What is the best cryptocurrency to mine in 2024

Bitcoin is the first and most popular digital coin, so it uses the most computing power to mine it. The complexity of BTC mining is constantly increasing, while the profitability is decreasing. To start bitcoin mining, at least 100 TH/s hashrate is required. Such equipment costs from 250 thousand rubles and brings from $3 per day, excluding electricity costs. Therefore, private miners are looking for alternatives. In the article – about what cryptocurrency to mine in 2024. Many promising projects with low network complexity have appeared on the market. Some coins can be earned on video cards and central processing units.

Popular algorithms for mining cryptocurrencies

The genesis block of the first digital coin, Bitcoin, was mined in 2009. The security of the network is ensured with the help of the SHA-256 hash search mechanism. The algorithm is characterized by low hashing speed. Therefore, alternative solutions began to appear. At the time of writing, the popular ones are:

• Etchash. The algorithm is created for Ethereum mining and combines 2 technologies – Dagger and Hashimoto. Requires a lot of hardware memory, so for a long time mining was conducted only on GPU. After the transition of Etherium to the Proof-of-Stake model, the basic version of Ethash was modified into Etchash to obtain Ethereum Classic, Callisto, Expanse, Pirl and other coins.
• Scrypt. A hash algorithm developed by FreeBSD security engineer Colin Percival for the Litecoin cryptocurrency. Scrypt is a modified version of SHA-256. The developer made the creation of blocks more complicated and increased the memory requirements of the devices. At the same time, the energy consumption and the required hash rate of the equipment decreased.
• Equihash. The hashing mechanism provides ASIC resilience through the use of zero-disclosure proofs. Equihash is memory intensive. Hashing speed plays a smaller role. Used in Zcash and other sensitive digital currencies.
• CryptoNight. Based on CryptoNot technology, which provides resistance to asics. To increase privacy, developers use sender ring signatures, one-time recipient wallets and transaction mixing. The mechanism is involved in Citadel, Bytecoin and other cryptocurrencies. It was previously used in Monero, but in 2019 the project developers switched to RandomX.
• X11. The algorithm uses 11 independent hash functions. They work sequentially. It is implemented in Dash, TAO, Enigma and other cryptocurrencies. X11 has good energy efficiency and provides high speed transaction processing.

The choice of algorithm for cryptocurrency mining depends on many things – available equipment, electricity tariff and user’s goals (investment or speculation). Before launching, you need to determine the profitability of each option.

What cryptocurrency is profitable to mine in 2024

The growing interest in digital assets and blockchain is leading to the expansion of networks. This increases the complexity and reduces the profitability of mining. Because of the dynamic development of the market, you need to thoughtfully choose which cryptocurrency is best to mine in 2024.

When starting a business, you need to consider the growth potential of the exchange rate. Priorities will be a well-known team of developers, an active community, the use of promising technological solutions.

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It is worth analyzing the market capitalization of the coin and the volume of trading on exchanges. In the table – a comparison of the indicators of coins from the top for crypto mining.

Bitcoin (BTC)

Bitcoin is one of the most popular cryptocurrencies for mining. It can be mined only on high-performance asics. It will not be possible to mine the coin on a video card in 2024. In addition, due to the rapidly growing complexity of mining, users are forced to regularly update their equipment. This requires substantial costs.

Nevertheless, new capacity is constantly being added to the Bitcoin network. It is the most liquid and stable coin in the crypto market. BTC holders are confident in the growth of the rate and the availability of the asset on exchanges. Therefore, bitcoin is mined by conservative miners with large capital.

Dogecoin (DOGE)

The cryptocurrency is based on a popular meme about a dog of the Shiba Inu breed. The simple Dogecoin coin was created as a joke, but soon gained global popularity due to its communicative nature, endorsements from famous personalities (Ilon Musk) and low price.

Mining DOGE is profitable due to relatively low equipment requirements and low energy costs. The favorable ratio of the exchange rate to the cost of mining makes the asset attractive for beginners and those who seek to diversify their cryptocurrency portfolio.

Dash (DASH)

Cryptocurrency developers offer fast and inexpensive transactions. Mining Dash is attractive because of its low energy costs.

The blockchain architecture uses the X11 algorithm, which provides high security of transactions.

In addition, Dash implements a masternode mechanism that allows you to receive additional remuneration for supporting the network. Cryptocurrency mining can be profitable due to the growing popularity of the project and the prospects of increasing the price.

Litecoin (LTC)

The cryptocurrency was created in 2011 by Charles Lee, a former Google engineer. Litecoin uses the Scrypt hashing algorithm, which makes it accessible to miners with small capacities. We should also mention the active community, whose support contributes to the stability and growth of the coin’s price.

Litecoin is necessary for those who want to earn money, avoiding high equipment costs. Now it is profitable to mine cryptocurrency in pools that offer joint mining of LTC and DOGE.

Ethereum Classic (ETC)

In the list of the best altcoins for mining is the fork of ether. Miners began actively minting the coin after the change of algorithm in the parent network. ETC uses the Etchash hashing mechanism. This makes it available for mining on GPUs.

It is possible to mine coins on a graphics card in 2024 in pools and solo. ETC is chosen because of the relatively low mining complexity. Before you start mining, you need to analyze the market, take into account potential risks.

Zcash (ZEC)

The advantage of the coin is in the high confidentiality of transactions, which is provided by the zk-SNARKs protocol. This makes Zcash attractive to investors who value privacy in financial transactions.

Zcash mining is technically easier even for beginners. Given the stable rate growth and potential for development, mining the asset can be profitable.

Horizen (ZEN).

Mining cryptocurrency today is profitable due to relatively low costs and good returns. Horizen is a decentralized blockchain platform that provides privacy, scalability and resistance to attacks.

Crypto miners are rewarded for processing transactions, creating new blocks, and maintaining the security of the network.

Thanks to the combined payment system, Horizen mining has a high profitability potential. The conditions for users are willingness to invest in equipment and participate in the development of the project. ZEN mining allows you to earn on cryptocurrency with the prospect of growth in the future.

Kaspa (KAS)

The network provides improved scalability and transaction speed due to the use of the GHOSTDAG protocol. We should also note the low energy consumption for mining coins, which increases the profitability of mining. These factors make Kaspa attractive for investors who want to profit from cryptocurrency mining.

Monero (XMR)

Monero is a popular digital currency for mining due to its unique concept of complete privacy of transactions. The protocol utilizes ring signature and transaction technology, which makes tracking transfers impossible.

The developers implemented the RandomX hashing algorithm. Thanks to it, coins are mined on ordinary equipment. High-performance asics, on the contrary, are useless for mining Monero. Therefore, the cryptocurrency is available to a wide range of miners.

Verge (XVG)

The developers of the project rely on the confidentiality and security of transactions. Mining Verge can be profitable due to the implementation of the Lyra2Rev2 hash algorithm, which ensures the reliability of the network and protection from hacking.

Due to low transaction fees and high anonymity, Verge is in demand among miners. In the future, this will contribute to the growth of the rate and profitability of mining.

Varieties of mining

Blockchain with the help of cryptography provides reliable protection of user transactions. Miners confirm transfers and create new blocks. To do this, they perform complex mathematical calculations, and as a reward for the work done, they receive new coins.

The point is to complete the task faster than other participants. To verify transactions, you can use your own hardware (CPU, GPU, integrated circuits) or rent capacity.

On the CPU

At the nascent stage of the crypto market, bitcoin could be mined on a CPU. However, now the complexity of most networks is such that mining on CPUs is unprofitable. Profit can be obtained only from mining some cryptocurrencies (Monero, Electroneum), working on algorithms optimized for CPUs – X11, CryptoNight, RandomX.

On video cards

GPUs have been in demand by miners for many years. At first, users could mine coins on a single graphics card, then they began to combine the power of several devices in a single network.

It should be noted that a standard ASIC replaces dozens of GPUs in terms of computing power, but costs more. A mining rig includes such components:

• Video cards – 6 or 8 pieces. Home farms can combine 12-24 GPUs in a rig.
• Coolers – one for each video card.
• Powersupply – a powerful serverpower supply or several ordinary ones.
• Cables and raisers – for connecting components.
• Computer – to manage mining.

You can mine various cryptocurrencies on video cards in 2024. Usually these are coins with a small network complexity or working on algorithms with ASIC protection. Other features of GPU-mining:

• At any time, the user manages to reconfigure the equipment to mine another cryptocurrency.
• With careful use, you can sell the equipment on the secondary market.
• Mining cryptocurrency on video cards in 2024 will be possible in the home. Initial investments – from 150 thousand rubles.

On ASIC

Integrated circuits – the most productive technique for crypto mining. ASICs can generate a relatively high income. Mining has these features:

• Technique is expensive, you need a minimum of 700 thousand rubles to get started. A powerful farm will cost 3-10 million RUB.
• Integrated circuits can more easily mine crypto, but only according to one algorithm. It will not be possible to reprogram ASIC.
• The devices have a small warranty period – 3-6 months.
• ASICs are very warm and noisy, so for them you need to equip a separate room or rent a cell in the data center.

Cloud mining

A popular method of cryptocurrency mining allows you to earn without the need to invest in expensive equipment. The user does not need to configure and maintain the machines himself, the provider takes care of all technical issues.

Remotely you can mine any cryptocurrency. This helps to diversify the portfolio and eliminate the risks of concentration of one coin.

Cloud mining is convenient for beginners who are just starting their way in the crypto world. When choosing a platform, you need to take into account:

• The reputation and reliability of the provider. It is necessary to study user reviews and check the rating of the service on popular sites and forums.
• Cost of 1 TH/s. It is necessary to compare the prices of different providers and clarify whether the contract includes electricity. Sometimes clients are offered to pay for it additionally.
• Transparency of the contract terms. After reading the contract, the client should not have any questions.

Cloud mining platforms offer flexible working conditions. Clients have the right to choose the contract term and hash rate, taking into account the amount of capital. This gives freedom to manage investments and the ability to respond quickly to changes in the digital currency market.

However, this type of crypto mining involves high risks of fraud. Before investing, it is necessary to thoroughly check the project. It does not hurt to analyze the current situation in the market and think through the strategy.

How to choose a coin for mining

This is the main step that determines the profitability of the process. Before launching crypto mining, you need to analyze different coins and choose promising ones. An important criterion is the potential profitability of digital currency. It is necessary to evaluate:

• The prospects for the development of the project.
• Market capitalization.
• Competing coins.
• The number of crypto exchanges that have added the digital currency to the listing. You need to pay attention to whether there are large CEX among them.
• The complexity of mining the coin. The higher it is, the more computing power will be needed for mining.
• The stability of the exchange rate. This will help to avoid the risks of a sudden depreciation of the asset.
• Interests and goals of the miner. Some prefer to mine coins of projects related to charity or supporting a certain ideology.

You also need to take into account the availability of equipment for a particular coin and the algorithm of work. The benchmark is a balance between potential profitability, rate stability, mining complexity, environmental aspects and the expectations of the miner. By analyzing the market and risks, it is possible to find a cryptocurrency to invest in and maximize the benefits.

What affects the profit and payback period of mining

When choosing an asset, it is necessary to consider several factors on which the profitability of the business depends. Here they are:

• The market price of the coin. The higher it is, the greater the potential profit.
• The complexity of mining. With an increase in the parameter, the income decreases. To maintain profitability, it will be necessary to connect more capacities to mining.
• The size of the reward per block and transaction fees. Some projects can offer more favorable conditions for miners.
• Prospects for the development of the asset and price potential. Maximum profitability can be obtained if you are among the first to start mining a cryptocurrency that will grow many times in the future.

Awareness of the market and the ability to analyze trends will allow you to choose the most profitable digital currency for mining. It is necessary to pay attention to the technologies that can affect the future rate of cryptomoney, and other factors that contribute to the growth of profits and reduce the payback period of the technique.

Calculation of profitability

Low-liquid cryptocurrencies can be mined on equipment with any hash rate. But the profit will be small. For a tangible income you need to buy high-performance equipment – ASIC or gaming graphics cards.

To increase computing power, miners connect several devices in parallel.

When calculating profitability, you need to take into account the cost of renting a cell in the data center (or the equipment of the room), electricity, routine maintenance of equipment. Approximate income can be predicted with the help of mining calculators.

The result will be approximate, since the services take into account current data. The price of the cryptocurrency, the complexity of the network and the demand for the asset can change. To determine the yield you need to:

1. Enter the hash rate and electricity tariff into the calculator.
2. Subtract from the resulting amount the cost of buying and maintaining equipment.

Prospects for mining in 2024

Every year it becomes more difficult to earn on crypto-mining. It is no longer profitable to mine popular assets on a video card.

Private crypto miners have to compete with industrial farms. This greatly reduces profitability.

However, mining still pays off. You need to study the market, choose a promising asset, take into account the pros and cons of the business. Amateur miners can still mine new coins on video cards. If you enter the market at the lows and wait for the growth cycle, you can earn good money.

Frequently Asked Questions

💡 What should I not skimp on when building a GPU farm?

The graphics cards, power supply and cooling system must be of high quality. You can save money on the rest of the components.

📌 What should be the payback period of a mining farm?

6-12 months is considered a good indicator. It is not recommended to enter into mining with a return on investment period of more than 1.5 years.

📢 Is it mandatory to join a pool to mine cryptocurrencies?

This will allow participants with a small hash rate to receive stable payouts. Large miners can work in solo mode. To do this, you need to have at least 5% of the network capacity.

⚡ How can I increase the performance of my machines without investing?

You can overclock ASIC (GPU) – change firmware or artificially increase frequencies above factory values on special software. However, stability is not guaranteed. Therefore, you should not overclock new devices.

✨ What are the risks of mining recently launched coins?

Cryptocurrency can depreciate, and it will be removed from major exchanges. In this case, it will not be possible to withdraw income in fiat.

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Author: Saifedean Ammous, an expert in cryptocurrency economics.