Are Mineable Cryptocurrencies Better? 3 Things to Know
Are Mineable Cryptocurrencies Better?
Bitcoin mining is an extremely confusing topic. Most people don’t understand how you can mine a currency that exists only online.
But the people who do understand it make a lot of money, as acquiring an easily minable cryptocurrency like Bitcoin is insanely profitable. Or at least, it can be profitable.
Most people aren’t looking to get into mining themselves. Rather, they just want to know which cryptocurrencies are the best to buy. Should you invest in minable cryptocurrencies, or are other cryptos better to invest in for long-term gains?
Is your favorite cryptocurrency mineable? Does it matter?
Keep reading below for answers to all your crypto mining questions now.
Mineable vs Non Mineable Cryptocurrency
So what is mining when it comes to crypto? Mining is the process of minting new coins or releasing coins from the limited total supply into circulation.
But it’s also the process of validating transactions on the open ledger, which is what empowers blockchain technology and its security.
Mineable cryptocurrencies are known as proof-of-work cryptocurrencies. That means work is done, in the form of mining, to validate transactions.
This is done by mining blocks in the blockchain. Every new transaction needs to be recorded on the blockchain. And each block can only hold a certain number of transactions.
So mining Bitcoin is the process of solving complex mathematical equations. Many people compete to be the first ones to solve the equation. The one who wins creates the next block and sends the block of transactions to all other miners, whose computers validate that all transactions match.
The reward for successful mining is the cryptocurrency itself.
Non-mineable cryptocurrencies are those that operate on a proof-of-stake model to verify transactions on the blockchain.
You don’t need high-powered computers or insane amounts of electricity to validate transactions. It’s done by staking.
Individuals can “stake” their tokens to become proof-of-stake validators. Everyone who stakes their tokens has the chance of creating the next block. But instead of earning block rewards, you earn transaction fees from the network.
What Type of Crypto Is Better?
Neither cryptocurrency is better or worse. They are just different, and you can make lots of money with both.
Mining cryptocurrencies is expensive. Most investors don’t bother. Rather, they just buy tokens and hold them until the price increases.
For non-mineable tokens or proof-of-stake tokens, anyone can get in on the process of validating transactions by staking their coins. You get to benefit from long-term price appreciation and earn interest on your investment in the form of transaction fees.
Best Mineable Cryptocurrencies
So which is the best mineable cryptocurrency? The best and most mineable cryptocurrency is Bitcoin, the granddaddy of them all.
Ethereum is a close second. DogeCoin, LiteCoin, and Monero are also popular coins to either mine yourself or just buy some on the crypto marketplace.
Most of the cryptocurrencies you are likely to invest in are non-minable coins, however. These include popular coins such as Cardano, Solana, Algorand, Polkadot, Avalanche, Ripple, and many others. To get your hands on coins like Ripple, head over to https://netcoins.ca/buy-xrp/ and start investing today.
Buy It All
Mineable cryptocurrencies were all the rage in 2015. But they aren’t the only game in town anymore.
Nonmineable cryptocurrencies make up most of the market now, as the proof-of-stake model requires much less overhead, lower costs, and lower environmental impact.
Either way, get your hands on both types of cryptos to enjoy maximum gains.
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