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There are many different cryptocurrencies, and each one has its own mining process. So, which one should you mine?
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Introduction
What Crypto Should I Mine is a definitive guide to answer the question, “What crypto should I mine today?” The goal of this guide is to help you make that decision.
There are a lot of things to consider when you want to start mining cryptocurrencies. The first thing you need to ask yourself is whether or not mining is even right for you. Are you interested in mining for the long term, or are you just looking to make a quick buck?
Once you’ve decided that mining is right for you, the next thing you need to do is figure out which cryptocurrency is most profitable to mine. That’s where this guide comes in. We’ll take a look at a variety of factors that go into making that determination.
What is Crypto Mining?
Crypto mining is the process of verifying and adding transaction records to a public ledger. This ledger is called a blockchain. In order to mine cryptocurrency, you need to have a powerful computer that can solve complex math problems. The first person to solve the problem gets to add the next block of transactions to the blockchain and is rewarded with cryptocurrency.
What is a Hash?
A hash is a function that takes an input of any size and maps it to an output of a fixed size. A cryptographic hash function is a special class of hash function that has certain properties which make it suitable for use in cryptography. It is a mathematical algorithm that maps data of arbitrary size to a bit string of a fixed size (a hash) and is designed to be a one-way function, that is, a function which is infeasible to invert. The only way to find the input data given the hash output is to try every possible input until you find one that produces the desired outcome.
What is a Block?
A block is a unit of the code the comprises the blockchain. It is usually composed of a hash (an encrypted value that verifies and identifies a block) and a timestamp. Each block is connected to the one before and after it — creating a digital, chronological chain that is incredibly difficult to alter.
What is a Blockchain?
A blockchain is a digital ledger of all cryptocurrency transactions. It is constantly growing as “completed” blocks are added to it with a new set of recordings. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data. Bitcoin nodes use the block chain to differentiate legitimate Bitcoin transactions from attempts to re-spend coins that have already been spent elsewhere.
Mining is how new Bitcoin and other cryptocurrencies are brought into circulation. Miners are rewarded with cryptocurrency for verifying and committing transactions to the blockchain. Their efforts keep the network secure, ensuring that no one spends their coins more than once and no one can cheat the system.
What are the Different Types of Crypto Mining?
There are several different types of cryptocurrency mining, each with their own benefits and drawbacks. These include solo mining, pool mining, cloud mining, and ASIC mining. Let’s take a look at each of these in turn.
Solo Mining
With solo mining, you mine for yourself and are the only person who reaps the rewards—if you find a block. Because you aren’t sharing the rewards with anyone else, you need a very large mining operation to find a block with solo mining. The biggest disadvantage of solo mining is it can take weeks or even months to find a block. And when you do find one, the rewards—currently 12.5 BTC—are all yours.
You will likely never find a block when solo mining unless you have an extremely large mining operation or are extraordinarily lucky. Therefore, most people don’t solo mine but join a pool.
Pool Mining
Pool mining is a way for miners to pool their resources together and share their hashing power while splitting the reward equally according to the amount of shares they contributed to solving a block. A “share” is awarded to members of the mining pool who present a valid partial proof-of-work.
Solo mining is the process of mining for bitcoins without joining a pool. When users join a solo mining pool, they become a part of a larger collective of miners and share their resources, hashing power, and rewards with the group. While solo miners typically don’t find blocks as frequently as pools, the rewards they receive when they do solve a block are typically much higher than those earned by people who are part of a pool.
Cloud Mining
Cloud mining is when you pay a provider, such as Hashflare or Genesis Mining, to rent mining equipment that is located in their data center. This usually refers to Scrypt or SHA-256 miners, but Ethereum cloud mining is available as well. The biggest advantage of cloud mining is that it doesn’t require any setup on your part. It’s a great way to get started in mining without having to worry about the expensive hardware.
The downside of cloud mining is that it can be more expensive than traditional mining because you are paying for the hardware and electricity. Additionally, you are at the mercy of the provider when it comes to maintenance and repairs. Some providers have been known to terminate contracts or go bankrupt without notice, leaving customers out of pocket.
What are the Different Types of Cryptocurrencies?
Cryptocurrencies are digital or virtual tokens that use cryptography to secure their transactions and to control the creation of new units. Cryptocurrencies are decentralized, meaning they are not subject to government or financial institution control. Bitcoin, the first and most well-known cryptocurrency, was created in 2009. There are now thousands of different cryptocurrencies, with more being created every day.
Bitcoin
Bitcoin is the original cryptocurrency and it is still the most well-known. It was first introduced in 2009 by an anonymous person or group of people known as Satoshi Nakamoto. Bitcoin is a decentralized cryptocurrency, meaning it is not subject to government regulation. Transactions are verified by a decentralized network of computers and recorded in a public ledger called a blockchain. Bitcoin can be bought, sold, or exchanged for goods and services.
Ethereum
Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference.
Ethereum is a public blockchain-based platform that supports Ether and other cryptofiat currencies. Transactions on the Ethereum network are verified by nodes through proof-of-work mining. Ethereum was proposed in 2013 by Vitalik Buterin, a cryptocurrency researcher and programmer.
Ethereum has a built-in programming language, which allows developers to build and run decentralized applications on the platform. The most popular application built on Ethereum is the decentralized exchange Bisq, which allows users to buy and sell cryptocurrencies without having to trust a central authority.
Other popular applications include Nexus, a decentralized social network; uPort, a self-sovereign identity management system; and WeTrust, a decentralized lending platform.
Litecoin
Litecoin is one of the original cryptocurrencies, created in 2011 by Charlie Lee. It is similar to Bitcoin in many ways, but with some key differences. For one, it has a faster block time, meaning transactions are confirmed more quickly. It also uses a different proof-of-work algorithm, called Scrypt, which is designed to be more accessible to regular people with less powerful computers. Mining Litecoin can still be profitable, though it may require some creative thinking and resourcefulness.
Monero
Monero is a private, secure, and untraceable cryptocurrency that has been gaining popularity in recent years. It is similar to Bitcoin in many ways, but it uses a unique algorithm that makes it more difficult to trace. Monero is often used by people who want to keep their financial information private.
What are the Different Factors to Consider When Choosing a Cryptocurrency to Mine?
When it comes to mining cryptocurrency, there are a few different factors that you will need to take into consideration. These include the type of currency, the mining difficulty, the block reward, and the hashrate. We will go over all of these factors in this article so that you can make an informed decision about which cryptocurrency to mine.
Hash Rate
The hash rate is the measuring unit of the processing power of the Bitcoin network. The Bitcoin network must make intensive mathematical operations for security purposes. When we say the hash rate, or the computing power of the network, what we are really talking about is how many times the network can attempt to complete these operations called hashes per second.
A higher hash rate means that more miner participation is required to complete a block, and thus more difficulty and time are required to do so. This increases the security of the Bitcoin network by making it more difficult for bad actors to tamper with blocks due to the increased participation required to do so.
Difficulty
The difficulty of a cryptocurrency is a measure of how hard it is to mine, or find, a new block compared to the easiest it can ever be. It is expressed as a number that gets bigger as mining gets harder. For example, a difficulty of 1667 means that on average, you will need to try 1667 times before finding a new block.
Cryptocurrencies use different proof-of-work hashing algorithms, and each algorithm requires a different amount of computing power to mine blocks. For example, Ethereum uses Ethash, which can be mined with GPUs, while Bitcoin uses SHA-256, which can be mined with ASICs.
The difficulty is also adjusted periodically to ensure that blocks are being found on average every 10 minutes. If the network hashrate is too high and blocks are being found too quickly, the difficulty will increase. If the hashrate is too low and blocks are being found too slowly, the difficulty will decrease.
Block Reward
Block Reward is the number of new coins distributed by the network to miners for each successful block solution. The current Block Reward is 12.5 BTC or approximately $224,311 USD at time of writing. Miners are not paid out until a block has been successfully mined and confirmed by the network, which takes on average 10 minutes.
The Block Reward started at 50 BTC when Bitcoin first launched back in 2009. Every 210,000 blocks or approximately every 4 years, the Block Reward halves and will continue to do so until all 21 million Bitcoin have been mined. As of July 2016, 80% of all Bitcoin that will ever exist have already been mined.
Price
Of course, the most important factor to consider when choosing a cryptocurrency to mine is its price. You want to choose a currency that is reasonably priced, so that you can make a profit mining it. The price of a cryptocurrency can fluctuate wildly, so it’s important to do your research and choose one that is currently in a good place price-wise.
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Another factor to consider when choosing a cryptocurrency to mine is its difficulty. The difficulty of a currency is how hard it is to mine, and this can change over time. If a currency becomes more popular and more people start mining it, the difficulty will go up. This means that it will take more time and effort to mine the currency, and you’ll likely see less of a return on your investment. Conversely, if the difficulty of a currency goes down, it may be worth considering mining it again.
Conclusion
So, there you have it – a basic guide to what crypto to mine in 2019. Of course, this is not an exhaustive list, and there are many other great coins out there that could be worth mining. However, the coins on this list are all solid contenders and should give you a good starting point for your research.
One last thing to keep in mind is that mining profitability can change quickly, so be sure to do your own research and stay up-to-date on the latest news before making any decisions. With that said, we hope this guide has been helpful and wish you the best of luck in your mining endeavors!
