Mining cryptocurrencies will produce new crypto coins. Mining also encourages more and more crypto enthusiasts to start this exercise. However, there are some essential things to consider before you get your feet wet in cryptocurrency mining.
You will need a password-protected coin wallet for storing all your earnings, mining software, and membership of a reputed and trustworthy mining pool where various miners will contribute their respective mining powers to improve profitability and stability. You are also going to need a membership at an online cryptocurrency exchange where you can exchange the coins you have mined for Bitcoins or cash.
To do mining, you will require a custom-built machine with an Nvidia GPU or an ASIC chip designed for mining. But the truth is that GPU mining will not yield too many altcoins as the mining industry is becoming more and more professionalized and consolidated. So, the small miners have to join larger mining pools to get at least a part of the rewards.
Here are the top 5 cryptocurrencies that you can hope to mine in 2020:
- Bitcoin (BTC) is by far the best in terms of profitability even today and has been the first decentralized digital currency to have first made its appearance in 2009. When mining Bitcoin, you will need a peer-to-peer machine that can secure or verify transactions in a decentralized network. This May, Bitcoin will experience forking for a third tie, and block rewards will be reduced to 6.25 BTC for miners. On the other hand, bitcoin trading through automated trading apps like Bitcoin Loophole is on the rise.
- Litecoin (LTC) refers to open-source software under MIT/X11 license that now trades at $44 and occupies the 4th position as far as the market cap goes. Litecoin has a high storage capacity, the confirmations are faster, and this explains why it is slated to become probably the best cryptocurrency for mining in 2020. In December 2018, Litecoin had managed to outshine the BTC, and this trend is continuing with Bitcoin halving only a few months away. The Litecoin will be halved in August 2020, and the rewards for miners will be reduced to 12.5 LTC from 25 LTC.
- Ravencoin or RVN is a recent entry, having been launched two years back, and it is built upon the Bitcoin fork. This is also a peer-to-peer blockchain for handling asset creation and transfer between parties. This is a US-based open-source blockchain focusing on asset transfer and has gained a lot of popularity recently. A reason for this is the X16 algorithm used as proof-of-work mining.
- Grin is a new addition to this list of profitable cryptocurrencies for mining in 2020. It is a privacy coin having unlimited supply and has earned a lot of positive responses. This open-source project focuses on scalability, privacy, fungibility, and is the first to use privacy technology.
- Horizon, originally called Zen Cash, is also a blockchain focusing on privacy; it was meant for transactions, communication, and publishing. This currency was launched as Zclassic fork in May 2017 and did not have ICO or Initial Coin Offering. It is perfect for CPU mining and employs a node system for relaying data through connecting nodes. The e-protocol delivers secure messages through the Zen Chat service.