Contrary to what people thought back when Bitcoin was first released, owning crypto has proven to be a lucrative effort. Mining is a way to earn these digital assets. As such, new and experienced crypto users are constantly looking out for how to be a part of this investment opportunity.
KEY TAKEAWAYS:
- Beyond securing a blockchain, mining is done to earn rewards in the form of cryptocurrencies.
- Some factors to look out for before choosing a digital currency to mine include mining algorithms, block rewards, energy efficiency, and long-term potential.
- Types of mining include staking, CPU, GPU, ASIC, and cloud mining.
- The best cryptos to mine in 2024 include Bitcoin, BlockDAG, Dogecoin (DOGE), and Ethereum Classic (ETC).
Mining is primarily done to maintain the security of blockchain and cryptocurrencies. However, much more than that, miners can also earn digital assets and rewards from the process. Keep reading this content to discover the best crypto to mine in 2024. We’ll also discuss the latest trends and technological advancements in the mining world.
Let’s dive right in!
Factors to Consider When Choosing a Crypto to Mine
In deciding the most profitable cryptocurrency to mine, you need to consider the following factors:
- Mining algorithm: Cryptos like Bitcoin uses the SHA-256 algorithm, while Litecoin uses Scrypt. The type of algorithm a virtual asset uses determines the hardware required and eventual profitability.
- Difficulty: Higher difficulty due to increased hash rate implies lower chances of successfully mining a block.
- Block reward: When events such as halving take place, it reduces miners’ rewards by 50%.
- Energy efficiency: You need to evaluate how energy efficient a crypto’s mining hardware is before choosing.
- Long-term potential: You also need to look at the market demand, liquidity, and growth potential of a coin before mining it.
- Community activity: Digital currencies with a strong and active community have more potential for improvements and long-term value.
Brief Overview Of The Types Of Mining
Before listing out the top digital coins to invest in in 2024, let’s examine the different mining methods that currently exist:
- CPU mining: This uses a computer’s processing unit to mine currencies and is used by coins like Monero (XMR).
- GPU mining: Graphics processing units (GPUs) are used for coins like Ethereum Classic (ETC) and are more efficient than CPUs.
- ASIC mining: ASIC hardware is efficient but expensive and is designed for algorithms like SHA-256.
- Cloud mining: Here, miners can rent mining hardware from a data center. While it is a convenient approach, it is usually costly.
- Staking: This involves earning rewards from holding digital coins in a wallet.
Top Seven Cryptos to Mine in 2024
Here is our list of the best digital currencies to mine this year:
Bitcoin is called digital gold for good reason. Despite its mining difficulty and competitive ecosystem, it remains the primary choice for miners because of its stability and dominance. Obtaining this coin involves ASIC mining, which is tough and energy-intensive. As such, solo mining is unrealistic. The most practical way to earn Bitcoin is to join mining pools like Slush Pool or F2Pool to boost your chances of success.
BlockDAG uses GPU mining, which makes it more accessible to a wider audience. The parallel nature of the network allows for less energy consumption and more consistent mining rewards. BlockDAG’s scalability and support of fast transaction fees means it will be relevant for a long time.
Dogecoin uses the Scrypt algorithm, which makes ASIC mining possible. This coin can be mined alongside Litecoin to earn rewards in both DOGE and LTC. Dogecoin’s strong community support also makes it a relatively stable choice for the long term.
While Ethereum has transitioned to proof-of-stake (PoS), Ethereum Classic is the original Ethereum chain and still maintains the proof-of-work (PoW) consensus mechanism. Miners can access ETC using high-performance GPUs. In addition, the network’s active development and dedicated community ensures that the mining demands for ETC remain active.
Litecoin is often called “the silver to Bitcoin’s gold,” and it uses the Scrypt algorithm. Mining this crypto has become efficient because specialized ASIC hardware has been developed for its algorithm. Because of Litecoin’s halving, it is important to strategically time its mining before the event.
CPU mining is the best approach to Monero (XMR) due to its RandomX algorithm. In fact, it is one of the few currencies that can be mined using CPUs. The platform is not open to large mining farms, which makes it ideal for individual miners. Furthermore, Monero’s (XMR) focus on decentralization and privacy is proof that its strong market presence will be around for a long time.
Zcash functions using the Equihash algorithm and can be mined using both GPU and ASIC miners. The cryptocurrency’s privacy features and active development team mean it is a strong contender for future growth.
Conclusion
While the crypto mining world seems complex, you’ll do well by selecting the right hardware and a lucrative digital coin. It’s important to consider the potential risks and the resources you have to make the best decision. If you’re a newcomer, GPU-based cryptocurrencies might be a good starting point. On the other hand, experienced miners with access to the funds and cheap electricity can go for ASIC mining. As the industry keeps developing, make sure you stay informed of new developments to have long-term success.
