Cryptocurrency mining is an important tool to maintain the performance of payment systems, which allows the miner to earn a good income if the process is well organized. The profitability of mining a particular coin depends on many factors, including market value, equipment maintenance costs, and electricity. Today we will tell you which coins for mining in 2019 are still profitable to mine and by what criteria you need to choose a new cryptocurrency.
How to choose promising coins for mining?
When choosing a cryptocurrency for mining, the miner must take into account a number of indicators, including the technical and market characteristics of the coin. These include:
- Price It is a key indicator of the miner's cost return. You need to assess not only the price of the currency against the dollar, but also the general dynamics of its rate. Mining is a long process and it is simply not profitable to buy equipment to mine downtrend coins.
- Capitalization – displays how much money is invested in cryptocurrency and allows you to understand how reliable it is consolidated in the market. Small cap coins usually don't last long, so mining them is not justified.
- the infrastructure – shows where cryptocurrency is traded, what it is used for and which sites accept it. The more developed the infrastructure, the more promising and potentially profitable the currency.
- scale of use – the number of purses and active users on the network. The cost of a cryptocurrency is determined solely by the demand for it, hence more network users – a higher price and more profitable (but more difficult) mining.
- number of miners – the most profitable currency for mining is the one where there are no pools formed, as the more people process the transactions, the lower the reward for an individual participant (the reward for each block is divided among all). At the same time, independent mining of “complex” cryptocurrencies (Bitcoin, Ethereum) in the absence of large capacities will bring even less revenue than a mining pool.
- mining complexity – for each network, the system sets the time to mine a new block, if miners form a block ahead of time, the Cryptocurrency algorithm becomes more complicated and vice versa. Most modern coins have a tendency for the algorithm to become more complex, so over time, more and more resources have to be spent on collecting a block, i.e. the real profit decreases when the rate remains unchanged.
TOP 5 coin mining
Despite its high market cap, Bitcoin is not profitable for mining. The complexity of the system's Cryptocurrency algorithm has increased to the point that extracting a coin using a PC or even small farms costs more than what can be sold on the exchange.
Also read: 4 cryptocurrencies with practical application
Miners are advised to pay attention to the following altcoins:
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etherium
Coin for professional miners. In terms of the complexity of the algorithm and the volume of use, it is second only to Bitcoin, but it has every chance of taking the place of the central cryptocurrency of the market in the coming years. Ethereum mining is generating steady income, but after the recent launch of ASICs, the profitability of mining farms could drop significantly.
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BitcoinCash
Bitcoin hard fork, which came about as a result of a decrease in the speed of transactions on the Bitcoin network. The problem was solved by increasing the size of the block, but the market value of the new coin is several orders of magnitude lower than the original. Among other things, BitcoinCash mining complexity has decreased with cost, which allows us to call it one of the best coins for mining.
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Zcash
Recommended for novice miners due to the comparative simplicity of the algorithm (the network has been operating for a short time) and the impossibility of mining through ASIC (there are no “competitors” with more powerful equipment). The coin demonstrates good volatility and is traded on almost all exchanges, so there is every reason to expect higher Zcash growth in 2018.
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Litecoin
One of Bitcoin’s early competitors differs from its “big brother” by a simplified Cryptocurrency algorithm, a higher issuance limit and a high block formation rate, which makes it much more profitable to mine. Litecoin can be mined on specialized devices and using graphics cards.
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Coin
The CryptoNight algorithm used by the network allows you to mine currency using a graphics card or through a central processor, which significantly reduces the cost of mining and equipment maintenance. The reward for collecting blocks is paid taking into account 1% inflation, and the cryptocurrency itself is gradually increasing in price, which makes it one of the most promising for 2018.
conclusions
We consider the most profitable coins for mining, as well as the criteria by which to assess the profitability of mining new coins. In summary, it should be noted that the choice of currency should be based on available computing power and equipment. Miners with access to ASICs and large farms are recommended to work with large scale networks, beginners using PCs or multiple graphics cards for mining will get a big (according to cost) profit from mining coins with a low market value and a simple algorithm.
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