New coins to mine
Nowadays, mining is going to the past because new consensus technologies have been created. However, there are a lot of new cryptocurrencies based on the old mechanism. That’s why you can mine them and earn some income.
You need to find new coins regularly because of the difficulty of mining and spendings associated with it grows. For example, Bitcoin mining is totally unprofitable for an average person who has only one graphic card. Now, only big companies can earn money with this method, but even they need to face a lot of difficulties.
How to find new cryptocurrency?
Since mining volume is decreasing today, it is very hard to choose a new token. Price trends are regularly changing, and you need to conduct in-depth analysis. You need to understand coin technology, new developments, etc.
There are also factors that should be taken into account during mining:
- Difficulty of the mining. This is one of the most important factors because difficulty directly affects the speed of production, and as a result, the number of mined coins. It is harder and harder to mine cryptocurrency in 2020 because of a limited quantity of coins.
- Price changes. There is no reason to mine cryptocurrency that has a stable falling trend. The higher volatility, the higher risks. You can invest a lot of money in equipment, mine a cryptocurrency that has one price and after that realize that it is falling very fast.
- Price prognosis. You should take into account expert opinions to understand the prospects of mining.
- Market capitalization. This is a total amount of mined cryptocurrencies.
- How they can be used.
- Developer’s experience.
- Information in open sources.
There are some “red flags” that should make you cautious:
- ICO. If cryptocurrency is only being launched, we can’t be totally sure about its prospects. In simple words, you are not supposed to mine brand new coins.
- Masternode selling.
- Pre-mining.
- When cryptocurrency tries to look like another token.
Check mining profitability
You should ensure that mining is profitable personally for you. This task is quite difficult, taking into the current state of cryptocurrency mining. There are a lot of variables that affect mining effectiveness. There are a lot of calculators to understand how effective mining is given particular conditions.
One more important moment that you should take into is the changing of these variables. That’s why the mining industry is unpredictable. One change in the law can cross out good prospects. Every cryptocurrency is unpredictable and volatile.
Some basic coins
You need to understand that situations change fast and at the time you read this article, it can lose relevance. Also, as we said above, it is undesirable if you mine ICO. There are too high risk and a high probability that the new token won’t be able to repeat the Bitcoin’s success. You need a great knowledge to understand the prospects of a certain new cryptocurrency. Even the experts don’t try to put forward any specific forecasts.
Monero and ZCash
Monero is the 13th cryptocurrency by market capitalization. This confidential cryptocurrency is especially attractive for miners for its protection from the ASIC-mining.
What does it mean? You do not have to buy expensive equipment, and this fact can reduce the cost of mining.
Although profit from Monero mining has recently decreased, this fact doesn’t mean miners cannot get profit from this process.
One of the alternatives is the ZCash cryptocurrency. In 2018, profit from mining was 4 times higher compared to Bitcoin.
Grin
This is another coin based on PoW. You can mine it on the CPU. It is protected from ASIC due to hard forks held every six months.
Ravencoin
This altcoin is great for mining now. This is an American open-source blockchain that had recently become popular thanks to the X16R algorithm that uses PoW-mining. This cryptocurrency is incompatible with ASIC. Developers decided to protect this coin from such devices from the beginning.
The speed of mining can be different, so you can get some losses if you mine only this cryptocurrency.
Litecoin
This is not a new cryptocurrency, but it is useful for people who want to mine reliable token with a long history. This coin was created in 2011 and has advantages such as a fast transaction confirmation (maximum 10 minutes) and a more effective solution for storage.
Bitcoin Gold
Bitcoin Gold is a great solution for miners who now mine Bitcoin because this token is based on its code. You don’t need to buy special equipment developed for its mining. Therefore, BTG miners don’t need to throw away equipment if the price trends did not meet their expectations.
How to increase the profit of mining?
You’d better mine different cryptocurrencies. This way, you can reduce the risks. This principle is called «diversification». It is universal for any investment, not only digital money.
The best coins for the mining on CPU
Yes, CPU mining is relevant in 2020. Although you might not earn less than a dollar a day with this method, you should think about the prospects of a price increase.
There are a lot of CPU coins that are relevant in 2020: Nimiq; Nerva; Pascal; Uplexa; Blur. All of them can lose relevance tomorrow. That’s why you should decide on your own if you want to mine any cryptocurrency.
Is mining profitable?
To be honest, mining isn’t so profitable anymore. An average miner can’t get a more or less normal income because of high requirements for hashrate. Only big companies can mine with a profit. Since 2018, a lot of miners have been finishing their businesses due to too high losses.
Some countries have low tariffs for electricity. That’s why you can get more profit there. However, you should be attentive because, for example, in Venezuela, you can mine one BTC for $531. Yet, this is not as good as it looks because the government doesn’t like miners. Some of them are arrested.
Mobile mining
Some cryptocurrencies can be mined via a smartphone. It sounds great because it seems to be promising. Unfortunately, these tokens cost almost zero dollars, and you need a lot of time to mine them. Also, the phone can be damaged by the mining process.
Some new cryptocurrencies that can be mined via a smartphone are outdated from the beginning. Mining slowly becomes a thing of the past, and we are forced to come to terms with this fact.
To sum up
New coins are too risky for mining. They can be created by scammers or don’t have a future. Also, new cryptocurrencies have other consensus mechanisms. Due to this, we can’t consider these assets as reliable even for mining.
We recommend you to choose cryptocurrencies that are not so old but at the same time not brand new. These assets should have a great history. It helps to understand where they were and what direction these cryptocurrencies go now.
