One of the ways to obtain cryptocurrencies is through mining. Mining is a process whereby all information entering the blockchain for that specific asset has been mathematically refined using highly complex digital code running on the network. This blockchain network confirms and verifies all new entries, as well as any changes that may occur in the ledger. Finding the best cryptocurrencies to mine can be a bit challenging as there is a wide variety of digital assets available in the market. This is why we have prepared a list of profitable cryptocurrencies for mining in 2021.
The way mining works is very simple. Cryptocurrency miners compete with each other to solve the challenging mathematical problems that come with cryptocurrency hash functions. They do this using various mining equipment including ASICs, GPUs and others. Miners who find the solution first receive a percentage of the cryptocurrency as a reward.
Choosing a new coin to mine
Many people say that cryptocurrency mining is slowly dying out, but no one can confirm this on a global scale. At the same time, choosing a new cryptocurrency to mine has its share of challenges.
The cryptocurrency space is highly volatile, which means things can change quickly. Choosing a new digital currency to mine requires an in-depth analysis regarding every aspect of the coin in question. All this means that you should check the technology used, the philosophy and the market value behind the coin. It is equally important to consider the team, script and other characteristics of the currency.
One of the most important features to take into account is the difficulty of mining the coin. Market capitalization, recent price swings, and the number of use cases it supports are equally important aspects to consider.
It is also crucial to use a good online mining calculator that will help you determine the profitability of the coin amid constantly fluctuating parameters. Sometimes the easiest cryptocurrency to mine may not be among the biggest by market size. However, it can be a promising long-term investment asset.
Best cryptocurrencies to mine
There is no single best cryptocurrency to mine. In some cases, this depends on how you want to use the cryptocurrency, which determines the currency you choose. If you want to own cryptocurrency for investment purposes, you have a wide range of priorities compared to someone who wants to use cryptocurrency for payments.
Also, some people are interested in cryptocurrency simply to take a small piece and see what it entails. Generally, choosing a cryptocurrency involves optimizing privacy, speed, and utility. With that in mind, here are the best cryptocurrencies to mine for.
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Bitcoin (BTC)
Bitcoin still stands as one of the best digital currencies to mine. At the time of this writing, the pioneering cryptocurrency was valued at over $ 50,000 per unit, after accelerating above $ 60,000 in mid-April. Even with the volatility of the cryptocurrency space, Bitcoin is still the forerunner of other altcoins.
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In addition to a block reward of 6.25 BTC, Bitcoin is a well-established, transparent and anonymous cryptocurrency. As the world's first cryptocurrency, it is also widely supported. Whether you are looking for a crypto investment portfolio or want to own cryptocurrency for payments, BTC is among the best cryptocurrencies to mine in 2021.
Litecoin (LTC)
Litecoin is definitely among the pioneering digital currencies. It is recommended for those looking for an already consolidated cryptocurrency with very fast transaction times. Block generation in Litecoin is limited to ten minutes and offers better storage capacity than most cryptocurrencies.
It is important to note that Litecoin can be mined through ASIC miners, which implies a large initial capital investment. To maintain a decent profit while mining Litecoin, you should join one of the mining pools such as Antpool, Litecoin Pool or LTC.top. Currently, the block reward for mining Litecoin is 12.50 LTC coins.
Dogecoin (DOGE)
Dogecoin may be one of the easiest cryptocurrencies to mine. In addition, it offers several other advantages. Firstly, DOGE is the altcoin with the most “philanthropic” community. Second, the DOGE can be mined using a simple PC. Users can earn a reward by opting for more mining power using AMD/NVIDIA graphics cards.
For CPU mining, users can utilize CPU miner, while GPU mining works fine with CGminer, CudaMiner or GUIminer. Dogecoin miners can also join some of the best mining pools such as CoinEx, 1Coinpool, Multipool and Prohashing. The block reward for mining Dogecoin is currently 10,000 coins.
DigiByte (DGB)
DigiByte is a decentralized blockchain system that supports multi-algorithm mining. A former public blockchain and cryptocurrency, DigiByte, works with five algorithms to improve security.
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Those who choose to mine DigiByte should first visit the official website and block explorer to familiarize themselves with the cryptocurrency. DigiByte can be mined using different algorithms, including Sha256d (available for Bitcoin miners). They can also use Skein, Odocrypt (FPGA), Qubit and Scrypt (available for LTC miners).
DigiByte has three layers: an “App Store” smart contract, a public ledger, and the core protocol that presents the nodes that communicate to dispatch transactions. Overall, the DigiByte network attracts developers who want to launch DApps and code the necessary corresponding smart contracts.
vertcoin (VTC)
Vertcoin is a decentralized currency specifically designed to be ASIC resistant. It is ideal for single CPU or GPU mining. Furthermore, Vertcoin can be mined through a wide range of AMD and NVIDIA graphics cards or through the official miner called One-Click Miner. While GPUs can yield greater rewards, this requires a larger upfront investment.
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Conclusion
Cryptocurrency mining can be a profitable venture, but you need to have powerful mining equipment. Also, you need to identify the easiest cryptocurrency to mine. It requires the right approach and proper research before committing to a specific type of coin to mine. This guide may not be exhaustive, but it does provide useful information to start your search for the best cryptocurrencies to mine this year.