A fork is a change to the rules by which the computers of a blockchain network reach agreement. The practical question behind it is this: do you get new coins out of it, or not? The answer hangs on a single difference. In a hard fork, a blockchain can split in two, with both running on separately afterwards, and you then hold the same number of coins on each side. In a soft fork, one blockchain remains, and nothing new appears in your wallet.
This article explains both forms using two splits that actually happened, and answers the questions that come next: who credits you with the new coins, when the holding period starts and why an announced network upgrade brings you nothing at all in most cases.
Fork means a split: how the German finance ministry defines it
The tersest definition comes from a source you rarely expect here. In its circular on the income tax treatment of crypto assets of March 6, 2025, the German Federal Ministry of Finance writes: "Fork means the forking or s...
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