Today, we are going to show you how to mine the most profitable coin. Whether you are a seasoned miner or you are just entering the crypto universe, this guide is for you.
For the sake of this guide, we are going to assume that the most profitable coin is the one that yields the highest dollar amount when converted. If you are looking for a coin to hold, this is not the guide for you.
I’m going to start off by talking about how we determine the most profitable coin. Then I’ll give you a list of some mining programs and pools that can help you mine multiple coins.
Does a coin’s profitability depend on which GPU I Have?
Yes. Each GPU has a different hash rate for each cryptocurrency algorithm. Before you jump into mining the next profitable cryptocurrency, you must check to see if it is proftable for you. Depending on the hash rate of your GPU it might make sense to mine a completely different algorithm. You can get a benchmark of your GPU’s hashing power using the site: https://whattomine.com/
When choosing a GPU to purchase, you want to pick the one’s that have high hash rates for a variety of algorithms. In my opinion, this is the best way of diversifying your investment. By doing this, you are more likely to be able to effectively mine the next profitable coin.
How do you know if a coin is profitable?
A simple way of determining the best coin to mine is to check out the site: https://whattomine.com/
Over there, you can input the type and amount of the GPUs that you have, and you’ll get a detailed list of different cryptocurrencies along with the U.S. Dollar amount that they will bring in.
The profitability of a coin is based on two things: Hash Difficulty and Price.
How does Hash Difficulty effect the profitability of a coin?
The hash difficulty is a meausure of all of the mining power that exists on the network. As the hash difficulty increases, you will be competing with more people for mining rewards. On the other hand, if the hash difficulty decreases, you will be splitting the rewards among a lesser amount of people. This will increase the profitablity of a coin.
How does Price effect the profitability of a coin?
The price is another major factor of a coin’s profitability. IfTo the price of a coin suddenly rises, then the mining reward is going to be more valuable. This is what happen to Ethereum in the Spring of 2017. The price of Ether shot up almost 3000%, causing the mining rewards to be considerably more valuable then they had previously been.
Eventually, word got out that Ether was the coin to mine. Now the hash difficulty has gone up to the point where the profitability is not where it once was. This is okay though, because there are many more coins to mine.
How to mine the most profitable coin?
To mine the most profitable coin, you are going to need some profit switching software. There are multiple different types of mine programs/pools that you can use.
Here is a list of some of my favorite profit switching miners.
Nicehash is one of the more popular profit switching miners out there. This is because it is so simple to use. They also pay out in Bitcoin which is a big plus if you were planning on converting your crpytocurrency anyway.
What makes Nicehash different than all of the other pools is that you aren’t actually mining for yourself. When you use Nicehash, you are selling your hashing power to them, and they are reselling it on their marketplace. This is beneficial because you are allowing the free markets determine the most profitable coin to mine.
You literally download their mining program, put in your Bitcoin address, and hit start. It’s almost too easy. If you want to make things even easier, download the miner Awesome Miner
With Awesome Miner, you can easily connect to the Nicehash network. Awesome Miner will also allow you to set up autostart so that you automatically start mining once you turn on your rig.
Mining Pool Hub
Mining pool hub is another popular mining pool. It is more traditional in the sense that you will actually be mining the coins for yourself. What makes Mining Pool Hub really useful is it’s ability to Auto Exchange your mined coins into any coin of your choice.
Once you have setup Auto Exchange, you can specify an wallet address and frequency of withdrawal on their online dashboard.
Setting up profit switching on Mining Pool Hub can be a difficult task. The manual way of doing it is listed on their website. It involves having multiple mining programs installed with a batch file that points to each one. Once you have this setup, you can specify a coin, or algorithm that you want to mine on the Mining Pool Dashboard.
Luckily, Awesome Miner also provides support for Mining Pool Hub. Simply download Awesome Miner, install it, and setup a “Profit Miner”. On the Mining Pool Hub dashboard, you’ll be able to add a worker. Once you have added a worker, you can input your worker name into Awesome Miner ( ex. accountname.workername).
Remember to setup Auto Exchange on Mining Pool Hub, unless you want to keep the different coins that you’ll end up mining.
There is multiple factors that should be considered when choosing a coin to mine: GPU, Hash Difficulty, Price, etc..
The easiest way to mine the most profitable coin is to use the site https://whattomine.com/ or use a profit switcher like Nicehash or Mining Pool Hub.
I personally prefer using the profit switchers since I can leave it on autopilot. If you look on the What to Mine site, you’ll notice that the profitability of a coin changes day to day. It’s best to leave it to a profit switcher that can take care of all of this for you.
I hope this article was able to point you in the right direction! If you have any questions please comment below or email me at Nick@BuildaMiningRig.com!