Mining cryptocurrency can be very profitable if you have the right hardware. Mining cryptocurrency with an ASIC is much more efficient and powerful compared to GPUs and CPUs. The most powerful ASICs today generates the highest hash rates. Although the hash rate of an ASIC is important, it is not the only factor of consideration when determining profitability.
If you own a powerful ASIC or planning on buying one, you may wonder “What is the most profitable coin to mine with an ASIC?”. The most profitable cryptocurrency to mine with ASIC changes from time to time. So, in this article, we will show you how to find the most profitable cryptocurrency to mine at any given time.
Before determining which cryptocurrency is most profitable to mine with ASICs, you must understand these factors that affect mining profitability:
- Hash Rate of your ASIC
- Electricity cost
- Cost of mining and mining equipment
- Pool fees
1) Hash Rate of the ASIC
Hash rate is the number of hashes your ASIC is capable of generating within a second. If your ASIC hashes SHA-256, then you can mine all SHA-256 coins like Bitcoin, Bitcoin SV, Digibyte, etc. If you want to mine Ethereum (ETH), your ASIC must support hashing of Ethash algorithm. Your ASIC limits the cryptocurrency you are allowed to mine. Yes! there are ways to mine cryptocurrency even if your ASIC hashes in different algorithms, but that is for a later post.
You can check out the latest ASICs and their supported algorithm here.
The majority of ASICs manufactured today, support algorithms like SHA-256, Ethash, and Equihash.
The number of hashes your ASIC generates is an important factor of consideration when determining the most profitable coin to mine with an ASIC. More hashes your ASIC generates, greater the mining reward. If an ASIC generates a high hash rate at the expense of higher power consumption, then that is not a good ASIC, which brings to our next important factor:
2) Electricity Cost
You can have the most powerful ASIC in the world, but if that ASIC consumes a lot of power or you live in an area with very high electricity costs, mining will still be unprofitable. As of now, India and China have some of the lowest electricity fees. You can check out global electricity prices here.
Although electricity cost is very important, what is equally important is the efficiency of the ASIC. The efficiency of an ASIC is the number of hashes it generates relative to the power consumed.
For example, if Antminer S17 generates a hash rate of 67 TH/s and consumes 2680 W of power, the efficiency can be determined by dividing the hash rate by power consumed. So the efficiency of Antminer S17 is 40 W/TH. This translates to 1 TH for every 40 Watts consumed.
The best ASICs in the market has some of the best efficiency rates. If you are lucky enough to live in an area with very cheap electricity or free electricity, then you shouldn’t focus much on efficiency. Your focus should be maximizing profit.
Hash rate and efficiency of an ASIC are crucial when determining the most profitable coin to mine. The third important factor is the cost of mining and mining equipment:
3) The cost of mining and mining equipment
An ASIC can have the best hash rate and efficiency in the world, but if that ASIC is expensive, mining will still be unprofitable. As a miner, your goal must be to recoup the cost of mining and mining equipment as soon as possible. If you buy an overly priced ASIC, you will never recoup that investment with mining profits.
The cost of the ASIC and electricity is not the only cost you will bear. You will have to bear the cost of shipping, power supply unit (PSU), cooling, repairs, etc. All these can add up to a few thousand dollars. This is why the cost of mining and mining equipment is a crucial factor when determining the most profitable cryptocurrency to mine.
4) Pool Fees
If you are a solo miner, you do not have to worry about pool fees. But for the majority of small scale miners, joining a mining pool is the most profitable way to mine. You can check out the best pools for each cryptocurrency here. These fees can eat up a significant amount of mining rewards. Some of the pools charge fees when you withdraw cryptocurrency to your wallet.
If you cant decide which pool is best, always select the pool that has the highest total hash rate. Pools with high hash rates can offer you constant payouts.
Now that you have all the information needed to find the most profitable cryptocurrency to mine with ASIC, let’s find it.
Most Profitable Coins to Mine with an ASIC
We will use an online ASIC calculator like WhatToMine to do this. Head over to WhatToMine and enter the hash rate and power consumption of your ASIC in the relevant field. Scroll down and enter the $/kWh in the area you live in. If you do not know this information, do a quick google search or look at your electricity bill.
Click on algorithm name to include it in the calculation and deactivate all other algorithms by clicking on them. Example:
Finally, click calculate. You will see a breakdown of all profitable coins to mine with the ASIC you own. The list of coins displayed is sorted from the most profitable to least profitable. The most profitable coin to mine with an ASIC is the first coin on the list.
The profitability of cryptocurrency changes all the time. Regularly check WhatToMine calculator for the most profitable coin. If some other coin tops the most profitable coin, mine that coin! Keep mining the most profitable coin to maximize profit.
In a scenario where cryptocurrency appreciates, you will recoup mining investments much faster. But, in an unfortunate event where cryptocurrency depreciates, you will have to mine longer. In worst cases, you may never recoup mining investments. Cryptocurrency mining is risky and an expensive venture. So, you must only risk what you can afford to lose.
If you deem cryptocurrency mining to be too risky of an investment, a better option may be to buy some cryptocurrency instead. Exchanges like Binance and KuCoin enable you to buy cryptocurrency with debit/credit cards and bank transfers.
An alternative to cryptocurrency mining is cloud mining. This is where you rent a mining rig to mine cryptocurrency. Genesis-Mining and Eobot are some of the best cloud mining services available today.
In conclusion, the most profitable coin to mine with an ASIC has much to do with the ASIC itself than the coin. You can use an online calculator like WhatToMine to find the most profitable coin to mine with any ASIC. Happy mining!