To explain the fork process, we will need to briefly talk about the blockchain structure.
Blockchain stores data in blocks connected to each other. We can think of these blocks as the rings of a chain. It stores these blocks in a distributed database, meaning that each device connected to the blockchain network is used as a server and information store. The fork process is the separation of these chains for different reasons.
Why is forking done?
Forking can be done for disagreements between coin miners and owners, for switching to a new system, for changing block sizes, and for any update that will change the integrity of blocks.
The fork process is divided into two: hardfork and softfork.
What is Hardfork?
In a hard fork, blocks continue independently of each other after the split block. We can think of this as a road splitting into two. At this crossroads, while the old coin continues on its path in the same way, the coin created for the adjusted e-mail continues on its own path with its new technology, value and supply.
When a hard fork is to be made, it is shared on the Twitter pages of the official website of the coin which block will be split and at what rate the new coin will be given after the split. In the Bitcoin hardfork, distribution was made at the rate of 1 BCH per 1 BTC, that is, the more BTC you had, the more BCH was given.
What is Softfork?
We can think of Softfork as an update, the changes made are supported by previous blocks.
The following blocks continue with their new software without any separation.
Does Fork Affect the Price?
When a fork is announced, the value of the coin to be forked usually increases. The reason for this is that since the fork process is news content, it spreads quickly and users everywhere learn the name of the coin and that it is forked, and they want to buy and make a profit. As another reason, for example, some coins distribute the coins released after the fork as much as the amount you have. So we have 1 BTC and we fork BTC and get BCH. We are given 1 BCH in exchange for 1 BTC and we can make extra profit.
Should I buy the forked coin?
Usually, as soon as the fork news is announced, there is a serious increase in the value of the coin, and as the split block is approached, its value begins to decrease. That's why you can buy it as soon as the news spreads and sell it back for a small profit. Or, you can take a risk and wait until the last moment, but there may be a serious decline at the last moment and you may even incur losses. There is no rule that says every forked coin will rise. No matter what, you should think correctly and take risks accordingly.