Ethereum (ETH-USD), Verge (XVG-USD) and dogecoin (DOGE-USD) are the top three most profitable cryptocurrencies to mine, according to a recent report by Traders of Crypto.
Note the barriers to entry in crypto mining are low so long as the right equipment is being used to set up a mining machine. The miners' process of turning a profit involves validating transactions on a blockchain network to then be added to a distributed ledger. Once the block is completed, miners receive crypto as a reward for further securing the blockchain. Miners can earn a profit if the price of the crypto surpasses the costs (electricity and mining rigs) to mine it.
Those that mine ether (ETH-USD), the largest altcoin by market cap, will net an estimated £41.93 ($52.02) on a daily basis, the report said, adding that ether will soon transition to a Proof-of-Stake consensus mechanism "making mining obsolete" because the protocol doesn't require miners to solve complex mathematical puzzles like Proof-of-Work does. The switch to PoS is expected to improve transaction costs and increase the ability to scale.
Miners producing Verge (XVG-USD), formerly known as DogeCoinDark, will net an estimated £11.26 ($13.97) per day, as per the report. This privacy-focused crypto aims to offer anonymous transactions by obscuring their IP addresses and geolocations.
As for dogecoin (DOGE-USD), the most popular memecoin with a history of being touted by Tesla (TSLA) CEO Elon Musk via Twitter, miners can expect to earn a daily profit of £10.36 ($12.86), Traders of Crypto said.
Turning to the least profitable cryptos to mine, Dash (DASH-USD) topped the list, netting miners only £0.15 ($0.18) a day. Like a raft of altcoins, Dash seeks to become a better version of bitcoin (BTC-USD) by providing stronger privacy and faster transactions.
PeerCoin (PPC-USD) generated miners with a daily profit of £0.93 ($1.15) making it the second least profitable crypto to mine. "This altcoin was the first to combine proof-of-work and proof-of-stake algorithms in response to the high energy consumption of previous cryptocurrencies," the report noted.
Last but not least, ethereum classic (ETC-USD), which carries the same functions as ethereum (ETH-USD), was cited as the third least profitable token to produce as miners earned a daily profit of £2.53 ($3.14).
While major cryptos like bitcoin (BTC-USD) undergo intense selling pressure over the past year amid a broader risk-off environment, the bitcoin network difficulty is hovering near record highs signaling there's still an influx of miners. That means it will take more computing power to mine the same number of blocks, making the network more secure against attacks. In other words, crypto miners appear unbothered (for the most part) about crypto winter because "prices are reduced on everything and you can really build a strategy that lasts big time," said Galaxy Digital (OTCPK:BRPHF) Head of Mining Amanda Fabiano at the CoinShares Conversations event on June 15.
Publicly traded crypto miners: Marathon Digital (MARA), Riot Blockchain (RIOT), HIVE Blockchain (HIVE), Hut 8 Mining (HUT), BIT Mining (BTCM), Bitfarms (BITF), Stronghold Digital (SDIG), Bit Digital (BTBT), CleanSpark (CLSK), Greenidge Generation (GREE) and Core Scientific (CORZ).
Previously, (June 11) Marathon Digital, Riot Blockchain bitcoin mining growth softened the most in May.
