This article will explore the 11 Most Profitable Cryptocurrency to Mine in 2023, based on their current and projected values, mining difficulties, and rewards. Note that this is not financial advice and you should do your own research before investing in any Cryptocurrency.
Cryptocurrency mining is a process of verifying and recording transactions on a decentralized blockchain network. Miners use specialized hardware and software to solve complex mathematical problems and receive newly minted coins as rewards. However, not all cryptocurrencies are equally profitable to mine. Mining profitability depends on several factors, such as electricity costs, hardware efficiency, network difficulty, and coin prices.
However, not all cryptocurrencies are equally profitable to mine. Some factors that affect the profitability of mining include:
- The price of the cryptocurrency
- The mining difficulty and hash rate
- The mining hardware and electricity costs
- The mining algorithm and consensus mechanism
Let’s explore these 11 Most Profitable Cryptocurrency to Mine in 2023
List of Profitable Cryptocurrency
| NAME | ALGORITHM | REWARD | BEST FOR |
|---|---|---|---|
| Monero (XMR) | RandomX | 0.6 XMR | CPU & GPU |
| Horizen (ZEN) | Equihash | 12.5 ZEN | CPU & GPU |
| Vertcoin (VTC) | VertHash | 12.5 VTC | CPU & GPU |
| Dogecoin (DOGE) | Scrypt | 10,000 DOGE | ASIC |
| Komodo (KMD) | Equihash | 3 KDM | CPU & GPU |
| Kadena (KDA) | Blake2s_256 | 1.02 KDA | ASIC |
| Sia (SC) | Blake2b | 30,000 SC | ASIC |
| Bitcoin (BTC) | SHA-256 | 6.25 BTC | ASIC |
| Bitcoin Gold (BTG) | Equihash-BTG | 6.25 BTG | CPU & GPU |
| Ethereum (ETH) | Ethash | 2 ETH | CPU & GPU |
| Litecoin (LTC) | Scrypt | 12.5 LTC | CPU & GPU |
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1. Monero (XMR)
Monero is one of the leading privacy coins, which allows users to transact anonymously and securely. Monero uses a proof-of-work algorithm called RandomX, which is designed to be ASIC-resistant and favor CPU and GPU mining.
| Algorithm: | RandomX |
| Net. Hashrate: | 2.5977 GH/s |
| Reward: | 0.6033 XMR |
| Founded: | 2014 |
| Best For: | CPU & GPU |
Monero uses a hashing algorithm called RandomX, which is designed to be resistant to application-specific integrated circuit (ASIC) mining and favor general-purpose hardware such as CPUs and GPUs. RandomX is based on the CryptoNote protocol.
RandomX uses a complex hash function that requires a lot of memory and computational resources to solve, making it difficult for ASICs to gain an advantage over regular hardware.
2. Horizen (ZEN)
Horizen is a privacy-focused platform that offers various services such as decentralized nodes, sidechains, and messaging. Horizen uses a proof-of-work algorithm called Equihash, which is also ASIC-resistant and suitable for GPU mining.
| Algorithm: | Equihash |
| Net. Hashrate: | 2.2297 GH/s |
| Reward: | 3.75 ZEN |
| Founded: | 2017 |
| Best For: | CPU & GPU |
Horizen (ZEN) is a cryptocurrency that uses a proof-of-work consensus mechanism to secure its network.
Horizen uses the Equihash algorithm, which is a memory-hard hashing function that requires a lot of RAM to solve.
This makes it resistant to specialized mining hardware such as ASICs, and more accessible to ordinary users who can mine ZEN with their GPUs or CPUs.
Read This: Is It Profitable to Invest in Cloud Mining Sites
3. Vertcoin (VTC)
Vertcoin is another ASIC-resistant coin that aims to be accessible and decentralized. Vertcoin uses a proof-of-work algorithm called Verthash, which is optimized for GPU mining.
| Algorithm: | Verthash |
| Net. Hashrate: | 3.5074 GH/s |
| Reward: | 12.50 VTC |
| Founded: | 2014 |
| Best For: | CPU & GPU |
Vertcoin (VTC) is a cryptocurrency that uses an ASIC-resistant mining algorithm called Verthash. Verthash is a memory-intensive algorithm that makes the hashrate of mining devices depend on the speed of their memory. This ensures that Vertcoin can be mined by consumer-grade hardware such as GPUs, and prevents the domination of ASICs and FPGAs. The current network hashrate of Vertcoin is about 3.5685 GH/s, and the block reward is 12.5 VTC.
4. Dogecoin (DOGE)
Dogecoin is a meme-inspired coin that has gained popularity and value in recent months. Dogecoin uses a proof-of-work algorithm called Scrypt, which requires ASIC miners.
| Algorithm: | Scrypt |
| Net. Hashrate: | 668.80 TH/s |
| Reward: | 10,000 DOGE |
| Founded: | 2013 |
| Best For: | ASICs |
Dogecoin is a cryptocurrency that uses the scrypt hashing algorithm to secure its network and validate transactions. The scrypt algorithm is different from the SHA-256 algorithm that Bitcoin uses, as it requires more memory and is more resistant to specialized hardware.
The hashrate of Dogecoin measures how much computing power is being used by the miners to solve cryptographic puzzles and earn rewards. The higher the hashrate, the more secure and decentralized the network is.
5. Kadena (KDA)
Kadena claims to be the most scalable proof-of-work blockchain, with up to 480,000 transactions per second. Kadena is suitable for both GPU and ASIC mining and has a high block reward and low difficulty.
| Algorithm: | BBlake2s_256 |
| Net. Hashrate: | 787.2092 PH/s |
| Reward: | 1.02 KDA |
| Founded: | 2020 |
| Best For: | ASICs |
Kadena (KDA) is a cryptocurrency that uses a proof-of-work algorithm and a hashing function called Blake2s_256. Kadena can be mined with ASIC, GPU, or CPU devices, but ASIC miners are more efficient and profitable.
6. Komodo (KMD)
Komodo uses a proof-of-work algorithm called Equihash, which is also ASIC-resistant and suitable for GPU mining. Komodo has a moderate block reward and low difficulty, making it one of the most profitable coins to mine in 2023.
| Algorithm: | Equihash |
| Net. Hashrate: | 197.4047 MH/s |
| Reward: | 3 KMD |
| Founded: | 2016 |
| Best For: | CPU & GPU |
Komodo (KMD) is a cryptocurrency that uses a Proof-of-Work algorithm for network security. The hashing function it uses is Equihash, which is resistant to ASIC attacks and allows GPU and CPU mining.
7. Sia (SC)
Sia is a decentralized storage platform that allows users to rent out their unused disk space and earn cryptocurrency in return. Sia uses a proof-of-work algorithm called Blake2b, which requires ASIC miners.
| Algorithm: | Blake2b |
| Net. Hashrate: | 22.0283 PH/s |
| Reward: | 30,000 SC |
| Founded: | 2015 |
| Best For: | ASICs |
Sia (SC) is a cryptocurrency that uses a proof-of-work algorithm and a hashing function called Blake2b. Miners use ASICs or GPUs to solve complex mathematical problems and validate transactions on the blockchain. SC aims to provide decentralized cloud storage for users and hosts around the world.
8. Bitcoin (BTC)
Bitcoin is the oldest and most popular cryptocurrency in the world. It uses a proof-of-work (PoW) algorithm called SHA-256, which requires a lot of computing power and energy to mine.
| Algorithm: | SHA – 256 |
| Net. Hashrate: | 300.11 EH/s |
| Reward: | 6.25 BTC |
| Founded: | 2009 |
| Best For: | ASICs |
Bitcoin’s mining difficulty adjusts every 2016 blocks (about two weeks) to maintain a 10-minute block time. The current difficulty is 25.6 trillion, which means that it is very hard to mine Bitcoin with ordinary computers.
You will need specialized hardware called ASICs (application-specific integrated circuits) to mine Bitcoin efficiently. These devices can cost thousands of dollars and consume a lot of electricity.
According to CryptoCompare, a website that calculates mining profitability, you can earn about $29 USD per day with an Antminer S19 Pro ASIC miner, which has a hash rate of 110 TH/s and consumes 3250 W of power. This assumes an electricity cost of $0.05 USD per kWh and a pool fee of 1%.
9. Bitcoin Gold (BTG)
Bitcoin Gold is a fork of Bitcoin that uses a PoW algorithm called Equihash-BTG, which is also ASIC-resistant and GPU-friendly.
| Algorithm: | Equihash-BTG |
| Net. Hashrate: | 3.6505 MH/s |
| Reward: | 6.25 BTG |
| Founded: | 2017 |
| Best For: | CPU & GPU |
Bitcoin Gold has a slow block time of 10 minutes and a high fee structure. Bitcoin Gold aims to restore the original vision of Bitcoin as a peer-to-peer electronic cash system.
10. Ethereum
Ethereum is the second-largest cryptocurrency by market cap and the most popular platform for smart contracts and decentralized applications. Ethereum uses a proof-of-work algorithm called Ethash, which is also ASIC-resistant and suitable for GPU mining.
| Algorithm: | Etchash |
| Net. Hashrate: | 122.8307 TH/s |
| Reward: | 5.56 ETH |
| Founded: | 2016 |
| Best For: | CPU & GPU |
Ethereum is expected to transition to a proof-of-stake consensus mechanism in the near future, which will make mining obsolete. However, until then, Ethereum remains a profitable coin to mine, especially with the increasing demand for its network.
11. Litecoin (LTC)
Litecoin is one of the oldest and most established cryptocurrencies in the market. It was created in 2011 as a Bitcoin fork, aiming to provide faster transactions and lower fees. It uses a PoW algorithm called Scrypt, which is also ASIC-resistant and suitable for GPU mining.
| Algorithm: | Scrypt |
| Net. Hashrate: | 679.1 TH/s |
| Reward: | 12.5 LTC |
| Founded: | 2013 |
| Best For: | CPU & GPU |
Litecoin’s mining difficulty adjusts every 2016 blocks (about three and a half days) to maintain a 2.5-minute block time. The current difficulty is 10 million, which means that it is easier to mine than Bitcoin or Ethereum. The current block reward for Litecoin is 12.5 LTC plus transaction fees.
Litecoin is often considered the silver to Bitcoin’s gold, as it offers similar features but with faster confirmation times and lower costs.
According to CryptoCompare, you can earn about $7 USD daily with an Nvidia GeForce RTX 3070 GPU, which has a hash rate of 60 MH/s and consumes 220 W of power. This assumes an electricity cost of $0.05 USD per kWh and a pool fee of 1%.
Conclusion
In conclusion, mining cryptocurrency can be a profitable venture if you have the right equipment, software, and strategy. However, not all cryptocurrencies are equally profitable to mine. Based on our analysis, the most profitable cryptocurrency to mine as of May 2023 is Ethereum, followed by Bitcoin and Litecoin. These cryptocurrencies have high market value, low mining difficulty, and high rewards per block. Therefore, it is important to do your own research and monitor the market trends before investing in any cryptocurrency mining project.
Disclaimer: All finance/crypto related article published on 2Day Money is just for information purpose only and is not an investment advice. We suggest you to do your own research by contacting financial experts before making any investment decisions.
FAQs
List of 11 most profitable cryptocurrency to mine in 2023
– Monero (XMR)
– Horizen (ZEN)
– Vertcoin (VTC)
– Dogecoin (DOGE)
– Kadena (KDA)
– Komodo (KMD)
– Bitcoin (BTC)
– Ethereum (ETH)
– Litecoin (LTC)
ASIC stand for Application-Specific Integrated Circuit. ASIC is a type of hardware device that is designed to perform a specific task, such as mining a certain cryptocurrency. ASICs are faster and more efficient than general-purpose computers, but they are also more expensive and less flexible.
Below Crypto is profitable for GPU mining:
– Monero (XMR)
– Horizen (ZEN)
– Vertcoin (VTC)
– Komodo (KMD)
– Bitcoin Gold (BTG)
– Ethereum (ETH)
– Litecoin (LTC)
Below Crypto is profitable for GPU mining:
– Bitcoin (BTC)
– Sia (SC)
– Kadena (KDA)
– Dogecoin (DOGE)
