There are many cryptocurrencies available on the crypto market today. But which one is the most profitable cryptocurrency for mining? Many novelty coins can shut down without even reaching trading platforms, which can lead to investment losses.
We understand the risks of crypto investments and are here to explain the nuances associated with mining. Below, you will find a list of the most profitable crypto to mine nowadays and tips on how to calculate the mining’s profit potential.
How to Define Crypto Mining Profitability
The profitability of mining depends on the following factors:
- Cryptocurrency price (a critical feature that affects the amount of profit).
- Reward for the found block (the more coins in the block, the more profitable).
- Block time in the cryptocurrency network (high frequency means more income).
- Hashrate of the cryptocurrency network.
- Funds required to invest to cover electricity costs in a particular country and region.
It is worth remembering that the unregulated cryptocurrency market is very volatile. Thus, you should not have the sole priority of finding the one and only most profitable currency to mine. Since many technical and legal issues about its functioning in the legal field have not been resolved yet, any proposal voiced on ways to regulate the market can cause no fewer fluctuations in the value of cryptocurrencies than purely economic factors.
The average annual profit from mining ranges from 120 to 200% per annum. Some coins during the “mining boom” from 2016 onwards showed the most profitable crypto mining results. However, this figure does not take into consideration these additional investments: rental of premises, management of mining farms, and electricity costs.
Fortunately, to calculate the profitability of GPU mining, you can avail of online aggregator calculators that can handle all the leading cryptocurrencies. Simply specify the model of your GPU video cards, and the service will calculate the potential mining income for all coins available in its database. After that, you can choose the most profitable cryptocurrency at the time.
Mining Crypto Coins on a Graphics card (GPU)
As technology advances faster than a speeding bullet, miners become more and more efficient. Initially, people used processors (CPUs) to solve computational tasks at their homes or offices. But the problem with processors is that they are much slower than graphics cards.
Graphics cards (GPUs) have replaced processors and improved mining efficiency. They are designed in such a way that large quantities of arithmetic logic units (ALUs) are connected to create an arithmetic network, the function of which is to solve mathematical problems quickly.
In fact, graphics cards were designed exclusively for visual graphics and to fuel the gaming industry. However, crypto experts have realised that they can be easily transformed into a mining tool and have been used to mine the most profitable cryptocurrency coins for a long while.
Bitcoin
When we talk about Bitcoin, it means that we are discussing the king of the non-fiat market — the most profitable crypto of all time. The dominance of BTC is undeniable, and its market capitalisation is exceptionally high. Thus, powerful devices are required to mine this coin. It is no longer possible to directly mine Bitcoin on a graphics card.
If you can use a computer with a good GPU, Bitcoin mining is available for you right now. However, to increase profits and do it professionally, a miner should purchase several video cards (optimally from 4 to 6) and build a farm for mining coins. By installing several video adapters, you can increase the level of computer performance, which will count faster. It is video cards that provide all the computing power for mining algorithms.
Ethereum
For many miners and crypto enthusiasts, taking Bitcoin out of the equation makes Ethereum the dominant cryptocurrency. It has been holding its position among the top 10 cryptocurrency titles for many years now. Besides, Ethereum is easier to mine than Bitcoin, which makes it highly desirable in this context.
It is an open-source, decentralised network that serves as the foundation for the DApps it supports. It is based on the Ethash algorithm, which means you can efficiently mine ETH tokens with multiple GPUs. Mining this cryptocurrency has many advantages because each block can earn you a reward of 3 ETH tokens, which is an impressive result of crypto mining profitability.
Litecoin
Litecoin is one of the oldest cryptocurrencies and was created by Charlie Lee as a fork of the Bitcoin protocol. However, LTC differs from Bitcoin, as it uses the Scrypt Proof of Work mining algorithm, which allows less powerful GPUs to mine it. Although it has not received the “most profitable cryptocurrency” title so far, it is worth taking a look at.
By 2011-2012, the complexity of the Bitcoin network required the use of more productive equipment, including the purchase of expensive video cards, and Litecoin was successfully mined on a processor. With the growing popularity of Litecoin, the requirements for its mining have increased. At first, the network participants switched to GPU farms and, over time, to ASICs working on the Scrypt algorithm.
Thus, the mining of Litecoins on video cards is gradually losing its relevance, but even nowadays, some people use GPU farms. For this endeavour to be successful, it is vital to consider the following:
- Litecoin mining requires graphics cards from AMD and Nvidia. GPUs from RX470 and GTX1060 are suitable, respectively, as well as cards of a higher class.
- Solo mining does not give expected results. It is better to work in a pool where you can expect higher profits.
The profitability of mining Litecoin on video cards depends on many factors, including the exchange rate of virtual coins, the performance of the video card, as well as the mining time (the longer, the better).
Tether
Tether is the digital equivalent of the US dollar. Mining USDT is impossible by any of the existing methods. You can only buy it:
- For fiat money on the official website, after passing the registration and verification.
- In exchange for its market pairs on trading platforms.
Only the company behind USDT can mine its coins. It is needed to maintain the 1:1 ratio to USD. Without centralised management, it would have been impossible to sustain such stability.
Dogecoin
Many crypto miners do not consider Dogecoin to be a valuable cryptocurrency, as it typically does not appear among the top 10 cryptocurrency names. Nevertheless, it is one of the most prospective virtual currencies on the market. Apart from the ease and efficiency of mining, DOGE is also a useful training tool.
If you want to use GPUs, DOGE is one of the most easily mined cryptocurrencies. While it may not make you rich, it still offers a valuable mining experience that you can apply in the future. As a beginner, you will need a more straightforward mining solution that will help you climb the ladder to the top of the coin industry to become a proficient crypto investor.
Of course, you will earn some money at the same time. With a block time of 1 minute, you can mine around 10,000 DOGE using the Scrypt algorithm. To mine Dogecoin, you first need to download the official wallet from the website. You can mine DOGE either by using your computer’s processor alone or by increasing the mining power with an AMD or NVIDIA graphics card.
What Are the Top-Rated Profitable Cryptocurrency Mining Choices?
There is no easy answer to the question “What is the most profitable currency to mine?” since the market is ever-evolving. As the number of miners increases, the income of each individual miner decreases due to the rising competition for a limited reward. For the global growth in the population of miners to invariably receive the same share of all mined Bitcoins each time, their capacities must increase.
Considering that, these days, more and more users begin to trust the crypto market, the total count of miners is expected to be increasing. Thus, the competition in the top 10 cryptocurrencies to invest in is only going to grow, resulting in lower mining profit.
Due to this fact, it is highly advisable to mine coins that are still establishing on the market. However, if you are planning to mine coins that are still in the process of development, you must understand the risks that come with it.
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