Before knowing the cryptocurrency to mine, it is good to have an understanding of what cryptocurrency is as well as what is needed to mine and use cryptocurrency.
Cryptocurrency, created by using encryption algorithms, is a digital currency used as a payment alternative. Encryption is used to provide security and safety for the currency.
Cryptocurrency is a peer-peer system. This means anyone, anywhere, can send and receive payment without relying on bank verification.
To store and use this currency, you need a cryptocurrency wallet. A cryptocurrency wallet is a program or device that stores cryptocurrency keys. This key proves your ownership and allows you to access your coins.
Always ensure to use a trustworthy wallet. Crypto mining is a profitable way to earn new currencies. Mining is the process cryptocurrencies follow to verify new transactions and generate new coins.
Cryptocurrency miners secure and maintain the blockchain. The blockchain, in return, awards them coins as an incentive to support the blockchain.
Mining is way beyond releasing new coins into circulation. It also verifies and secures the blockchain. This is what allows the function of cryptocurrency as a peer-peer system without requiring a third party. It functions to create incentives for miners as well.
The computational power needed to mine has increased over the years.
What is needed to mine cryptocurrency?
- Cryptocurrency wallet
- Mining software
- Mining hardware
- Home computers
- Application Specific Integrated Circuit (ASIC)
- Hash rate
What cryptocurrency to mine in 2022
Since the birth of cryptocurrency, many have come into existence. The following are good coins to mine.
1. Bitcoin
Since the origination of bitcoin over a decade ago, it has grown to be the overall best coin. The demand for this coin is ever-growing. This has made bitcoin to be among the best cryptos to mine. Bitcoin value could increase for further subsequent years, especially if there is continuous maintenance of its high demand.
2. Ethereum
This is the best crypto for long-term investment. It is the second most valuable cryptocurrency after Bitcoin. The Ethereum network hosts numerous services, such as NFTs and smart contracts. Therefore, this blockchain is extensively used to build and distribute decentralized applications.
This coin was first launched in 2015 at $0.30, but today it is about $1,500. Ethereum's transitioning to a proof-of-stake-consensus mechanism will make it faster and cheaper. If given all these considerations, Ethereum is definitely the best choice for long-term investors.
3. Dogecoin
Dogecoin has successfully become one of the best meme coins. Although this coin is not utilized in the real world, the community support it has gotten is awe-inspiring, thereby driving its price.
This coin's market sentiment is not constant, and that applies to its price. Nevertheless, dogecoin has a place among the best cryptos for mining.
4. Ethereum Classic
Ethereum classic maintains the unaltered, original history of its sister network (the Ethereum network). This uses a proof-of-proof consensus and depends on miners for network security.
This project has not been able to recreate Ethereum's success in terms of token holders and market capitalization. It has been predicted to have high growth as of December 2022. This is a good reason to mine Ethereum Classic.
5. Helium
Traders tend to check the uses of cryptocurrency in the real world before investing. Regarding this, Helium happens to be the best crypto to consider mining.
Helium network's objective is to promote Internet of Things longevity as well as the devices connected to it. Helium routers can be installed in any location or home, so users can earn HNT to provide connectivity.
Gaining access to Helium tokens is also possible via mining. Helium is among the easiest coins to mine. Analysts predicted there might be an increase in the utility of this coin in the future. This brings about likely advantages to mining this coin in 2022.
