Recently I’ve been asked questions if I’m mining anything other than ETH and the answer is yes, I have
been curious about other coins.
The first question is why would you want to mine other coins? It depends on why and how you got involved with cryptocurrency mining. For me personally it was the ‘California Gold Rush’ effect when I heard how the price of ETH went to the moon (i.e. $350+ USD back in July).
Many people are looking to mining as a passive income or for a “to the moon” type scenario.
Table of contents
- Passive income (trading)
- Investing (holding / accumulation)
- Mining the most profitable coin
- Up and coming coins
Passive income (trading)
You’ve built a rig for the sole purpose of generating supplementary income on top of your 9am to 5pm job or mining is your income!
Once you have mined something, you end up trading it for fiat (“real money”) because you need to pay bills, eat food & treat the wife, husband or partner.
Investing (holding / accumulation)
“To the moon!”
To term ‘to the moon’ means an insane climb for the price of a coin. There are many definitions but generally price going up at least twice as much.
Once you have mined something, you end up holding it for a while in hope the price will go up (just like real investments).
e.g. if you mined ETH in the early days (or bought it even) and saw the current price, that would be defined as ‘to the moon’. Going from $5 or whatever it was to it’s current all time high of $1500.
Mining the most profitable coin
So what does mining the most profitable coin really mean? I would say figuring out which cryptocurrencies your hardware is capable of mining and then calculating the amount of profit each coin could potentially make.
See the the following fake coin example:
|Coin||Coins mined a day (X)||$ for 1 coin (Y)||Daily Profit (X * Y)|
|0.05||$7||0.05 * $7 = $0.35|
|0.1||$5||0.1 * $5 = $0.50|
|10||$0.1||10 * $0.1 = $1.00|
Based on the example above, it is clear that Noobcoin is the most profitable coin to mine.
This does however come with a caveat. Just because Noobcoin is the most profitable coin, does not mean you will be able to swap it for fiat easily.
You will have to find an exchange that lets you swap it out, in most cases you will have to swap Noobcoin to something else like ETH first, and transfer ETH to another exchange that allows you to convert ETH into fiat (i.e. www.gdax.com, www.bitfinex.com etc).
Mining – How to find out which coin is the most profitable
The easiest way to figure out which coin is most profitable for your GPU’s is to visit this website called https://whattomine.com/ and to follow the steps below:
Mining – How to mine the most profitable coin
Now that you can see which coin to mine, your next job is to find out how to mine that coin.
This part can be tricky so you will have to search on Google, Youtube and my favourite source of information https://bitcointalk.org.
Bitcointalk is the first place most alt coin creators go to post what they have on offer – they usually post instructions on how to mine. i.e. which miner software to use, which algorithm to use for highest yield and which mining pools are available.
Mining – For profit the lazy way (Bitcoin payments)
Thought I’d include this as many are probably doing this, but those that are not. If you haven’t got time to research different alt coins, setup a million miners and so forth, you could always rely on Nicehash.
Think of Nicehash as an all-in-one miner that will mine the most profitable coin automatically. There is no need to research other coins or download miners as I mentioned above.
Nicehash will benchmark the mining power of your rig, and automatically mine the most profitable coin. Technically you are loaning your miner to Nicehash and being compensated in the form if Bitcoin.
Pretty simple isn’t it? Obviously the only problem with this is you get paid in Bitcoin and not the coin Nicehash is mining.
Up and coming coins
One of the benefits of using a site like https://whattomine.com/ is that you can easily find established coins that are popular amongst the community and that can be traded easily.
If you are serious about finding the next Bitcoin, Ethereum or Litecoin, to be blunt, you can’t be a lazy. You to have dedicate time to research. This is the million dollar question: How do I find hidden gems?
My first port of call would be https://bitcointalk.org – again, as I said previously, coin creators are very likely to list their coin there first. Why? Because Bitcointalk has a massive crypto community. Think of it as “google” search resource for Cryptos – i.e. google is the site you go to first to search for most things unless you’re a die hard duckduckgo fan ;).
The other site I would recommend looking into is https://www.reddit.com. There are hundreds of subreddits where enthusiasts like you and me, come together to share their finds and have discussions.
When you do find a unique coin that you think is worthy & seems to be quite popular on those sites, don’t be put off by that: you have a better chance of accumulating more coins before it hits the likes of https://whattomine.com/ and exchanges.
Remember the more popular a coin is with miners, the more difficult it is to obtain higher rewards – take Ethereum as an example: in summer you could mine 1 ETH every month – with today’s difficulty level, you can only mine half that.
As you can see there are different ways of creating income from your mining rigs. You can either mine for instant income, mine for accumulation or mine hidden gems that could possibly change your life in the near future.
Whatever you choose, see the checklist below to help you make better decisions
- Does the coin have a website?
- Is there a secure wallet to store your coins?
- Have you checked bitcointalk.org community for opinions?
- Have you done enough research?
- Does the mining software support your OS and GPU? (i.e. Nvidia or AMD)
- Can you find the coin on your favourite alt coin exchange? (this does not apply to hidden gems).
- Is there a trustworthy pool for you to use?