The field of cryptocurrency is becoming increasingly popular. However, there is the misconception that it all revolves around Bitcoin. While Bitcoin is highly popular, in truth there are several other cryptocurrencies which also offer good returns. As a miner you should be smart enough to choose promising cryptocurrencies.
Some of the most important factors to consider include:
The price: As a general rule of thumb, the more expensive a coin is, then mining it should be more profitable. This applies to short term investments. However, if you stick to your investment you can mine a coin and wait for the price to rise.
Halving of Rewards: Lower profits can be expected due to halving of rewards. It is important to make some research so as to calculate if the investment in mining will be properly compensated by the coins you shall be mining.
Blocks: The more blocks generated by the network, the higher the chances that you will be rewarded for a found block.
Mining Difficulty: Competition is normal and you will need to factor it in. Needless to say there a many miners involved, and so you will need to take this into account when mining.
Mining Equipment: You should take into account the power of the mining equipment. This will depend on your budget as well as on the difficulty of a coin. Electricity costs will also need to be considered as they will affect your profitability ultimately.
How can you choose the best coins to mine?
There are some aspects worth pondering upon before making your decision as to which are the best coins to mine:
Conversion to Fiat: You may wish to choose exchange platforms which allow you to convert newly mined coins to fiat. Consider the exchange fees applicable though.
Legality: Regulations concerning cryptocurrencies vary considerably from one country to another. So make sure you can do this legally as some countries completely ban it and you will not want to risk it in that case. Ensuring that you are mining a new coin without such risks is the best option.
Mining Device: You should evaluate the long-term use of the mining devices you use.
Now that we have outlined some key elements to bear in mind, we can move on to offering you a list of some of the best coins currently available. The following are 9 of the most profitable coins to mine:
1. ZCash (ZEC)
ZeroCash, or as it is mostly referred to ZCash, was released in October 2016. It is anonymous in transactions, and so tracking is impossible. This makes it a great choice for those who prefer anonymity. ZCash prides itself of a negligible commission on transactions. The ZCash algorithm allows you to use mining graphics cards.
2. RavenCoin (RVN)
RavenCoin started off in 2018 and despite not having such a long history it has a high liquidity rate. In fact it ranks very well when compared to other coins, with a market cap of over $78million. Last year various features were added by developers, including voting with RVN, a mobile wallet with seed phrase, and improved compatibility. RavenCoin can be exchanged on various platforms, and it is mostly used for the fast transfer of assets. RavenCoin uses the X16R algorithm and the KawPoW protocol.
This is a newcomer which is really great for GPU mining. It is based on the MimbleWimble protocol, and so transactions are private. One of the best features of Grin is that it is has unlimited coins. Grin can be mined through three algorithms, the CuckARood-29, the CuckAToo-31 and the CuckaRoom-29. For the former one an update of the software is required. Grin can be traded on various crypto exchanges such as HitBTC, Poloniex, OKEx and Bittrex.
4. Monero (XMR)
This coin has been on the market from 2014 onwards and till now it has always proven to be a reliable option. It offers anonymity too. Monero switched to the RandomX algorithm in 2019 and the regular alteration is carried out to prevent the ASIC-mining possibility.
5. Litecoin (LTC)
Litecoin is one of the most successful in the market. This is mainly due to the fact that it can be exchanged on various platforms, and it is considerably less volatile than other coins. One does not have to buy ASIC as Litecoin uses the SCRYPT protocol. Litecoin prides itself of high speeds and the transaction fees are not that high. With a $2.3Billion market cap there is no denying that Litecoin is one of the best options.
6. Bitcoin Gold (BTG)
Bitcoin Gold was created for GPU mining. It ranks among the top cryptocurrencies with a market cap of $125million. Bitcoin Gold is very stable and not as volatile as most other altcoins.
With DASH, one can carry out swift, secure transactions via InstaSend and PrivateSend. Mining DASH can be quite profitable, but one will need to take into account the hashrate of the mining device being used as well as the electricity costs in your area. Having said that DASH is surely worth giving a try. The best DASH ASIC miner is Antminer D3 which is produced by Bitmain.
8. Dogecoin (DOGE)
Funnily enough the Dogecoin currency was created just for fun, but over time it became really popular. Now it prides itself as being one of the top ranking coins in the market, with a market cap of $219million. DOGE makes use of the Scrypt protocol. As a result there is no need to use expensive machines to mine it. One could make use of a CPU/CGU and manage to achieve a steady performance from Dogecoin.
9. Ethereum (ETH)
Last but not least comes the highly popular Ethereum. We definitely could not list top cryptocurrencies without including this coin. ETH is highly profitable and the price is expected to grow even further as it remains the basis of most smart contracts and decentralized applications (DApps). This will depend considerably on the increase in demand for digital currencies as well as the decentralization of cloud computing.
Before choosing the coins you would like to mine make sure to consider the various factors we mentioned earlier, and make a thorough plan based on your budget.