Cryptocurrency mining is not cheap. As a result, you need to focus on cryptocurrencies that will give you a high return on investment. In this guide, you will discover a list of the most profitable coins to mine.
Which Coin Should You Mine?
Before listing which coins are most profitable to mine, it is important to know the factors to consider before making a decision on what to mine. Here is what you should think about:
- Easily mineable on a home computer: you should go for a coin that is easily mineable on a home computer using a CPU or a GPU. ASIC mining rigs, which are often owned by large companies, could promote centralisation and, therefore, increase the chances of a 51 percent attack.
- Probability of withdrawing to fiat: before choosing a coin to mine, make sure that you can find exchanges that allow you to convert it to fiat. This is important if you want to spend the earnings you make. Also, factor in the exchange fees for converting your coins to fiat money.
- Crypto mining regulations: crypto mining is restricted in some countries. As a result, make sure that crypto mining is legal in your country before you venture into it.
Now that you know what to look for, below are the top seven most profitable coins to mine in 2020.
Ethereum Classic (ETC)
Ethereum Classic is the most profitable coin to mine according to the current crypto list on Coin Warz. ETC is a hard fork of Ethereum that also supports smart contracts.
Ethereum Classic is a potentially profitable coin to mine because:
- It supports mining with a CPU or a GPU
- You can make an estimated profit of $6 per day
- This is a project that could remain around for a long time
Ethereum Classic was released in 2015.
- ETC uses the Proof of Work (PoW) mechanism and the Ethhash algorithm
- The block reward is 4ETC
- It is the eleventh cryptocurrency by market cap
- ETC is listed on most major exchanges
Horizen is a privacy-centric digital currency that was previously known as ZenCash. The digital currency was introduced in 2017. Horizen is one of the most profitable coins to mine because of the following:
- You can mine it with a GPU
- You can make an estimated profit of $4 per day
- ZEN uses the PoW protocol and the Equihash algorithm
- The block reward is 7.5 ZEN
- Horizen ranks 57 based on its market capitalisation
- It trades on most exchanges
Another potentially profitable coin to mine in 2020 is ZCash. This altcoin offers privacy and low transaction fees. Here are the reasons why ZCash is potentially profitable to mine:
- It supports GPU mining
- You can make an estimated profit of about $3 per day
Zcash was released in 2016.
- ZEC is available on most exchanges
- The block reward is 5 ZEC
- ZCash uses the Equihash algorithm and the PoW protocol
- This coin ranks 26 based on its market capitalisation
Verge is another favourite among miners. The altcoin offers fast and anonymous transactions. It is potentially profitable to mine Verge for the following reasons:
- You make an estimated profit of $3 per day
- Verge is mineable with a GPU
Verge was created in 2014 and was formerly known as DogeCoinDark.
- Verge is based on the PoW mechanism and uses multi-algorithms like Script, X17, and Lyra2rev2
- XVG is available on most exchanges
- The block reward is 730XVG
- Verge ranks 76 based on its market cap
Peercoin focuses on security and low transaction costs. It is potentially profitable to mine since:
- You can mine approximately $3 per day in profits
- PPC is mineable with a GPU
PPC was introduced in 2012.
- PPC uses both Proof-of-Stake and Proof-of-Work protocols and is based on the SHA-256 algorithm
- Peercoin is listed on most exchanges
- The block reward is 55.17PPC
- This cryptocurrency ranks 414 based on its market cap
The world’s first cryptocurrency is still profitable to mine. Introduced in 2009, Bitcoin was very profitable to mine in its early days. This has changed with the increasing mining difficulty and the halving of the block reward. The unknown developer Satoshi Nakamoto created Bitcoin to allow permissionless, peer-to-peer transactions.
- Bitcoin uses the SHA-256 algorithm and the PoW mechanism
- You can trade BTC on all major exchanges
- Bitcoin is the top cryptocurrency by market capitalisation and price
Released in 2011, Litecoin is one of the most profitable coins to mine for several reasons.
- You can mine using a GPU. That means that you do not need to buy the expensive ASIC miners to mine Litecoin.
- You can make an approximate profit of $1 per day.
Litecoin is a hard fork of Bitcoin that allows near-instant payments due to its high transaction speeds.
- LTC is based on the Script algorithm and uses the PoW mechanism
- Litecoin is currently one of the top ten cryptocurrencies by market cap
- The block mining reward is 12.5 LTC
- You can trade LTC on most exchanges
What Affects Mining Profitability?
Several factors affect the mining profitability of digital currencies, including:
- The price of the coin: coins with a high price are profitable but only in short-term investments. On the other hand, you can mine a cheap coin and wait for its price to rise in a few years.
- Frequency of block generation: you are likely to make a profit mining coins in networks that generate blocks at a fast rate.
- Mining difficulty: the mining difficulty affects your chances of mining a block. The ability of your miner to solve the mathematical problem fast enough will influence your profitability.
- The hash rate of your miner: a miner with a high hash rate will solve blocks faster than a miner with a lower hash rate.
- The cost of electricity: cheap electricity reduces your overall investment costs. As a result, your return on investment increases.
- Block reward: a high block reward results in a high profit. On the contrary, the halving of the block reward could increase the value of a coin as the demand rises.
Currently, it is profitable to mine the coins above. However, this could change depending on the price and the mining difficulty among other factors. Always check mining profitability before starting to mine a particular coin.