Best Cryptocurrencies To Mine In 2022

Jan 04, 2022
17:01
2 min reading

Choise.com team

With digital currencies entering the mainstream with a bang in 2017, people from all over the world started exploring different ways to profit from this young and roaring industry. Naturally, the first wave of cryptocurrency enthusiasts opted for speculation as a money making mechanism. However, the wild volatility of this market left many of them empty handed.

Others opted to get into cryptocurrency mining. In other words, adding new blocks to the chain and getting rewarded with digital currencies.

Of course, adding blocks to the blockchain isn’t a simple process. And while your LEGO skills won’t help you out, the information you’re about to read actually might. Ready?

Getting Started With Cryptocurrency Mining

In order to understand the process of mining, it is important that you have your basics cleared about cryptocurrency. Digital currencies rely on cryptography to secure the transactions and also control the creation of new units of the cryptocurrency.

Cryptocurrencies run on different blockchains — public distributed ledgers programmed to record virtually everything of value, including financial transactions. Each transaction is a piece of data stored in a particular block of the blockchain.

Cryptocurrencies are created through the mining process. The process consists of miners solving complex computational problems to release blocks, and then getting rewarded with new coins. Instead of someone at a financial institution ensuring that transactions are legitimate, miners (people who run mining software) do this job.

Mining isn’t a steady activity. The mining process was deliberately designed in this way that controls the supply of coins. Moreover, there is a limited amount of digital currencies that can be mined. For example, Bitcoin’s total supply consists of 21 million units. Once the last Bitcoin BTC is mined, no further coins will be added to the system. This logic not only applies to Bitcoin, but to most cryptocurrencies using a Proof of Work (PoW) consensus algorithm.

Is Cryptocurrency Mining Profitable?

There is a reason why mining has rarely been mentioned in recent times and why everyone focused on the constant price movements of the cryptocurrencies.

During the year-long bear market of 2018, mining became less and less profitable for individual miners. Even for big companies are finding these times difficult to navigate. Bitmain, one of the biggest names in crypto mining, has recently laid off 50% of its workforce. The mining activity functioned below the threshold for profitability for most of the year. Fortunately, the 2019 price recovery helped some miners continue in the game for a bit longer.

Finding which digital currencies are the most profitable to mine isn’t an easy task. Is it Bitcoin BTC or is it Litecoin LTC, or any other cryptocurrency? The crypto market is highly volatile, therefore it is vital to keep a close eye on market fluctuations, as well as other factors influencing mining profitability.

Cryptocurrency mining calculator: https://whattomine.com

What makes a cryptocurrency profitable to mine?

There are many factors that go into the play when determining whether a cryptocurrency is worth mining. Here are some (not all) the factors you need to consider when determining the profitability of the coin you are looking to mine:

#1 Cryptocurrency Price

The price of the coin is the primary component that determines the profitability of the mining process. If the value of the coin is high, you can expect more profits from rewards and therefore easily cover mining expenses, such as hardware investment and electricity costs. However, if the cryptocurrency is under bearish pressure, you can find yourself in a difficult spot.

#2 Reward Halvings

From time to time, PoW cryptocurrencies halve its block reward to moderate inflation and boost their valuations in the long run. For example, the Bitcoin Halving 2022 will reduce the mining reward from 12.5 BTC to 6.25 BTC. And while that might translate into a higher Bitcoin price later on, it also makes the lives of miners more difficult.

#3 Block Generation

Block generation refers to the creation of new blocks on the blockchain. Blocks are created using mining nodes according to the Waves-NG protocol and FPoS algorithm. In plain English, the more blocks generated, the higher are your chances of getting a block reward.

#4 Mining Difficulty

The number of miners has increased dramatically over the last couple of years. The rising competition makes it extremely difficult to mine profitable coins. It might be a good idea to step aside from those cryptocurrencies filled with large players, and focus on niche opportunities.

#5 Mining Hardware

Your mining equipment also plays an essential role when looking at lucrative mining options. If you plan to invest on an ASIC Bitcoin Miner hardware, then you’ll need a few thousand dollars to get started. And since the machines can get pretty “hot”, you might also want to consider a thermally-regulated environment with low-cost electricity.

Understanding the Different Types of Mining

There are several ways to mine cryptocurrency. For each method, the mining process is a bit different. While we don’t intend to give you an in-depth explanation on each method, here are the primary ways to mine crypto you should be aware of:

What is GPU Mining?

GPU mining is the most popular and probably most preferred method of cryptocurrency mining. It is effective, cheap, and offers an excellent hash rate and speed. GPU mining relies on the use of ASICs (Application Specific Integrated Circuits), which essentially are mining machines.

What is CPU Mining?

Originally, Satoshi wanted regular people to mine Bitcoin on a simple laptop or desktop computer. However, miners quickly found out they could achieve more hashing power from graphic cards, later replaced by ASICs.

CPU mining is done using regular processors and is quite slow compared to other options. That’s exactly why nearly no one is going this mining type in 2022. Another flaw of CPU mining is that you make little money but spend a lot on cooling and electricity.

What is Cloud Mining?

Cloud mining is one of the newest methods to mine cryptocurrencies. As the name suggests, the process consists of hiring an a mining firm to carry out the entire process on your behalf. However, cloud mining tends to be extremely slow and it can take years, not months, to make a profit. If you are considering this option, make sure to avoid cloud mining scams.

What is Mobile Mining?

Mobile mining is a crypto mining process that doesn’t require you to invest in heavy equipment with a high hash rate. Instead, you have to invest on a quality mobile device like a tablet or smartphone and download an application such as MinerGate Mobile Miner or Bitcoin Miner.

This option is likely to provide no profits at all due to the limited computational power of the device. Also, there’s been reports this type of mining significantly affects the performance of mobile devices.

Best Cryptocurrencies to Mine in 2022

At this point, you should have a clear idea of what is cryptocurrency mining, how to calculate mining profits, and which types of cryptocurrency mining are out there. That said, it’s time we get to the interesting part: the top cryptocurrencies to mine in 2022:

Grin (GRIN)

Grin is one of the trendiest cryptocurrencies and certainly a great option to mine in 2020. Unlike Bitcoin, which is capped at 21 million BTC, this so-called privacy coin has an unlimited supply. Grin is available on the cryptocurrency exchange Hotbit.

Algorithm: Proof-of-Work (PoW)

Hashing Function: MimbleWimble

Current GRIN Mining Reward: 60 GRIN per block

Official Website: https://grin-tech.org/

Ethereum Classic (ETC)

Ethereum Classic was born in a hardfork of Ethereum (ETH). This cryptocurrency can be mined via GPU and it offers a 4 ETC reward per block. However, it’s worth considering ETC is subjected to a higher inflation and scarcity.

Algorithm: Proof-of-Work (PoW)

Hashing Function: Ethash

Current ETC Mining Reward: 4 ETC

Official Website: https://ethereumclassic.github.io/

ZCash (ZEC)

For those who really value their privacy, ZCash is the perfect companion. This privacy coin was launched in 2016 and since then it’s become a go-to choice for heavy users of the deep web as it is impossible to track.

Algorithm: Proof-of-Work (PoW)

Hashing Function: Equihash

Current ZEC Mining Reward: 10 ZEC

Official Website: https://z.cash/

RavenCoin (RVN)

RavenCoin was the result of a Bitcoin hardfork back in 2018. This cryptocurrency has been rising in popularity since then thanks to a strong set of features such as a mobile wallet, messaging, enhanced compatibility, among others. RaveCoin is already traded in many platforms, making it a highly liquid choice.

Algorithm: Proof-of-Work (PoW)

Hashing Function: X16R

Current RVN Mining Reward: 5,000 RVN

Official Website: https://ravencoin.org/

Monero (XMR)

Monero is another coin classified as a privacy coin. It provides a unique level of anonymity, but fees aren’t so competitive compared to the aforementioned alternatives. A distinctive aspect of Monere mining is that you can opt for a GPU and even CPU method. Monero constantly alters its algorithm to prevent ASIC-mining. This coin generates a 3.38 XMR reward every two minutes, making it a highly profitable cryptocurrency to mine.

Algorithm: Proof-of-Work (PoW)

Hashing Function: CryptoNightR

Current XMR Mining Reward: 2.47 XMR

Official Website: https://getmonero.org/home

Litecoin (LTC)

Litecoin is one popular choice among miners for a very good reason: it’s traded nearly everywhere and it’s pretty stable. You can easily exchange it, spend it and withdraw it. Also, it doesn’t take a huge investment to turn out a profit.

Algorithm: Proof-of-Work (PoW)

Hashing Function: Scryp

Block LTC Mining Reward: 12.5 LTC

Official Website: https://litecoin.org/

Also read: Litecoin Price Prediction 2020, 2021 & 2025

Electroneum (ETN)

Just like Monero, Electroneum is an ASIC-resistant coin. This cryptocurrency was released in 2017 and it can be mined either with CPUs or GPUs such as AMD and Nvidia. ETN also has a mobile app that serves a cryptocurrency wallet where you can directly transfer and store your block mining rewards.

Algorithm: Proof-of-Work (PoW)

Hashing Function: CryptoNight

Current ETN Mining Reward: 7,000 ETN

Official Website: http://electroneum.com/

Dogecoin (DOGE)

While this cryptocurrency was initially created for fun, there are no jokes to its current position in the crypto market. DOGE is among the top 30 cryptocurrencies worldwide with a market cap that exceeds 300 million. This coin runs on the Scrypt protocol and it isn’t very expensive to mine, making another great choice for mid-level miners.

Algorithm: Proof-of-Work (PoW)

Hashing Function: Scrypt

Current DOGE Mining Reward: 10,000 DOGE

Official Website: http://dogecoin.com/

Ethereum (ETH)

Ethereum needs no introduction. This cryptocurrency has recovered its second place among the world’s top coins during 2019 and it’s expected a major upward recovery following a reward reduction from 3 to 2 ETH. Mining Ethereum is more expensive than other cryptocurrencies in the market and might require a more substantial investment.

Algorithm: Proof-of-Work (PoW)

Hashing Function: Ethash

Current ETH Mining Reward: 2 ETH

Official Website: https://www.ethereum.org/

Bitcoin (BTC)

Despite the high costs attached to Bitcoin mining, BTC remains a top choice for miners worldwide. The upcoming halving event is increasing competition since an upward movement could follow in the near future. Yet, the reduction in the mining reward to 6.25 BTC will make it even harder for the middle-sized miner to opt for this cryptocurrency. At the moment, Bitcoin mining is widely dominated by ASIC miners, with CPU and standard GPU mining methods offering no profits.

Algorithm: Proof-of-Work (PoW)

Hashing Function: SHA-256

Current BTC Mining Reward: 12.5 BTC

Official Website: https://bitcoin.org/

Most Profitable Crypto To Mine

Bitcoin (BTC);
Ethereum (ETH);
Litecoin (LTC);
Dogecoin (DOGE);
ZCash (ZEC).

The Bottom Line

Nobody said cryptocurrency mining was easy. But if done properly, it can be very rewarding. Before following the crowd, take the time to conduct your own research, estimate the mining costs associated with the particular cryptocurrencies of interest and make a plan.