Earlier this week, Coinbase sent out an email explaining its position on the User Activated Hard Fork (UAHF) situation, and how customers can protect their funds by moving them away from the exchange.
Did you get the email? Today, we’re explaining everything you need to know about the email and what it means for your digital currencies.
The Coinbase Email
The Coinbase email begins by stating that:
“The User Activated Hard Fork (UAHF) is a proposal to increase the Bitcoin block size scheduled to activate on August 1.”
“The UAHF is incompatible with the current Bitcoin ruleset and will create a separate blockchain. Should UAHF activate on August 1, Coinbase will not support the new blockchain or its associated coin.”
Coinbase then goes on to clarify the difference between the hard and soft forks:
“The User Activated Soft Fork (UASF) is a proposal to adopt Segregated Witness on the Bitcoin blockchain and could result in network instability. It is scheduled to activate at the same time as the UAHF.”
These are the basics of the email. Now, let’s look at how to protect your funds.
Here’s What You Need to Do
If you have funds in Coinbase, then the company is recommended that you take certain action. Here’s what you need to do:
If You Don’t Plan To Support UAHF
If you currently have bitcoin in your Coinbase account, and you don’t wish to have access to UAHF coins or have immediate access to your bitcoin, then you are not required to take action (after all, Coinbase is not supporting the UAHF fork, so if you weren’t planning to support it either, then it doesn’t matter)
If You Want The Freedom To Choose How To Use Your Coins After The Split
If you wish to access UAHF coins, or have immediate access to your bitcoin, then you need to send your bitcoin from Coinbase to an external address before July 31.
Obviously, the best option is to remove your funds from the account and then have the freedom to pick your side. When you hold your own bitcoin, you’re in control of where your bitcoin are used. If bitcoin forks, then your bitcoin will be usable on each different blockchain.
Unless you absolutely know that you won’t support UAHF, then you should transfer your coins away from Coinbase to a separate wallet. We’ll explain how to do that below.
How to Transfer Coins Away from Coinbase to an External Wallet
Your best option is to transfer coins to an external wallet. Here’s how to send coins from your Coinbase account to an external wallet:
Step 1) Login to coinbase and click Send/Request. You’ll enter a page that lets you send digital currency to any email or wallet address.
Step 2) Start by entering the email address or wallet you’d like to send to, then enter it into the Recipient field. Make sure the wallet address is correct for the type of digital currency you wish to send.
Step 3) Next, choose the Coinbase account from which you want to send the funds. Make sure this account contains the appropriate currency. If you’re transferring bitcoin, for example, you’ll want to transfer from your bitcoin account to a bitcoin wallet.
Step 4) Enter the amount of digital currency you’d like to send in the Amount field. You can also specify the desired amount of funds you wish to send in your local currency, although the funds will still be sent in the form of bitcoin/Ether.
Step 5) After you’ve selected an account, click Send Funds. The digital currency will be transferred.
You can view more detailed instructions at Coinbase’s official support site.
Final Thoughts On Coinbase Not Joining UAHF Bitcoin
Ultimately, whether you’re on Coinbase or another exchange, your best option is to withdraw your coins to a place where you control your local keys. Then, you’ll be able to choose exactly how to use your bitcoins regardless of hard or soft forks and the future of bitcoin.