Are you wondering what the best cryptocurrency to mine is? Well, this guide will go through the ins and outs of mining software, hardware, and currency selection to help you realize the maximum profits in 2024. Whether you are a beginner or an experienced miner, this article will provide you with the best information and tips on how to pick the most profitable crypto to mine.
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By narrowing down your selection, you can increase your chances of earning more in the long run. To begin with, you need to decide which type of cryptocurrency mining you would like to do. The two main categories are CPU mining and GPU mining. Each is suited to different kinds of hardware and software, so make sure to research which one is best suited for you. We'll also discuss crypto mining methods later on in this article, but for now, let's move on to the currencies themselves.
Disclamer. This is not an investment recommendation. Be sure to research the laws in your country before you start mining, as it is illegal in some countries. Do your own research and don't risk finances you are not prepared to lose.
Most Profitable Coins to Mine
#1 Kaspa (KAS)
Kaspa is a decentralized cryptocurrency platform with its own native token (KAS). It is known as the fastest proof of work (POW) blockchain, offering users faster confirmations and significantly reducing development time. It is also one of the most profitable coins to mine in 2023 because it requires minimal energy consumption for mining operations.
At the time of writing, Kaspa (KAS) has a market cap of $283.4M. The use of blockDAG architecture and rapid block rates facilitates greater mining decentralization and makes solo mining possible even with lower hash rates. There are various Kaspa mining software available including:
- LOLMINER
- BZMINER
- SRBMINER
- TEAM RED MINER
- KASPAMINER
- GMINER
Kaspa (KAS) has the potential to become the most profitable coin to mine in 2023 because it solves the blockchain Trilemma. It promises to be an energy-efficient blockchain with low transaction costs and faster confirmation times while still maintaining decentralization. With the prospects of mining rewards included to further motivate miners, it is expected to be among the most profitable coins to mine in 2023.
#2 Monero (XMR)
Monero (XMR) is one of the leading privacy coins in the cryptocurrency market. It is an open-source project with a strong emphasis on decentralization and privacy. Monero's RingCT technology ensures that transactions remain secure and untraceable. Monero (XMR) also utilizes an adaptive block size allowing for faster transaction times.
Monero's philosophy is to keep mining egalitarian so that everyone has equal opportunities to mine. Rather than restricting profitability to only specialized hardware such as ASICs, Monero is built to reject specially purposed hardware. This allows for more efficient and distributed mining, making it one of the most profitable coins to mine in 2023. To compete fairly, miners are required to use standard hardware used by consumers. Monero can be mined by two main methods:
- CPU
- GPUs
When it comes to the efficiency of mining Monero, the CPU is the better option. Similar to many other mineable cryptos, Monero can be solo mined or pooled to form a collective approach. However, Monero differs innovatively as it also offers P2Pool. P2Pool is a new way of mining Monero that offers miners frequent payouts without having to rely on a centralized pool, making it a more trustworthy option. P2Pool is a mining pool that operates on a peer-to-peer network. It allows miners to have complete control over their Monero node and the mining process.
#3 RavenCoin (RVN)
Ravencoin (RVN) is a project built on the Bitcoin codebase that focuses on asset transfers. It is an open-source and decentralized blockchain platform developed to facilitate the transfer of assets, such as real estate or cars, securely. By tokenizing various assets, the Ravencoin blockchain serves a unique use case in the market.
If you are keen on using a GPU for mining, RavenCoin (RVN) is an excellent option. GPUs are also an exciting selection for beginners to get into mining as they are more affordable than ASICs. RavenCoins (RVN) has a block time of 1 minute. This results in more frequent rewards for miners, which makes it very attractive for consistent profits. Mining this coin with a GPU can be profitable since it holds a position among the top 100 cryptocurrencies based on market capitalization.
#4 DigiByte (DGB)
DigiByte (DGB) is a digital currency that is designed to be highly scalable and operates through a peer-to-peer network. It offers fast transaction speeds and charges very low fees. Although DigiByte (DGB) may not be as popular as other cryptocurrencies, it still offers attractive mining prospects.
DigiByte uses five separate algorithms and is based on UTXO technology to handle network transactions. This results in diverse options when it comes to mining hardware selections. ASICs, GPUs, and CPUs are all excellent options to mine DigiByte (DGB). Since it is a less popular currency, the competition is relatively low. This makes it easier to earn a higher reward with less difficulty.
#5 Aeternity (AE)
Launched in 2017, Aeternity (AE) is a blockchain platform that focuses on smart contracts and decentralized applications. Aeternity (AE) is designed for scalability and has been built to facilitate a wide range of use cases, from gaming applications to decentralized finance.
The AE network uses a combination of proof-of-work (PoW) and proof-of-stake (PoS) algorithms, along with CuccooCycle hashing. This allows miners to both create blocks and verify transactions at the same time. Consequently, Aeternity is often regarded as the most profitable crypto mine due to the strength of the network and the speed of operation. Both ASICs and GPUs are suitable for mining on the Aeternity network.
#6 Litecoin (LTC)
Litecoin (LTC) has been around for quite a while. It is one of the oldest cryptocurrencies, falling behind only Bitcoin in terms of age. Despite its age, it is still considered to be one of the most profitable cryptos to mine in 2023. It is based on a blockchain platform that enables seamless payments for goods and services, thanks to its low transaction fees.
In addition, Litecoin uses a proof-of-work hashing algorithm called Scrypt instead of Bitcoin's algorithm. This allows you to mine Litecoin using a GPU rather than purchasing costly ASIC chips. Note that while the mining reward for LTC can be high, it requires a powerful hardware setup that consumes a significant amount of energy. If you don't have access to low-cost energy, mining Litecoin may not be the best option for you.
Due to its long history, Litecoin has the most active mining community and competitive difficulty levels. However, with a lack of innovation and new features, Litecoin's long-term future is uncertain. This must be taken into consideration when mining this coin because its success is not as certain as coins with newer technology.
#7 Ethereum Classic (ETC)
Ethereum (ETH) may have moved away from its Proof-of-Work (POW) consensus algorithm, but Ethereum Classic (ETC) still utilizes it. ETC is a blockchain-based platform that has been running since 2015. Much like Ethereum, it also executes smart contracts and decentralized applications.
Ethereum Classic (ETC) is becoming an increasingly popular coin to mine as using CPUs is all that's needed to start mining. GPUs are the most efficient way of mining ETC, but it can still be done with consumer-level CPUs. Mining Ethereum Classic (ETC) can be quite profitable, as the coin is currently ranked in the top 30 cryptocurrencies by market capitalization at the time of writing.
Another reason why Ethereum Classic (ETC) is an attractive option for miners is that it has a relatively low difficulty level. This means that you can earn rewards more quickly when compared to other coins. Furthermore, pools and cloud mining are also available for those who wish to mine ETC.
#8 ZCash (ZEC)
As another privacy-focused coin on our list, ZCash (ZEC) offers a unique opportunity for miners. Despite its difficulty to mine with ASICs, this coin's stability and reliability in price, which is relatively high, make it a valuable long-term investment. This is because it is ASIC-resistant and cannot be mined easily, resulting in a more stable price value.
If you can set up a mining rig that is optimal for mining ZCash (ZEC), you may be able to enjoy a healthy return on your investment. This coin can also be mined using:
- GPUs
- CPUs
With a block time of 1.15 minutes, ZCash (ZEC) is one of the fastest coins to mine. As such, it can be a profitable choice for miners looking for quick rewards. Privacy coins may continue to face scrutiny from regulators, but there's no denying their potential for profitability.
#9 Metaverse (ETP)
The concept of the metaverse exploded in the past few months as Ethereum developers and other tech giants sought to create a shared virtual world. The Metaverse project is a public and open-source blockchain platform that aims to create a basic infrastructure for both social and business purposes.
The purpose of this project is to create a universe that uses digital assets (Metaverse Smart Token and Metaverse Identifiable Token) and digital identities (Avatar) as the foundation of asset transactions, with the assistance of a valued intermediary known as an Oracle. The coin operates on the Ethash Proof-of-Work algorithm. Currently, the best way to make a profit from mining ETP is to join a trustworthy and sizable mining pool. This allows for all members' hashing power to be combined.
With a block time of 21 sec and being both ASIC and GPU compatible, Metaverse (ETP) is a good option for miners looking to maximize their returns with the least possible expenditure. If the trend moves back toward the metaverse and associated technologies, ETP is likely to be one of the most profitable cryptos to mine in 2023.
#10 Grin (GRIN)
Grin (GRIN) is a community-centered cryptocurrency project that is focused on privacy and scalability. This coin implements a variation of the Mimblewimble protocol, which focuses on keeping transactions private and secure. Grin (GRIN) is based on an algorithm called Cuckoo Cycle. The algorithm's performance is mostly limited by memory bandwidth instead of computational speed, meaning that memory is the main factor affecting its solving speed.
Every minute, a block of 60 grins is mined, resulting in the creation of one coin every second. This linear emission system has a fixed block mining reward and the supply increases constantly, while the inflation rate decreases. The design not only guarantees the long-term security of the blockchain but also sets the tone for a more decentralized future.
It's important to note that volatile cryptos such as Grin (GRIN) may be risky and not suitable for all investors. You should never invest more than you can afford to lose, so make sure you do your research before getting involved. With less liquidity, holders of GRIN may find it difficult to enter or exit the market. Despite its profitability currently, the price of Grin (GRIN) could drop significantly in the future.
Comparison of the Most Profitable Coins to Mine
| Coin | Hash Rate | Block Time | Difficulty | Price of Coin | Cost of Equipment |
|---|---|---|---|---|---|
| Kaspa (KAS) | 1.09 PH/s | 1 block per second | 252.4577K | $0.01484 | GPU market price |
| Monero (XMR) | 2.11 GH/s | 2 minutes | 301.24 G | $143.06 | CPU market price + upgrades |
- Hash Rate: The first factor to consider is the hash rate of each currency. This is the number of calculations performed per second, and it determines how much power is needed to mine a certain coin.
- Block Time: Another thing to look at is how long it takes for blocks to be mined. In general, faster block times equate to more transactions being confirmed in a shorter amount of time, and thus more rewards for miners.
- Difficulty: Mining difficulty also plays a significant role in how profitable mining is. Coins with higher difficulty levels will require more computational power to mine and are therefore generally less profitable to mine than those with lower difficulty levels.
- Price of Coin: The price of a cryptocurrency is also very important to consider when deciding which coin to mine. The higher the value of a coin, the more potential profits you can make.
- Cost of Equipment: Finally, we must also consider the cost of the mining equipment. If you are using a GPU or ASIC miner, then you will need to purchase the hardware upfront, and this can be a significant expense.
How Can You Mine Crypto?
As mentioned in the introduction, there are two main methods of mining cryptocurrencies: GPU and ASIC. Each has its own unique set of advantages and disadvantages and, depending on the type of crypto being mined, different software and hardware may be necessary.
It's essential to understand which cryptos can be mined with GPUs or ASICs, and which ones are limited to one or the other. The last thing you want to do is invest in a piece of equipment that won't be able to mine the coin of your choice. The energy consumption per hour of any miner should also be taken into consideration.
ASIC Mining
ASIC mining is recommended for serious miners looking to maximize their profits. ASICs (Application Specific Integrated Circuits) are special computers that are designed for the sole purpose of crypto mining, and they are much faster and more efficient than regular PCs. However, they can be expensive to purchase. For some cryptocurrencies such as Bitcoin, ASICs are the only way to effectively mine.
ASICs range from $2000 to upwards of just over $10,000 depending on the model. ASICs are highly efficient, as they are specifically designed to be used for mining, however, they can be loud and overheat easily. Specialized maintenance may also be needed. Unless you are committed to the long-term, ASIC mining may not be for you.
GPU Mining
GPU mining is a popular choice among beginners due to the relative affordability of GPUs. GPUs (Graphics Processing Units) are specialized computers that can be used to mine some cryptocurrencies, such as Monero. They are much cheaper than ASICs but they will not get the same results – especially for more advanced coins that require high hash rates.
Although GPUs are not as efficient as ASICs, they can be used to mine a wide variety of coins and may be a better option for those looking to get started with mining without investing in expensive hardware. If the difficulty were to increase too much, then GPUs may not be able to keep up and would need to be replaced with more advanced hardware. This factor should be taken into consideration when deciding whether or not to purchase GPUs for mining.
Crypto Mining Methods
When it comes to strategy, there are generally 3 main ways to mine cryptocurrencies: solo mining, pooled mining, and cloud mining. The most efficient selection will depend on the type of hardware and software you are using, your level of expertise, and the amount of hash power you have available.
If you have overhead and cannot risk losing money for subsequent periods, it is best to go with a pooled mining approach. A pooled mining setup allows for the pooling of resources, which can be more efficient than solo mining and offers a greater reward. However, if losing money on energy costs is not a major issue, solo mining can be a lottery-like approach to securing a larger reward.
Solo Mining
Solo mining is the process of using your own equipment to mine cryptocurrencies and keeping all the rewards for yourself. This is a great option if you have very powerful hardware and adequate cooling, but it can be quite risky due to the volatile nature of crypto prices. If your mining machines fail to keep up with the difficulty, you may end up losing money.
Solo mining with high-difficulty coins and a low overall hash rate may not be the best choice for miners who want to maximize their profits. For coins that reward higher computational power, winning the block reward can be a long-term endeavor. Without adequate hardware and resources, it is recommended to join a mining pool.
Pool Mining
Pooled mining is a more efficient way to mine cryptocurrency as it allows miners to join forces and split the reward among themselves. This reduces risk as rewards are consistent even if individual miners’ machines fail to solve blocks. However, there is usually a fee associated with pool mining, so it’s important to research which pools offer the best rates.
An analogy of what a mining pool would be like is buying a group lottery ticket. You’re still competing with everyone else to win the large reward, but your chances of winning increase exponentially because there are more tickets in the pool.
Cloud Mining
Cloud mining is a great option for those who want to mine without having to purchase and maintain their own equipment. You can rent hardware from specialized companies that will provide you with all the necessary software and support. Some critics of cloud mining argue that it is too expensive and risky, but with the right provider, you can still earn a decent profit. If you are not prepared for ownership and maintenance of your own mining hardware, cloud mining is an attractive option.
Ideally, cloud mining should be a short-term option until you can build your own hardware. Most cloud mining services will provide you with a limited time period for free and then charge a fee for their services. This fee may not be worth the endeavor if the price of the crypto is not sustainable.
Conclusion
When it comes to the most profitable crypto to mine, various factors should be taken into consideration. Selecting the right type of hardware, software, and cryptocurrency is essential for maximizing your profits in 2023. Solo mining can be risky but rewarding if done correctly; pooled mining is a more efficient option; and cloud mining can offer a convenient way to mine without owning and maintaining equipment.
Shopping around for the best deals on hardware and software is also a must. With difficulties increasing, make sure you invest in the most powerful and efficient mining hardware available and upgrade when necessary. From simple GPUs to advanced water-cooling ASICs, there is something for every budget and level of expertise.
With the right strategy, you can maximize your profits and stay ahead of the competition. When you've found the best cryptocurrency to mine based on your personal preferences, the profits can be substantial. Remember, you can always start small and scale up as your mining operations become more profitable. Good luck!
Frequently Asked Questions
Is crypto mining still profitable?
Yes, crypto mining can be a very profitable venture if done correctly. Researching the most popular and profitable currencies to mine, selecting the right type of hardware and software, and understanding how each type of mining works will all help you maximize your profits in the year 2023 and beyond.
Why isn't it a good idea to mine Bitcoin?
Mining Bitcoin is not a good idea due to its current difficulty. It requires expensive and powerful hardware, as well as large amounts of electricity to be profitable. The rewards for mining Bitcoin are much lower compared to other cryptocurrencies. What's more, the price of Bitcoin can fluctuate significantly, which could lead to financial losses.
What is the easiest and most profitable crypto to mine?
The easiest and most profitable crypto to mine differs depending on the type of hardware and software you have available. The amount of hash power you can access, as well as your level of expertise, is also important. Researching the various coins and their individual trends is essential to make an informed decision.
Can you get rich with crypto mining?
Crypto mining can be a lucrative venture if done correctly. Researching the right cryptocurrencies to mine and understanding market trends is essential for success as adjusting your strategy may be necessary. With hard work, knowledge, and dedication you could potentially get rich with crypto mining.
How do miners calculate their earnings?
Miner earnings are calculated based on a variety of factors, such as the amount of hash power they have available, the types of hardware and software they use, and the difficulty of a particular coin. Miners must also consider mining fees, block rewards, and exchange rates to determine their profits.
What are the risks involved in cryptocurrency mining?
The most common risks include the price of the cryptocurrency fluctuating significantly, hardware malfunctions, software errors, and electricity costs. Cyber-attacks could also result in financial losses. Physical risks such as accidents and fires are also a possibility. All miners should take the necessary precautions to protect themselves and their investments.
