Through the years, cryptocurrency mining activity has increased along with the growth of crypto usage. Mining is a decentralized way to issue cryptocurrency involving the verification of coins and adding them to the blockchain digital ledger. Many are into mining since this gives them a source of income. But what are the most profitable cryptocurrencies to mine?
In truth, this may vary since hash rates rise and fall. Hence, crypto miners need to regularly monitor the trend so it is easy to determine which one will be profitable. But before you start mining, there are things that you need which include:
- A safe and secure coin wallet to store your earnings
- A free mining software package
- A mining hardware set-up which includes a custom-built computer or desktop designed for mining and NVIDIA graphics processing unit (GPU) or a mining ASIC chip
- Join online mining pools where miners combine their computers to increase profitability
- An online currency exchange account to convert mined coins to money
Although mining can be profitable, there are certain risks that you need to take note so you are aware of what to expect in the world of cryptocurrency mining. Miners should know the following risks:
- Loss of digital wallets (both hardware wallet or online)
- A decrease in the price of the coins you are mining
- Dishonest and unfair organizers in mining pools
- Expensive mining costs
- Malicious intruders
Now that you are already aware of what you need in order to start mining and you know the possible risks, you are ready to mine the most profitable cryptocurrency. Here’s a list of the top 10 digital currencies that could bring you higher earnings:
#1 Bitcoin (BTC)
Bitcoin is the first decentralized cryptocurrency which is known all over the world. As a matter of fact, the first thing that will come into one’s mind when cryptocurrency is mentioned is Bitcoin. Although it has been around for about ten years, it is still considered as one of the most profitable cryptocurrency to mine.
Mining this coin involves peer-to-peer computer in order to secure transactions. The Bitcoin price increased in 2012 and 2016 when is yearly inflation was reduced by 50 percent. This is called “halving” which is expected to happen again in May 2020. Today, you need to invest in equipment, cooling, and storage in order to be profitable since a PC and a Graphical Processing Unit isn’t enough.
#2 Litecoin (LTC)
Litecoin, which is an open-source software project, has maintained its spot in the top five cryptocurrencies. But there’s also the anticipation in the mining community when its halving event occurs. Released under the MIT/X11 license, it provides a superior storage capacity. Its fast confirmation makes it the best cryptocurrency to mine in 2019. In December 2018, Litecoin’s bid is at US$ 20 beating BTC with its 41 percent rise.
#3 Ravencoin (RVN)
Ravencoin, which is built on a fork of the Bitcoin code, is a new cryptocurrency launched on January 3, 2018. This American-made blockchain can handle the creation of assets from one party to another. It also focuses on asset transfers based on Bitcoin and Ethereum.
#4 Monero (XMR)
Known as the most advanced privacy coin, Monero is based on a proof-of-work algorithm called CyptoNight. This coin is designed with certain specifications making it ASIC-resistant. It’s the privacy and anonymity of Monero that makes it a favorite coin for early blockchain adopters. When we talk about profitability, Monero has a line of uncertainty. Hence, you need to keep an eye on it to determine if it is profitable at a certain time.
#5 AEON (AEON)
AEON is built as a lightweight substitute to Monero. This mobile-friendly coin is also a privacy coin with improved functionality. Compared to other cryptocurrencies, AEON is more device-friendly. It is also the most CPU-friendly allowing faster verification with 4 minutes block time. Although it is tolerant of ASICs, it is trying to get rid of it. Mining can be done with a CPU, ASIC, GPU, and cloud mining services. AEON uses the CryptoNote protocol of Monero featuring one-time keys, blockchain analysis resistance, and ring signatures.
#6 Electroneum (ETN)
Electroneum, a mobile-friendly altcoin, is an excellent option for newcomers. It encourages mass adoption of digital currency making it available as downloadable software. One of its goals is to make the buying process easier. It started in 2017 with the idea of availability and accessibility. With that, Electroneum and the software used for mining is relatively easy to use and it is possible to mine it on several devices.
#7 Feathercoin (FTC)
The goal of creating Feathercoin is to expand and build existing blockchain technology. It is an optimized version of Bitcoin with a faster transaction time than Bitcoin which is only for 60 seconds. Feathercoin is also considered as a customized and upgraded version of Bitcoin. Although it is a fork of Litecoin, it runs on the Neo scrypt hashing algorithm. GPU’s can extract FTC supporting both mobile and desktop wallet, as well as block explorers. Because it is fast and has low fees, it is a good choice for in-store payments.
#8 Horizen (ZEN)
Horizen or ZenCash is privacy coin similar to Monero which uses equihash mining algorithm. This decentralized blockchain platform can carry out communications, publishing, and transactions that are public, private, and anonymous. It was forked from ZClassic, which is a fork of Zcash. Horizen also has the privacy feature of ZCash called zk-SNARKS. New miners can mine Horizen using CPU and GPU since it does not need any other devices.
#9 Grin (GRIN)
Grin is a new cryptocurrency that focuses on scalability, privacy, and fungibility. This new privacy coin has an unlimited supply. It also implements MimbleWimble blockchain and trades actively on the crypto exchange, Hotbit
#10 Vertcoin (VTC)
ASIC resistant Vertcoin Vertcoin uses a Lyra2RE proof-of-work algorithm in its transactions. This open source platform with 2.5-minute block time is a Scrypt-N coin with very low hash rates. Mining is easy for both GPU and CPU users since it works with GUI miner.
Blockchains are in a state of transition which may have an impact on the current digital currency that you are mining. This rapid flux may also have an impact on the future of mining. Trading and buying cryptocurrency can be more profitable but you will also gain more rewards through mining. The key is to know the coins well and learn the techniques of mining. Although we have mentioned ten most profitable cryptocurrencies to mine, there are still other coins that you could be profitable and affordable for you.