Mining

# To Mine or Not to Mine? Most Profitable Crypto to Mine: Review and Analysis

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November 17, 2021 May 27, 2022

There is no doubt that cryptocurrency (digital currency operating via blockchain) is one of the hottest topics these days, especially considering the actual instance that it is an easy means of earning as well as investment. One of the faster and efficient techniques to earn money on cryptocurrencies is cryptomining. In this detailed blog article on coinmining, we shall shed some light on the topic of crypto mining, get to know what profitable coins to mine presently, what are solo (single-handedly) mining, cloud mining (using leased hash power) and pool mining (collective hashpower). Besides, we will present the list of most profitable crypto for mining at present day, point out cryptocurrency mining specifics, blockchain, and miners characteristics.

## What Is Cryptocurrency Mining?

Let us start the ball rolling! So, cryptocurrency mining (or digital currency mining of Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Ravencoin (RVN), Monero (XMR) etc.) is a complex activity of solving computational cryptographic equations with an aim of validating digital currency transactional operations via the blockchain ecosystem. The procedure can be considered complete and validated in its entirety once the active miner verifies the transaction as legitimate (verified on the ledger). It is noteworthy to posit that crypto mining / digital currency mining can be different (varies a lot) on the strength of the cryptocurrency being mined. There are various hashing algorithms applied for versatile cryptocurrencies such as:

– SHA-256

– NeoScrypt

– Scrypt

– Equihash

– Quark

– Quibit

More specifically, the hashing algorithm (encryption algorithm) is a cryptographic hash function that diagrammatizes data of conventional size to a hash of a stationary size (blocks). Amongst the most well-known consensus algorithms, there are the PoW (Proof-of-work), the PoS (Proof-of-stake), and PoA (Proof-of-Authority) respectively. The first consensus algorithm is the most commonly used in the DLT and it is applicable for the first and most popular and liquid cryptocurrency Bitcoin (BTC). The second one has validators and uses staked coins to produce blocks into DLT. Similar to the previous consensus algorithm, the PoA has validators that facilitate reaching the consensus inside the blockchain ecosystem. However, instead of coins, the validators stake their reputation.

## How to Choose the Best Coin for Mining?

Case in point, how to select the best and most profitable coin to mine? First and foremost, you need to make sure of the legality status of cryptocurrency mining, because some countries like the People’s Republic of China (PRC) have banned crypto transactions, coin mining, and cloud mining altogether. In order to make a profit with no risks from the country’s judiciary system, ensure that no restrictions are imposed on the coin mine industry and make mining profits with soul intact.

Second, it is of unparalleled importance to weigh the long-term use of the mining rigs by means of which the person would mine the coin/cryptos. This is vital because the cryptocurrency mining equipment gets obsolete very fast because of the technical progress speed. The crypto miner can cease profiting and get losses in the quickest time frame.

Third, make a concise analysis which crypto exchanges or trading platforms (biggest players on the market) support the coin/token you are about to mine, make use of the online mining profitability calculator (a useful tool to project your revenue or losses) to know if it is lucrative to start mining the coin and the possibility of quick withdrawals in fiat currencies (the withdrawal is not free of charge or juil).

## List of Most Profitable Cryptocurrencies for Mining

Cryptocurrency | Ticker | Market Cap | Circulating Supply
Bitcoin | BTC | $1,191,643,081,717 | 18,862,462
Ethereum | ETH | $543,828,845,793 | 118,188,828
RavenCoin | RVN | $1,310,941,334 | 10,004,545,000
Monero | XMR | $4,919,213,821 | 18,014,104
Litecoin | LTC | $14,241,994,073 | 68,890,108
Ethereum Classic | ETC | $7,344,709,798 | 130,632,460
Dogecoin | DOGE | $36,514,489,129 | 131,956,982,380
Dash | DASH | $2,111,736,539 | 10,413,010
Cardano | ADA | $70,001,936,901 | 33,270,319,990

Source: https://coinmarketcap.com

## Is It Worth Mining Cryptocurrency at All?

To put it simply, the answer is yes. However, there are some crucial points to consider.

1. Make corresponding calculations using an online mining profitability calculator tool to know if it is profitable to mine the preferred coin (s) or not.

2. Make sure that you are using the fastest crypto mining hardware.

3. Do your own in-depth investigative research before investing lump capital into cryptocurrency mining and hardware equipment.

In fact, cryptocurrency mining is largely profitable when a person joins a mining pool (a large organization of miners) or uses crypto cloud mining services. That being said, you can use the fastest and high-tech Bitcoin cloud mining services rendered by the Hashing24 website. The onboarding process is amazingly smooth and fast, the choice of available contracts for BTC cloud mining is abundant and the prices are affordable for average people and institutional investors alike. The hashing24.com website has been designed with a prime focus on affordability, user-friendliness and ease of use.

## Types of Cryptocurrency Mining

There are three major types of crypto mining, and each person is free to decide which is the best and fastest for them.

– Central Processing Unit (CPU) mining;

– Graphics Processing Units (GPU) mining;

– Application-Specific Integrated Circuit (ASIC) mining.

Ad initium, the CPU mining technique is morally and technically obsolete. To put it simply, CPU mining allows average persons to mine preferred cryptocurrencies using the PC’s central processing power. It is not profitable per se due to enormous power consumption, overheat problems, slow computation and similar issues. Nonetheless, it can be a good starting point for miners who want to get a hands-on experience with the crypto mining processing and crypto industry in general. This type of digital currency mining does not require gigantic initial investments and cannot be considered fast per se.

Next is GPU mining. In layman’s terms, it is a graphics video card of your PC required for gaming, watching films or video clips, and, in many instances, for digital cryptocurrency mining. The major advantage of the GPU-based mining is the fact that it delivers crypto miners flexibility, thus allowing multiple coin mining and at the same time using the same hardware equipment. Furthermore, miners can switch the coin mining process among different cryptocurrencies stemming from the current crypto market situation (bearish, bullish or sideway trends). However, the key disadvantages of the GPU mining technology are that it consumes tremendous amounts of energy (even more than PC mining or ASIC mining) and needs special software suites.

The last but not the least is ASIC mining. It is the most efficient and fastest way to mine cryptocurrencies nowadays. In essence, the lion’s share of all ASIC miners are made to mine specific cryptocurrencies (digital currencies) but some of them are compatible with all cryptocurrencies working on the same consensus algorithm: The price for a medium-sized ASIC miner may vary from a couple of hundred US dollars to a few thousands per one machine. Here, the main advantages of ASIC miners are fast speed, high hashrate capacities, easy set up and maintenance. However, the drawbacks are as usual: noise pollution, overheating issues, not upgradeable hardware and need constant monitoring on the user’s side.

## Cryptocurrency Mining Methods

The above mentioned category has been dissected in accordance with the mining hardware used. Consequently, the crypto mining process can also be demarcated into three meaningful subcategories with regard to the method of the coin mining procedure.

– Solo mining;

– Pool mining;

– Cloud mining.

Solo mining, or mining crypto with your own efforts (single-handedly), is an individual mining process where the person acquires the cryptocurrency mining equipment, sets it up and starts crypto mining. The competition is fierce for solo miners and if the person wants to get profit from solo mining, then it is mandatory to invest a large amount of capital into the mining hardware (comparable with warehouses), electricity payroll checks, cooling systems and monitoring. It can hardly be called the fastest way to make revenue with coin mining.

Pool mining — this particular method speeds up the chances of earning block rewards by producing new coins. It is being executed by using the symbiotic hashing power of multiple mining rigs operating together to mine a single block. It goes without saying that expenses and power usage are much lower, but the mining revenue is lower as well because the block mining reward is being distributed among all active participants. It is not fast, but slowly and surely pool miners get their mining rewards regularly.

Cloud mining is the fastest way to get into cryptocurrency mining without purchasing any mining equipment whatsoever. Here, the person literally rents the leased hashrate capacities and get the mined coins to their account balance. Mind considering Hashing 24 — the best BTC cloud mining services on the market. The user chooses the preferred BTC mining hashrate, makes payment and starts mining right away with no delays, 24/7/365. Fast, easy, secure and it does not require enormous investments.

## Cryptocurrency Mining Pitfalls

As with any business, there are certain risks involved. Here are some of the risks to consider when mining cryptocurrencies:

– Cyber-hackers.

– Price swings connected with bullish and bearish trends.

– Unreliable mining pool organizers.

– Excessive costs on electricity.

## Brief Overview of the Best Cryptocurrencies to Mine

### Bitcoin (BTC)

It is not a secret that cryptocurrency mining was popularized by Bitcoin. In its essence, Bitcoin is a code and it does not have a central issuing body or facility that controls the BTC amount in circulation. Bitcoins are created as a reward for payment processing where the participants offer their computing power to verify and record payments into a public ledger (DLT or blockchain). It is the best variant to mine BTC with cloud mining services like Hashing24 or if you are capable of purchasing and maintaining ASIC rigs, then it may be a good choice for you.

#### Major Specifications

– ROI since launch: 45741.13%

– Algorithm: Proof-of-Work

– Hashing Function: SHA-256

– Block Mining Reward: 6.25 coins per block

– Block time: 10 minutes

– Network Hashrate: 178.22 EH/s

– Best hardware to use: GPU and ASIC

### Ethereum (ETH)

Ethereum is one of the headliners in the crypto mining market and it runs on smart contracts. ETH mining can be profitable for crypto miners if they join the mining pool or use cloud mining services. The crypto under scrutiny can be also easily mined with Nvidia GeForce GPUs. It is a very promising altcoin to mine and watch in 2021 and 2022 years ahead.

#### Major Specifications

– ROI since launch: 159260.63%

– Algorithm: Proof-of-Work

– Hashing Function: Ethash

– Block Mining Reward: 3 ETH per block

– Block time: 12 minutes

– Network Hashrate: 812.77 TH/s

– Best hardware to use: GPU and ASIC

### RavenCoin (RVN)

The major focus of the RavenCoin digital currency is to produce and maintain a blockchain optimized for the transfer of assets on a P2P basis. The RVN coin is one of the most profitable cryptos for mining taking into account that it uses the KawPoW protocol to the maximum. It is recommended for miners who start the crypto mining from the basics and for professionals alike.

#### Major Specifications

– ROI since launch: 392.32%

– Algorithm: Proof-of-Work

– Hashing Function: X16R

– Block Mining Reward: 5,000 RVN per block

– Block time: 1 minute

– Network Hashrate: 6.93 TH/s

– Best hardware to use: CPU, GPU

### Monero (XMR)

Monero (XMR) is a digital currency operating on the CryptoNote protocol. It is not fit for mining with streamlined ASIC miners but the best thing about the coin is that it is amazingly simple to set up a mining equipment.

#### Major Specifications

– ROI since launch: 10765.07%

– Algorithm: Proof-of-Work

– Hashing Function: CryptoNightR

– Block Mining Reward: 1.16 XMR per block

– Block time: 2 minutes

– Network Hashrate: 1.86 GH/s

– Best hardware to use: GPU

### Litecoin (LTC)

Litecoin is the light version of Bitcoin. Its major advantages encompass a small volatility range, high transaction speed and low blockchain fees.

#### Major Specifications

– ROI since launch: 4586.93%

– Algorithm: Proof-of-Work

– Hashing Function: Scrypt

– Block Mining Reward: 12.5 LTC per block

– Block time: 2 minutes

– Network Hashrate: 302.7 TH/s

– Best hardware to use: GPU

### Ethereum Classic (ETC)

ETC maintains the origins of ETH blockchain principles. It can be effortlessly mined via ASICs and GPUs simultaneously. The crypto by all means is very popular among crypto cloud services. The mining procedure is very straightforward and the block mining reward time frame is extremely short.

#### Major Specifications

– ROI since launch: 7110.69%

– Algorithm: Proof-of-Work

– Hashing Function: Ethash

– Block Mining Reward: 3.2 ETC per block

– Block time: 13.5 seconds

– Network Hashrate: 31.40 TH/s

– Best hardware to use: GPU, ASIC

### Dogecoin (DOGE)

DOGE is so easy to mine and validate with any digital currency mining type or method. It has gained major popularity after provocative tweets made by billionaire Elon Musk.

#### Major Specifications

– ROI since launch: 47857.83%

– Algorithm: Proof-of-Work

– Hashing Function: Scrypt

– Block Mining Reward: 10 000 DOGE per block

– Block time: 1 minute

– Network Hashrate: 350.7855 TH/s

– Best hardware to use: CPU, GPU, ASIC

### Dash (DASH)

The coolest thing about DASH is that it is very easy and profitable to mine the aforementioned virtual currency using ASICs similar to Bitminer.

#### Major Specifications

– ROI since launch: 92553.42%

– Algorithm: Proof-of-Work

– Hashing Function: X11

– Block Mining Reward: 3.11 DASH per block

– Block time: 2.5 minutes

– Network Hashrate: 1.8202 PH/s

– Best hardware to use: GPU, ASIC

### Cardano (ADA)

The ADA virtual coin is robust and very popular among crypto miners due to scalability and platform interoperability. Its potential can even surpass such leaders as Litecoin and, believe it or not, second largest crypto Ethereum.

#### Major Specifications

– ROI since launch: 9421.66%

– Algorithm: Proof-of-Stake

– Best hardware to use: GPU, ASIC

## Conclusion

To put it in a nutshell, there are a cornucopia of profitable cryptocurrencies to watch, trade, HODL and especially mine using such methods as GPUs and ASIC rigs. All is dependent on your risk appetite, capital and long-term goals, acknowledgment with the mining specifications and always remember to carry out your own professional topical research before undertaking any endeavor. And remember: if you strive for smooth and sound BTC mining non-stop, then buy a BTC mining contract on the Hashing24.com website and mine the leading crypto with no problems at all.

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