Crypto mining is the process of creating new cryptocurrencies by validating new crypto transactions into blocks. Usually, miners require specialized hardware and software to confirm crypto transactions. If the new blocks are added to the blockchain, the miner is rewarded in the form of that cryptocurrency. Mining is not for everyone. However, expert crypto miners with adequate expertise and equipment can dedicate what’s required for crypto mining.
To be a successful crypto miner, you need to map out your objectives first. Are you mining to gain profits? Is crypto mining just a hobby? Are you planning to mine full-time? Once you know the answers to all these questions, you will understand the time, effort, and resources you require for your crypto mining endeavor. You need to be well-informed about the pros and cons of crypto mining, how to establish a successful crypto mining gig, which hardware and software to invest in, and the kind of mining process to employ. After you have arranged everything else, you finally need to think about the best coins to mine this year to make a profit. There are several ways to choose a coin to mine in 2022:
Check the number of exchanges that support the cryptocurrency you are thinking of mining. If the cryptocurrency is supported only by less popular crypto exchanges, they can just withdraw crypto through its internal wallet. In such cases, the mining may be profitable, but the miner might have to give massive commissions to the exchange, thus making meager or even no profit.
In some countries, cryptocurrency mining is entirely illegal. So, it’s better to check your country’s crypto regulations before making the mining decision. Some countries allow for crypto trading but not mining, so you can go with trading if that is the only option.
You must have the necessary mining equipment that you can use to mine the cryptocurrency.
There are lots of exchanges that allow you to convert your newly mined coins to fiat currency. Thus, you must choose a currency that can be easily converted to fiat if needed.
What to Mine in 2022?
There are thousands of cryptocurrencies in the market. It is not uncommon to get overwhelmed by the number while you are getting started. To help you begin your crypto mining journey this year, we have curated a list of the best cryptocurrencies to mine in 2022.
Bitcoin is the most popular cryptocurrency, with the largest market capitalization of over $537 billion. Initially developed by the anonymous creator Satoshi Nakamoto in 2009, Bitcoin has managed to sustain its leadership in all these years. Bitcoin operates on a Proof-of-Work mechanism, i.e., miners have to solve complex mathematical problems to validate new blocks. This mechanism keeps Bitcoin safe from scammers and fraudsters. In 2016, you could buy a Bitcoin for $370. In 2021, the price of Bitcoin reached an all-time high of $69,000. That is over 18,500% growth in just five years. Thus, for miners, Bitcoin is a safe and sturdy option.
With a market capitalization of $240 billion, Ethereum is the favorite cryptocurrency of programmers and developers due to its wide array of applications. Its smart contracting abilities make it uniquely suitable for many institutional applications. Like Bitcoin, Ethereum has also witnessed tremendous growth. Its price increased from $8 in April 2016 to almost $1,980 in February 2022, over 25,000% in just 5 five years.
Solana was primarily developed for powering decentralized apps (Dapps), decentralized finance (DeFi) uses, and smart contracts. With over $25 billion in market capitalization, Solana utilizes a hybrid of proof-of-history and proof-of-stake mechanisms to process transactions efficiently and quickly. SOL is the native token that powers the Solana platform. It is quite a new cryptocurrency launched in 2020 at a price of $0.57. By February 2022, its price increased to around $74, a growth of approximately 13,000%.
Ravencoin emerged from a Bitcoin hard fork in 2018. Even though it is quite a new cryptocurrency, it has gained popularity due to its unique features like messaging, mobile crypto wallet, and RVN voting mechanism. It is being traded actively across various cryptocurrency exchanges. It is one of the most profitable coins to mine this year. Employing the KawPoW protocol and X16R algorithm, RVN is a popular choice for crypto miners. With a total supply of 21 million (same as Bitcoin), RVN has a market capitalization of over $135 million. For each block mined, the miner earns 5,000 RVN as of now.
Created as a joke in 2013, Dogecoin gained high popularity in the last couple of years. The memecoin has become one of the most widely adopted and successful cryptocurrencies due to its fans and colorful communities. Unlike Bitcoin and many other cryptocurrencies, there is no limit on the number of Dogecoins that can be mined. Primarily, the memecoin is used for tipping content creators on Reddit and Twitter. However, it has gained a significant following and colossal growth. In 2017, Dogecoin’s price was $0.00002, and by May 2022, it grew to $0.08, an increase of nearly 40,000%.
Litecoin was created in October 2011 as a Bitcoin hard fork. Charlie Lee developed Litecoin to solve some of the inherent complications within Bitcoin, such as its scalability and high transaction costs. Litecoin addresses these issues by offering some solid functionalities. Litecoin transactions just take 2.5 minutes compared to Bitcoin, which takes around 10 minutes. The average fee associated with each transaction is just $0.01 compared to Bitcoin, whose fee is $3. These features make Litecoin lucrative to investors; thus, the coins demonstrate high potential for future growth. Litecoin is one of the top ten profitable cryptocurrencies to mine this year. It employs the SCRYPT protocol, which means that the miners do not have to purchase ASIC chips. For each block mined, miners get a reward of 12.5 LTC.
Besides the above list, there are many other cryptocurrencies that you can mine profitably. If you are interested in knowing more about which cryptocurrencies to mine, check out our blog.