It is important to thoroughly understand the dynamics of each available blockchain coin prior to committing resources to any particular one. This guide offers a concise yet comprehensive look at the prospects for 11 blockchain coins that may be well-suited for home mining, whether in a group pool or “lottery” style solo mining; and which mining strategy is ideal for each one: GPU Mining, CPU Mining or ASIC Mining.
Home miners should consider the block reward, network difficulty, hashrate, community support, and token utility to gauge the potential of hitting a block. Coins with lower difficulty levels are generally more suitable for home mining, as they increase the likelihood of successfully mining a block within a reasonable time frame, and without massive resources.
Liquidity is another key factor; some coins are very easy to mine, but if the coin is not easily tradable on exchanges, it may be challenging to convert block rewards into fiat currency. A coin with a higher market cap typically indicates greater interest, which makes the coin easier to liquidate, but also more difficult to mine. The aim is to find the coin that strikes the ideal balance between risk and reward for each miner’s unique configuration.
Home Mining Methods
Selecting the ideal coin depends extensively on the mining method being utilized. CPU mining, GPU mining, and ASIC mining are the methods available to home miners. They differ significantly in their efficiency, cost, and adaptability. While CPU mining remains the most accessible entry point, ASIC mining is the most efficient, and GPU mining has become somewhat obsolete in the past few years, with only a few exceptions.
CPU Mining: This method uses the central processing unit (CPU) of a computer to look for blocks on the network, allowing solo and lottery miners to use any home computer, Windows or Linux, for mining; even the computer you are using to read this article! CPU mining was a viable method for mining Bitcoin (BTC) in its early days, when BTC mining was less popular and therefore far less difficult to mine. Today, the extremely low hashrate of CPU mining is all but useless against the increasing network difficulty of BTC, and can only be used to mine coins with extremely low difficulty, or that are ASIC resistant, such as Monero.
For CPU mining, programs like CGMiner and BFGMiner are popular choices that support various algorithms and provide users with detailed statistics about their mining performance. These tools allow miners to monitor their hardware’s performance in real-time and make adjustments as necessary.
GPU Mining: This method uses the graphics processing unit (GPU) of a computer to look for blocks. GPU’s are faster and more energy efficient than CPU’s, offering a better balance of performance and cost for home crypto miners. From 2010 on, GPU mining experienced massive adoption due to it’s ability to mine Ethereum, which once represented up to 95% of mining profits worldwide.
In 2020 the combination of mining adoption, and factory disruptions due to the COVID-19 pandemic, created such a demand for GPU’s that people paid up to triple the MSRP when buying from third party sellers (aka “scalpers”). Although in 2022 Etheruem shifted from the Proof-of-Work (PoW) to the Proof of Stake (PoS) validation method. This change, known as “The Merge,” replaced mining with staking for Etheruem, which made GPU mining all but obsolete. Though some experts speculate that GPU mining could soon make a comeback, especially with the emergence of new GPU-friendly coins like Aleo, Quai, and Digibyte (DGB).
Due to it’s low-difficulty, DGB can actually be mined with any of the three mining methods: CPU, GPU, or ASIC. Coins like Monero and Quai are perfect for novice miners, as mining software can be downloaded directly from their website or github and set up within a matter of minutes.
ASIC Mining: These are the same type of computer chip found in industrial mining rigs, known as ASIC chips (Application Specific Integrated Circuit). Unlike a CPU, which is designed to a somewhat decent job at any computing task you ask of them, ASICs are highly specialized processors, designed and manufactured specifically for cryptocurrency mining. This results in profoundly enhanced mining speed and efficiency. Think of CPU mining like trying to eat pudding with a fork, while ASIC mining is uses a spoon; both tools are effective, but only one of them is efficient.
Prior to the invent of the Bitaxe, ASIC mining required significant upfront investment and advanced technical knowledge; but Bitaxe put the power of ASIC mining into the hands of everyday home miners.
ASIC Resistant Coins
Monero, Ravencoin, and Vertcoin can be mined with either a CPU or GPU, but not an ASIC. These coins use hashing algorithms that are specifically designed to be ASIC resistant. This is done to promote decentralization, and prevents large-scale mining operations from dominating the network, as has already occurred with BTC. These coins cannot be mined with Bitaxe, which is an ASIC miner.
Hashing Algorithms and Mining Pools
It’s important to note that only coins utilizing the ASIC method and SHA256 mining algorithm are compatible with Bitaxe home miners; this includes coins like DGB, RBL, Bitcoin, and Bitcoin Cash. Coins like Litecoin and Dogecoin use the ASIC method, but the mining algorithm is Scrypt; therefore you need an ASIC miner that utilizes the Scrypt hashing algorithm.
Additionally, the mining pool you select must correspond to the specific coin you are mining. For example, you cannot mine RBL in Public Pool, because that is a BTC pool. Here is a handy tool that shows available mining pools for any coin you select.
Top Coins for Home Mining
Monero (XMR)
Block Reward: 0.6 XMR
Mining Algorithm: RandomX
Hardware Requirements: CPU or GPU (ASIC-resistant)
Mining Difficulty: Easy
DigiByte (DGB)
Block Reward: 10,000 DGB
Mining Algorithm: SHA-256, Skein, Groestl, Scrypt and Qubit
Hardware Requirements: CPU, GPU, ASIC
Mining Difficulty: Easy
RebelCoin (RBL)
Block Reward: 10,500 RBL
Mining Algorithm: SHA256
Hardware Requirements: ASIC (CPU/GPU mining is possible but not efficient)
Mining Difficulty: Easy
Zcash (ZEC)
Block Reward: 1.5625 ZEC
Mining Algorithm: Equihash
Hardware Requirements: ASIC (GPU mining is possible but not efficient)
Mining Difficulty: Easy
Ravencoin (RVN)
Block Reward: 2,500 RVN
Mining Algorithm: KawPow
Hardware Requirements: CPU or GPU (ASIC-resistant)
Mining Difficulty: Easy
Vertcoin (VTC)
Block Reward: 12.5 VTC/block
Mining Algorithm: Verthash
Hardware Requirements: CPU or GPU (ASIC-resistant)
Mining Difficulty: Easy
Dash (DASH)
Block Reward: 2.3097 DASH
Mining Algorithm: X11
Hardware Requirements: ASIC (GPU mining is possible but not efficient)
Difficulty: Easy/Medium
Ethereum Classic (ETC)
Block Reward: 2.048 ETC
Mining Algorithm: Etchash
Hardware Requirements: ASIC or GPU
Difficulty: Easy/Medium
Dogecoin (DOGE)
Block Reward: 10,000 DOGE
Hashing Algorithm: Scrypt
Hardware Requirements: ASIC (GPU mining is possible but not efficient)
Difficulty: Medium
Litecoin (LTC)
Block Reward: 6.25 LTC
Mining Algorithm: Scrypt
Hardware Requirements: ASIC
Difficulty: Hard
Bitcoin (BTC)
Block Reward: 3.125 BTC
Hashing Algorithm: SHA256
Hardware Requirements: ASIC
Difficulty: Very hard