But with so many options out there, it can be overwhelming to choose which coin to mine using your graphics card. In this article, we’ll provide a guide for beginners on how to select the best coins to mine with GPUs based on their profitability and difficulty level.
1. Check the Coin’s Algorithm
The first step in choosing a coin to mine is to check its algorithm. There are two main algorithms used by cryptocurrencies: SHA-256 (used by Bitcoin) and Scrypt (used by Litecoin). However, there are other algorithms that can be mined with GPUs such as Ethash (Ethereum), Equihash (Zcash), CryptoNight (Monero), and X11 (DASH).
2. Research the Profitability of Each Algorithm
Once you’ve identified which algorithm a coin uses, it’s time to research its profitability. You can use mining calculators such as WhatToMine or CoinWarz to estimate your earnings based on the current price and difficulty level of each coin. These tools will also provide information about the hash rate required for profitable mining.
3. Consider Difficulty Level
The next factor to consider is the difficulty level of each algorithm. A high-difficulty algorithm means that it’s more challenging to mine, but it can result in higher rewards if you’re successful. On the other hand, a low-difficulty algorithm may be easier to mine, but the rewards will likely be lower as well.
4. Check for ASIC Resistance
Another important factor is whether or not the coin is resistant to ASICs (Application Specific Integrated Circuits). ASICs are specialized mining hardware that can significantly increase a miner’s hash rate, but they also make it more difficult for regular users with GPUs to compete. Look for coins that have implemented measures to prevent ASIC domination and ensure fair distribution of rewards among all miners.
5. Choose Coins That You Believe In
Finally, consider choosing a coin based on your personal beliefs and values. If you believe in the long-term potential of a particular cryptocurrency or its underlying technology, it may be worth investing time and resources into mining that coin with your GPU. This can also help to ensure that you’re contributing to the growth and development of the blockchain ecosystem as a whole.
In terms of specific coins to mine using GPUs, here are some popular options:
1. Ethereum (ETH) Ethash algorithm; high profitability but currently facing difficulty level issues due to EIP-1559 upgrade.
2. Monero (XMR) CryptoNight algorithm; low difficulty and ASIC resistance make it a good choice for beginners.
3. Ravencoin (RVN) KAWPOW algorithm; low difficulty and ASIC resistance, with a focus on community-driven development.
4. Ergo (ERG) Equihash algorithm; low difficulty and ASIC resistance, with a strong emphasis on privacy and security features.
5. Beam (BEAM) Equihash 150,9 algorithm; low difficulty and ASIC resistance, with a focus on confidential transactions and scalability.