“The Future Of Money Is Digital Currency”- Bill Gates. The year 2017 was substantial for cryptocurrencies as they gained mainstream acceptance from people around the globe. It’s surprising to see how to retain and establish investors who are anxious about this burgeoning trade.
So it doesn’t matter! You are an experienced player in the crypto market or a newbie looking to embark on the journey – you must have at least heard the buzzword “Cryptocurrency Mining”
To simply put, cryptomining is the process of solving a complex mathematical equation often called a Block to create a new coin. And the block is verified, added into the digital public ledger called Blockchains. Once the block is verified the miners are rewarded for their work. To add, in the early days of mining Bitcoin was the virtual currency in the market. The miners would get a whopping 50 BTC as a reward.
However, nowadays, mining is not an easy process. The prerequisite to adding blocks in blockchains depends upon three fundamental variables: High-performance computers, the price of the currency, and most importantly, the energy cost.
In this article, we will enlighten you with the prerequisite software, algorithms, and specification to mine the top cryptocurrency in 2021 and what makes a virtual currency worth mining? Gear up! Let’s get started!
What Factors Make A Cryptocurrency Profitable?
Fact check: All cryptocurrencies are not mineable. Bitcoin may be the most expensive and valuable currency but it is no longer profitable to mine. Some underlying factors determine it’s fruitful to mine the coin or not:
- Price of the cryptocurrency
The most lucrative and imperative component for miners is the price of the coin. Hence, higher coin price, you can expect more rewards. Plus, this may also cover the mining expenses including, electricity bill, hardware cost, and software price.
- Tough Competition
Over the last couple of years, there has been a significant increase in the count of miners. And it has become quite difficult to mine profitable coins in this highly competitive market. Amateur miners should focus on less popular coins with fewer players.
- Hefty Investment
To get success in mining endeavors, types of equipment play a crucial role. For example, ASIC Bitcoin miner hardware is expensive; you may need to invest a thousand dollars. In addition to this, the machine may get very hot after the mining process starts. So an efficient cooling system with low power consumption is required to make this type of mining profitable.
- Number Of Exchange
Before embarking on the magical expedition do check how many exchanges are supporting the coin. That said if a coin is supported by a not-so-popular exchange then for withdrawal miners may have to pay copious commission to these exchanges. These exchanges are working on shitcoins and earn money with commission only.
Here’s what you need To Mine Top Cryptocurrencies In 2021
As the crypto market is fragile and volatile it can be a daunting task to choose which coin to mine to earn some passive income. However, not anymore! After comprehensive research we have listed below the top cryptocurrencies to mine with entailed mining equipment:
- Bitcoin Mining
For generating a Bitcoin, computer programs incessantly work to resolve a given mathematical puzzle. These programs are administered by professionals popularly renowned as miners. Typically, a network is created where miners sitting at distinct locations are working collectively to fix the common mathematical problem.
To continue, for a puzzle to be resolved, the miner is required to perform thousands of calculations in a second, which in brevity is termed as its hash rate. Being directly proportional; the higher the hash rate is the more the problems it could efficaciously solve. Finally, the greater the tendency to solve puzzles, the more the door is opened for earning Bitcoins.
Hashing Function: SHA-256
Options To Mine: GPU and ASIC
- XRP mining
As compared to other cryptocurrencies, one doesn’t have the provision to mine Ripple. Only those individuals who once created XRP are allowed to generate it. If you are infatuated to know more; to date, only 100 billion XRP coins have been officially released, and with each transaction that particular XRP coin would eventually be obliterated. In simpler words: once an XRP has been employed, it cannot be re-wielded for future transactions. Consequently, with time, the emergence of XRP is bound to end after they are exhausted by the rising number of people. With more and more users accessing the Ripple network, this modality is only leading to a surge in the price of XRP.
So, if you still intend to own XRP, this can only be readily accomplished in exchange for other coins. Per aficionados, this seems to be an ultimate method of laying out your hands on XRP, without the need of expanding on the Ripple mining process separately. No wonder, why congregating individuals of this era have begun implementing this technique of snapping up XRP, owing to its relentless swelling of price.
Algorithm: Ripple Protocol Consensus Algorithm (RPCA)
Hashing Function: SHA-512 ( First half)
Options To Mine: Not Mineable
- EOS Mining
Once again, another cryptocurrency that is impossible to be mined. Since the EOS Blockchain is built on the Delegated Proof of Stake (DPoS) consensus algorithm, it works differently without the bracing of miners. Rather, this platform has a bracket of validators that take the onus to sign the blocks. Simply put: these professionals oversee the EOS Blockchain in general. Throwing additional light; only a set of 21 producers does the job of validating the blocks.
Still, if you aspire to be the sole owner of EOS coins, it is practically feasible only through an exchange program with other coins.
Algorithm: Delegated Proof of Stake
Hashing Function: SHA-256
Options to Mine: Not Mineable
- Ether Mining
Talking about the Ethereum network, it brags about its Blockchain. As a result, all the transactions performed by wielding Ethereum need to be passed by the miners. No wonder, why it takes more time than usual for the recipient to get Ether when you send them.
Once the validators approve the transaction, it is put back inside the Ethereum Blockchain. This complete process of verification by the miners is also known by the moniker “proof of work”. Primarily, it is the sole responsibility of the miner that no fraudulent activity is processed.
To set the seal that the transactions performed are fair and square, miners continue to solve convoluted mathematical equations. When it is done effectively, the miner communicates the same to other miners by making use of fancy computer language.
The wait is then for the miners to confirm whether the given number is correct or not. If the majority of 51% are convinced, the new block is given a green signal to be added to the current Blockchain network. Interestingly, this newer block constitutes the list of verified transactions. Plus, the miner who worked their fingers to the bone for eliciting the latest block is lauded with rewards. This is an ongoing process and can be compared as “ebb and flow”, post which the miners continue to work on another set of mathematical equations.
Hashing Function: Ethash
Options To Mine: GPU
- Grin Mining (GRIN)
Grin is the hottest and trendiest virtual currency and is often referred to as a privacy coin in the crypto market. On the grin platform, the general public is not allowed to view the transaction i.e. amount received and sent for instance. The protocol used by the platform is MimbleWimble to make sure the transaction is scalable and private.
Unlike other capped cryptocurrencies the supply for GRIN is unlimited. It can be mined with Cudo miner; lolminer, Gminer, and Gringoldminer GPU mining software, most of them are free. In addition to this, the pools such as f2pools.com and 2miners can be employed for mining purposes. Plus, the payout frequency varied according to pools.
Hashing Function: Cuckatoo32
Options to Mine: ASICs, GPU
- Dogecoin Mining (DOGE)
Dogecoin or meme coins initially created as a joke and for fun have come a long way; now it’s among the top ten cryptocurrencies with a market value of $32 billion and a huge global fanbase. Dogecoin is an easy to mine coin as compared to its counterparts. It uses the similar Litecoin protocol Scrypt along with using software like Cgminer, GUIminer, and Cudaminers for example.
Furthermore, unlike other cryptocurrencies, DOGE coins don’t have any limited supply. Simply put, the circulating supply will increase with each coin created via mining.
As compared to Bitcoin where it takes approx 10 minutes to discover a new block, but for the Dogecoin network every minute, a new block is discovered. To add, mining of Dogecoin is faster with less power consumption juxtaposing Bitcoin.
With that being said, earlier Dogecoin mining was easier as there were few miners engaged in the network. But due to the rise in popularity prompting miners to participate in the process, mining has become difficult. Solo mining, Mining pools, and cloud mining are the top three methods to mine Dogecoin.
Hashing Function: Scrypt
Options to Mine: GPU and CPU
To conclude, do remember the world of cryptocurrency is highly volatile and risky. Mining is not easy but if done properly can be highly rewarding. Before choosing a coin to mine- take time to research, estimate the cost, and finally work on an action plan.