You may already have wondered if it is still worth mining cryptocurrencies in the middle of the year 2020, so we decided to create this post talking a little about the 10 most profitable cryptocurrencies to mine in 2020.
What defines the profitability of cryptocurrency mining?
- Cryptocurrency price. The law is simple: the more expensive a currency, the more profitable mining should be. This is only true for short-term investments. If you are patient enough, you can mine a promising coin and wait until the price grows.
- Reduction of the reward in half. What makes cryptocurrency mining 2020 less profitable than before is the reduction of the reward in half. The reduction of Bitcoin (BTC) that occurred in 2020, made the mining of this cryptocurrency even less attractive. Do your own research to calculate whether your investment in mining equipment will be offset by the amount of coins mined.
- Block generation time. The more blocks generated by the network, the greater the chance of being rewarded for a found block.
- Mining difficulty and hash rate. GPU and CPU 2020 mining is quite challenging due to the large number of miners involved. However, it is still possible to find a niche currency where you can make a decent profit without suffering from the competition. Do research and discover the most profitable algorithms and cryptocurrencies to mine. This analysis is fundamental to avoid wasting time and money.
- Equipment efficiency. It depends on your budget and the current difficulty of a cryptocurrency, so choose accordingly. Theoretically, the power of mining equipment should be increased continuously, but in reality, it is very expensive to invest in GPUs all the time.
- The cost of electricity. This is the most important when calculating the profitability of cryptocurrency mining. You can search and find a list of countries with the cheapest electricity bills.
How to choose the best currency to mine in 2021?
Even if you use the best GPU to mine in 2021 and plan to extract thousands of cryptocurrencies, think about how and where you will use them. There are a few important aspects:
- The possibility of rescinding by decree . Find trading platforms that allow you to convert newly extracted coins or buy some popular tokens like ETH or BTC. Don't forget the exchange rates.
- Which cryptocurrency exchanges support the currency ? When it comes to unpopular or low-quality currencies, some of them can only be withdrawn into the cryptocurrency's internal wallet. Low-popularity exchanges are forced to work with shitcoins (even if mining seems profitable) and rely on large commissions as the only way to survive. In that case, the miner will be required to give away a serious portion of the gain just for outing.
- Make sure it's cool. Some countries have very strict regulations regarding cryptocurrency mining. If it is completely banned in your country, it is best to avoid the risk. In some countries, authorities pay special attention to cryptocurrencies with a high level of anonymity because they serve as a perfect tool for money laundering and allow illegal trading. Make sure that you will not have legal problems after mining a new cryptocurrency. If it does not seem realistic to mine the currency in your residence, you can always buy and exchange the cryptocurrency.
- Avalie long-term use of the purchased equipment. The problem is that the complexity of mining is growing very rapidly and mining equipment is always hard to lose its value.
The 10 best Altcoins to mine in 2021
In this list, we gather cryptocurrencies widely available for mining: you don't need to build the entire mining farm to start winning. Each currency has a lot of potential, so the profitability of the cryptocurrency should not be a major concern.
1. Grin (GRIN) - Best for GPU mining
Grin is a relatively new cryptocurrency based on the MimbleWimble protocol, which ensures the privacy of transactions within the network.
Grin has unlimited coins, which is certainly attractive to miners. The complexity of mining changes dynamically according to the hash of the network. The coin uses the so-called Cuckoo Cycle concept. On January 16, 2020, Grin introduced a new Cuckaroom-29 algorithm.
GRIN can be extracted through three algorithms: CuckARood-29, CuckAToo-31 and Cuckaroom-29. Miners who want to continue mining Grin via CuckARood-29 need to update their software.
The currency is traded on several cryptocurrency exchanges, including the famous Poloniex, HitBTC, Bittrex, OKEx and KUCoin.
Algorithm:
Proof of work hash function : CuckARood-29, CuckAToo-31,
Cuckaroom-29ROI since launch: -95.43%
Curr. Price: $0.3715
USDMining reward: 60 GRIN per block
2. ZCash (ZEC)
ZCash (ZeroCash) was released in October 2016. Its algorithm allows the use of mining graphics cards. ZCash is completely anonymous in transactions. It's impossible to track them. A lot of people really like this feature.
The commission for ZCash transactions is negligible, so it is absolutely convenient for trading and selling.
In 2017, ZCash was widely introduced to popular trading platforms. However, the currency is greatly underestimated and will most likely reveal its potential only in 2021.
Algorithm:
Proof-of-work hash function :
EquihashROI since launch: -99.29%
Curr. Price:$114.62
USD Block mining reward: 10 ZEC
3. RavenCoin (RVN)
This hardfork Bitcoin appeared in 2018 and already has high liquidity. Today, it is the 55th cryptocurrency in the world, with market value exceeding $78 million. In 2019, developers added a set of great new features (messaging, voting with RVN, better compatibility, mobile wallet with seed phrase).
RavenCoin can be easily exchanged on many different platforms. At its core, it is a P2P blockchain that serves for the rapid and efficient transfer of assets from one person to another. It focuses on transferring assets based on Ethereum and Bitcoin. Why is RavenCoin recommended for miners? It uses the X16R algorithm and the KawPoW protocol.
Algorithm: KawPoW
Hash function:
X16RROI since release: 398%
Curr. Price:$0.1079
USD Mining block reward: 5,000 RVN
4. Monero (XMR)
Existing in the market since 2014, Monero has proven to be reliable and viable. Monero offers an exceptional level of anonymity. In 2019, Monero changed the CryptoNote algorithm to a more complex RandomX. Today, it is one of the best coins for CPU mining.
Monero continues to change its algorithm to avoid the possibility of ASIC mining.
Monero (XMR) is firmly among the most profitable cryptocurrencies to mine in 2021.
Algorithm:
Proof-of-work hash function : RandomX
ROI since launch: 5887%
Curr. Price: $255.09
USD Block mining reward: 1.73 XMR
5. Ethereum Classic (ETC)
Technically, Ethereum Classic is considered an authentic Ethereum blockchain that retains the original history of the entire Ethereum network. Due to the notorious DAO event in 2016, Ethereum saw two ways to further develop the network. Those developers who followed the 'Code is Law' rule remained to keep the network functioning smoothly unchanged (Ethereum Classic). Others preferred to develop Ethereum without dark DAO memories.
According to the Ethereum Classic monetary policy, the ETC network reduces the block's reward per 5,000,000 blocks. The last reduction occurred in March 2020 and the block premium was cut from 4 ETH to 3.2 ETH. However, ETC mining is still profitable.
Algorithm:
Proof of work hash function
: EthashROI since launch: 890.52%
Curr. Price: $53.75
USDMining Block Reward: 3.2 ETC
6. Litecoin (LTC)
If you can allow the purchase of GPU more or less expensive, try mining Litecoin – in short, this is one of the most successful Bitcoin hard forks. Why Litecoin?
- It can be easily exchanged on a variety of platforms.
- It is less volatile than many other altcoins.
- It's one of the best GPU mining currencies – you don't need to buy ASIC because you use the SCRYPT protocol.
- Moderate and high-speed transaction fees.
The world's top 10 cryptocurrency with a market value of $2.3 billion, Litecoin will never be a wrong decision.
Algoritmo:
Função de hash de prova de trabalho : Scrypt
ROI desde o lançamento: 3772%
Curr. Preço: $ 166.32 USD
Recompensa de mineração em bloco: 12,5 LTC
7. Bitcoin Gold (BTG)
Another big cryptocurrency to mine in 2021, Bitcoin Gold was created specifically for GPU mining. It is ranked the 39th cryptocurrency in the world, with its market value of $125 million.
One of the main reasons to try Bitcoin Gold is stability. Although it did not grow in 2019, it seems to be less volatile than other altcoins. The currency has avoided being affected by the downtrend this year – it's a good sign.
Algorithm:
Proof of work hash function : Zhash
ROI since launch: -49.52%
Curr. Price: $57.32
USDReward in Mining Block: 12.5 BTG
8. DASH
Dash describes himself as digital money in the world of cryptocurrencies. It enables fast and secure transactions around the world via InstanSend and PrivateSend.
The best DASH ASIC miner is considered the Antminer D3 produced by Bitmain. Is it profitable to extract DASH in 2021? That's a lot. However, don't forget that mining profitability depends on the hashrate of your mining device, network difficulty, and your region's electricity costs.
Algorithm:
Proof of work hash function :
ROI X11 since launch: 14333%
Curr. Price: $172.35
USDReward in Mining Block: 3.11 DASH
9. Dogecoin (DOGE)
The creation of Billy Markus, the Dogecoin cryptocurrency, was made just for fun, but suddenly became popular and is now the number 33 cryptocurrency worldwide with a market value of $219 million! Just like Litecoin, it uses the Scrypt protocol, so you don't need to use very expensive machines to add DOGE to your portfolio.
However, this does not mean that you should use your laptop for mining. Dogecoin is very popular, as is its mining difficulty. Use a CPU/GPU to enjoy stable performance and revenue.
Algorithm:
Proof of work hash function : Scrypt
ROI since launch: >10000%
Curr. Price: $0.2155
USD Reward in mining blocks: 10,000 DOGE
10. Ethereum (ETH)
In 2019, Ethereum managed to regain its second place and the price of the coin is expected to grow after the reward reduction from 3 to 2 ETH. As a result, a decrease in supply, if there is demand, usually results in an increase in value.
JoeTechnologist creator Joe Rachinski said the ETH would cost $1,200 by the end of 2019. As we can see in 2020, this prediction did not work. Even so, Nigel Green believes that ETH will someday cost $2,500. This will be facilitated by increased demand for digital currencies, the popularity of smart contracts, and the decentralization of cloud computing.
Algorithm:
Proof of work hash function
: EthashROI since launch: >10000%
Curr. Price: $3338.92
USD Mining Block Reward: 2 ETH
Bitcoin (BTC) - The King
Bitcoin remains the king of cryptocurrencies with a current dominance index of 64.5% according to CoinMarketCap. A recent survey of a well-known influencer of the @hodlonaut encryption community, more than 60% of cryptocurrency holders attribute more than 75% of their portfolio to Bitcoin (BTC). It is a brand and has its own unique monetary symbol.
In addition, the "reduction of the 2020 BTC block reward in half" is coming and will reduce the reward for the mined block from 12.5 to 6.25 bitcoins. A fall in production, as a rule, means an increase in the value of good, especially with that constantly growing demand. There's still enough time to start mining some bitcoins.
It is important to understand that despite all the positiveaspects, Bitcoin mining remains an extremely competitive market and the situation will only get worse in this sense. Be prepared to invest enough in mining equipment, technical support and to pay some huge light bills.
In addition, Bitcoin mining has been dominated by ASIC mining machines for several years. Don't even try to get involved in mining on a CPU or GPU.
Algorithm:
Proof of work hash function :
SHA-256ROI since launch: >40000%
Curr. Price: $47,667
USDBlock mining reward: 12.5 BTC
Conclusion:
Is crypto mining worth it? For sure, if you calculate all investments and earnings in advance and make a complete plan. Your budget should match what you will mine. The more popular and expensive a cryptocurrency is, the more powerful the equipment will be.
