Despite the fact that the golden era of mining has already passed, many still plan to mine cryptocurrency on their own. Someone says that you can earn money on mining. Others claim that it is too late to start. Most experts confirm that now is not the best time to enter the mining. However, if you choose the best cryptocurrency for mining and do not expect that the money will flow in tomorrow, it is quite possible to get a good profit in the long term!
However, the primary choice of cryptocurrency for mining takes into account exactly trading indicators. That is, those used by traders, choosing coins for investment
We already wrote about this characteristic earlier, therefore we will remember only the main thing. Each cryptocurrency has a specific time for disclosing a block. If miners open it faster, the system automatically reconfigures so that the next block is more difficult to open and vice versa.
Today, almost all top coins demonstrate the increasing complexity of mining. That is, in order to open the blocks and get the reward, miners have to constantly increase the computing power (hashrate).
Analysts attribute this trend to the fact that more and more users are connecting to the mining. The increase in the number of miners leads to an acceleration of the disclosure of blocks and an increase in the complexity of mining.
In addition, the more miners employed in the disclosure of the block, the smaller the reward of each individual miner. After all, the reward is divided into all participants. To increase profits, you need to increase power again.
This is the main reason why experts do not advise beginners to take on mining of top cryptocurrencies. Without high-performance equipment, it is impossible to compete with powerful mining pools and, moreover, mining-related companies on a production scale.
Many novice miners quickly go into minus just because they did not pay enough attention to market indicators of cryptocurrency. The most obvious mistake is to choose a coin that has both a low price and a market capitalization.
We must not forget that high volatility is evidence not only of opportunities for quick wages, but also of high risks. This is not so critical for a trader. If he has time to quickly sell the sharply risen asset, it will benefit.
However, a miner who has invested money in the equipment and is constantly paying electricity bills can go into the negative if the chosen cryptocurrency suddenly loses in value.
For example, cost-effective coins are needed for cost-effective coin mining with the SHA 256 algorithm. The Scrypt algorithm is suitable for mining on graphics cards and processors, but it places rather high demands on equipment power. However, X11 allows you to mine coins, even on a not very powerful processor.
That is, for the extraction of coins with different algorithms need different equipment. Moreover, many Asiki are sharpened only for the extraction of specific coins. If you buy an expensive asik, in order to mine the attractive coin with SHA 256 that you found, but you will burn, you will be left with expensive, but not suitable equipment for anything else.
Therefore, experts advise beginners to choose coins with the most “sparing” hashing algorithms (X11, Equihash, Cryptonight and others), for the extraction of which there will be a fairly good video card or even an average processor.
Of course, accurately predicting the future of most cryptocurrency is difficult. Therefore, experts advise to choose for mining only well-proven coins with obvious development prospects. Hurry first to mine the recently appeared and still little-known altcoin is definitely not worth it. It is better to wait and see if it can gain a foothold in the market.
These are free online calculators with which you can quickly calculate the yield from the extraction of a particular coin. They collect the most important information for the miner, cryptocurrency market indicators, mining complexity, mining costs (electricity, equipment maintenance, and so on).
They analyze the selected cryptocurrency according to the main criteria described in this article. Therefore, before purchasing equipment for the extraction of the coin, it is worth “driving it out” through an online calculator.
The complexity of their mining is either low or offset by the increase in market price. The hashing algorithm makes it possible to mine coins on simple equipment.
All of the above cryptocurrencies work on the PoW protocol. That is, the higher the computing power of the miner, the greater his reward for opening the unit.
However, as many experts say, because of the tendency to increase the complexity of mining PoW, cryptocurrency is becoming less and less relevant from the point of view of earnings from their mining.
They are already being replaced by cryptocurrencies with the PoS protocol, according to which the amount of remuneration is determined not by the hashrate, but by the number of coins held by the user.
At the moment, Cardano’s market price is only 17 cents, but experts predict that this year the cryptocurrency will rise sharply in price. In addition, its capitalization is already 4 billion dollars, which leaves no doubt about the viability of the project.
NEM is trading at 25 cents. However, the coin, which used to be called purely Japanese altcoin, is now actively entering the world market. Analysts expect that by the end of the year its value can be calculated in tens of dollars. Capitalization has already reached 2.3 billion dollars.
The developers of Dash also provided for the possibility of passive earnings of coins. The only catch is that the threshold for entry is 1000 coins (more than 300 thousand dollars). So this option is suitable only for large investors who are ready to invest such amounts in cryptocurrency.
Finally, the event that awaits the entire cryptocurrency community – Ethereum is also going to switch to the PoS protocol. If this happens, the usual mining of the ether, which now employs a lot of miners, will generally lose its relevance.
Many experts are confident that, in time, PoS mining will replace conventional coin mining and advise beginners to bet on it. After all, it greatly simplifies the process of mining, making it look like a regular investment at interest.