Mining is the process of creating new cryptocurrency coins and verifying new transactions on the blockchain. Blockchain is a decentralized database that is stored on computers connected to each other on the Internet. That is, computers verify and document transactions with cryptocurrency and, for this, receive a benefit in the form of new coins.
In addition to issuing new coins into circulation, mining supports the security of cryptocurrencies. It verifies and secures the blockchain, allowing crypto coins to function as a decentralized peer-to-peer network without any third-party control. And this creates an incentive for miners to contribute their computing power to the network.
This happens in a circle:
- Miners support and protect the blockchain;
- Blockchain rewards them with coins;
- Coins incentivize miners to support the blockchain.
Which Cryptocurrency to Choose for Mining?
To choose a cryptocurrency for mining, you need to consider the price of a particular coin. Bitcoin price forecast, Ethereum price forecast, Holo price prediction 2025, etc., will help in this. It is also worth taking into account the costs of cryptocurrency mining. Below is a list of the most profitable cryptocurrencies for mining today.
Bitcoin
If you have the capital and the willingness to put in the effort, Bitcoin is still the number one miner around the world. However, it requires large capacities. Taking this into account, Bitcoin miners are actively pooling. That is, they pool their resources remotely and work together to add blocks to the blockchain.
In the case of success, the award is divided depending on the amount of work that each of the participants contributed to the possibility of finding the block. For participation in the pool, a certain commission is paid, or a so-called membership fee is usually made.
Monacoin
Monacoin is a modification of Litecoin. It is the first cryptocurrency in Japan, founded in 2013. The Monacoin community is the most active cryptocurrency user community in Japan. The coin is based on peering technology. This makes it absolutely independent and self-governing.
The release of the new Monacoin is carried out jointly with the users of the system. All that is needed for its creation is a secure hardware wallet and a hardware device that can handle the process of mining the coin. It takes about 15 minutes to create one block.
Ravencoin
Ravencoin (RVN) was created in 2018 as a derivative of Bitcoin. It gained popularity due to a number of features, for example, a mobile crypto wallet, messaging, and RVN voting. In addition, it is actively traded on all active crypto exchanges, so it has high natural liquidity. Ravencoin attracts miners with KawPow protocol and X16R hashing. The reward for one block is 5000 RVN.
Today, Ravencoin is mined by a number of specialized servers. Cryptocurrency mining involves the creation of pools. Pools for collective mining combine the computing power of many users. This allows them to jointly mine Ravencoin and thereby increase the chances of receiving block rewards.
XYO
This is an Ethereum token on the basis of which the decentralized XYO Network operates. Devices on this network anonymously collect and validate geospatial data. The XYO price prediction indicates the growth of the token in the coming years. XYO mining can be applied in areas such as e-commerce to confirm the location of a product in the supply chain.
Types of Digital Currency Mining
Depending on the equipment and software used for mining, it is divided into:
- CPU and GPU mining;
- ASIC mining;
- Cloud and browser mining;
- Mining on a computer and communicators, etc.
Conclusion
Coin mining requires considerable computing power, so special equipment is used for this. Today, it is profitable to mine Bitcoin, Ethereum, and other coins described in the article.
