Cryptocurrency mining is the backbone of many decentralized tokens, as it plays a crucial role in securing the network, verifying transactions, and circulating new coins. Bitcoin, the leading asset on the market, relies on mining through the proof-of-work consensus mechanism, through which miners compete to hash and earn rewards.
However, mining Bitcoin has become increasingly challenging over the years, but that hasn’t diminished its relevance. Interestingly, this only drove demand for it, an aspect that will continue to grow until the last Bitcoin is mined, which is expected to occur around 2140. This will also push crypto prices up as Bitcoin gets scarcer.
Luckily, not all coins rely on mining. Others use staking for the same purposes, and their technologies have evolved considerably to make these assets accessible for a vast array of users. This is the case for Ethereum and other projects that are to be released based on the latest airdrop news. But if you want to become a miner in the crypto world, here are some of the cryptocurrencies that are easier to mine from home.
Pi Coin
The Pi cryptocurrency is unique in that it allows mining from mobile smartphones. You can download the application on your phone or personal computer, as the Stellar Consensus Protocol (SCP) allows rewards to be computed once per day. This means that everyone who contributes to the network receives coins in proportion to their efforts.
The process is as follows:
- You download the app available on both Android and iOS platforms;
- You register and create an account;
- You start mining by activating the session, which takes 24 hours;
- You reopen the app the next day to continue mining;
- You invite people to join the network and increase your mining rate;
The Pi project focuses on communities that promote growth and have the potential to take the coin to the next level, as it’s only recently been released on the market. Considering that networking opportunities rely on user interactions, there are numerous community groups on the app where people can connect with their peers.
Ethereum Classic
Ethereum Classic was initially created to manage censorship on the original Ethereum chain. The asset is similar to the original Ethereum, but with some key differences, notably in its consensus mechanism. While Ethereum transitioned to staking, Ethereum Classic remains reliant on mining.
For that, you will need:
- GPUs and ASICs;
- A mining software compatible with your operating system;
- To join a mining pool to receive regular rewards;
Miners can receive rewards in numerous ways, including transaction fees and MEV (Miner Extractable Value). Or the Uncle Rate, which is losing, contributing to the safety of the coin. Still, the main source of revenue in Ethereum Classic is the fixed base revenue. The reward is reduced by 20% every 5 million blocks, which is a similar approach to the Bitcoin halving.
Monero
Monero is a decentralized and private cryptocurrency that focuses on confidentiality and security. Its proof-of-work consensus mechanism makes it reliable and efficient, but it also introduced a unique feature called RandomX, which implies all miners will use consumer-grade hardware to compete fairly. Therefore, building specific hardware for mining is impossible.
You can mine Monero with either CPUs or GPUs in:
- Solo mode, which helps secure the network and allows you to use only your Monero wallet. Unfortunately, it might take too long to find a block;
- Pools, where you get frequent pats based on your participation. However, you will pay a fee to the pool operator, and can only use third-party software;
There is also a third method of mining, P2Pool, which offers miners full control over their node. This is a decentralized, permissionless, and trustless method of mining that requires no fees or payout schemes.
Bitcoin Gold
Bitcoin Gold is a hard fork of the original Bitcoin asset, with the purpose of making mining decentralized. The asset underwent numerous changes over the past few years and has recently begun merging back into Bitcoin. With improved security and zero-rate inflation, Bitcoin Gold is a more efficient extension of the main asset, particularly due to its high demand for the asset.
David Princay, President at Binance.com France, stated that “If or when BTC prices plateau, institutions and corporations may look to diversify their crypto holdings further. It will be interesting to observe how an altcoin season unfolds in a more mature and regulated crypto market.”
If you want to start mining BTC gold, you may need to learn more about the Equihash-BTG, a mining algorithm developed by Zcash.
Zcash
Zcash is a cryptocurrency designed to protect the privacy of electronic cash for private peer-to-peer transactions. With massive support from industry leaders, the coin gained significant attention and popularity due to its fairness and transparency. It offers fast and low fees, with project development being self-funded. Mining Zcash is pretty straightforward, as you will need:
- A GPU and a reconfiguration of the PC;
- A Zcash wallet address;
- A Zcash mining program is installed on the PC;
- To enter a Zcash mining pool;
There are many reasons for mining it. First, the asset is easily traded for Bitcoins, making it a cost-effective alternative to creating a portfolio. At the same time, you can exchange it for cash, and, since mining is cheap, you can take advantage of price appreciation as an investor as well.
How eco-friendly is mining?
Some cryptocurrency options do not use PoW due to the massive energy consumption associated with mining. By switching to PoS, Ethereum became one of the most sustainable coins on the market. At the same time, other crypto projects approached it in different ways to safeguard the blockchain and create new coins.
Bitcoin is the asset whose mining consumes the most energy. Although the coin is in high demand and miners must contribute to the creation of new blocks, utilizing alternative energy resources would be ideal to mitigate climate change.
Final considerations
Mining cryptocurrencies is no longer as easy as it was at the beginning of the industry. Nowadays, you will need extensive hardware and specialized software to mine Bitcoin, making it a daunting task. Luckily, there are still some coins you can mine at home, whether on your phone or computer, such as Ethereum Classic, Bitcoin Gold, or Zcash.
