Cryptocurrency mining is a vast topic as it involves a couple of terms that you should understand if you want to mine. Simply put, mining in cryptocurrency is a process whereby transactions are verified and added to the blockchain ledger. A miner ensures the updating of authentic information of every cryptocurrency transaction made on the blockchain. The process involves competing with other miners to solve complex mathematical problems whereas the faster one gets the block rewards.
The most profitable cryptocurrencies to mine today
Not too long ago, Bitcoin mining required not more than a PC or some inexpensive graphic processing units (GPUs). Right now, it is a thing for the large operators. Owing to the entrance of ASIC miners to the scene as well as increased network difficulty, most cryptocurrencies including bitcoin now require expensive and complex equipment. Note that some cryptocurrencies can still be mined through a PC or even smartphones nowadays. Cryptocurrency mining is seldom rewarding though, so you have to consider if you are in it for short-term or long-term profitability.
Our top 5 list of coins is relative. We were looking at average ROI, difficulty, popularity, community sentiment and market conditions. These coins look good in the long-term mining too.
Monero is one of the altcoins that witnessed a massive value rise in 2017. It is suited for CPU and GPU mining and has an in-built privacy protocol known as ring signatures which makes it one of the leading privacy based coins in the crypto market. Privacy coins can be used for both legal and illegal purchases.
Monero makes use of CryptoNight (a hashing algorithm) which is ASIC resistant. Mining Monero consumes less electricity than coins like Ethereum, Ethereum Classic, Zcash, Zencash. This prevents heat output issues and makes GPU cards last longer. It can equally be a good way to subsidize new, high-end GPU purchase.
You could benefit from future appreciation in the value of Monero if you mine, with an additional benefit of not buying.
Being a fork from Monero, Electroneum is also a privacy coin (the first British cryptocurrency) that uses the CryptoNight mining algorithm. Electroneum was established in September 2017 to bring cryptocurrency to the masses by integrating into mobile and game payments.
The project targets the world’s over 2 billion smartphone users through its selling point, a mobile miner which allows users to easily mine ETN on their smartphones. The mobile miner is available on Google Play Store. It can also be mined using a CPU or GPU. For mining on CPUs, AMD and Nvidia GPUs, XMR-STAK 2.2 is an all-in-one miner you can use.
Just recently, Electroneum opened up the proposed Instant Payment API system for vendors which make integrating cryptocurrency payments easy, and are working towards eCommerce Payment Gateways. This has led to a quick spike in value after the recent price dips of ETN. The mobile miner which does not require technical abilities is surely an easy invitation to cryptocurrency for the masses.
ZenCash is a fork of Zclassic, which is a fork of Zcash. At the end of August the project rebranded into Horizen due to the brand’s expansion strategy.
It is a privacy coin that uses the equihash mining algorithm coupled with a lot of unique features. During the last quarter of 2017, Horizen rose in value by over 800%. Despite its privacy feature, Horizen adds unique systems such as zenchat, zenpub and zen hide.
You can mine Horizen using a CPU or GPU. For Windows PC, Nicehash is recommended. For AMD graphic cards, there is Claymore’s GPU miner, while EBWF’s Cuda miner is a good option for Nvidia graphic cards.
Privacy coins seem to have been increasing in popularity over the past year, and Verge is one of those coins with a focus on privacy and user anonymity. Starting out as DogeCoinDark in 2014, it was rebranded as Verge in 2016.
Unlike other coins, verge uses 5 different Proof-of-Work algorithms to mine; Scrypt, myr-groestl, X17, blake2s and Lyra2rev2. This would grant equal mining access to many people depending on their mining set-ups. Proof-of-Work algorithms are known for being the most secure consensus protocol.
Due to the ASIC resistant nature of these algorithms, Verge can be mined with your computer’s GPU. Miners only need a graphics card, a Verge wallet and specialised mining software. The introduction of the RSK technology at the end of 2018 means Verge will be the only privacy coin that can do smart contracts. With this, coupled with quick transactions, low fees and high volume in circulation, the coin should be experiencing a shoot up in value in no distant time.
It’s said that Dogecoin was launched as a joke on December 6th 2013. It is a cryptocurrency based on Bitcoin and is widely known for its use in online tipping and charity. A couple of times, Dogecoin has been used to reward content on platforms like Reddit and is currently ranked 20th by market capitalization. It has a good ‘reputation’ among crypto community, is pretty popular and as a result – high trading volumes on exchanges.
Dogecoin uses Scrypt which consumes way less power than SHA-256 used by Bitcoin. This means that mining Dogecoin is a lot faster and less power consuming than mining Bitcoin or Litecoin. It has a higher block reward as well.
You can mine Dogecoin Solo (on your own), by joining a mining pool (which is a better option), or through cloud mining. To mine Dogecoin, you will need a Dogecoin full wallet, hardware like CPU, GPU or Scrypt ASIC miner, and software such as EasyMiner.