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So, you want to start mining cryptocurrencies, but you don’t know how to do it? Here is a guide that explains which cryptocurrency you should mine. And if you are a mining veteran, don’t worry; we also got your back.
After the end of this article, we hope that you can make a decision about the best cryptocurrencies to mine right now for you,
To start mining cryptocurrencies you need to make a decision based on a couple of different things.
- What is your budget for buying both the necessary equipment? And any additional costs?
- Which cryptocurrency are you interested in mining? There are more cryptocurrencies than just Bitcoin to mine today.
In the crypto mining industry, there is one element that you should always keep in mind: generally, the more popular a cryptocurrency is, the more it is mined (we all know those crypto mining farms, right? No? See below).
Mining farms are basically large-scale mining operations. Intended to be used for the sole purpose of mining coins. Bitcoin and other cryptocurrencies are today such a lucrative business that they are attracting these mining farms all over the world.
The more difficult its execution is. Knowing that the most popular cryptocurrencies are generally the most profitable, you will often have to invest in a lot of money if you want to mine the most lucrative cryptocurrencies.
With that, we mean that the higher the competition there is for a specific coin, Bitcoin for example. The better the competitors will need to be, and so forth the equipment will also be much better.
Also much more expensive too! So unfortunately if you are on a shoestring budget then mining Bitcoin might not be the right for you.
But don’t worry we have covered a range of coins that could be the best cryptocurrency to mine right now for you!
Briefly, what is cryptocurrency mining?
The purpose of mining and miners is vital to any Proof of Work blockchain. Their role in the network is to validate existing transactions and add new ones to the chain of blocks, i.e the blockchain.
Technically how that works is that they use computational power in the form of mining equipment. Either a computer at home or a specialised mining rig at one of those mining farms.
This is how it works for mining Bitcoin and other cryptocurrencies today
We the users want to send our Bitcoins to other people or to pay for services. Every time we do this today we pay a fee. This fee goes to the miners of the network as a payment for the service to use the Bitcoin network.
But there are also block rewards today on the network. This is how new coins are mined and added to the network.
So today there are two incentives for miners to work on the network. In the future when all coins are mined the reward model will only be based on the transaction fees.
Besides, as we have seen above, the difficulty of mining varies according to the number of people who mine, so the most popular cryptocurrencies cannot be mined with a conventional computer. You will, therefore, have to equip your computer accordingly to improve its computing performance or even buy an ASIC miner.
Which are machines specially designed for mining cryptocurrencies (learn more about ASIC miners and their profitability here).
So once again depending on:
- Your budget
- And which coin you like/want to invest in
You can make a decision to start mining a coin that suits you.
How to evaluate which is the best coin to mine for you
If you use professional equipment and are ready to invest money, we advise you to choose the most popular cryptocurrencies. They are indeed difficult to mine, but their popularity did not come by chance. These are strong and stable currencies that will allow you to make a good investment.
Also, your equipment will then be able to mine the most popular cryptocurrencies such as Litecoin or Bitcoin.
If you have a high-end computer and are willing to invest reasonably, we advise you to mine high-end cryptocurrencies such as the Monero.
Because Monero is right now designed so that you can’t for example mine it with an ASIC miner.
This is good news for you if you don’t want to spend extra money on a miner and use your high-end computer at home.
You won’t have the power to mine the best cryptocurrencies, but you shouldn’t have any trouble mining good alternative cryptocurrencies. However, if you absolutely want to mine the best cryptocurrencies with this type of equipment, you can try to register on a mining pool (learn more about mining pools here).
Indeed, since your efforts will be shared with other contributors, you will receive a percentage of the earnings generated by the pool. Your income may certainly be a little lower. However, to increase your efficiency, you can add several graphics cards, which will allow you to increase computing power considerably.
Finally, if you do not want to invest, you have two options.
- The first of these is to register on a mining pool and mine alternative cryptocurrencies.
- Otherwise, you can try to mine alone by focusing on the new cryptocurrencies. Indeed, at the beginning of their existence, cryptocurrencies are relatively easy to mine. For example, it was possible to mine Bitcoin with a home computer when it was launched. If the cryptocurrency you are mining becomes popular, you will have to mine another one, but you may well have won the jackpot. Please also note that if you only have a low-end or mid-range laptop, you will have great difficulty undermining. Your graphics card will not be powerful enough.
Let us explore the best cryptocurrencies to mine in 2020
Do you have a mining rig? If this is the case, you simply have to choose the most profitable virtual currency to mine. The question then arises as to which cryptocurrency offers the most potential. Several cryptographic currencies offer prospects for better mining performance.
Let’s get to it then, now we will review seven of the best cryptocurrencies to mine in 2020!
1. Mining Monero
If you want to mine a profitable cryptocurrency, the Monero seems to be one of the most sensible choices. It is an open-source cryptocurrency that appeared in 2014, and whose returns surprise more than one minor.
The mining of the Monero requires the use of the Minergate software or registration in a mining pool. In either case, you benefit either from the use of a mining software or from a pooling of mining efforts, and the gains can come very fast.
The Monero is currently a high-potential cryptocurrency, and it is time to familiarize yourself with its purchase and resale.
2. Mining Dash
Dash is an alternative cryptocurrency called private. It allows private and instant transactions. A transaction is said to be private when the network on which it takes place uses proxies to protect the sender and receiver of the transactions.
Dash is a currency that can be mined, i.e. you can make available the computing power of your computer or computer support on the crypto network for a fee. Your IT support will be used in particular to validate or verify transactions transiting on the network. For this provision, you will receive crypto money. The method of remuneration for minors is POW (Proof Of Work).
The mining algorithm is X11. The mining algorithm is the algorithm by which transactions are encrypted.
Dash is mined with ASIC (Application Specific Integrated Circuits) computer supports, the same ones used for Bitcoin mining. The best mining device in Dash is the Antminer D3 from Bitmain.
Remember that one of the keys to success is to be able to resell your Dashes at the right time when the price is at its highest. To familiarize yourself with this process
- You can buy DASH at many exchanges, some are Bitmart, HuoBi, and Binance.
- DASH was mentioned as one of the top coins on our Masternode list recently learn more
3. Mining Litecoin
Among the virtual currencies to be mined in the coming months, Litecoin occupies a prime position. Miner le Litecoin will certainly make you enjoy a few tokens. Before you can mine Litecoin, you must have at least two high-performance graphics cards. It is possible to use the ASIC Scrypt miner for better profitability.
Similarly, it is useful to have an online portfolio for Litecoin storage. You must also check the value of the LTC before mining; otherwise, you risk plunging into the red too early.
Litecoin still has incredible potential, so this is the time to familiarize yourself by buying Litecoin and learning to resell it at the right time.
- You can buy Litecoin at Binance or OKEx for example.
- Learn more about how to buy Litecoin here
- And find out which are the best Litecoin wallets here
4. Mining Bitcoin
It is no coincidence that Bitcoin is in first place in this ranking. It is the very first virtual currency to have been created. Buying Bitcoins seems to be the concern of many because it constitutes a store of values so that undermining this cryptocurrency is very profitable.
One thing is certain, and this virtual currency will always be appreciated over the next 12 months. The minor will have the choice between an ASIC miner and a rig of several graphics cards. Otherwise, it is advisable to use a cloud-mining.
Mining is often a long process, and during this time of implementation, if the Bitcoin price is bullish, you lose an opportunity.
Besides, once your Bitcoins are mined, you will have to sell them at the right time. This phase is an essential element for the success of your project.
With this in mind, it is advisable to learn to speculate as quickly as possible, even with a very small amount.
- Binance or Coinbase (get $10 BTC for free when buying for at least $100) are two great places to buy Bitcoin at.
- Learn more about Bitcoin
5. Mining Ethereum
Ethereum is a currency that is constantly growing in power. This virtual currency is to be mined for the simple and only reason that the platform offers intelligent contracts. Many miners have adopted it because of its high potential.
Many experts predict that it could exceed Bitcoin in the coming months at the market cap.
Warning, it is impossible to mine the Ethereum if you do not have the appropriate equipment, i.e., a high-performance computer, a powerful graphics card, and good video memory (graphics card).
You must have an online portfolio for the transfer and storage of ETH. Also, choose a mining software that is characterized by stability and compatibility with Nvidia and AMD cards.
We recommend that you start speculating now, even with a small amount, do not forget that reselling your crypto-money miner at the right time and a key element of success.
- Ethereum is a very popular coin and used by millions, you can buy it at most cryptocurrency exchanges. Some are Changelly, Coinbase and Binance
- Learn more about Ethereum here
6. Mining Ethereum Classic
Ethereum Classic is a crypto born from the Hard Fork (divergence), a kind of update performed on the Ethereum network or Blockchain.
Indeed, in July 2016, Ethereum’s management authorities decided to split into two Blockchains in Block 1. 920,000 after one of the intelligent contracts implemented for management from Ethereum was hacked.
The mining algorithm, i. e. the algorithm by which the coins and transactions of the Ethereum Classic are encrypted, is the SHA3.
The Ethereum Classic, like the Ethereum, is a crypto that offers coins free of charge to those who insert their computers and graphic cards into the Ethereum network for the verification of transactions, the decryption of tokens that will form the coins: it is the mining.
To mine Ethereum Classic, you have to:
1- install the GETH software that allows your computer to communicate with the rest of the Blockchain and synchronize transactions as well. You will need to install it as an administrator on your computer.
2- A command line window will ask you to configure a user name and password.
3- To specify to the software you want to mine Ethereum Classic rather than Ethereum, you will need to type in the command line window: geth -rpc -oppose-dao-fork.
4- You download the Ethereum Ethminer mining software and install it with administrative rights.
5- Go to the “Program Files” folder on your disk C, search for the folder cpp-Ethereum, enter it.
6- Right-click, then “run command line here”
7- In the new command line window, enter the command ethminer -G and then enter. You must wait a few minutes before you see the mining begin.
- Ethereum Classic can be bought at; Binance and OKEx amongst others
- Learn more about Ethereum Classic here
7. Mining Bitcoin Cash
Bitcoin Cash is a crypto that emerged after a hard fork (divergence) on the network or crypto management program called Blockchain, of Bitcoin.
There was a lot of debate and difference of opinions amongst Bitcoin miners, Bitcoin developers, and the BTC community.
Why? Well, there had been many discussions around the future of Bitcoin technology. And especially around the questions for Bitcoins scalability issues. Meaning how well it could handle increased transaction volumes.
During the height of 2017 often BTC transactions were stalled and took days to complete. All due to the high pressure of people wanting to buy and send Bitcoins,
So after much infighting, a hard fork was done. And Bitcoin split into two separate coins. One with the name of Bitcoin. And the other Bitcoin Cash.
Where the last block mined during this update becomes a kind of crossroads from which two different Blockchains now leave, the updated version and the one with the old configurations.
Anyone can put their computer at the service of the Bitcoin Cash Blockchain to participate in the cryptographic parts mining activity. For each transaction check or mined token, the Blockchain gives you a portion of a coin in return: it is the remuneration by proof of work (POS).
The mining algorithm of Bitcoin Cash is the SHA256. To mine Bitcoin Cash, it is, therefore, necessary to have a computer, graphics cards, or dedicated equipment such as ASIC SHA256 miners.
If you prefer the cloud mining option instead, i.e., delegating this task to online servers and not using your computer equipment, you can use the services of Hashflare and Genesis Mining.
- If you want to find more information about how to mine Bitcoin Cash this guide
- And here is a guide to some of the best Bitcoin Cash wallets to use
- You can buy Bitcoin Cash at OKEx, Binance and Coinbase
What are the pros and cons of mining cryptocurrencies?
Mining is an increasingly less lucrative activity due to fierce competition. Indeed, in order to have the chance to solve the greatest number of hashes and possess the most cryptocurrencies, you need to have computer tools that offer the best computing power.
We hope that this guide to crypto mining but also which are the best cryptocurrencies to mine in 2020 was helpful.
We hope that by now you can make a smart decision about which coin to mine. But also how to evaluate which is the best coin to mine for you?
Miner, therefore, requires heavy investments, particularly in graphics card frames (GPUs) commonly known as rigs specially designed to support the algorithms of a single cryptocurrency.
Today, to mine Bitcoin, for example, it is better to have ASIC miners, expensive and only dedicated to this task, and to the 256 algorithms of Bitcoin. If in the case of dedicated miners, you are sure to make the most profits, you will unfortunately not be able to use them for other currencies or other uses.
Besides, a change in the currency algorithm would make your equipment obsolete. If you have chosen graphics cards instead, you would need powerful ones to reach the computing power of a dedicated miner, which requires heavy investments.
However, unlike dedicated minors, you can resell your equipment or assign other tasks to it. Mining is not always a risk-free activity; it may be prohibited in some countries.
Despite the complexities associated with this activity, with the advent of the Bitcoin media, the number of miners is increasing, leading to a decrease in profit and a professionalization of this activity.
Do you think mining is still profitable, or will it be in the near future? Tell us! Just below.
BONUS: We make things easy! You can see the profitability of mining each coin with your current hardware here: https://whattomine.com/ , you can fill every field from your hash rate to your power consumption (and cost) to get a specific profit.
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Per Englund – Founder of Go CryptoWise a cryptocurrency and tech fan that want to see better and smarter products and services that make our lives better and easier