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Top 10 best mining cryptocurrencies in 2020 and 2021

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Is cryptocurrency mining profitable now? Yes and no. It depends on the object and method of mining, plus your electricity bill may vary depending on your mining machine or mining farm. Bitcoin (BTC) is no longer the most profitable mining currency: the difficulty of mining is too high, and the entire mining farm is packed with huge servers to dig a block. Fortunately, there are many tokens that can be mined, which is quite profitable.

Miners are now smarter and more experienced in crypto transactions. They prefer to mine the most promising cryptocurrency because they have wasted valuable hash rate, time, and investment on new tokens with low trading volume. However, there are always enough enthusiasts to support a new crypto project, confirm transactions through mining or minting blocks, and hope that the token will take off in the future.

Want to join the crypto mining industry and prepare a GPU or CPU-based miner? Learn about the most profitable GPU and CPU mining tokens in 2020-2021.

Estimate profitability first:

Before we start introducing the most profitable tokens, let us first understand the definition of crypto mining profitability:

The price of the cryptocurrency. The rules are simple:

the more expensive a coin, the higher the mining profit. However, this only applies to short-term investments. If you have enough patience, you can mine a promising token and wait until the price rises.

Block reward and halving. What makes the profit of cryptocurrency mining in 2019 lower than before is the reward halving. For example, the next BTC halving will take place in 2020, making it less attractive. Or the recent Litecoin (LTC) halving, cutting profits from 25 LTC to 12.5 LTC. Do your own research to calculate whether your investment in mining equipment will be compensated by the mined tokens.

The time when the block was generated. The more blocks the network generates, the higher the chance of rewards for mining blocks.

The difficulty of mining and hash rate. Due to a large number of miners, GPU and CPU mining in 2019 is extremely challenging. However, it is also possible to find a niche token where you can make considerable profits without being affected by competition.

Equipment efficiency. It depends on your budget and the difficulty of the current token, so choose accordingly. In theory, the power of mining equipment should continue to increase, but in reality, the cost of always investing in GPUs is too high.

How to choose the best coin for mining in 2020-2021?

Even if you use the best GPU when mining in 2019 and plan to mine thousands of coins, you have to consider how to use them. The following aspects are important:

The possibility of fiat currency withdrawals. Find an exchange platform so that you can convert newly mined tokens into fiat currency or buy some popular currencies such as ETH or BTC. Don’t forget the exchange fee.

Which exchanges support the tokens you mine? When it comes to unpopular or low-quality tokens, some of them can only be withdrawn to the internal wallet of the crypto exchange. Unpopular exchanges are forced to cooperate with Shitcoins (even though mining seems profitable) and rely on large commissions as the only way to survive. In this case, miners will be forced to give a sizable share of income only for withdrawals.

Make sure this is legal. Some countries have quite strict regulations on cryptocurrency mining. If your country completely prohibits this, it is best to avoid this risk. In some countries, the authorities pay particular attention to cryptocurrencies with a high degree of anonymity because they are a perfect tool for money laundering and illegal transactions. Make sure that you will not have any legal issues after mining new tokens.

When you decide which token to mine, please evaluate the long-term usage of the purchased equipment. The problem is that the complexity of mining is growing rapidly, and mining equipment is always doomed to lose its value.

 

2020-2021 ranking of the top ten most profitable mining altcoins:

In this list, we have collected cryptocurrencies that are widely used in mining: you don’t have to build an entire mining farm to start making money. In addition, every coin has huge potential, so the profitability of cryptocurrencies should not be a big issue.

1. Grin (GRIN)-best for GPU mining:

Grin is a newer cryptocurrency based on the MimbleWimble consensus algorithm, which guarantees the privacy of transactions within the network.

The Grin money supply is unlimited, which is very attractive to miners. The complexity of mining changes dynamically with the hashing of the network. The token uses the so-called Cuckoo Cycle algorithm. We are discussing two PoW algorithms: CuckARood-29 and CuckAToo-31. The first is suitable for mining on GPU devices and is resistant to ASIC mining, and the second is specifically for them.

This token is listed on 24 exchanges, including the famous Poloniex, HitBTC, Bittrex, OKEx and KUCoin.

Algorithm: Proof of Work Mechanism

Hash function: MimbleWimble

Return on investment after listing: -71.77%

Current price: $2.81

Mining reward: 60 tokens per block

2. ZCash (ZEC)

ZCash (Zerocash) was released in October 2016. Anyone can mine this token. Its algorithm allows the use of mining graphics cards. ZCash is completely anonymous in transactions and cannot be traced. Many people really like this feature.

ZCash transaction fees are particularly small, so transactions and sales are very convenient. In 2017, ZCash was launched on a good popular exchange. However, this coin is greatly underestimated, and most likely, its potential will only be revealed in 2019/2020.

Algorithm: Proof of Work Mechanism

Hash function: Equihash

Return on investment after listing: -98.69%

Current price: $56.16

Mining reward: 10 ZEC per block

https://z.cash/

3. RavenCoin (RVN)

This kind of Bitcoin fork appeared in 2018 and already has high liquidity. Today, it is ranked 41st in the world’s cryptocurrency, with a market value of more than $155 million. In 2019, developers will add a set of great new features (messaging, voting using RVN, better compatibility, mobile wallets compatible with mnemonics), which will increase its value.

RavenCoin can be easily exchanged on many different platforms. Essentially, it is a P2P blockchain used to efficiently and quickly transfer assets from one person to another. It focuses on the transfer of assets based on Ethereum and Bitcoin. Why recommend Ravencoin to miners? It uses the X16R algorithm and proof-of-work mechanism.

Algorithm: Proof of Work Mechanism

Hash function: X16R

Return on investment after listing: 39%

Current Price: 0.036818 USD

Mining reward: 5,000 RVN

https://ravencoin.org/

4. Monero (XMR)

Since its listing in 2014, Monero has proven to be a reliable token. Since 2017, XMR has entered an upward trend and continues to grow. Unlike Zcash, it charges 10 times that of Zcash, but users still attach great importance to Monero’s anonymity.

Monero constantly revises its algorithm to prevent the possibility of ASIC mining, so you can mine with GPU and CPU. Monero uses the CryptoNightV8 proof-of-work algorithm to generate 3.38 XMR as block rewards every two minutes, so mining is very beneficial.

Algorithm: Proof of Work Mechanism

Hash function: CryptoNightR

Return on investment after listing: 3,502.62%

Current Price: $89.12

Mining reward: 2.47 XMR

https://getmonero.org/home

5. Ethereum Classic (ETC)

The hard fork of Ethereum, Ethereum Classic can be mined by several GPUs. It has a higher block reward (4 ETC). Despite the fact that ETC may have higher inflation and scarcity, it is still a very profitable cryptocurrency. Buy Nvidia or AMD cards and enjoy passive income.

Algorithm: Proof of Work Mechanism

Hash function: Ethash

Return on investment after listing: 670.86%

Current price: $5.80

Mining reward: 4 ETC

https://ethereumclassic.github.io/

6. Litecoin (LTC) 

If you can allow the purchase of more or cheaper GPUs, try to mine Litecoin-all in all, this is one of the most successful Bitcoin hard drives. Why choose Litecoin?

It can be easily exchanged and traded on any platform

Less volatile than many other altcoins

It is one of the best GPU mining coins-you don’t have to buy ASIC because it uses SCRYPT protocol

High transaction speed and moderate transaction fees

With the world’s top five cryptocurrencies with a market value of $5.3 billion, Litecoin will never be a wrong decision.

Algorithm: Proof of Work Mechanism

Hash function: Scrypt

Return on investment after listing: 1,880.94%

Current Price: $85.18

Mining reward: 12.5 LTC

https://litecoin.org/

7. Bitcoin Gold (BTG)

This is another cryptocurrency that can be mined. Bitcoin Gold was created specifically for GPU mining. It is based on the consensus between the Equihash algorithm and the POW protocol. It ranks 34th in the cryptocurrency rankings with a market capitalization of $260 million.

One of the main reasons for Bitcoin Gold is its stability. Although it did not increase in 2019, it seems to be less volatile than other altcoins. The coin can avoid the effects of a bearish trend this year-this is a good sign.

Algorithm: Proof of Work Mechanism

Hash function: Zhash

Return on investment after listing: -96.93%

Current price: $14.73

Mining reward: 12.5 BTG

https://bitcoingold.org/

8. Electroneum (ETN)-most suitable for CPU mining

As one of ASIC’s confrontational currencies, Electroneum was launched in 2017. Although its price has not risen since then, it still has the potential for growth. The Electroneum blockchain uses the POW algorithm, based on the latest version of the CryptoNote algorithm, so you can even mine on your smartphone.

To become a holder of multiple ETN currencies, you can use CPU, AMD or Nvidia GPU. In addition, there is an ETN mobile app available for iOS, and Android-it can be used as a wallet and allows you to mine ETN.

Algorithm: Proof of Work Mechanism

Hash function: CryptoNight

Return on investment after listing: -95.44%

Current Price: 0.004302 USD

Mining reward: 7,000 ETN

http://electroneum.com/

9. Dogecoin (DOGE)

Billy Markus Dogecoin was created just for fun, but it suddenly became popular, and it is now the 29th world cryptocurrency with a market value of 346 million US dollars! Like Litecoin, it uses the Scrypt protocol, so you don’t have to use very expensive machines to add DOGE to your portfolio.

However, this does not mean that you should use a laptop for mining. Dogecoin is very popular and mining is not difficult. Use CPU/GPU to enjoy stable performance and income.

Algorithm: Proof of Work Mechanism

Hash function: Scrypt

Return on investment after listing: 407%

Current Price: 0.002838 USD

Mining reward: 10,000 DOGE

http://dogecoin.com/

10. Ethereum (ETH)

In 2019, Ethereum has successfully won second place in the cryptocurrency rankings, and after the reward of 3 to 2 ETH is reduced, the price of the coin is expected to increase. Therefore, an increase in demand and a decrease in supply usually increase value.

Joe Rachinski, the creator of JoeTechnologist, claims that by the end of 2019, the price of ETH will reach $1,200. Nigel Green believes that the price of ETH will reach $2,500. The increasing demand for digital currency, the popularization of smart contracts, and the decentralization of cloud computing will help achieve this goal.

Algorithm: Proof of Work Mechanism

Hash function: Ethash

Return on investment after listing: 7,308.95%

Current Price: $209.79

Mining reward: 2 ETH

https://www.ethereum.org/

10.Bitcoin (BTC)-ranked first

According to CoinMarketCap, Bitcoin is still the king of cryptocurrencies, with a current dominance index of 68.6%. A recent survey conducted by a well-known crypto community influencer @hodlonaut revealed that more than 60% of cryptocurrency holders allocate more than 75% of their investment portfolio to Bitcoin (BTC). It is already a brand and has its own unique currency symbol-₿.

In addition, the “2020 BTC block reward halving” is coming soon, reducing the mining block reward from 12.5 to 6.25 Bitcoin. As a basic rule, production cuts mean an increase in the value of assets, especially when demand continues to grow. There is still enough time to start mining some bitcoins.

It is important to understand that despite the positive aspects, Bitcoin mining is still a very competitive market, and this situation will only show more competitors. Be prepared to invest in sufficient mining equipment, corresponding technical support, and pay huge electricity bills.

In addition, Bitcoin mining has been dominated by ASIC mining technology for many years. Don’t even want to try to mine on the CPU or GPU.

Algorithm: Proof of Work Mechanism

Hash function: SHA-256

Return on investment after listing: 8.215.50%

Current price: $11,250.88

Mining reward: 12.5 BTC

https://bitcoin.org/

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