There is only one way to become part of the crypto world – you need to own some coins. But there are two ways you can acquire them: the easy way and the better way.
The easy way is to open an account on an exchange and buy cryptocurrency. The better way is to start mining. That way, you’re not just an owner but also a part of the network. With your involvement, the crypto world becomes more stable and secure. The only problem is finding a profitable mining opportunity that’s worth your time and energy.
That is why I’m writing this article. I want to encourage you to become a miner, but I also want to show you what to mine. As a miner, you are doing good by supporting the network, but that doesn’t mean you should lose money. Mining needs to be as profitable for you as it is good for the whole community. That is the power of decentralized systems.
Why can’t I mine just any coin? A brief history of Bitcoin mining
When the Bitcoin (BTC) network appeared in 2009, there was only one way to acquire coins – by mining. Satoshi Nakamoto, the anonymous creator of Bitcoin, was the first miner, but others soon joined in. They were all collecting coins and maintaining the network with their laptops using their CPU.
Then a software architect from Florida named Laszlo Hanyecz discovered that GPU chips work much better for mining. He started to gather more coins than anybody else, so Satoshi told him to stop. But the genie was out of the box.
Soon people started using GPU instead of CPU, and the network started to grow. With that growth, the difficulty of mining also increased. To overcome that, miners started to connect more and more graphics cards together to create mining rigs. By the end of 2012, there were 11,000 GPUs supporting the network.
The next step was Slush Pool, the first publicly available mining pool. The idea was to share processing power over a network and split coins according to each user’s contribution. The more power you gave, the more coins you got. But then something even more powerful emerged.
Someone created the ASIC miner, a piece of hardware with a specific purpose: to mine BTC. This technology is 100 times faster than a GPU, so it generates 100 times more coins. Given that it performs better and uses less power, it is now the most popular method of mining BTC.
Just to give you some perspective, the Bitcoin network is over 100,000 times faster than the top 500 supercomputers combined. If you were to connect your laptop to the network, its impact would be like a drop in the ocean.
Problems with mining large coins
Mining large coins such as BTC is not an option if you are a small player. The competition is just too big for you to make an impact. Even if you can afford to buy an ASIC miner and dedicate more power to mining, there are still other issues.
Given that the price of BTC has dropped significantly compared to December 2017, it is questionable whether it’s still profitable to mine. That depends mostly on the price of electricity in your country. Other coins such as Ethereum are not ASIC-dominant yet, but the competition is still huge for a beginner. You’d need a few thousand dollars just to start, and there are no guarantees that you’d make your money back.
New coins have better potential
There is a better option: find a coin whose network is still in development and become one of the first miners. That way there aren’t any competitors stopping you from claiming an important place in the network and the community.
Don’t choose just any coin; try to find one that has a real use case. Read white papers, research the project and development team, join their forum and social media channels, and follow new updates. If the project is based on a promising idea with a good development team, the coin’s price should rise. Even if it is new.
The best thing is that you don’t need to make substantial investment in mining infrastructure to get started. You can even mine with your laptop at home, given that most new coins are eligible for CPU mining.
Are there any coins like that?
This is the main question. There are many new coins, but the problem is finding one that has the potential for profitable mining. I’ve done some research and found one coin that fits this description perfectly. It’s called Safex Cash.
The main net came out a few days ago, so the network is still to be established. This coin will be used for trading on a special blockchain platform that is being built as you read this. It is a crypto-commerce marketplace where you can buy and sell goods and services in exchange for their coin.
Imagine something like eBay and UpWork combined, but you pay with Safex Cash instead of fiat. Crypto is ideal for this marketplace, which runs on a blockchain that keeps your transactions are secure and anonymous. No one can know what you have bought and sold. So, if you mine Safex Cash, you’ll use your computer to generate money and buy things online.
Profitable mining with Safex Cash
Another plus for Safex Cash is that the development team has created a Monero-like algorithm for mining. That means the network will be ASIC-resistant, so you can easily mine, even with CPU. You don’t need a big investment in mining equipment; a simple laptop will do for you to start.
The second part of profitable mining is judging the price of the cryptocurrency. Given that Safex Cash isn’t listed on exchange yet, we do not yet know what its value will be. However, people will use it on a marketplace, so there will be a demand for it in the future. As you know, the higher the demand, the greater the price.
Taking these two things into account, it’s possible for this coin to be highly profitable to mine. You can always use it on the marketplace, so you don’t have anything to lose. Only to gain.
In the next article, I’ll show you how to get involved in the Safex Cash network, step by step. But for now, you can check this out: Set Up Safex Mining Pool
Have you done your own research and found another coin that meets the requirements for profitable mining? Please let us know in the comments.