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There’s a lot to know about cryptocurrency as the topic continues to grow and change year on year. But if you’re looking to start learning more about the topic, and are considering whether mining cryptocurrency is for you, let us help. We’ve collected the most important information below, as well as considering the best cryptos to mine in 2022.
What is Cryptocurrency Mining?
Those who have invested in the hardware needed to start cryptocurrency mining are likely earning daily passive income. But how?
Basically, distributed nodes on a crypto blockchain confirm user transactions. These nodes run the blockchain, employing software to check that these blockchain transactions are valid and legit.
To begin making a profit by mining, find a mining pool and connect a GPU, CPU, or ASIC miner to it. Mining pools combine miners’ hash rates or computer processing power to boost block verification chances. Many miners compete to validate a block during the verification process. Beware: only the winner gets the rewards.
What are the best cryptos to Mine in 2022?
Our best tips to start mining?
- It’s pretty simple: the best coin to mine has the greatest rewards. Compare crypto mining results with online calculators if you’re still unsure
- If you’re just starting, choose one that doesn’t require you to buy expensive mining hardware. CPU-mined coins are good but have minimal returns
- The easiest cryptocurrency to mine connects miners to pools. Just buy a GPU or ASIC miner and join a pool with consistent payouts
Ethereum (ETH) – Bitcoin’s Main Competitor
Many people mine the second-most popular crypto, Ethereum, which is Bitcoin’s main competitor at the moment.
Profitably mining Ethereum with a GPU miner takes 63.7 days. Even Ethereum benefits from pool mining, though, which can give better chances. Don’t try mining with a CPU, as it likely won’t be profitable.
The Ethereum block reward is 2 ETH plus transaction costs. Ethereum’s blockchain only takes a few seconds to generate a block.
Soon Ethereum will use Beacon Chain, a Proof-of-Stake blockchain that will alter blockchain mining. Currently, it uses Proof-of-Work mining.
Ethereum Classic (ETC) – from ETH’s Hard Fork
Ethereum hard forked in 2016 to recover from a DAO attack, resulting in Ethereum Classic – a slightly updated and enhanced version of Ethereum before 2016. ETC’s main difference from ETH is it upholds the idea that “Code is Law,” allowing individuals and organizations to execute smart contracts on the blockchain with very little human intervention.
You can use CPUs and GPUs to mine it. The Ethereum Classic block reward is 3.2 ETC plus transaction costs. It only takes about 10.3 seconds for a new block to be generated.
ZCash (ZEC) – ASIC Resistance at its Finest
Typically, ASICs are better than GPU cards for mining Bitcoin and other Proof-of-Work cryptocurrencies. However, ZCash resists ASICs due to its creator’s emphasis on stability and trustworthiness. Adopting this approach has gained it significant traction in crypto, driving the coin’s price relatively high.
As a side note, this is one of the best cryptos to mine in 2022 for a more sensible long-term investment choice.
Zcash also protects transaction secrecy. Public transparent wallet addresses enable you to access their data and history. Companies and groups who want transaction transparency can use ZCash instead, as it offers shielded transaction types which safeguard financial history and privacy.
GPU mining is your best option here. The ZCash block reward is 3.125 ZECs plus transaction costs. Block production operates at the rough rate of 10 blocks every 2.5 minutes.
RavenCoin (RVN) – Best Crypto to Mine for Newbies
Ravencoin uses an algorithm called KAWPOW. It’s easy to mine with GPUs due to its high market cap and ASIC resistance, making it excellent for beginners.
Every minute, a block is mined, and 5,000 RVN is rewarded.
Aeternity (AE) – Combines Proof-of-Work and Proof-of-Stake
CuccooCycle hashing via Aeternity brings together Proof-of-Stake (PoS) and Proof-of-Work (PoW), letting miners build blocks and verify transactions simultaneously.
Overall, Aeternity is one of the most profitable coins to mine due to its unique network and speed. Aeternity lets users operate smart contracts or decentralized apps (dApps) and lets Off-chain smart contracts work. From Decentralized finance (DeFi) to gaming to voting and governance, Aeternity has many use-cases.
It can create fungible, non-fungible, restricted fungible, and restricted non-fungible tokens.
Aeternity blocks take 3 minutes to confirm and result in 124 AE per mined block.
Litecoin (LTC) – Bitcoin’s Fork
Litecoin transactions are much faster than Bitcoin’s 10 minutes. It’s MIT/X11 licensed and harnesses the power of an open-source cryptography system and a decentralized ledger.
It originates as a Bitcoin fork. While it aimed to be mineable with a CPU and GPU after Bitcoin made that difficult on their blockchain, nowadays profitable Litecoin mining requires ASICs.
A block is mined every 2.5 minutes for 12.5 LTC. After four years, this will reduce by half.
Monero (XMR) – Untraceable Mining
Monero is a privacy-focused coin and blockchain that makes transactions untraceable, hiding transaction details such as amounts sent and the addresses that receive them. It takes the concept of entirely private crypto to its extreme.
Monero can be mined using inexpensive CPUs that use little electricity whilst mining – making it one of the best cryptos to mine in 2022 for power efficiency. However, you can also mine with GPUs or via pools.
A single Monero block ends up mined every 24 seconds, leading to a reward of roughly 4.99 XMR.
So, which is the best Crypto to mine?
Still finding it hard to make a decision? Well, if you’re just starting, the best cryptocurrencies to mine today have low-cost mining solutions available from the start. Begin with Monero and RavenCoin These are great options for this, as cheap CPUs can mine both of these.
Are you itching to make a significant profit? The most lucrative cryptocurrencies to mine are still the kings of the crypto world – make Bitcoin and Ethereum your top choices