The second half of April promises to be action-packed for crypto. That’s because the biggest event in crypto — Bitcoin’s halving — is upon us.
Halving is the process by which the block reward for miners — the people who validate transactions on the Bitcoin network — reduces by half every four years. This mechanism also cuts in half the amount of new BTC entering into circulation.
Historically, halving has set the stage for a price rally for the entire market. That fact automatically makes Bitcoin one of the best cryptos to buy before the halving.
Read on for more on why — plus two other picks that are solid bets.
Bitcoin (BTC-USD)
Bitcoin (BTC-USD) is on everyone’s lips as we come closer to halving, which will go down in about four days.
As Bitcoin’s already scarce courtesy of having a hard-capped supply of 21 million, the halving creates further scarcity for the pioneer crypto.
Past halvings were eagerly awaited by fans and received breathless coverage. That, in turn, cast a bright spotlight on Bitcoin, leading to increased buying activity.
This time, observers reckon the halving — combined with recent renewed institutional interest from exchange-traded funds (ETFs) — is likely to usher in perhaps one the biggest rallies for Bitcoin ever.
It also helps that when it comes to cryptocurrencies, Bitcoin is like a blue-chip stock. It’s one of the safest options for crypto investors with a low risk appetite, making it one of the best cryptos to buy this April.
Pendle (PENDLE-USD)
Pendle is a crypto project that hasn’t necessarily been hogging the spotlight but has been quietly rewarding investors.
It’s a decentralized finance (DeFi) protocol that lets you execute advanced yield management strategies. It works by separating the ownership of assets and their future earnings — which creates two kinds of tokens: principal tokens for the asset itself and yield tokens for its future earnings. Both these tokens have an expiration date.
Using Pendle’s automated market maker (AMM), you can trade principal tokens and cash in before the expiration date to realize profits.
In August of last year, Pendle received an unspecified cash injection from Binance’s venture capital arm — Binance Labs, with the company’s head Yi He, calling it one of the projects “spearheading innovation in DeFi.”
This year, PENDLE has been on the up and up and shows no signs of stopping. It has increased by over 500% since January, Yahoo Finance historical data shows PENDLE is one of the best cryptocurrencies to buy this month.
Dogecoin (DOGE-USD)
When Bitcoin surges, it tends to lift the rest of the crypto market with it — including meme coins. That was evident in March when Bitcoin rallied to its all-time high of nearly $74,000.
The month saw the meme coins Dogwifhat (WIF-USD) and MAGA (TRUMP-USD) gain by three-digit percentage points, with Pepe (PEPE-USD) and Bonk (BONK-USD) posting gains of up to 60% at various points. Dogecoin, the original meme coin, secured gains of over 77% early that month.
Dogecoin is a solid choice for investors and traders looking to dip their toes in meme coins but aren’t willing to play fast and loose with their money with wilder options such as PEPE — or worse — TRUMP, which have high reward potential but an equally high-risk factor.
On the date of publication, Hope Mutie did not have (either directly or indirectly) any positions in the coins mentioned in this article. The opinions expressed in this article are those of the writer, subject to InvestorPlace.com’s Publishing Guidelines.
