The Top 5 Cryptos To Buy Before The Next Bitcoin Halving

By Trading Education Team

Last Updated January 12th 2023

5 Min Read

Top 5 Cryptos To Buy Before The Next Bitcoin Halving - Our Picks

BTC - Could soar immensely after the halving

ETH - Following suit just behind BTC

SOL - Top crypto ready for a rally

STORJ - Underrated altcoin to buy

LRC - One of the top digital assets to explode

A Closer Look At The Top 5 Cryptos To Buy Before The Next Bitcoin Halving

A bitcoin halving (sometimes ‘halvening’) is an event where the reward for mining new blocks is halved, meaning miners receive 50% fewer bitcoins for verifying transactions. These are scheduled to occur once every 210,000 blocks – roughly every four years – until the network generates the maximum supply of 21 million bitcoins.

Bitcoin halvings are important events for traders because they reduce the number of new bitcoins being generated by the network. This limits the supply of new coins, so prices could rise if demand remains strong. While this has happened in the months before and after previous halvings – causing bitcoin’s price to appreciate rapidly – the circumstances surrounding each halving are different, and demand for bitcoin can fluctuate wildly.

The halving event also significantly impacts the price movement of most cryptocurrencies. So here are the top 5 cryptos to buy before the next Bitcoin halving.

Bitcoin

Since Bitcoin (BTC) emerged on the scene more than a decade ago, it has been the gold standard for digital currencies. The crypto’s emergence as an investment vehicle is remarkable; many institutional investors have embraced it with open arms and are investing significant amounts into it.

Additionally, several Bitcoin-linked exchange-traded funds have popped up over the past couple of years, pointing to its massive support and long-term growth runway.

Its rapid ascent to record levels in late November 2021 created outsized expectations among investors. However, the following crypto winter resulted in a major sell-off in its prices.

Nevertheless, with the upcoming Bitcoin “halving” event, a remarkable, bullish catalyst awaits could send prices soaring again. Thus, when the halving event kicks off in 2024 and supply continues to dwindle, it looks quite likely that the coin will experience another surge in prices. All signs point to BTC staging a major rebound and leading the multibagger cryptos in the coming years.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Ethereum

Ethereum (ETH) has made its mark on the blockchain sphere and is the most popular real-world utility, powering many lucrative applications. However, it recently took a huge leap forward as it officially transitioned to a proof-of-stake mechanism via “The Merge.”

The successful implementation of the new consensus protocol solidifies ETH’s lead in the sector, taking its speed, security, and scalability to new heights. With the next three upcoming updates, the network could potentially deliver a throughput of roughly one million transactions per second.

As Vitalik Buterin pointed out in July, it is more like the halfway point for the platform. He noted that further progress toward scalability and cost-effectiveness was still necessary for Ethereum to flourish and gain further market share in the sector. Hence, with multiple catalysts in motion and robust utility, ETH prices should soar to new heights, especially after the Bitcoin halving event scheduled to take place in 2024.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Solana

Solana (SOL) is a top purpose-built blockchain network that has gained immense traction as a scalable alternative to Ethereum. It is often known as an “Ethereum Killer” as it continues to challenge the stalwart with its speed and efficiency.

The crypto’s fee structure is significantly cheaper than Ethereum’s, which charges 9 cents per transaction, whereas Solana charges fractions of a ten-thousandth of a cent per transaction. Moreover, the network can confirm 3,400 transactions per second (TPS), compared to the Ethereum network’s 15 TPS.

The blockchain’s success has been particularly noticed in the NFT market. The combination of speed and low fees make it a favorite choice for those looking to create or invest in NFTs, opening up new opportunities in the space that wasn’t possible before.

Consequently, in the second quarter, Solana outperformed Ethereum in daily transactions. It hit a whopping 40 million transaction volume compared to Ethereum’s one million.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

StorJ

One of several crypto-powered cloud storage platforms, Storj allows any computer running its software to rent out unused hard drive space to users looking to store files. In this way, it works as an alternative to cloud storage platforms like those offered by Amazon or Google. However, instead of a company owning and maintaining the software, Storj relies on software and a network of computers to manage its data storage.

Proponents of this crypto may be enticed by the ability to buy, sell and control their data, taking back a service now provided only by corporate giants like Amazon, Microsoft, or Google. Privacy-minded network users can also store their files without concern that their information is being looked at and without being targeted for ads based on those files.

Experts recommend small caps like Storj if your risk profile is aggressive. However, sticking with more established projects such as Filecoin is a much better idea for long-term investing. That said, coins like Storj are expected to see incredible gains after the halving.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Loopring

Loopring (LRC) is among the most cyclical cryptos to buy. The primary purpose of this project is to supplement the Ethereum blockchain’s scalability through zkRollups. Of course, this means that the project’s objective becomes redundant when the Ethereum blockchain receives less traffic. Likewise, the opposite is true when the Ethereum network is congested during a crypto bull cycle.

Therefore, buying LRC at the trough before Bitcoin’s halving is an excellent idea. Then, when the Ethereum blockchain becomes congested again, Loopring will offer disproportionately higher returns than the rest of the market.