The growing interest in cryptocurrency mining continues to be a hot topic. We discussed Bitcoin mining in our last article but what about other cryptocurrency mining opportunities?
How Does Cryptocurrency Mining Work?
If you have not read our introduction to cryptocurrency mining give it a quick read. That guide will help you understand the basics of mining. Let’s discuss some examples of what you need to do to determine if cryptocurrency mining is something you want to get involved in.
What Other Cryptocurrencies are Mineable?
When we talk about other cryptocurrencies we will be speaking of any coin that is ASIC resistant. This means that they can be mined using a graphics card (GPU) or your CPU. There are thousands of altcoins currently released and many of them are mineable. Of all the choices for cryptocurrency mining, there are a select few that the most popular for miners and turn the most profit. There are also many undervalued coins that can be mined. If you take this route you are looking for the hidden gem that is going overlooked. The theory here is that if you mine and hold until the coin rises in value, you could make a substantial amount of money.
What to Mine?
If you are looking for a quick idea of exactly what you can make in cryptocurrency mining, head over to www.whattomine.com. This website will allow you to enter in which GPUs you own and adjust your electricity cost. Then you just hit calculate and it will show you an estimate of what you can make daily by mining and selling that coin for Bitcoin. Let’s take a look at the example below.
Let’s say you followed our NVIDIA mining rig build guide and picked up 6x 1060 6GB cards. You would go to the What to Mine homepage and enter 6 in the 1060 space and click it till it turns green. Then in the bottom right corner change (circled in blue) to reflect your electric cost (mine is .127). You can get this on your electric bill or by calling your electric company. Keep in mind these calculations are adjusted to reflect running at 65% with some overclocking. Now hit calculate.
Scroll down and you will see currently that Zencash (ZEN) is currently the most profitable coin to mine and you could make $17.56 per day. This number is calculated after electricity costs. This is followed by other coins that utilize the Equihash algorithm. The results you get may vary if you use AMD cards as they are able to produce better results on other algorithms like Cryptonight. Keep in mind this changes almost hourly due to changes in coin values and the rise and fall in the difficulty.
How To Get Started?
You have your mining rig all set up and know what you want to mine, now what? The next step is really your own preference. You could choose to go a very simple route and use NiceHash. They have an easy to use interface that will automatically mine the most profitable algorithm and pay you out directly in Bitcoin. Keep in mind they were recently hacked and lost over $60 million dollars to include all user’s funds. They opened back up on 20 Dec and appear to have promised to repay lost balances. For the beginner miner, this is the quickest and easiest way to get started.
If you are a looking to get paid directly in the coins that you mine, there are a variety of options available. First, you need to download mining software (You can find some examples in our mining pool guide). Then set up a wallet for that coin, or set up an account on an exchange. Finally, connect your mining software to a mining pool and start hashing away! It sounds harder than it actually is and investing the time in learning how to do it will ultimately make you more money in the long run.
What Exchange Should I Use?
There are a variety of options out there. If you happen to already be a member of Bittrex that is a great exchange to use but they currently have closed to new registrations.
My personal favorite exchange to use is Binance. They have an easy to use interface and have the lowest fees for new traders. They also run some great giveaways and competitions for both high and low volume traders if you are interested in that. I have moved almost 90% of my trading over to Binance as a result of their support and easy to user interface. A snapshot of their interface can be seen below.
Other smaller exchanges such as Yobit, Coinmarkets, and Cryptopia are also options but if you are just starting out I would stick to Binance and Bittrex as they have most of the major altcoins on the market.
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