Mining the most profitable coin

Introduction

Recently I’ve been asked questions if I’m mining anything other than ETH and the answer is yes, I have

mining-cart

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.

Passive income (trading)

Mining for income

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)

Mining for 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:

CoinCoins mined a day (X)$ for 1 coin (Y)Daily Profit (X * Y)
0.05$70.05 * $7 = $0.35
0.1$50.1 * $5 = $0.50
10$0.110 * $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).

Trading alt coin

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:

what-to-mine-calculator

what-to-mine-calculator-results

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?

How to 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.

Summary

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

Mining checklist

  • 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?

Happy Mining!

Disclaimer: This is not trading advice and I am not a trading expert. The opinions expressed here are wholly personal and for educational purposes only.

5 comments

  1. Ethereum what what I’ve heard is going to PoS – but I think it will be hybrid for the transition period if it hasn’t started already (Proof of stake & Proof of work).

    Not sure about ETC – quick search, mixed response, but the community said PoW for now.

  2. Hi,
    Nice article, but how can we spot the good to mine coins besides whattomine? In case I see a new coin in bitcointalk forum, how can I calculate the profitability of it?

    Thanks!

    1. Hello,

      It’s difficult now there are shedloads of coins out there – after you have checked community feedback, interest and hype (bitcointalk, forums, discords, slacks, telegram channels) , you’ll probably want to start researching these coins as if you were a venture capitalist – look into the fundamentals. What makes this “new” coin stand out from the crowd? I.e. “We do smart contracts!” – erm so do a few of the top 20 coins. Do you get where I’m going with this?

      You can’t really calculate market value since the coin isn’t listed anywhere – i.e. the value of Bitcoin is whatever the people think it should be. There is some kind of agreed belief that Bitcoin is THE king of crypto, the genesis of this revolution, the longest going & most widely known coin. People will derive value based on whatever belief they have.

      If you’ve done your due diligence on a coin, think it has some great fundamentals and use cases, maybe try and compare it to the next best thing trading and see what that coin is valued out.

      Another option is not to worry about finding the next new amazing crypto that nobody is mining yet, but to mine something familiar already. Lets say you’re currently mining ETH – you put your ETH into an up and coming ICO. The same points I’ve made above apply to ICO – do your research and you may get lucky when that ICO pumps.

      Disclaimer: This is not financial advice. The comments of the author are for educational and information purposes only.

      1

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