The Best Cryptocurrencies to Mine in 2022

Mining is the backbone of cryptocurrency. Miners operate the network by processing and verifying all transactions and status changes on the network, and receive a deduction in transaction fees for their problems. Huge warehouses full of the latest mining technology generate billions of dollars in revenue annually by mining Bitcoin, the largest cryptocurrency. Crypto mining often becomes more difficult as better technologies are developed, but the difficulty of Bitcoin mining has declined over the past few months.

Recently, Bitcoin mining has experienced a major shift due to an effective ban on cryptocurrency mining and services in general in China. Mining depots in China have escaped cheap electricity (often burning fossil fuels) and made a huge profit, but they are forced to move out of the country. This change has made it significantly more profitable for small miners, at least in the short term, as they have less competition. It can be the perfect time to run a mining rig and start earning crypto. Proof-of-Work and Proof-of-Stake Cryptocurrencies

Consensus mechanisms are the methods that cryptocurrencies use to verify additions to the network and agree on their status. Proof-of-Work (PoW) and Proof-of-Stake (PoS) are by far the most widely used consensus mechanisms. On PoW blockchains, miners perform random and complex mathematical functions to validate blocks of transactions. Complex and expensive hardware is required to compete with the computing power of all the other miners on the network.

PoS mechanisms verify transactions and single states of the network by controlling validator nodes that require minimal hardware. Miners on PoS blockchains share a certain amount of crypto and run validator servers to reduce transaction fees. PoS is often considered more decentralized than PoW because the mining power of a network participant is limited by the amount of crypto they deposit. For example, if a miner on a PoS blockchain puts in 1% of the total staked crypto, he can only mine 1% of the new blocks. Instead, PoW miners need to generate computing power to mine more blocks.

Ethereum and Bitcoin, the 2 largest cryptocurrencies at the moment, use the PoW mechanism. It’s unlikely that Bitcoin will move away from the PoW mechanism, but Ethereum has made the transition to PoS a target for the coming year. Ethereum is scheduled for a major round of upgrades called Ethereum 2.0. The updates will change the architecture of the blockchain to speed up transactions, reduce transaction fees, significantly reduce energy consumption, and improve network security. The transition to PoS will be one of the biggest changes that allow for these advantages. ASIC Mining and GPU Mining

Miners use 2 main hardware types to mine PoW cryptocurrencies, application-specific integrated circuit (ASIC), and graphics processing unit (GPU) hardware. GPUs are designed for video editing and gaming, but they also adopt PoW cryptos well. Many crypto enthusiasts who own gaming computers start using their devices by mining their favorite PoW cryptocurrency when they are not gaming.

ASIC miners are devices designed to mine 1 specific cryptocurrency (maybe 2). On the surface, this installation looks ideal. These are devices made solely for crypto mining, so they should be the best technology to use, right? The answer is more complex than you might imagine, and it’s based on the obvious difference between these types of mining.

GPU mining is almost certainly a better option for mining cryptocurrency for small miners who don’t have access to low-priced electricity. Some of the main factors where GPU mining outperforms ASIC hardware are its modular components, flexibility, and residual value. GPUs can only output almost any PoW crypto, unlike ASIC miners, which can only adopt the crypto for which they were designed.

GPUs have more value than ASICs over time because they can do more than mining. Old ASIC miners depreciate rapidly as mining farms constantly upgrade their hardware to solve cryptographic functions faster, leaving old models in the dust. GPU mining computers, unlike ASIC miners, can be easily upgraded just by adding more (or better) graphics cards. ASIC miners also use boats of electricity, so they are less profitable in areas where electricity costs are high. But for warehouse owners with low electricity costs and quick access to new ASIC models, ASIC miners are much more profitable than oversized GPU hardware. How Much Can I Earn in Mining Cryptocurrency?

Your potential profit depends on several main factors: the cost and consumption of electricity, the hash rate (how quickly the mining rig can find a solution), and the initial hardware costs. If you already have a running computer with one or more relatively modern GPUs, it will probably be profitable, especially when the mining difficulty of Bitcoin and Ethereum is low. Electricity consumption and costs vary significantly from region to region and can make mining unprofitable. For example, mining in Hawaii, where the average electricity price is $0.31 per kilowatt hour and the national average is about $0.13, will lose money. With cheap electricity and a few thousand dollars of hardware, you can start earning more than $600 a month from a modern mining rig with multiple GPUs. Ethereum Staking at Coinbase

Coinbase provides an Ethereum 2.0 (Eth2) staking pool for its users to earn up to 5% APR on their ETH. Coinbase moves your Ether to the Eth2 test network and shares it on a validator node to verify transactions and earn fees. There are about 6,000,000 ETH earning interest on Eth2 validator nodes. The main disadvantage of staking in Eth2 is that once your Ether enters the test network, you will not be able to send it back to the Ethereum mainnet until the 2 networks are merged (scheduled for late 2021 or early 2022). Also, Coinbase’s Eth2 staking is currently only available to U.S. customers (not in New York). Ethereum GPU Mining

Ethereum GPU mining is one of the most profitable and simple ways to mine cryptocurrency. You need a computer with basic PC parts: CPU, power supply, motherboard, RAM, hard drive, and most importantly, one or more GPUs. Check a mining profitability calculator to see if your hardware will lose money from high electricity costs. Amazon and other electronics retailers offer mining computers already built, but these are a bit more expensive. Make sure you still have a use for your new rig after Eth2 is released (such as Bitcoin mining); otherwise you’ll have to sell it. Now that you have the hardware, join a mining pool like Ethermine or Kryptex. It’s quite simple to join, and each of them has detailed descriptions on their website. Kryptex Mining Pool

Kryptex can be the easiest and fastest way to start mining with your computer. Just go to the website, open an account, install the Kryptex program and start mining. The program runs a benchmark test on your computer to choose the best mining algorithm for your hardware. In fact, it always monitors multiple algorithms to make sure you’re running the most profitable one. Payments from Kryptex are always in Bitcoin, so you don’t have to worry about exchanging mined altcoins. It boasts a profit of about $95 a month with a modern gaming PC, or even up to $615 a month for a mining rig with multiple high-performance GPUs. Like any other mining opportunity, you need to ensure that your mining venture is profitable with the Kryptex mining profitability calculator. Bitcoin ASIC Mining