Crypto enthusiasts often search for the best Cryptocurrency to mine, to make their mining activity profitable. What exactly Cryptocurrency mining is, and why some Cryptocurrencies are better than others to mine.
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Introduction of Cryptocurrency Mining
Cryptocurrency mining is the process of checking whether transactions follow the network’s rules or not and is a vital feature of any Cryptocurrency.
Duties and rewards of Cryptocurrency Miners
Miners are responsible for verifying transactions in a block, and in return to the services provided by them, they charge a fee from the users. In addition to this fee, miners also receive block rewards of newly released currencies with the addition of every new block to the chain. Such a reward payment is termed as “block reward.”
Requirements for Mining Cryptocurrency
The criteria for mining a Cryptocurrency include hardware, usually ASIC or GPU, an internet connection, and software that performs the mining task.
Difficulty in Mining Cryptocurrency
To ensure a steady rate of release of coins, the Cryptocurrency network automatically changes the mining difficult. The difficulty level sees an upward trend in the case of miner’s influx and vice versa.
Factors to be Considered While Choosing the Coin
You need to take multiple factors into consideration while choosing the most profitable Cryptocurrency to mine. Some people mine Cryptocurrency to explore the concept and technology, whereas for some individuals generating profits is the sole reason.
The Best Cryptocurrency to Mine
In terms of market capitalization, Bitcoin is at the top of the rankings. But, due to a lot of mining activity present on its network, it will be difficult for many individuals to make a profit out of Bitcoin mining.
However, if you have sufficient power and capital to invest in the activity, it will offer lucrative returns. Some experts endorse Bitcoin mining as a good option due to the standing it holds in the Cryptocurrency market.
Algorithm Used by Bitcoin: Proof of Work
Hashing Function Used by Bitcoin: SHA-256
Block Mining Reward is 12.5 BTC
According to Alexis Ohanian, who is the co-founder of Reddit, Ethereum has the potential of reaching the $15,000 and even surpassing Bitcoin in the future to gain the status of the most valuable Cryptocurrency. Thus, Ether offers excellent potential for interested long-term investors and an incentive mining opportunity.
Experts are placing their bets on Ethereum’s success due to constant development and its ability to power Dapps. There are also rumor that various smart applications are testing the Ethereum network, and if such technology becomes public, it will likely have positive consequences on the prices.
Algorithm Used by Ethereum: Proof-of-Work
Hashing Function Used: Ethash
Block Reward is 2 ETH
Monero is already being used globally and is famous for its privacy. A few characteristics that make this Cryptocurrency profitable to mine include the following:
- Monero is already being used for purchases on the internet and the dark web.
- It has been reported that the state of North Korea uses Monero to evade economic sanctions imposed on them.
- The hashing algorithm known as CryptoNote used to mine Monero differs from that of Bitcoin or any other Cryptocurrency making it ASIC resistance.
- Monero is the Best Cryptocurrency to mine for beginners due to its easy setup. You can start mining Monero using its GUI version web wallet.
The Algorithm Used by Monero: Proof of Work
The Hashing Function Used is CryptoNightR
The Block Mining Reward is 2.47 XMR
Electroneum resembles Monero and has an easy mining process that can be started with the push of a button. The Electroneum team intentionally made the process easy to bring Cryptocurrency mining to masses. It aims at making Electroneum the preferred Cryptocurrency for the people who want to avoid the banking sector.
Electroneum differs from other Cryptocurrency platforms in the way that it enables mobile phone users to mine the currency by using the inbuilt mining software connected with the Electroneum wallet. Such an easy mining process allows mobile phone users to be a part of the digital economy without the need for banks. Also, the functionality assists Electroneum in becoming the most decentralized Cryptocurrency.
The Algorithm Used by Electroneum: Proof-of-Work
The Hashing Function used is CryptoNight
Block Mining Reward: 7,000 ETN
Zcash is one of the best Cryptocurrencies to mine with GPU. It is unique since it is ASIC resistant, making it a profitable option for miners using GPU.
Edward Snowden, who is a former NSA agent and an expert when it comes to online data protection, supports ZCash and has reportedly stated that ZCash’s privacy properties are truly unique.
The Algorithm Used by ZCash: Proof of Work
The Hashing Function Used is Equihash
The block mining reward is 10 ZEC
Keeping all the above data in mind, it is clear that the best Cryptocurrency to mine in 2020 varies from an individual to another. For investors having the ability to afford costly hardware, Bitcoin is still the most profitable Cryptocurrency to mine due to its high profitability. However, for individuals looking to mine with relatively lesser investments, options like Zcash and Electroneum are the way to go.
Furthermore, all individuals new to the Cryptocurrency mining field should perform a thorough research about the topic and start with relatively cheaper options before buying expensive high tech hardware. Doing so allows them to gain detailed insight into the world of Cryptocurrency mining and to earn profits in the years to come.
Disclaimer: This article by no means offers any trading recommendations. Therefore, all investors are suggested to be advised of the frequent and drastic price fluctuations in the cryptocurrency market and invest only after research from multiple sources while acting under their local regulations.