptocurrencies, incompatible with the original blockchain. Existing tokens on the original chain are typically not automatically transferred to the new chain, and holders may receive new tokens on the forked chain (these are the “fork tokens”). Often, hard forks happen because of disagreements within the cryptocurrency community regarding the future direction of the project.
Soft forks: These are backward-compatible upgrades to the blockchain. They don’t create new cryptocurrencies; instead, they improve the original one. Existing tokens remain on the same chain.

How to get fork tokens:

If you held the original cryptocurrency at the time of the hard fork, you might be eligible to claim the corresponding fork tokens. The exact process varies depending on the specific fork and your exchange or wallet. You usually need to provide proof of ownership (your private keys) on the original blockchain to claim your fork tokens. However, not all exchanges or wallets support the claim of fork tokens; some might even sell the fork tokens separately.

Important Note: Fork tokens are often highly volatile and speculative. Do your own research (DYOR) before investing in or interacting with them. Their value is completely dependent on market forces and the adoption rate of the new cryptocurrency. Not all forks are successful, and many fork tokens have very little value.

Research: Thoroughly investigate the project behind the fork token.
Security: Use reputable exchanges and wallets to claim and store your fork tokens.
Risk Assessment: Understand the inherent volatility and potential for loss before investing.

How many times has Bitcoin been forked?

Bitcoin, since its inception, has undergone numerous forks, exceeding 100 throughout its history. While many are defunct, over 70 remain active as of November 2025. This prolific forking highlights Bitcoin’s open-source nature and the community’s drive for innovation and improvement. The sheer number reflects attempts to address perceived limitations, explore alternative consensus mechanisms, or simply capitalize on Bitcoin’s brand recognition.

Notable forks often introduce significant changes. For example, Bitcoin Cash (BCH) aimed for larger block sizes to enhance transaction throughput, addressing Bitcoin’s scalability challenges. Bitcoin SV (BSV), another prominent fork, focused on restoring Bitcoin to its original vision, emphasizing on-chain scaling. These are just two examples of the diverse approaches taken by different forks, each with its own strengths and weaknesses, impacting transaction fees, block times, and overall network security.

Understanding the distinction between hard forks and soft forks is crucial. Hard forks create entirely new cryptocurrencies, incompatible with the original blockchain, while soft forks are backward-compatible updates to the existing system. The majority of Bitcoin forks are hard forks, leading to the creation of independent cryptocurrencies with their own tokenomics and community.

The impact of forks extends beyond the creation of new cryptocurrencies. They often spark debates about the future direction of blockchain technology, highlighting the tensions between scalability, decentralization, and security. The ongoing evolution of Bitcoin, shaped by these forks, continues to fuel discussions within the cryptocurrency community and contribute to the wider development of blockchain technology.

How to buy fork coin?

Want to buy FlokiFork (FORK)? It’s a cryptocurrency, like Bitcoin or Ethereum, but much smaller. You can buy it on special websites called exchanges.

Centralized Exchanges (CEXs) are like regular online stores for crypto. Bilaxy is one example; they have a lot of FORK trading. This means many people are buying and selling it there. They show the trading volume – how much FORK is being bought and sold. CEXs usually require you to create an account and verify your identity (KYC).

Decentralized Exchanges (DEXs) are different. They don’t have a central company running them. Uniswap V3 is a popular DEX example, and it works with Ethereum. Using a DEX often means you’ll interact directly with the blockchain technology, which can be more complex for beginners. You’ll typically need a crypto wallet to interact with DEXs.

Poloniex is another CEX option, offering more established trading infrastructure.

Important Note: Cryptocurrency is risky. The value of FORK (and any cryptocurrency) can go up or down dramatically. Only invest what you can afford to lose. Always do your own research (DYOR) before investing in any cryptocurrency.

How does fork actually work?

The fork() system call is the bedrock of process creation in Unix-like systems, a fundamental building block mirroring the elegant simplicity and powerful functionality of a cryptographic hash function. Think of it as the genesis block of a new process, creating a perfect copy of the parent process’s state – memory, open files, environment variables – a practically identical twin.

The Forking Process: A Deep Dive

When a process calls fork(), it effectively duplicates itself. The parent process continues execution from the point after the fork() call, with a return value indicating the success of the operation and identifying the child process via a unique process ID. Crucially, the child process receives a return value of 0, allowing both processes to distinguish themselves. This is a fundamental aspect, akin to the unique nonce in a blockchain transaction, ensuring each process has its own distinct identity and execution path.

Key characteristics reminiscent of blockchain principles:

Immutability (mostly): While both processes start with identical states, subsequent actions modify only their own respective copies. The parent’s state doesn’t directly change the child’s, and vice versa, much like a blockchain block’s immutability.
Deterministic Replication: The fork() operation creates a deterministic copy. The results are predictable and reproducible in a controlled environment. This deterministic nature resembles the predictable output of a well-defined cryptographic algorithm.
Concurrency and Parallelism: Just as multiple miners work in parallel to validate blocks in a blockchain, multiple processes created via fork() can operate concurrently, often leading to significant performance gains.

Understanding the Return Value: A Crucial Distinction

In the Parent Process: The return value of fork() is the Process ID (PID) of the newly created child process. This PID acts as a unique identifier, allowing the parent to communicate with or manage its child.
In the Child Process: The return value is 0. This allows the child process to distinguish itself from the parent and execute its own code path.

Practical Applications:

fork() is the foundation for many powerful system functionalities, including process management, parallel programming, and efficient resource utilization. It’s a powerful tool, underpinning the architecture of many crucial system utilities and applications.

Is a hard fork taxable?

The taxability of hard forks is a complex issue, but generally, under IRS guidance (Rev. Rul. 2019-24), tokens received in a hard fork are considered taxable income at their fair market value (FMV) at the moment they become accessible in your wallet. This is irrespective of whether you actively participated in the fork or not. This is treated as ordinary income, meaning it’s taxed at your ordinary income tax rate, which can be significantly higher than capital gains rates.

Crucially, the FMV is determined at the time of receipt, not the time of the fork announcement or the time of the hard fork itself. Determining this FMV can be challenging and often requires careful consideration of various market factors at the exact moment of deposit. Using readily available exchange prices shortly after the deposit *might* be acceptable, but it’s critical to have a robust justification should the IRS scrutinize your return.

Subsequent disposal of these forked tokens (selling, trading, or otherwise disposing) will then trigger a capital gains or loss event, taxed at either short-term or long-term capital gains rates depending on how long you held the asset. The original basis of these forked tokens is their FMV at the time of receipt – this is vital for accurately calculating your capital gains or losses later.

Important Considerations: Air drops, while sometimes confused with hard forks, have different tax implications. The specific circumstances of each hard fork should be examined individually, as not all forks are created equal; some may involve a change in consensus mechanism, while others might be purely organizational. Tax laws are subject to change, so staying abreast of updates from the IRS is essential.

Disclaimer: This information is for educational purposes only and does not constitute tax advice. Consult with a qualified tax professional for personalized guidance regarding your specific situation.

How do I get Bitcoin Cash from fork?

Claiming your Bitcoin Cash (BCH) from the Bitcoin fork requires a wallet capable of handling both Bitcoin (BTC) and BCH. This is because the fork created a separate blockchain, meaning your existing BTC holdings didn’t automatically transform into BCH. You needed to take action to claim your BCH.

Finding the right wallet is crucial. Many software wallets, such as Electrum, offer this functionality. They allow you to import your private keys, which are essentially the passwords to your crypto holdings. By importing your BTC private key into a BCH-compatible wallet, you effectively give that wallet access to your corresponding BCH. This assumes you controlled the BTC private keys at the time of the fork. If you lost your keys or used an exchange that didn’t support the fork, unfortunately, you’ve likely lost access to your BCH.

Important Note: Always exercise caution when importing private keys. Only do so with wallets from reputable sources and ensure you are using the correct private key for the correct cryptocurrency. Entering your private key into the wrong application could lead to the loss of your funds. It’s also vital to understand that your private keys need to have been held in a wallet supporting the fork at the time it happened.

Hardware wallets, known for their superior security, generally support this process as well. They usually provide clear instructions for managing forked coins through their interfaces or associated software. Check your hardware wallet’s documentation for specific steps.

If you missed the claim period, unfortunately, obtaining your BCH is highly unlikely. The window for claiming forked coins is usually limited after the fork event.

Remember: Security is paramount. Carefully research any wallet before importing your private keys. Using a reputable, well-reviewed wallet significantly reduces the risk of theft or loss of funds.

What is the most profitable crypto trading method?

There’s no single “most profitable” crypto trading method; profitability hinges on skill, risk management, and market conditions. Successful traders adapt their strategies. While some swear by a specific approach, consistent profit requires a multifaceted approach.

Technical Analysis: Essential for identifying entry and exit points. Mastery of chart patterns (head and shoulders, flags, triangles), indicators (RSI, MACD, Bollinger Bands), and volume analysis is crucial. Backtesting strategies is paramount before live trading.

Fundamental Analysis: Understanding blockchain technology, tokenomics, team expertise, and market adoption rates is vital for identifying undervalued assets with long-term potential. News events and regulatory changes significantly impact prices.

Sentiment Analysis: Gauging market sentiment through social media, news articles, and community forums helps anticipate price movements. High fear/greed indices often signal overbought or oversold conditions.

Trading Strategies:

Swing Trading: Holding positions for days or weeks, capitalizing on short-to-medium-term price swings.
Day Trading: Opening and closing positions within a single day, requiring intense focus and quick decision-making.
Scalping: Profiting from minuscule price changes within seconds or minutes; high volume, high risk.
Long-Term Investing (HODL): Buying and holding assets for extended periods, relying on the long-term growth potential of the cryptocurrency.

Beyond the Basics: Successful trading involves understanding order types (market, limit, stop-loss), risk management (position sizing, stop-loss orders), and psychological control (avoiding emotional decisions). Diversification across various assets mitigates risk. Arbitrage and DeFi yield farming offer alternative strategies but require advanced knowledge.

Important Note: Cryptocurrency markets are highly volatile. Past performance is not indicative of future results. Always conduct thorough research and only invest what you can afford to lose.

How many Bitcoin forks have there been?

There have been over 100 Bitcoin forks. A fork is like a copy of the Bitcoin software, creating a new cryptocurrency. Many of these forks are inactive now, meaning nobody uses them.

Important forks include Bitcoin Cash (BCH) and Bitcoin SV (BSV). These forks happened because of disagreements about how Bitcoin should be improved. For example, Bitcoin Cash aimed to increase the block size to process more transactions faster, while Bitcoin SV focused on scaling through different technical approaches.

What does this mean for you? If you own Bitcoin, a fork usually means you’ll receive the equivalent amount of the new cryptocurrency. However, you’ll need to take action (usually involving your exchange or wallet) to claim these new coins. Sometimes, this process isn’t straightforward and you might miss out if you’re not careful.

Not all forks are equal. Some forks are successful and maintain a community, while others quickly disappear. The value of a new cryptocurrency depends on many factors, including its technology, adoption, and market sentiment. It’s crucial to research thoroughly before investing in any fork.

How do I claim forked coins?

Claiming forked coins requires a wallet compatible with both the original and forked cryptocurrencies. This usually involves importing your private key from your original wallet into a compatible wallet supporting the forked coin. Import private keys with extreme caution; only do so on wallets you completely trust and have verified independently. Compromising your private key grants access to all associated funds across all supported chains.

Not all wallets support all forked coins. Some exchanges may also support claiming forked assets, but their processes can vary. Check the specific documentation of both your exchange (if applicable) and your intended receiving wallet for detailed instructions. The process might involve simply updating your wallet software or importing a seed phrase, depending on the fork’s implementation and the wallet itself.

Be aware of scams. Many fraudulent websites and applications pose as legitimate tools for claiming forked coins. Only use wallets and tools from reputable sources with verifiable track records. Verify the legitimacy of any website or application before inputting your private keys or seed phrases.

Before importing your keys, consider the security implications. If your original wallet was compromised, importing your private key to another wallet won’t solve the underlying security issue. Always prioritize wallet security, including strong passwords, two-factor authentication, and regular software updates.

The availability of forked coins often depends on the specific parameters of the fork. Some forks are easy to claim, while others are more complex or may require additional actions beyond simply importing your private key.

Is hard fork good or bad?

Whether a hard fork is beneficial or detrimental depends entirely on its context. A successful hard fork, like the one that created Bitcoin Cash, can unlock new functionalities or address critical vulnerabilities, potentially driving value appreciation. However, the value impact is unpredictable and often depends on the market’s reaction to the changes. Unsuccessful hard forks, conversely, can lead to significant price drops as the market loses confidence and the forked coin fails to gain traction. Consider the pre- and post-fork trading volume and market capitalization; a drastic decrease often indicates a negative outcome. Furthermore, the division of the community can lead to fragmented liquidity, making trading less efficient and potentially increasing risk. Analyze the development team’s reputation and the underlying technical improvements; robust improvements and a reputable team generally signal a higher likelihood of success. Ultimately, it’s a complex scenario with both upside and downside potential, requiring careful analysis before making any investment decisions.

Do you have to report crypto under $600?

The short answer is yes, you must report all cryptocurrency transactions, even those under $600. This is a common misconception – the IRS requires reporting of all crypto transactions regardless of their value. The fact that exchanges might not send you a 1099-B form for smaller transactions doesn’t exempt you from your tax obligations.

Why report small crypto transactions? The IRS considers all crypto transactions as taxable events. This includes:

Buying crypto with fiat currency
Selling crypto for fiat currency
Trading one cryptocurrency for another (this is considered a taxable event for both the sale and purchase)
Using crypto to pay for goods or services

Failing to report these transactions, no matter how small, can lead to serious consequences, including penalties and interest. Accurate record-keeping is crucial.

How to track your crypto transactions:

Utilize Crypto Tax Software: Many software solutions automate the process of tracking your transactions and calculating your capital gains and losses. This is highly recommended, especially for those with numerous transactions.
Maintain Detailed Records: Keep meticulous records of every transaction, including the date, amount, and type of cryptocurrency involved. This includes screenshots or downloaded transaction history from your exchanges.
Understand Tax Implications: Familiarize yourself with the specific tax rules and regulations surrounding cryptocurrency in your jurisdiction. Consulting a tax professional specializing in cryptocurrency is highly recommended.

Remember: While the IRS may not always have the resources to track every small transaction, the risk of being audited and facing penalties is significant. It’s always better to be compliant.

In which situation would a taxpayer recognize income on a hard fork?

Tax treatment of hard fork proceeds hinges on whether the event constitutes a true airdrop or a distribution of a new asset. A true airdrop, where users receive a new cryptocurrency simply for holding the original, generally triggers a taxable event. The fair market value (FMV) of the newly received cryptocurrency at the time of receipt is included in gross income. This FMV becomes your tax basis. This is consistent with the IRS’s general position on property received for holding existing property.

However, the situation is more nuanced. Determining the FMV at the moment of the airdrop can be challenging due to the volatile nature of crypto markets. Reliable pricing data sources are crucial for accurate reporting. Consider using multiple reputable exchanges’ prices at the time of receipt and averaging them to mitigate potential inaccuracies. Remember to meticulously track and document all transactions, including the blockchain address(es) used to receive the airdropped tokens, timestamps, and the applied pricing method.

Crucially, if the hard fork results in a distinct new cryptocurrency with its own blockchain and functionality (as opposed to a mere upgrade), the IRS might treat this differently than a simple airdrop. The determination would be based on a case-by-case analysis of the specific hard fork and its implications. A legal consultation may be advisable in such complex scenarios. Moreover, wash-sale rules don’t generally apply to hard forks since you’re not disposing of the original asset.

Finally, state tax laws can vary significantly; Federal tax treatment isn’t always mirrored at the state level. Consult with a qualified tax professional familiar with cryptocurrency taxation to ensure compliance with all applicable state and federal regulations. The IRS continues to clarify its approach to crypto taxation; staying informed about the latest updates is vital.

What is the best crypto to become a millionaire?

Bitcoin (BTC) and Ethereum (ETH) are frequently cited as the most likely candidates for generating millionaire-level returns. However, this isn’t a guaranteed path to riches. BTC’s established market dominance and scarcity make it a relatively safe, long-term bet, albeit a volatile one. Its price is heavily influenced by macroeconomic factors and regulatory developments.

Ethereum, on the other hand, benefits from its utility as a platform for decentralized applications (dApps) and smart contracts. This provides a different investment thesis compared to Bitcoin’s store-of-value proposition. The growth of the DeFi (Decentralized Finance) ecosystem is directly correlated with ETH’s price appreciation. But remember, the DeFi space is extremely risky, with projects regularly failing.

Crucially, becoming a millionaire in crypto requires significant risk tolerance, diligent research, and a long-term perspective. Past performance is not indicative of future results. Diversification across several promising projects, rather than betting everything on a single coin, is a much wiser strategy. Furthermore, proper risk management, including stop-loss orders, is essential to mitigate potential losses.

Consider factors beyond price action, such as the underlying technology, team, adoption rate, and market capitalization, when selecting your investments. Thorough due diligence is paramount to minimize the chances of investing in a pump-and-dump scheme or a project lacking long-term viability.