Cryptocurrency mining in 2024 is not as profitable as it once was. The profit margins have become tighter, and if you don’t have access to cheap electricity, you can’t really warrant an investment in expensive mining equipment.
In addition, cryptocurrency prices are quite high at the time of this writing, which means that if we see a small dip in market valuations, even the most powerful ASIC miners could struggle to turn a profit. That said, there are quite a few cryptos relying on the Proof-of-Work (PoW) consensus algorithm that are profitable for miners who have access to the right equipment and low electricity costs.
In this article, we are going to examine the best cryptos to mine in 2024 and look into how their respective profit potential.
Methodology
Before we get started, let’s first establish what parameters we used for our report. The cost of electricity used for this report was set to $0.10 per kilowatt-hour (kWh), and price data for cryptocurrencies was collected on July 3, 2024. The revenue margins were collected from WhatToMine, a leading website tracking the profitability and costs associated with crypto mining rigs. Finally, mining machines used for comparison were picked based on their profitability, meaning that we prioritized the most profitable miners for each different mining algorithm, kHeavyHash to Ethash.
Algorithm Daily Mining Profit Miner Used Cost of Miner Days to Profitability* Kaspa (KAS) kHeavyHash $76.99 Bitmain Antminer KS5 Pro $10,500 136 Dogecoin (DOGE) Scrypt $17.72 Bitmain Antminer L9 $6,629 374 Bitcoin (BTC) SHA-256 $2.89 Bitmain Antminer S21 Hydro $5,599 1937 Peercoin (PPC) SHA-256 $2.68 Bitmain Antminer S21 Hydro $5,599 2089 eCash (XEC) SHA-256 $2.52 Bitmain Antminer S21 Hydro $5,599 2222 Monero (XMR) RandomX $2.49 Bitmain Antminer X5 $2,860 1149 Horizen (ZEN) Equihash $2.03 Bitmain Antminer Z15 Pro $2,000 985 Zcash (ZEC) Equihash $1.69 Bitmain Antminer Z15 Pro $2,000 1183 Ethereum PoW (ETHW) Ethash $1.50 Bitmain Antminer E9 Pro $2,500 1667 Ethereum Classic (ETC) Ethash $1.19 Bitmain Antminer E9 Pro $2,500 2101
*How long it would take for a crypto miner (prices collected from bt-miner.com) to offset its cost, assuming daily mining profit figures collected on July 3, 2024. Source: whattomine.com
Apart from attempting to build an ASIC miner yourself, the miners used to compare the profitability of different cryptocurrencies in this report should produce the highest profit rate available in the market. Interestingly, most miners would need years to become profitable, making them a rather poor financial investment for most individual miners.
However, it’s worth noting that if you already own a powerful mining machine, then you can ignore the days to profitability rate and solely look into profitability itself. This can significantly change the equation, and make mining a very viable passive income strategy.
The best crypto to mine: Examining the 10 most profitable options
In the following sections, we will more closely examine each of the most profitable coins to mine.
1. Kaspa (KAS)
Kaspa is an emerging cryptocurrency known for its fast block times and scalability. The kHeavyHash algorithm it employs is optimized for both performance and energy efficiency, making it a favorite among miners. Using the Bitmain Antminer KS5 Pro, miners can generate a daily profit of $76.99. Despite the high initial cost of $10,500, the miner becomes profitable in just 136 days, making Kaspa one of the top choices for profitability in 2024.
Algorithm: kHeavyHash
Daily Mining Profit: $76.99
Miner Used: Bitmain Antminer KS5 Pro
Cost of Miner: $10,500
Days to Profitability: 136
2. Dogecoin (DOGE)
Originally created as a joke, Dogecoin has become a serious contender in the cryptocurrency market over the past decade. It uses the Scrypt algorithm, which allows for combined mining with Litecoin. With the Bitmain Antminer L9 (a successor to the popular Antimer L7), miners can earn $17.72 daily. Although the miner costs $6,629, it takes about 374 days to break even. Dogecoin's wide acceptance and robust community support add to its appeal for miners.
Algorithm: Scrypt
Daily Mining Profit: $17.72
Miner Used: Bitmain Antminer L9
Cost of Miner: $6,629
Days to Profitability: 374
3. Bitcoin (BTC)
Bitcoin, the largest and oldest cryptocurrency, remains a staple for miners despite its lower daily profits compared to newer coins. It relies on the SHA-256 algorithm, renowned for its security. Using the Bitmain Antminer S21 Hydro, miners can achieve a daily profit of $2.89. Given the miner's cost of $5,599, it will take around 1937 days to become profitable, which is certainly not a short period of time. Bitcoin's established network and value retention make it a reliable, though long-term, mining investment.
Algorithm: SHA-256
Daily Mining Profit: $2.89
Miner Used: Bitmain Antminer S21 Hydro
Cost of Miner: $5,599
Days to Profitability: 1937
4. Peercoin (PPC)
Peercoin offers a unique blend of proof-of-stake and proof-of-work systems, aiming for energy efficiency and security. It uses the SHA-256 algorithm, the same as Bitcoin. The Antminer S21 Hydro is the most efficient ASIC machine to mine Peercoin, providing a daily profit of $2.68. With a miner cost of $5,599, profitability is reached in about 2089 days. Peercoin’s dual system may attract miners looking for a sustainable and secure option.
Algorithm: SHA-256
Daily Mining Profit: $2.68
Miner Used: Bitmain Antminer S21 Hydro
Cost of Miner: $5,599
Days to Profitability: 2089
5. eCash (XEC)
eCash focuses on being an efficient digital payment solution, leveraging the SHA-256 algorithm. Miners using the Bitmain Antminer S21 Hydro can expect to earn $2.52 daily. The miner, costing $5,599, reaches profitability in over 2200 days. eCash’s emphasis on transactional efficiency and low fees makes it an intriguing option for those willing to wait for long-term gains.
Algorithm: SHA-256
Daily Mining Profit: $2.52
Miner Used: Bitmain Antminer S21 Hydro
Cost of Miner: $5,599
Days to Profitability: 2222
6. Monero (XMR)
Monero stands out for its strong privacy features, offering completely anonymous transactions. It uses the RandomX algorithm, designed to be ASIC-resistant, thus favoring CPU miners. The Antminer X5, a miner specially designed for RandomX, yields a daily profit of $2.49. With a cost of $2,860, miners can expect to achieve profitability in about 1149 days. Monero’s privacy-centric approach attracts users and miners, who prioritize confidentiality.
Algorithm: RandomX
Daily Mining Profit: $2.49
Miner Used: Bitmain Antminer X5
Cost of Miner: $2,860
Days to Profitability: 1149
7. Horizen (ZEN)
Horizen provides a robust platform for decentralized applications and enhanced privacy. It employs the Equihash algorithm, which is efficient for GPU mining as well as ASICs. Using the Antminer Z15 Pro, miners can earn $2.03 daily. The miner costs $2,000 and becomes profitable in approximately 985 days. Horizen’s focus on privacy and scalability makes it a versatile option for miners interested in supporting a broad ecosystem of applications.
Algorithm: Equihash
Daily Mining Profit: $2.03
Miner Used: Bitmain Antminer Z15 Pro
Cost of Miner: $2,000
Days to Profitability: 985
8. Zcash (ZEC)
Zcash offers advanced privacy features using zero-knowledge proofs, allowing transactions to be verified without revealing information about the sender, receiver, or transaction amount. It also uses the Equihash algorithm. With the Bitmain Antminer Z15 Pro, miners can achieve a daily profit of $1.69. The miner, priced at $2,000, takes about 1183 days to break even. Zcash’s strong privacy guarantees and active development, helmed by Electric Coin Company and the community, make it a compelling choice.
Algorithm: Equihash
Daily Mining Profit: $1.69
Miner Used: Bitmain Antminer Z15 Pro
Cost of Miner: $2,000
Days to Profitability: 1183
9. Ethereum PoW (ETHW)
Ethereum PoW continues the original Ethereum proof-of-work mechanism after the network transitioned to proof-of-stake during The Merge in 2022. It uses the Ethash algorithm, which is memory-intensive. Miners using the Bitmain Antminer E9 Pro can earn $1.50 daily. The miner’s cost is $2,500, with a profitability period of around 1667 days at current rates. ETHW retains Ethereum’s decentralized application ecosystem powered by the PoW algorithm, providing ongoing value to miners.
Algorithm: Ethash
Daily Mining Profit: $1.50
Miner Used: Bitmain Antminer E9 Pro
Cost of Miner: $2,500
Days to Profitability: 1667
10. Ethereum Classic (ETC)
Ethereum Classic maintains the original Ethereum blockchain with a focus on immutability and decentralization. It also uses the Ethash algorithm. The Bitmain Antminer E9 Pro can mine ETC with a daily profit of $1.19. The miner costs $2,500, and profitability is achieved in roughly 2101 days. Ethereum Classic’s adherence to the original Ethereum vision appeals to purists and those interested in maintaining decentralized governance.
Algorithm: Ethash
Daily Mining Profit: $1.19
Miner Used: Bitmain Antminer E9 Pro
Cost of Miner: $2,500
Days to Profitability: 2101
The bottom line
The cryptocurrencies included in our list are the most profitable choices for miners as of July 2024. But, as you can see, most don’t offer very high returns and require a high initial investment. Also, you should keep in mind that electricity costs are the most important thing to consider when deciding whether purchasing an ASIC miner is worthwhile. The figures in this article assumed an electricity cost of $0.10/kWh. However, if you don’t have access to cheap electricity, the whole equation changes completely. For example, if we assume an electricity cost of $0.30 per kWh, which is not that uncommon, then virtually all miners (apart from those designed for kHeavyHash) simply become unprofitable.
It seems that cryptocurrency mining is increasingly becoming an endeavor reserved for large companies that can afford to buy thousands of top-of-the-line ASIC machines and make the economy of scale work on their behalf. This has been reflected in the valuation of publicly traded mining companies, with virtually all of them recording significant uptrends in the recent past.
As things stand, staking crypto is easier, more accessible, and provides a similar return on investment without the hassle of managing high-powered computational equipment. Check our list of the best cryptos to stake to learn more.
