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Mining no longer provides the same income as before, but some cryptocurrencies can bring substantial profits. We will tell you what cryptocurrency is profitable to mine now and whether it is possible to earn from mining.
What is cryptocurrency mining
Not only the most important digital coin of the cryptoworld – bitcoin, but also other cryptocurrencies are mined with the help of mining. How does it work?
Cryptocurrency mining takes place on special farms, where mining capacities consisting of hundreds of thousands of processors and video cards are installed. Here, miners calculate special blocks that give them the right to receive a certain amount of virtual coins. The miner has the right to choose the coin to be mined: if bitcoin is chosen, the mining premium is paid in bitcoins, but if, for example, etherium is chosen, then ether is paid.
In the beginning, mining the cryptocurrency brought the most generous rewards, but the bitcoin algorithm embedded in its software code suggests that every year its mining will become more difficult. Moreover, the number of coins is limited, with the “last” bitcoin due to be mined in 2140. Therefore, more and more experts are asking what cryptocurrency is profitable to mine in 2022.
BTC/USD price history
- Last week.
- Last month.
- Last year.
- For the last two years
- Maximum
- Daily
- Weekly
- Monthly
| Date | Closing | Change | Change(%) | Opening | Max. | Min. |
| Sep 6, 2022 | 19823.95 | 25.90 | 0.13% | 19798.05 | 20184.65 | 19671.05 |
| Sep 5, 2022 | 19797.95 | -207.10 | -1.04% | 20005.05 | 20062.20 | 19637.30 |
| Sep 4, 2022 | 20004.95 | 171.15 | 0.86% | 19833.80 | 20032.80 | 19587.30 |
| Sep 3, 2022 | 19833.95 | -120.85 | -0.61% | 19954.80 | 20056.45 | 19650.70 |
| Sep 2, 2022 | 19954.55 | -179.00 | -0.89% | 20133.55 | 20441.70 | 19755.80 |
| Sep 1, 2022 | 20132.45 | 83.40 | 0.42% | 20049.05 | 20209.30 | 19557.80 |
| Aug 31, 2022 | 20048.15 | 230.45 | 1.16% | 19817.70 | 20492.45 | 19801.20 |
| Aug 30, 2022 | 19817.55 | -475.50 | -2.34% | 20293.05 | 20576.95 | 19539.45 |
| Aug 29, 2022 | 20294.95 | 743.00 | 3.80% | 19551.95 | 20422.80 | 19548.80 |
| Aug 28, 2022 | 19553.70 | -482.00 | -2.41% | 20035.70 | 20162.95 | 19517.70 |
| Aug 27, 2022 | 20035.45 | -204.50 | -1.01% | 20239.95 | 20382.95 | 19807.45 |
| Aug 26, 2022 | 20240.70 | -1321.50 | -6.13% | 21562.20 | 21879.20 | 20108.45 |
| Aug 25, 2022 | 21562.70 | 190.00 | 0.89% | 21372.70 | 21814.80 | 21307.95 |
| Aug 24, 2022 | 21372.70 | -154.35 | -0.72% | 21527.05 | 21904.55 | 21151.30 |
| Aug 23, 2022 | 21527.20 | 128.50 | 0.60% | 21398.70 | 21684.70 | 20890.95 |
| Aug 22, 2022 | 21398.80 | -117.50 | -0.55% | 21516.30 | 21531.80 | 20894.95 |
| Aug 21, 2022 | 21516.70 | 374.90 | 1.77% | 21141.80 | 21708.15 | 21066.70 |
| Aug 20, 2022 | 21141.45 | 306.25 | 1.47% | 20835.20 | 21368.80 | 20793.05 |
| Aug 19, 2022 | 20835.45 | -2360.25 | -10.18% | 23195.70 | 23207.30 | 20785.95 |
| Aug 18, 2022 | 23195.45 | -148.35 | -0.64% | 23343.80 | 23596.70 | 23107.70 |
Now the bitcoin network is controlled by huge mining pools that buy ASIC miners for mining coins – special equipment that replaced video cards. Single miners, who raised the bitcoin mining industry, do not withstand the competition and go to niche projects associated with other digital currencies.
Cryptocurrency mining: basic schemes
The most popular and quite profitable cryptocurrency mining scheme is video card mining. Video cards have quite a long lifespan (even older versions are able to mine cryptocurrencies), their algorithms are easy to reconfigure, and there is a three-year warranty from the manufacturer. This is relevant because modern versions of video cards work on new generations of GPUs without re-flashing.
You can’t make a lot of money on one video card, that’s why they mostly work with farms. This is a construction consisting of several video cards at once. Every year the entry threshold to private mining grows, as well as the complexity of mining and, accordingly, the payback of this type of crypto-business.
And also the equipment for miners creates a lot of noise. However, this problem is least of all related to video cards. Even a farm consisting of 5-7 video cards is much inferior to an advanced ASIC miner in terms of decibels.
ASIC (ASIC) is a reliable, relatively compact device for mining cryptocurrency on certain algorithms.
If a miner wants to mine several coins at once, he will have to buy a gadget for each of them. It is not possible to reprogram an ASIC that works with bitcoin, for example, to work with other currencies.
As for economic efficiency, cryptocurrency mining with ASIC requires about 3 kW of electricity and brings its owner a net profit of $350 per month.
From the disadvantages of working with the device we will allocate a very high noise level. It is definitely not suitable for an apartment. As an option – a separate room or a mining hotel.
Among the low-cost and low-profit schemes you can choose mining in a browser. It requires JavaScript to be installed. Unfortunately, in this scheme the disadvantages prevail over the advantages. The main problem is the high risk of becoming a victim of a virus attack, which will turn your computer into a mining node for another user.
Browser mining is inefficient: by installing the application, you run the risk of catching a hidden miner or other virus. It is easier and quieter to try to mine cryptocurrencies on a hard drive. You will need special software and a large volume of hard drive from 3 terabytes. Minuses – a limited number of coins for mining and low profitability.
In order to engage in cloud mining, you need to lease a certain amount of computing power in a remote data center. Some services also offer ASICs on lease with a buyout after the lease expires.
The advantages of cloud mining are the absence of noise in the apartment, saving on equipment, and time. Unfortunately, mining cryptocurrency in this way has high risks. There are too many scammers in the cloud service, which undermine the reputation of the whole market and negate the benefits of a rather nice scheme.
Is it profitable to mine now
Some experts say that cryptocurrency mining in 2022 will no longer bring the same dividends as before, but it is not that simple. The main event, which cannot be ignored by anyone who is going to engage in mining, is the expected transition of ETH to PoS. The Ethereum network has scheduled the transition to Proof-of-Stake for December 2020, but it hasn’t happened yet. And there’s a feeling that this whole thing is going to drag on a bit.
If you look for the pros of switching to stacking the second most important cryptocurrency in the world’s tops, you can find them. But they are specific, and they are quite few.
There will be no need to buy and maintain expensive devices, keep an eye on their temperature and condition. But the problem is that these devices will become completely useless for ETH mining in a moment. This is especially unpleasant if the farm consists of several dozens or even hundreds of devices, which threatens the loss of capital. Of course, the devices can be sold at a residual price and recoup some of the costs, but this is little consolation for the miner. In that sense, cryptocurrency mining in 2022 is unlikely to be what it used to be.
But while the transition is taking place, there is a chance to jump on the departing train and make a profit from ether. For example, the average price of an AMD video card suitable for mining is $1300. You will need at least 4 cards to assemble a farm. The output price, taking into account the purchase of additional components will be $5000.
The number of farms is limited by the investor’s capital and the size of the room. Taking into account the complexity of the network, remuneration, pool commission, electricity prices, the current price of ether, and the cost of video cards, the investment will pay back in 430-440 days. And if you take into account that in six months the air will go to POS, the timing of reaching profitability will increase in two or three times.
Another difficulty for potential ether miners, video cards with 4 GB of memory are no longer suitable for mining ETH, all because of the size of its DAG-file. The problem is solved by buying new video cards. But whether they will pay off is unknown, the risks are too high. There is an alternative – TON coin mining, but all the advantages of this transition will melt away, if ether miners, who lost their source of profit, do the same.
What to mine in 2022
Cryptocurrency mining 2021 is not limited to ether and bitcoin. Other coins can be chosen instead of ether, and once mined, they can be exchanged for ether.
Beam feels good in such a scheme, this coin has no DAG-file, or you can take up mining Ethereum Classic. The DAG file of this coin will exceed 3 GB by August 2022 and 4 GB by September 2025.
When choosing a coin, you should also consider the volatility of its exchange rate and its liquidity on the market. Another important point is the load on video cards.
Note the two most profitable coins for mining on video cards:
Dogecoin
Popular among miners and valuable for mining cryptocurrency, ranked 14th by market capitalization and listed on leading exchanges such as Binance, Huobi or Bittrex.
Dogecoin requires much less energy to mine than Bitcoin and can bring higher profits, but is highly volatile.
Price: $0.08527. Reward for mining on the block: 10,000 DOGE.
Litecoin
One of the oldest cryptocurrencies, created by Charlie Lee as a fork of the Bitcoin protocol. However, LTC differs from Bitcoin in that it uses the Scrypt Proof of Work mining algorithm, which allows less powerful GPUs to mine it.
Price: $ 70.91. Reward for mining on the block: 12.5 LTC.
Chip solution – mining on the processor, you will not earn much here, but the profit will be. Of the coins that are focused on such a mining scheme, we will also highlight:
Monero
This is a confidential cryptocurrency based on the CryptoNight algorithm. The coin’s protocol is resistant to ASIC mining. In practice, this means that the method of mining crypto on the processor is favorable. In terms of market capitalization, Monero is consistently among the top 30 coins and currently ranks 13th.
Reward for mining on the block: 3.41 XMR, the price – $179.23.
Dash
It is still one of the most popular cryptocurrencies. And more recently, its creators have made it more innovative by adding extra privacy and implementing an instant payment mechanism. Dash can be mined using a processor. This digital asset has a fairly high liquidity…
