Is cryptocurrency mining profitable now? Both yes and no. It depends on what and how you mine plus your electricity bills may vary depending on where your rigs or farms are located. Bitcoin (BTC) is not the most profitable mining coin anymore: mining difficulty is so high it requires the whole farms jam-packed with juggernauts servers to get a block. Luckily, there’s a bunch of great altcoins making profitable mining possible.
Although mining is not as dirt-cheap and profitable option as it used to be a few years ago, it’s still a legitimate way of earning crypto and enjoying almost passive income.
Miners are now smarter & way more experienced in crypto trading. They prefer mining the most promising cryptocurrencies only as there’re done wasting precious hashpower, time and investments on new coins with a low trading volume. Nevertheless, there are always a sufficient number of enthusiasts to support a new crypto project by mining or minting blocks and confirming transactions hoping for a future take-off to the Moon.
Want to join the crypto mining industry and got a GPU or CPU-based miners ready? Find out what are the most profitable GPU and CPU mining coins in 2019-2020.
Estimate Profitability First
Before we start enlisting most profitable coins, let’s find out what defines crypto mining profitability:
- Price of Cryptocurrency. The law is simple: the more expensive a coin is, the more profitable mining should be. However, it’s true only for short-term investments. If you’re patient enough, you can mine a promising coin and wait till the price grows.
- Block reward & Halvings. What makes cryptocurrency mining 2020 less profitable than before is halving of rewards. For example, the next BTC halving will take place in 2020 making it even less attractive. Or recent Litcoin (LTC) halving which cut the profits from 25 to 12.5 LTC. Make your own research to calculate whether your investment in mining equipment will be compensated by the amount of coins mined.
- Time of block generation. The more blocks are generated by the network, the higher the chance of getting rewarded for a found block.
- Mining difficulty and hash rate. Both GPU and CPU mining 2020 is quite challenging due to a high number of miners involved. However, it’s still possible to find a niche coin where you can make a decent profit without suffering from competition. Find out most profitable algorithms & coins to mine on WhatToMine.com
- Equipment efficiency. It depends on your budget and current difficulty of a coin, so choose accordingly. Theoretically, the power of mining equipment should be continuously increased, but in reality, it’s too expensive to invest in GPUs all the time.
- The cost of electricity cost. This is the most important when calculating the profitability of cryptocurrency mining. Below you can find a list of countries with the cheapest electricity bills.
If you focus on profitable Bitcoin mining, you may be interested in the infographics below.
The following table shows how ETH mining profitability fell during a couple of years:
Does it mean mining is no longer relevant? No! You just need a smarter approach.
How to choose the best coin to mine in 2020?
Even if you use the best GPU for mining 2020 and plan to mine thousands of coins, think how and where you will use them. There are a few aspects that matter:
- The possibility of withdrawing to fiat. Find the exchange platforms allowing you to convert the newly mined coins to fiat or buy some popular tokens like ETH or BTC. Don’t forget about exchange fees, as well.
- Which exchanges support the coin? When it comes to unpopular or low-quality coins, some of them can only be withdrawn to the internal wallet of crypto exchanges. Exchanges with a low level of popularity and are forced to work with shitcoins (even if mining seems profitable) and rely on large commissions as the only way to survive. In this case, the miner will be forced to give a serious share of the earned only for withdrawal.
- Make sure it’s legal. Some countries have pretty strict regulations concerning cryptocurrency mining. If it’s totally banned in your country – better avoid the risk. In some countries, authorities pay particular attention to the cryptocurrencies with a high level of anonymity because they serve as a perfect money-laundering tool and allow for illegal trading. Make sure you won’t have any legal issues after mining a new coin
- Now when you’ve decided which cryptocurrency to mine, evaluate the long-term use of the purchased equipment. The problem is that the complexity of mining is growing very quickly and mining equipment is always doomed to lose its value.
Nvidia GTX 1070 – one of the most popular GPUs for mining in 2020
Top-10 best altcoins to mine in 2020
In this list, we have gathered cryptocurrencies that are widely available for mining: you don’t have to build the entire mining farm to start earning. Moreover, each coin has tons of potential, so cryptocurrency profitability shouldn’t be a big concern.
1. Grin (GRIN) – Best for GPU mining
Green is a relatively new cryptocurrency based on the MimbleWimble consensus algorithm, which ensures the privacy of transactions within the network.
Grin has unlimited coins, which is certainly attractive for miners. The complexity of mining changes dynamically in accordance with the hash of the network. The coin uses the so-called Cuckoo Cycle concept. We are talking about two PoW algorithms: CuckARood-29 and CuckAToo-31. The first is suitable for mining on GPU processors and is protected from ASIC miners, the second is geared specifically for them. At the same time, work with ASIC is planned for the future, so while CuckAToo is compatible with video cards.
The coin is traded on various crypto exchanges, including the famous Poloniex, HitBTC, Bittrex, OKEx and KUCoin.
Hashing Function: MimbleWimble
ROI since launch: -95.43%
Curr. Price: $ 0.45 USD
Mining Reward: 60 GRIN per block
2. ZCash (ZEC)
ZCash (ZeroCash) was released in October 2016. This coin, since it can be mined by anyone. Its algorithm allows using mining graphics cards. ZCash is completely anonymous in transactions. It is impossible to track them. Many people really like this feature.
The commission for ZCash transactions is negligible, so it’s absolutely convenient for trading and selling.
In 2017, ZCash was massively introduced to popular exchange platforms. Yet, the coin is greatly underestimated and, most likely, will reveal its potential only in 2020.
Hashing Function: Equihash
ROI since launch: -99.29%
Curr. Price: $30.43 USD
Block Mining Reward: 10 ZEC
3. RavenCoin (RVN)
This Bitcoin hardfork appeared in 2018, and already boasts high liquidity. Today, it’s #55 world cryptocurrency with the market cap over $78 mln. In 2019, developers added a set of new great features (messaging, voting with RVN, better compatibility, mobile wallet with seed phrase).
RavenCoin can be easily exchanged in many different platforms. In its essence, it’s a P2P blockchain that serves for efficient and fast transfer of assets from one person to another. It focuses on asset transfer on the basis of Ethereum and Bitcoin. Why RavenCoin is recommended for miners? It uses X16R algorithm and proof-of-work protocol. (You may also read about the difference between proof of stake vs proof of work here).
Hashing Function: X16R
ROI since launch: 39%
Curr. Price: $0.0138 USD
Block Mining Reward: 5,000 RVN
4. Monero (XMR)
Existing on the market since 2014, Monero has proved to be reliable and viable. Since 2017, XMR entered an uptrend and continues growing. Unlike ZCash, it has 10 times higher fees, but users still value Monero for an exceptional level of anonymity provided.
Monero keeps altering its algorithm to prevent the possibility of ASIC-mining, so you are free to use GPU and CPU to mine it. Monero leverages CryptoNightV8 proof of work algorithm and generates 3.38 XMRs as block reward every two minutes, so it’s quite profitable for mining.
Hashing Function: CryptoNightR
ROI since launch: 1,490.68%
Curr. Price: $39.29 USD
Block Mining Reward: 2.47 XMR
5. Ethereum Classic (ETC)
A hardfork of Ethereum, Ethereum Classic can be mined with a couple of GPUs. It has a bit higher block reward (4 ETC), and despite the fact that ETC might have higher inflation and scarcity, it’s still a very profitable cryptocurrency. Purchase a couple of NVidia or AMD cards, and enjoy passive income.
Hashing Function: Ethash
ROI since launch: 525.52%
Curr. Price: $4.71 USD
Block Mining Reward: 3.2 ETC
6. Litecoin (LTC)
If you can allow buying more or less expensive GPU, try mining Litecoin – all in all, this is one of the most successful Bitcoin hard forks. Why Litecoin?
- It can be easily exchanged on a variety of platforms.
- It’s less volatile than many other altcoins.
- It’s one of the best GPU mining coins – you don’t have to buy ASIC because it uses SCRYPT protocol.
- High speed and moderate transaction fees.
The top-10 world cryptocurrency with a $2.3 bln market cap, Litecoin will never be a wrong decision.
Hashing Function: Scrypt
ROI since launch: 743.42%
Curr. Price: $36.27 USD
Block Mining Reward: 12.5 LTC
7. Bitcoin Gold (BTG)
Another great mining cryptocurrency 2020, Bitcoin Gold was created specifically for GPU mining. It’s based on the consensus between Equihash algorithm and POW protocol. It’s ranked as 39th world cryptocurrency with its $125 mln market cap.
One of the main reasons to try Bitcoin Gold is stability. Although it didn’t grow during 2019, it’s appeared to be less volatile than other altcoins. The coin has avoided being affected by the bearish trend this year – it’s a good sign.
Hashing Function: Zhash
ROI since launch: -98.52%
Curr. Price: $7.11 USD
Block Mining Reward: 12.5 BTG
8. DASH (DASH)
Dash describes itself as digital cash in the world of cryptocurrencies. It enables swift and secure transactions around the globe via InstanSend and PrivateSend.
The best DASH ASIC miner is considered to be Antminer D3 produced by Bitmain. Is it profitable to mine DASH in 2020? It quite is. However, don’t forget that the mining profitability depends on the hashrate of your mining device, network difficulty and electricity costs in your region.
Hashing Function: X11
ROI since launch: >9000%
Curr. Price: $65.74 USD
Block Mining Reward: 3.11 DASH
9. Dogecoin (DOGE)
The creation of Billy Markus, Dogecoin cryptocurrency was made just for fun, but it suddenly became popular and now is #33 world cryptocurrency with $219 mln market cap! Like Litecoin, it uses Scrypt protocol, so you don’t have to use very expensive machines to add DOGE to your portfolio.
However, it doesn’t mean you should use your laptop for mining. Dogecoin is highly popular, so is its mining difficulty. Use a CPU/GPU to enjoy steady performance and income.
Hashing Function: Scrypt
ROI since launch: 216.51%
Curr. Price: $0.001769 USD
Block Mining Reward: 10,000 DOGE
10. Ethereum (ETH)
In 2019, Ethereum has managed to get its second place back, and the price of the coin is expected to grow after reduction of reward from 3 to 2 ETH. As a result, a decrease in supply, if there is demand, usually flows into an increase in value.
JoeTechnologist creator Joe Rachinski claims ETH will cost $ 1,200 by the end of 2019. As we can see in 2020, this prediction didn’t work. Still, Nigel Green believes ETH will someday cost $ 2,500. This will be facilitated by increased demand for digital currencies, the popularity of smart contracts and the decentralization of cloud computing.
Hashing Function: Ethash
ROI since launch: 4,352.08%
Curr. Price: $126.07 USD
Block Mining Reward: 2 ETH
Bitcoin (BTC) – The King
Bitcoin remains the king of cryptocurrencies with a current dominance index of 64.5% according to CoinMarketCap. A recent survey from a well-known crypto-community influencer @hodlonaut, more than 60% of cryptocurrency holders assign more than 75% of their portfolio to Bitcoin (BTC). It is a brand and has its own unique currency symbol – ₿.
Moreover, the “2020 BTC block reward halving” is coming soon and will reduce the reward for the mined block from 12.5 to 6.25 bitcoins. A decrease in production, as a basic rule, means an increase in the value of the asset, especially with that constantly growing demand. There is still enough time to start mining some bitcoins.
It is important to understand that despite all the positive aspects, Bitcoin mining remains an extremely competitive market and the situation will only worsen in this sense. Be prepared to invest enough in mining equipment, technical support, and to pay some huge electricity bills.
Also, Bitcoin mining is dominated by ASIC mining machnines for several years already. Do not even try to get involved in mining it on a CPU or GPU.
Hashing Function: SHA-256
ROI since launch: 8.215.50%
Curr. Price: $ 5,996.36 USD
Block Mining Reward: 12.5 BTC
By the way, if you have a pretty moderate amount of mining power, you can increase your crypto mining profitability by joining a mining pool (mine together with others and share profit). Here are platforms allowing for it:
Coin Mining pools Monero MineXMR, MinerGate, Nanopool, Dwarfpool Ethereum ETHfans, Dwarfpool, F2pool, ETHpool, MinerGate Ethereum Classic Ethermine, Nanopool, Miningpoolhub, 2miners Ravencoin Pickaxe.Pro, Virtopia Mining Pool, XiTech, Zergpool Litecoin Multipool, Prohashing, Litecoinpool, NiceHash, viaBTC Dogecoin Aikapool, Litecoinpool, Multipool, Prohashing Bitcoin SlushPool, BTC.com, F2Pool, Antpool, Poolin
Is crypto mining worth it? Absolutely yes, if you calculate all investments and earnings beforehand and make up a thorough plan. Your budget should correspond with what you’re going to mine. The more popular and expensive a cryptocurrency is, the more powerful equipment is required.
Here you can calculate the average CPU or GPU mining profitability: https://whattomine.com
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