Which Cryptocurrency is Best to Mine Now?

Why is cryptocurrency mining still relevant? The short answer is: it depends on what you're mining and how efficiently you're able to do it. The mining landscape is constantly shifting, with new coins and consensus mechanisms popping up, while older coins adjust their difficulty and rewards. If you're jumping into mining now, you're likely wondering which cryptocurrency provides the most bang for your buck.

But here's the hook: Bitcoin is no longer the easy answer. Mining Bitcoin requires industrial-level equipment, and without access to cheap electricity, it’s a losing game for most individuals. The real opportunity lies in altcoins—smaller, newer cryptocurrencies that might not have the name recognition of Bitcoin, but can still provide significant profitability if approached correctly.

Ethereum’s transition to Proof of Stake (PoS) in late 2022 opened the door for a whole new discussion. Ethereum used to be a miner's dream, but with PoS, it’s no longer mineable. Instead, miners are flocking to alternatives like Ethereum Classic (ETC), Ravencoin (RVN), and even Flux (FLUX), each offering a unique opportunity for those who know how to optimize their setup.

Let’s take a deeper dive into each of these contenders.

Ethereum Classic (ETC)

ETC is the original Ethereum blockchain, and since Ethereum itself transitioned to PoS, ETC has become a popular choice for former Ethereum miners. It uses the same Ethash algorithm, meaning those who invested heavily in Ethereum mining rigs (especially GPU miners) can easily pivot to ETC without needing new hardware.

However, the downside is that ETC’s profitability is closely tied to the overall market performance of Ethereum, meaning it’s somewhat less independent than other coins. While it doesn't have the same massive developer community, its stability and security make it a solid choice.

Ravencoin (RVN)

Now, let’s talk about Ravencoin (RVN)—one of the most promising projects for miners looking for something a bit different. RVN focuses on asset transfers and token issuance and uses the KawPow algorithm, which is ASIC-resistant. This is a big deal because it means you don’t need specialized, expensive equipment to mine RVN, making it a viable option for smaller miners using GPUs.

One advantage of Ravencoin is that it has strong community support and a very active development team. However, it can be volatile, and you’ll need to keep an eye on profitability calculators regularly to ensure it’s worth your time.

Flux (FLUX)

Flux (FLUX) is another player in the market that has caught the attention of miners, especially those migrating from Ethereum. It operates on the ZelHash algorithm, which is designed to be mined by GPUs. What’s unique about Flux is that it’s more than just a cryptocurrency—it’s a decentralized cloud infrastructure platform, meaning its use case could give it a long-term staying power that other smaller coins might lack.

The major advantage of Flux is that it offers a real-world utility, which could help it weather the volatility of the crypto market. However, its network size is relatively small, and it’s still growing its community and use cases, so there’s some inherent risk involved.

Monero (XMR)

Now, you can’t talk about mining without mentioning Monero (XMR), the go-to coin for privacy advocates. XMR uses a Proof of Work (PoW) algorithm called RandomX, which is CPU-optimized. This makes Monero unique in that you don’t need a high-end GPU to mine it; even a decent CPU can get the job done.

Monero is known for its strong privacy features, making it a favorite among those looking to keep their transactions anonymous. However, the very feature that makes Monero attractive to some also limits its mainstream adoption, which could affect its long-term profitability.

Nexa (NEXA)

Nexa is relatively new and still flying under the radar, but its potential is huge. Nexa’s standout feature is that it uses Sighash Mining, an ASIC-resistant algorithm similar to Ravencoin. This means that Nexa can be mined by GPUs and CPUs alike, keeping the mining process decentralized.

Moreover, Nexa’s focus on being energy efficient makes it appealing in today’s environmentally-conscious climate, especially as the energy costs of mining continue to rise.

Mining Profitability: What to Consider?

Let’s be clear: profitability is king when it comes to mining. And the factors influencing profitability are numerous:

1. Electricity Costs: The lower your electricity cost, the higher your profit margin. This is why some miners relocate to places where energy is cheap.
2. Hardware Efficiency: Investing in the most efficient hardware can make a significant difference in your earnings.
3. Network Difficulty: The higher the network difficulty, the fewer coins you’ll be able to mine.
4. Coin Value: This is the most unpredictable variable. If the coin’s value suddenly spikes, your profits could skyrocket, but if it tanks, you might end up mining at a loss.

Here’s a table summarizing key factors:

Coin	Algorithm	Hardware Needed	Electricity Sensitivity	Current Profitability
Ethereum Classic	Ethash	GPU	Moderate	Medium
Ravencoin	KawPow	GPU	Low	Medium
Flux	ZelHash	GPU	Moderate	High
Monero	RandomX	CPU	Low	High
Nexa	Sighash Mining	GPU/CPU	Low	Medium

Mining Pools vs. Solo Mining

Should you mine solo or join a pool? Pool mining distributes the work across multiple miners, allowing you to share rewards based on your contribution. This is the safer bet for smaller miners, especially those new to the game. But keep in mind that pool fees will take a chunk out of your earnings.

Solo mining, on the other hand, can be highly profitable if you’re able to solve a block, but the chances are slim unless you have significant computing power. Solo mining works best for those who have access to extremely cheap electricity or specialized hardware.

Mining Software: What’s Best?

Choosing the right mining software is just as crucial as picking the right coin. Here are a few popular options:

• NiceHash: User-friendly and works with various coins.
• CGMiner: A long-standing option with a robust feature set.
• Kryptex: A solid choice for both CPU and GPU mining.

The Future of Mining: Trends to Watch

The future of mining is uncertain. With many coins moving away from PoW to more energy-efficient alternatives like Proof of Stake (PoS) or Proof of Space (PoSpace), mining as we know it might look very different in a few years. That said, the ongoing development of ASIC-resistant algorithms means GPU and CPU miners could still have a role to play, especially with coins like Ravencoin and Nexa.

Carbon-neutral mining is also gaining attention. As energy costs rise and environmental concerns grow, miners will likely gravitate toward energy-efficient setups and coins that prioritize sustainability.