With the growing importance and relevance of cryptocurrencies and digital assets in the global economy, cryptocurrency mining has also become popular. The mining process involves dedicating your computational resources that are used to solve cryptographic equations that facilitate the validation of transactions on the blockchain. For your contribution to computing power, you are rewarded with blockchain tokens.
If you don’t have access to commercial-grade computing resources, you can also turn to mining pools, which allow you to share your resources with others willing to do so. This article discusses mining in detail to discover the best cryptocurrencies to mine in 2022.
Compare the most profitable cryptocurrencies to mine in 2022
Here is a list of popular cryptocurrencies that can be mined. 1. Bitcoin (BTC)
Although Bitcoin has become one of the most challenging cryptocurrencies to mine, the recent price increase has made it profitable once again, especially for individual miners who are willing to pool their computational resources. Bitcoin is based on the Proof of Work protocol, so it is required to solve mathematical equations as quickly as possible to get rewards. Due to the halving of the network’s rewards, miners currently receive 6.25 BTC for each hash.
To mine bitcoins you need a mining equipment called Application Specific Integrated Circuit (ASIC). They are devices specially built to solve complex cryptographic equations. 2. ZCash (ZEC)
Launched in 2016, ZCash is an anonymous cryptocurrency that allows mining through graphics cards. The total supply of coins is capped at 21 million. The platform is based on Equihash’s algorithm that uses a PoW protocol. You will need a high amount of RAM while the reward for ZCash block mining is 3,125 ZEC tokens. 3. Litecoin (LTC)
One of the best coins you can mine in 2021 is Litecoin. Denoted by LTC, Litecoin is a hard fork of the Bitcoin blockchain, so its mining requirements are quite the same. It is one of the most popular cryptocurrencies that rely on the Scrypt PoW protocol. You will require GPU power to mine LTC tokens while the current reward is 12.5 LTC coins which would be just over $2000 at the time of writing. 4. Ethereum (ETH)
The second most popular digital currency Ethereum is a network that facilitates the development and execution of smart contracts. It is one of the most viable blockchain projects in practice when it comes to real-world applications. It has also been used in the DeFi movement along with initial coin offerings (ICOs). It is based on the Ethash PoW algorithm without any limit on the total supply of coins. The current Ethereum mining reward for the blockchain is 2 ETH.5. Monero (XMR)
Being a privacy-focused cryptocurrency, Monero brings absolute anonymity to its users. The coin was first created in 2014 and uses the RandomX PoW algorithm that is continuously modified to avoid ASIC-based mining. To mine Monero CPUs is used and offers a reward of 1.65 XMR. 6. Dash (DASH)
Created in 2014, Dash is one of the top thirty cryptocurrencies in terms of market capitalization. It is a hard fork of the Litecoin blockchain and is used to facilitate secure international financial transactions via swift. The hashing function is based on the X11 proof of work, while the reward is about 2.88 DASH tokens. 7. Ethereum Classic (ETC)
Following the DAO attack on the ETH blockchain in 2016, some of Ethereum loyalists rebelled against the hard fork and renamed the original network Ethereum Classic. With every 5 million blocks, the blockchain reduces the amount of reward for ETC mining. The current reward is about 3.2 ETC. 8. Bitcoin Gold (BTG)
Bitcoin Gold is another hard fork of Bitcoin that was launched in 2017. To democratize the mining procedure, the blockchain project altered the PoW protocol to Equihash so that specialized mining equipment cannot be used. The blockchain is based on GPU mining with a reward of 12.5 BTG per hash. 9. Grin (GRIN)
If you’re looking for an easy-to-mine cryptocurrency, Grin might be your best bet. You can start mining with your consumer GPUs like NVidia’s GTX and AMD’s graphics cards. The blockchain uses the MimbleWimble PoW algorithm with a reward of 60 GRIN per hash. 10. Dogecoin (DOGE)
Dogecoin started as a meme, but has recently become one of the most popular cryptocurrencies since its launch. It is based on Scrypt which is a PoW protocol and you can use the CPU and GPU to mine Dogecoin. For every hash you solve, you’ll be rewarded with 10,000 DOGE tokens.
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Different Ways to Mine Cryptocurrencies
When it comes to digital currency mining, you can follow different paths depending on your strategy and the number of resources you are willing to invest in cryptocurrencies. For independent mining, you’ll need to have invested a lot of capital upfront to mine a popular cryptocurrency like Bitcoin or choose a relatively low-profile digital currency that hasn’t been the subject of commercial miners. Another option you have is to participate in mining pools that allow you to share your resources with a group of other miners and the rewards are distributed proportionally based on your contribution.
You have to keep in mind that mining is a process of solving difficult mathematical or cryptographic equations that guarantee the security and immutability of transactions through a verification process. This is the process that miners carry out. There are different types of mining in which you can participate:
- CPU mining relies on CPU power to verify transactions and the blockchain has been programmed to use the CPU.
- GPU mining requires the computing power of the graphics card and can be quite expensive, but also rewarding depending on your strategy.
- Cloud mining involves investing your financial resources in renting the hardware needed to mine a particular cryptocurrency. It’s all about the convenience, although the profits are not substantial compared to other types of mining.
- Mobile mining allows you to mine virtual currencies on the go, but it’s the least rewarding.
Advantages and disadvantages of cryptocurrency miningContras
Electricity consumption can be harmful to the environment
You may need technical information to start mining cryptocurrencies
How much should I invest to mine cryptocurrencies?