If you’re looking to get into mining cryptocurrency you could be embarking on a very lucrative journey. Once you’ve established what coin you’d like to mine, you’ll need to establish whether the endeavour will be profitable. Due to varying electricity costs, the cost to mine 1 BTC costs roughly $1,852 in Ukraine vs $9,913 in Australia. While you establish the costs, we’ve rounded up the top 10 most profitable crypto coins to mine in 2021.
What Affects The Profitability Of Mining Crypto
We know the electricity costs are going to affect the profitability of mining crypto, but what other aspects are there to consider? Firstly, you’ll need to look at the price of the cryptocurrency, as the more valuable the coin, the more profitable the mining. You’re going to want to check in to see when the next halving will take place, as if this occurs soon after you’ve set up your mining rig this might have large consequences on your financial outcome. The crypto coin’s mining difficulty and hash rate will also affect whether you come out on top, or if you’re going to be getting involved in an already saturated competition. You can find profitable algorithms and coins to mine here. Lastly is to consider the efficiency of your equipment. What machines you invest in will largely depend on your budget and should be compared with the difficulty of the coin.
Top 10 Most Profitable Crypto Coins To Mine in 2021
Let’s dive into our list of the top coins to mine in 2021.
Zero Cash launched in 2016 and offers a completely anonymous cryptocurrency. Its mining algorithm allows using mining graphics cards, and the total coin supply is 21 million coins. ZCash uses the hashing algorithm Equihash, an asymmetric memory-hard PoW algorithm built on the generalized birthday problem. This relies on high RAM requirements to bottleneck the generation of proofs and in the process makes ASIC development unfeasible.
Hashing Function: Equihash
Block Mining Reward: 10 ZEC
Following the DAO attack on the Ethereum network in 2016, the network split into two and the original blockchain became known as Ethereum Classic. Every 5,000,000 blocks the network reduces the block reward, with the most recent undertaking in March 2020 where the blocks were reduced from 4 ETH to 3.2 ETH. The coin still remains profitable to mine, and uses the Ethash hashing function.
Hashing Function: Ethash
Block Mining Reward: 3.2 ETC
Grin launched in early 2019 and offers a unique balance of privacy and scalability that utilises the MimbleWimble protocol. The hash of the network influences the complexity of mining dynamically, and mining can be done through three algorithms. Grin has an unlimited coin supply, making mining the coin very attractive.
Hashing Function: CuckARood-29, CuckAToo-31, Cuckaroom-29
Mining Reward: 60 GRIN per block
This top 10 cryptocurrency will always remain a viable option for mining. By far one of the best hard forks of Bitcoin, Litecoin has wide appeal and strong functionalities. The coin uses the Scrypt protocol and is leading GPU mining coins.
Hashing Function: Scrypt
Block Mining Reward: 12.5 LTC
Another Ethereum addition to our top 10 most profitable crypto coins to mine in 2021 is the hard fork, Ethereum. Currently sitting at number 2 on the list of biggest cryptocurrencies, Ethereum offers a platform that facilitates dapp creation. The platform introduced the world to smart contracts and is also widely used in the DeFi movement. Ethereum uses the Ethash proof-of-work algorithm and does not have a limited supply.
Hashing Function: Ethash
Block Mining Reward: 2 ETH
Monero is another privacy based coin that offers total anonymity. Established in 2014, the coin has experienced increased adoption. Monero now uses the RandomX algorithm which it continuously alters in order to prevent the possibility of ASIC-mining. This coin is one of the best options for CPU mining.
Hashing Function: RandomX
Block Mining Reward: 1.73 XMR
Another hard fork of Bitcoin, Bitcoin Gold was officially launched in 2017. The cryptocurrency changed the PoW algorithm to Equihash in an attempt to democratize the mining process and do away with specialized mining equipment. Designed specifically for GPU mining, Bitcoin Gold is a good option for anyone looking for a profitable crypto coin to mine in 2021.
Hashing Function: Zhash
Block Mining Reward: 12.5 BTG
Launched in January 2014, Dash sits in the top 30 cryptocurrencies based on market capitalisation. The cryptocurrency is a hard fork of Litecoin and facilitates swift and secure international transactions.
Hashing Function: X11
Block Mining Reward: 3.11 DASH
Launched in 2018 RavenCoin creates and facilitates the peer-to-peer transfer of assets. It has been well received in the crypto markets and has managed to amass an impressive market capitalization in the short space of time. The coin has also added great features to the platform increasing its use case with features like messaging, mobile wallets with seed phrases, and voting with RVN. The cryptocurrency is attractive for miners due to its X16R hashing function and KawPoW protocol functionality.
Hashing Function: X16R
Block Mining Reward: 5,000 RVN
What started as a joke cryptocurrency soon grew to a widely adopted and surprisingly successful crypto coin. Another Litecoin fork, Dogecoin sits in the top 50 cryptocurrencies and is mainly used for tipping content creators on Twitter and Reddit. Dogecoin uses the Scrypt protocol and has no limit on its total supply.
Hashing Function: Scrypt
Block Mining Reward: 10,000 DOGE
Bag Crypto Coins
That concludes our list of 10 most profitable crypto coins to mine in 2021. Be sure to find out what equipment will best suit the process, what the electricity costs are in your area and other factors to establish whether this will be profitable for you. Whether you choose to mine these or not, you can still purchase most of these cryptocurrencies through Oobit, either by card or the exchange through our exchange. Whatever you choose to do, make sure you start 2021 with a healthy portfolio of cryptocurrencies.