Cryptocurrency mining has been quite a thing lately. The idea of acquiring crypto by mining instead of buying appeals to many. And if it appeals to you too, you need to know what’s the best cryptocurrency to mine. Moreover, acquiring, owning, and trading crypto has many risks, so it’s important to fully understand those processes before getting started. That’s why we have gathered the most important information about crypto mining that will help you make the right decisions.
Mining in 2022 is very different from how it was even a few years ago. For example, Bitcoin has become more difficult to mine. Ethereum is preparing to switch to a different kind of mining. Also, the process of acquiring crypto is being changed by some smaller but popular coins to ensure a more level playing field.
Here at TRASTRA, we know everything about the crypto world. In this article, we will look into the mining process, list the best and the easiest cryptocurrencies to mine and answer some commonly asked questions about mining.
What is cryptocurrency mining?
Crypto mining is a process of solving mathematical equations on specific hardware. That’s how miners validate cryptocurrency transactions and ‘release’ them rather than creating new coins. Each released coin (also known as a token) is part of the total supply, which is often limited. Those supply limitations are a key factor in the coin’s value.
Miners ensure that the blockchain transactions are working and, in return, reap some rewards for this operation. Everyone who has completed the mining task gets a coin or a small chunk of a coin, depending on which cryptocurrency we are talking about. Therefore mining could be quite a rewarding process, especially when a miner knows the theory behind it.
The algorithm of a certain blockchain determines different forms of mining. Those with a proof-of-work (PoW) hashing algorithm require powerful hardware and a lot of electricity. The one who gets the right answer to the equation first receives the reward.
In other blockchains, you mine coins with Proof-of-stake (PoS) algorithms. In this case, you stake your own coins to be chosen as a block validator. The more you stake, the higher your chances of earning new coins.
To start mining, you need a mining rig – a customized PC or a special computer system. There are three types of rigs:
- ASIC (Application-Specific Integrated Circuit Miner) is a dedicated piece of hardware designed exclusively for mining certain coins. You can’t use ASIC for anything else, and it is usually quite expensive. The most known brands of ASICs are Whatsminer, Antminer, and AvalonMiner.
- GPU mining uses your device’s Graphics Processing Unit to mine different coins. This type of rig requires a powerful GPU to be worthwhile. However, you can use it not only for mining. Gaming laptops and PCs are usually a good fit as they normally have decent GPUs. You’ll need a graphic card with a memory of six GB or more. Nvidia GeForce RTX, AMD Radeon RX, and GeForce RTX series have the most popular models for mining.
- CPU mining uses processors to perform the necessary calculations. It’s a slow and a bit out-of-date method. Using your central processing unit yields very little results but still uses a lot of power, so it’s probably not worth the money. However, it’s a great way to familiarize yourself with mining and start without major investments.
Finally, there are three approaches you can use for getting crypto.
- Solo mining is, well, solo. You use your own device(s) to mine coins and earn rewards. If you individually mine coins, you don’t have to share rewards with anyone; however, it requires effective and expensive hardware. Without it, it will take a long time to strike it rich if you mine popular coins, as you are competing with large-scale firms.
- Pool mining is more of a group effort. You work with other miners in one network to combine all your processing powers to solve those algorithms. As a result, you share the rewards between all members but get rewards more frequently. In this case, you can avoid large investments in hardware while making your efforts more effective.
- Cloud mining is ideal if you haven’t got any hardware to do effective mining. You can mine via the cloud on industrial-scale mining hardware yet reap the rewards. There will be some rewards sent to the service you use plus some fees; still, it doesn’t require big investments. Basically, you rent someone’s hardware to mine.
Another way to earn on crypto mining without mining (yes, it’s also a thing) is to rent out your capacities to someone who does cloud mining. You invest in hardware and receive a regular reward for that. It’s just like buying a house to rent it out for passive income.
Now you understand the core concept of crypto mining, let’s talk about the best cryptocurrency to mine.
Our list of the most profitable crypto to mine in 2022
Let’s look into the most profitable crypto to mine and find out what hardware they require for release.
Ethereum is the second most famous crypto coin on the market. With ETH, you have two ways of gaining coins. Firstly, miners earn when they release tokens. Secondly, they receive earnings from fees that users pay for Ethereum transactions. The more people buy and sell ETH, the better it is for miners.
It is worth noting that ETH mining requires significant power, but if you have a good rig setup, it can be very profitable and one of the best crypto to mine. ETH is suitable for either ASICs or GPU mining, and it is considerably better for pool or cloud mining over solo.
While currently having a proof-of-work algorithm, ETH is moving towards a proof-of-stake option. That decision will change the mining process, so your powerful hardware may become useless. The coin’s creators have been open about this fact. They haven’t set the exact date of the change yet but it’s supposed to happen in the summer of 2022. If you want to invest large costs into mining this coin, keep that in mind.
LTC is a lighter and cheaper variation of Bitcoin. Its main advantage is that it doesn’t require expensive hardware to make a profit, as there is a proof-of-work hashing function, Scrypt. Scrypt relies on RAM more than on processing power, meaning that there is no need to buy powerful ASICs or GPUS. As a result, it is often listed as a top coin for mining. ASIC mining is viable for LTC, along with GPU mining.
That being said, mining Litecoin does use a lot of electricity, so work out your costs and gains depending on your electricity cost. Mining LTC will be very profitable if you’ve got a source of free or very cheap electricity (as in Sudan, Libya, or Kyrgyzstan). Unfortunately, mining LTC will hardly be an option in countries with high electricity prices.
RavenCoin has two great advantages that probably make it the best coin to mine now. It is profitable yet easy to mine and can be done on GPU. Even though the RVN price has dropped since the beginning of 2022, it still has high potential and can bring you money.
RavenCoin has its own proof-of-work hashing algorithm: KAWPOW, which is deliberately designed to prevent ASIC mining. This approach reduces your competition and upholds the decentralized nature of the coin. Generally, RavenCoin is a great coin to get started on.
Some other profitable tokens are:
- Monero (XMR) uses the RandomX hash function and therefore has an ethos of equity in mining crypto. RandomX is ASIC resistant and easier to mine for everyone, as there is no need to invest in lots of powerful ASICS. XMR is suitable for mining on GPUs.
- Ethereum Classic (ETC) is the original Ethereum blockchain coin. Nowadays, it has a market capitalization of more than $13 billion. It can be mined on certain GPUs.
- Zcash (ZEC) is another GPU-mined token, famous for its long-term sustainability and more privacy features compared to other coins.
List of the easiest crypto to mine in 2022
If you are not keen to spend a lot of money on powerful hardware, these coins are good to get started on. You may not get the higher profits, but they are really easy to mine.
Elon Musk’s favorite, Dogecoin, seems to have its best day behind, as many other meme coins do. But it’s still one of the easiest coins to mine. Just like Litecoin, DOGE uses Scrypt and has no upper limit; rather, it has a ‘deterministic inflation.’ That means that the coin’s inflation is controlled, but there is no point at which the coin will reach a cap, and its value changes over time, like a typical currency.
To mine DOGE, you can use your own GPU or an ASIC, and particularly within a pool, it can be quite profitable. There are also cloud mining tools out there for Dogecoin.
Bitcoin Gold (BTG)
It’s top crypto to mine right now. This coin is a fork of Bitcoin, intended to decentralize and democratize the coins in order to prevent monopolies of large-scale mining operations.
Bitcoin Gold, like RavenCoin, uses its own PoW algorithm, Equihash, to discourage ASIC mining and is specifically designed for GPU mining, making it one of the top cryptocurrencies to mine.
This token can also be released with the computing power of a CPU so that you can start mining immediately. You can use special software, such as EWBF Zcash Miner, to mine it solo. But mining in a pool will be more efficient and bring more income.
Additionally, ZEC offers an extra layer of privacy. Miners can open a shielded account, so no information about their identity or the size of transactions will be visible to others.
The other relatively easy-to-mine coins are:
- Bytecoin (BCN) can be mined on your home computer. All you have to do is run the Bytecoin wallet and input the ‘begin mining’ command.
- Beam (BEAM) employs the Hashii algorithm that supports GPU mining. Solo mining is possible, but joining a mining pool that supports CPU mining will be a good idea.
- Vertcoin (VTC) is perfect for beginners and small miners. Vertcoin creators are against the growing influence of ASICs and made it ASIC resistant while supporting GPU and CPU mining. You’ll need to download special software for either option, and we recommend you to do the mining on GPU, as it will obviously be faster.
So what is the best crypto to mine? As you can see, it’s quite hard to single it out. Nevertheless, we gave you a selection of profitable and easy crypto to mine, which gives you an idea of where you can get started.
Now let’s talk about some advantages and disadvantages of mining.
Pros and cons of cryptocurrency mining
Before you start your crypto journey, you should take a look at both the negative and positive aspects of mining.
Advantages of cryptocurrency mining
- Free crypto coins
What is great about mining those coins that don’t require big expenses is that you can acquire crypto instead of buying it. Those that require some expenditures, such as cloud software or powerful rigs, can be offset by the eventual profits.
- Passive income
Another big advantage is that you can have passive income once you set everything up. There’s some software out there that can help you automate your mining, and all you need to do is withdraw your income from time to time.
- Extra heating
The last and less obvious advantage has nothing to do with the income. If you mine at home, you can get a free heating source as a pleasant side effect. In many Eastern European countries, mining farms help raise the temperature in the house. But don’t forget about the rig noise.
Disadvantages of cryptocurrency mining
The biggest issue is the amount of hardware, electricity, and computational power required for mining proof-of-work coins. BTC mining creates nearly 23 million metric tons of carbon emissions in the United States alone. The economic and environmental impact of mining is a serious issue for crypto.
- Requires technical knowledge
Mining is not so simple and straightforward as trading coins with our service. You need some technical know-how to start mining on your own. If you are a complete beginner, you’ll need to spend a lot of time figuring everything out or a certain amount of money to buy special software that can help you manage your rigs. Either way, it’s not as effortless as it may seem.
- Mining is changing
Many coins, including Ethereum, are moving away to proof-of-stake algorithms. You could think it will make them easier to take advantage of. But it might also mean that the tokens will become not minable, so your expensive ASIC will just end up collecting dust. Do your research and weigh the risks properly.
To wrap things up
We hope that now you have a better understanding of what mining is, what your options are, and what is the best cryptocurrency to mine in 2022. Whether you decide to mine solo or in a mining pool, with GPU or ASIC, sooner or later, you’ll get your first coins released and earn profit. Good luck with that!
After you get your first tokens, you’ll need to properly store them somewhere. We have a perfect solution for that. Trastra offers personal and business debit cards and a virtual wallet to store and spend your crypto. Whether you trade, mine, or simply hold the coins, you could use our multicurrency card with no risk of unexpected conversion rates. you. Check out our personal cards and cards for business to learn more about our service.
Is crypto mining still profitable?
While some people say that mining doesn’t make as much sense as it did at the early stages of Bitcoin, mining remains a significantly profitable venture. Do your math on hardware prices and electricity costs in your area, choose the preferred coins and methods, and you can make it work.
It is worth remembering: the more people mine a certain coin, the less profitable it becomes, as there are more competitors.
Also, there is always room to make money by trading, whether you earn the coins from mining or not. And if you want to spend your crypto with ease, check out our crypto debit card.
Can you still mine Bitcoin in 2022?
Bitcoin mining is still possible and can even be profitable, but not to the same extent it was five or so years ago. Unless you have incredibly cheap electricity and a lot of hardware, it won’t be particularly profitable. As Bitcoin is the most well-known coin, there’s a lot of competition that increases mining costs.
What is the fastest crypto to mine?
If you mean how quickly you can make a profit, this is a bit of a tricky question, as it depends on your setup. But if you mean how fast you can set up mining, it’s easier to answer.
You can mine coins like Monero from your browser, so it’s super fast to get set up. CPU-mined cryptocurrencies are also a good choice and you can get started quickly. Tokens such as Litecoin, RavenCoin, and Dogecoin are also relatively straightforward.