How to increase your income - Cryptocurrencies, Stocks and Real Estate

Bitcoin halving - Why it is important?

What is Bitcoin halving?

Bitcoin halving is the event when Bitcoin (BTC) rewards are reduced by half. On every BTC block mined the miner gets rewarded by receiving BTC. In April 2024 the mining rewards per block are reduced from 6.25 BTC to 3.12 BTC. With the halving being a major functionality in the design of the BTC blockchain the affects are beneficial for its price.

Why is Bitcoin halving important for Crypto?

Since each halving event reduces BTC rewards by half the scarcity of the blockchain increases in time. That makes each block more valuable since miners have to increase their effort to mine a new block by 100 % to maintain same reward.

When is the next Bitcoin halving?

The next Bitcoin halving is expected on April 2024 and will reduce the block reward from 6.25 BTC to 3.12 BTC. Generally, a halving takes place once every 210,000 blocks mined until the final supply of 21 million BTC is reached.

How did Bitcoin, Ethereum and Solana perform in 2020 Bitcoin halving cycle?

The chart below shows Bitcoin, Ethereum and Solana with their monthly performance from January 2020 till January 2024. That is five months before the 2020 Bitcoin halving event in May 2020 (yellow line) until January 2024. The 2024 Bitcoin halving event is estimated for April 2024 allowing us to compare movement of the coins already.
Bitcoins strongest monthly performance happened seven months after the halving event in December 2020 with 46.8 %. Ethereum reached its highest monthly performance eight months after the halving event with 78.2 % in January 2021. Solana’s historical data being available after the bitcoins halving reached its highest gains in February 2021 by performing 207.6 % in a single month. So, in the 2020 Bitcoin halving the time period from roughly half a year to three quarters a year were boosting the value of Bitcoin, Ethereum and Solana mainly. Being invested during this period was key. You can find out more details about the individual performance of Bitcoin, Ethereum and Solana during the 2020 halving cycle from the blow charts.

How did Bitcoin perform in 2020 Bitcoin halving cycle in detail?

After the 2020 Bitcoin halving event the price of Bitcoin increased slightly for five months (May_Close 9,448 USD till October_Close_2020 13,791 USD). The major value increase happened within the next five months where Bitcoin formed its first peak in March (March_Close_2021 58,741 USD) being 521,7 % higher as in May 2020. Seven months after Bitcoin formed a higher peak in October 2021 at 61,300 USD and started its correction right after. Price dropped to 17.164 USD in November 2022 which is a decrease of 72,0 % from its all-time high. However, being invested in Bitcoin from 2020 halving till November 2022 would still be a value increase of 81.7 % within 30 months.
Bitcoins first peak after 2020 Bitcoin halving event was formed 10 months later with a price increase of 521.7 %. A slightly higher peak formed 17 months after 2020 halving (548.8 %). Next, a price correction took place and finished 30 months after 2020 halving (81.7 %).

If you invested 1,000 USD in BTC at the 2020 halving event you would have had…

• 6,217.07 USD 10 months after halving (first “relevant” peak)
• 6,487.94 USD 17 months after halving (all-time high)
• 1,816.59 USD 30 months after halving (low after halving)

How did Ethereum perform in 2020 Bitcoin halving cycle in detail?

For Ethereum the 2020 Bitcoin halving event started of right away. Within eleven months and some minor corrections Ethereum formed its first peak in April 2021 at 2,772 USD (increase of 1.097,2 % compared to May_Close 231.57 USD). A remarkable higher peak was reached in November 2021 at 4,630,26 USD (increase of 1.899,5 % compared to May_Close). Afterall a correction phase started and ended in June 2022 at 1,071.01 USD – a 61.4 % price decrease.

If you invested 1,000 USD in ETH at the 2020 halving event you would have had…

• 11,972.28 USD 11 months after halving (first “relevant” peak)
• 19,995.08 USD 18 months after halving (all-time high)
• 1,071.01 USD 25 months after halving (low after halving)

How did Solana perform in 2020 Bitcoin halving cycle in detail?

Solana released after the 2020 Bitcoin halving event. Data availability from the used API starts in August 2020. Solana formed its first relevant peak in April 2021 at 42.768 USD which is a price increase of 802.0 % (compared to August 2020 closing price of 4.7435 USD). Solana reached its all-time high in November 2021 at 208.53 USD ending a 4,296.1 % price increase (compared to August 2020 closing price). Solanas price correction ended in December 2022 at 9.97 USD. The value decreased by 95.2 % from its all-time high.

If you invested 1,000 USD in SOL in August 2020 you would have had…

• 9,019.92 USD 11 months after halving (first “relevant” peak)
• 43,961.21 USD 18 months after halving (all-time high)
• 2,101.80 USD 31 months after halving (low after halving)

How to send cryptocurrencies from eToro Money wallet to another wallet?

To send coins from your eToro Money wallet to another wallet, follow the steps below. Generally, it is highly recommended to keep a major share of your coins stored in a hardware wallet (also known as a cold wallet) for multiple reasons. Some are highly secure and resistance to hackers and cyber-attacks. The author recommends Ledger as the cold wallet of your choice.

1. Open and sign in to your eToro wallet app
2. Click the crypto icon at the bottom right to view your coins in your wallet
3. Select the cryptocurrency you wish to send
4. Tap Send to open the dialog window

5. Set the amount you want to transfer
6. Input the receiving address by open receiving wallet (e.g. Ledger Live):
   • select Receive
   • select Account to credit via dropdown
   
   • Unlock Ledger
   • Scan address with eToro wallet app and crosscheck with device address - approve address
   
7. Tap Send on eToro wallet
8. Enter the SMS verification code send from eToro and tap Verify
9. A screen will appear, confirming that your send request has been received.
10. To check your transaction status tap the relevant cryptocurrency within eToro wallet.

How to send cryptocurrencies from Binance to another wallet?

To withdraw coins from Binance to another wallet e.g. Ledger follow these steps.

1. Within your Binance account go to Wallet
2. Select Fiat and Spot

3. Choose the cryptocurrency you wish to transfer (e.g. SOL)
4. Click Withdraw
5. Enter the receiving address by opening receiving wallet (e.g. Ledger Live):
   • select Receive
   • select Account to credit via dropdown (e.g. SOL)
   
   • Unlock Ledger
   • Copy address from Ledger live and paste to Send to within Binance Withdraw dialog - crosscheck address
   
   • Approve receive on Ledger
   
6. At Binance Withdraw Crypto dialog select Network (e.g. SOL)
7. Enter the amount you wish to transfer and click Withdraw

8. Confirm risk warning
9. Acknowledge address and continue
10. Proceed with Security Verification