To conduct a successful mining operation in the cryptocurrency mining industry, you need to find the best cryptocurrency to mine for yourself.
To do that, the best advice is to know very well what you’re getting into and what your objectives and limits are.
Also, knowing that the world’s economy is so fragile, it’s not even surprising why there is so much hype around digital assets – especially since it offers solutions independent of centralized entities.
However, now that more people have become aware of the need for independence, the competition for mining crypto is way bigger, leading to smaller rewards especially for Bitcoin mining.
Let’s see which is the best cryptocurrency to mine in 2023 and then better understand the mining process in a brief mining guide.
What are the best cryptocurrencies to mine?
Bitcoin mining is not the only option. But choosing a coin to mine from thousands of options is not easy. The performance and profit in revenue depend not just on the type of mining chosen but also on the computer specifications and even market trends.
However, we did our homework, and we gathered here seven of the best cryptocurrencies to mine in 2023 that aren’t necessarily the classic Bitcoin that everyone thinks of:
- Dash (DASH);
- Dogecoin (DOGE);
- Bitcoin Cash (BCH);
- Kadena (KDA);
- Sia (SC);
- Komodo (KMD);
- Monero (XMR).
With that being said, let’s see why these cryptocurrencies are so special.
Dash (DASH)
Dash Nonspecific Indicators:
- Current Mining reward: 1.08 DASH/block;
- Number of blocks: 1,813,740;
- Block time: 2 minutes and 38 seconds;
- Profit/month: $306.31.
The profit is calculated for 1286 GH/s with a power consumption of 3148 Watts and might change according to the price evolution.
Dash Technical Indicators:
- Algorithm: Proof-of-Work;
- Hashing function: X11;
- Network Hashrate: 1.74 PH/s;
- Options to mine: CPU, GPU, ASIC.
Dogecoin (DOGE)
Dogecoin, created by Billy Markus for fun, is a peer-to-peer cryptocurrency with a strong performance in the altcoin market. It has set numerous records and continues to grow.
Doge serves as a usable digital currency for storage and transactions. At the time of writing, Dogecoin mining could be profitable for some miners. However, the mining profitability can fluctuate over time based on changes in these factors and the increasing difficulty of mining.
Also, surprising or not to some people, Dogecoin is currently the crypto with the largest market cap in this top. Compared to how the crypto market has been going since the beginning of 2023, Dogecoin is one of the best cryptocurrencies you can mine.
Doge Nonspecific Indicators:
- Current Mining reward: 10,000.00 DOGE/block;
- Number of blocks: 4,576,011;
- Block time: 1 minute;
- Profit/month: $269.36.
The profit is calculated for 9500 MH/s with a power consumption of 3425 Watts and might change according to the price evolution.
Doge Technical Indicators:
- Algorithm: Proof-of-Work;
- Hashing function: Scrypt;
- Network Hashrate: 615.48 TH/s;
- Options to mine: CPU, GPU, ASIC.
Bitcoin Cash (BCH)
Bitcoin Cash (BCH) is a decentralized, open-source cryptocurrency that prioritizes low transaction fees and fast transaction speeds. It was created due to a Bitcoin hard fork of the original blockchain in 2017.
BCH aims to solve Bitcoin’s scalability issues by increasing the block size limit from 1 MB to 32 MB. It uses the exact proof-of-work consensus mechanism as Bitcoin and is secured by SHA-256 hashing. BCH aims to provide a more accessible alternative for everyday transactions than the slower and more expensive transactions that occur on the original Bitcoin network.
At the time of writing, Bitcoin Cash is a profitable currency to mine and one of the safest and best known. So, it can be a good pick to start mining Bitcoin Cash.
Also, as the year has gone on, Bitcoin Cash has managed to take on even Bitcoin Gold, with Bitcoin Gold currently being much less profitable for some miners and even making a loss for others.
BCH Nonspecific Indicators:
- Current Mining reward: 6.25 BCH/block;
- Number of blocks: 777,677;
- Block time: 10 minutes;
- Profit/month: $203.62.
The profit is calculated for 140 TH/s with a power consumption of 3010 Watts and might change according to the price evolution.
BCH Technical Indicators:
- Algorithm: Proof-of-Work;
- Hashing function: SHA-256;
- Network Hashrate: 1.48 EH/s;
- Options to mine: CPU, GPU, ASIC.
Kadena (KDA)
Kadena is a public blockchain featuring a smart contract called Pact. The cryptocurrency uses a new Proof-of-Work consensus mechanism called Chainweb, consisting of several individually mined chains working in parallel.
KDA Nonspecific Indicators:
- Current Mining reward: 1.03 KDA/block;
- Number of blocks: 3,421,633;
- Block time: 1.5s;
- Profit/month: $180.11.
The profit is calculated for 40.2 TH/s with a power consumption of 3,350 Watts and might change according to the price evolution.
KDA Technical Indicators:
- Algorithm: Proof-of-Work;
- Hashing function: Blake2s_256;
- Network Hashrate: 214.40 PH/s;
- Options to mine: ASIC, GPU, CPU (Kadena can be efficiently mined with ASIC miners).
Sia (SC)
Sia is a crypto software allowing users who look to store files to rent out unused hard drive space. Founded in 2013 by David Vorick and Luke Champine, Sia is similar to cloud storage solutions such as those offered by Google or Amazon.
The main difference is that users rely on software and a distributed network of global computers acting as mining hardware.
SC Nonspecific Indicators:
- Current Mining reward: 30,000 SC/block;
- Number of blocks: 402,457;
- Block time: 9 minutes;
- Profit/month: $175.04.
The profit is calculated for 17 TH/s with a power consumption of 3,300 Watts and might change according to the price evolution.
SC Technical Indicators:
- Algorithm: Proof-of-Work;
- Hashing function: KawPow;
- Network Hashrate: 18.57 PH/s;
- Options to mine: ASIC, GPU.
Komodo (KMD)
Komodo is an open-source, decentralized, end-to-end blockchain and cryptocurrency platform. Forked from ZCash in 2014, Komodo allows developers to complete transactions while keeping their anonymity.
Komodo was the first crypto to use a dPoW (delayed Proof of Work) consensus mechanism, offering a new way of mining cryptocurrencies.
KMD Nonspecific Indicators:
- Current Mining reward: 3 KMD/block;
- Number of blocks: 3,273,069;
- Block time: 1 minute;
- Profit/month: $36.90.
The profit is calculated for 420 KH/s with a power consumption of 1510 Watts and might change according to the price evolution.
KMD Technical Indicators:
- Algorithm: Proof-of-Work;
- Hashing function: Equihash;
- Network Hashrate: 146.34 MH/s;
- Options to mine: GPU, CPU (Komodo can be efficiently mined using GPU mining).
Monero (XMR)
Monero (XMR) is a decentralized, open-source cryptocurrency that is focused on privacy and anonymity. It uses a technique called “ring signatures” to conceal the sender’s identity in a transaction and “stealth addresses” to hide the recipient’s identity.
XMR uses a proof-of-work algorithm and the Equihash hashing function to secure the network and validate transactions. It is designed to resist ASIC mining as this type of specialized mining equipment affects decentralization.
This way, Monero is less susceptible to centralization and more accessible to miners using GPUs or CPUs.
XMR Nonspecific Indicators:
- Current Mining reward: 0.6 XMR/block;
- Number of blocks: 2,810,214;
- Block time: 2 minutes;
- Profit/month: $8.56.
The profit is calculated for 42 TH/s with a power consumption of 450.00 Watts and might change according to the price evolution.
XMR Technical Indicators:
- Algorithm: Proof-of-Work;
- Hashing function: RandomX;
- Network Hashrate: 3.33 GH/s;
- Options to mine: CPU, GPU.
What is Cryptocurrency Mining?
Now that all this is clear regarding the best cryptocurrency to mine let’s move on to the theoretical part to understand the basics of cryptocurrency mining.
In the most straightforward words, crypto mining is the process of solving complex mathematical equations in order to validate crypto transactions. For every new crypto mined, the users who took part in the process are rewarded with a fraction of it.
Contrary to general belief, mining crypto doesn’t mean creating a new coin but releasing one from the total supply. Most crypto projects have limited coin supplies, leading to an increase in value as they become rarer, like gold.
Crypto mining exists because developers wanted to find a way to verify transactions while stopping the most common issue associated with digital currencies – double spending.
In short, double-spending occurs when a bad actor disrupts the blockchain and spends the same units of a cryptocurrency twice. And as it tempers with the allocation of funds on the entire blockchain, the double-spending event may even impact data within crypto wallets.
However, once crypto miners validate a transaction, the coins implicated cannot be spent again by the same user. It is as simple as it sounds.
Another misconception is that users need comprehensive technical knowledge if they want to mine, which is not entirely true. The equations needed for validating transactions are actually solved by computers, so all miners needs are sufficient hash power and a bit of technical knowledge.
Now that we have covered crypto mining let’s see how many types of cryptocurrency mining there are.
What Types of Crypto Mining Exist?
When it comes to mining cryptocurrencies, some people are interested in the computer components responsible for the process of mining, while other people are interested in the methods used.
Whichever side you’re finding yourself on, we explained below each type of crypto mining.
Crypto Mining as a Process
Generally, there are three types of hardware you can use for crypto mining:
- ASIC – Application-Specific Integrated Circuit;
- GPU – Graphics Processing Unit;
- CPU – Central Processing Unit.
Each of them got amazing results over the years, but the answer to the question “Which one is better” depends on how much you are willing to invest in order to start mining. Additionally, specific cryptocurrencies that are highly profitable to mine use ASICs, whereas others use GPUs.
Furthermore, you need to consider the space available for the equipment, the profit you expect to have, and the cryptocurrencies you want to work with.
So let’s see what this is all about.
ASIC Mining
As we can see from the name, ASIC is an application-specific integrated chip built for specific use.
Those chips built particularly for the crypto domain are designed with the purpose of mining a specific cryptocurrency. For example, you can only mine Bitcoin with ASIC with a Bitcoin ASIC miner.
In terms of performance, ASIC is clearly superior to GPU or CPU, having the ability to run 100,000 times faster than the best of these two. And, of course, that leads to significant profits since the mining rewards are distributed to the first crypto users that validate a transaction.
Of course the power output is also the main reason ASIC is predominant in Bitcoin mining.
Looking on whattomine.com, profits can vary from a couple of dollars a month to a few thousand. Ultimately, the profit will depend on the coins you mine, the quality of the hardware, and various market factors such as price evolution.
For example, large mining companies such as Riot Blockchain or Argo Blockchain use these types of ASIC-based mining.
When it comes to affordability, it depends on the brand, model, and the way it was developed. For example, a standard ASIC such as Antminer s17 costs around $2,000 and can generate 60 TH/s.
When you read about all of that, you probably wonder why people are willing to buy CPU and GPU at a higher price for lower performance and profitability.
The answer is quite simple, though. Not all cryptocurrencies allow ASIC mining. Also, you are restricted to mining the cryptocurrencies with the algorithm your ASIC is built for.
A lot of cryptocurrency developers resorted to the restriction of ASIC miners (like Vertcoin or Monero) to encourage the network’s decentralization.
Also, it’s not all pink regarding ASIC. While the cost/performance ratio is very attractive, it has a short lifespan and is not upgradeable.
GPU Mining
GPU, the Graphics Processing Unit, is practically your computer’s video card.
GPU mining isn’t as powerful as ASIC. For example, an NVIDIA GTX 1660 Ti has a hash rate of 26 MH/s and costs around $300.
However, GPU miners are very flexible, having the ability to mine different coins, allowing you to switch between cryptocurrencies.
Besides, it offers benefits in other fields, too. For example, you benefit when it comes to gaming, streaming, or video editing, so you are not investing just in crypto.
In terms of profitability, it’s not bad either. Depending on the cryptocurrency, it can vary between $30-$700/month.
However, despite its complex computation, there are some downsides too.
First of all, it has a lot more power consumption than ASIC. Second, redeeming your investment might take a while because a pre-made GPU mining rig can be found at around $3,000.
CPU Mining
The Central Processing Unit was the first type of crypto mining, and as you may have guessed, it’s kind of outdated.
It’s no wonder CPU mining is extremely slow, with an average hash rate of 0.7 MH/sec, which is way inferior to GPU and ASIC.
There are little to no chances of succeeding in validating transactions with it. And if you do, you may have a profit of a maximum of a few dollars a month.
If we take a look at mobile mining, things look even direr.
Its $300 average price shouldn’t be tempting because it “compensates” with very high power consumption and low output. Add to that its limited performance since it’s easily overloaded.
But if you just want to exercise mining before investing in ASIC or GPU, then you may play around with a CPU mining rig.
Just make sure you don’t burn your device while overclocking it. And remember that none of the best cryptocurrencies to mine are efficient compared to the other alternatives of CPU mining.
Crypto Mining as a Method
If you are not that interested in the technical information behind the curtains and you just want to enjoy the show, then let’s take a different approach.
If we talk about cryptocurrency mining as a method, then we have three other types of mining:
- SOLO Mining;
- POOL Mining;
- CLOUD Mining.
Again, all of them had great results over the years, and the final decision should be made based on your personal interests.
SOLO Mining
This is also known as individual mining, and it is self-explanatory. You basically get your own equipment and then get to work, independent of other miners’ activities. Therefore, when you unlock a new coin, all the rewards go to you.
But this is a double-edged sword. While the rewards are more significant, the competition level is precisely alike. If you want to have a chance to be the first miner who validates a transaction, you need to invest a tremendous amount in equipment. This is the case especially with Bitcoin mining.
POOL Mining
Speaking of Bitcoin mining, as more people join crypto, it became harder to get rewards. Therefore, developers found a solution – POOL mining.
A mining pool requires a server that combines the computing power of all the miners who want to join the pool. This method increases the chances of unlocking new coins and, therefore, the options to be rewarded.
The downside is that the reward for a single coin unlocked is distributed between all the participants, so you get less than on SOLO mining. However, it’s better to have a smaller reward with mining pools than not having a reward at all. Not to mention your equipment investment can be much lower by appealing to mining pools.
CLOUD Mining
Solo mining and Pool mining are not the only way to go. We also have an option for those that don’t want to invest too much in mining equipment.
So, in order to expand the crypto usability, a new method of crypto mining appeared – CLOUD mining.
This technology allows crypto users to stop buying mining equipment and start renting computing power from industrial mining services. As a result, your investment becomes lower, you can mine any kind of crypto you want, and you can quit anytime without feeling guilty.
In Conclusion
The beginning of 2023 came with several surprises in the crypto industry, including new coins that can bring excellent returns for miners even in a bull market and not just for Bitcoin mining. Of course, in addition to these coins, others can be profitable depending on the energy cost in the country where the miner operates or other factors.
However, our recommendation regarding the best cryptocurrency to mine was based on today’s safest, most well-known, and most profitable coins, so you can turn to them to make cryptocurrency mining profitable.
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