The 3 altcoins every serious miner needs to invest in
By now, most people are at least somewhat aware of the presence of bitcoin, but not many people are aware of the true depth of the crypto market. There are many other virtual currencies known as altcoins that present a tremendous investment opportunity for miners. While altcoins tend to be more speculative and have lower market caps than bitcoin, those with the proper knowledge can find them highly lucrative. Here are the three altcoins you should be investing in right now to make the most of your mining efforts.
Ethereum has been selected by many crypto experts as the top investment opportunity right now. It’s not just a cryptocurrency, but also a blockchain platform that enables contracts to be executed without any downtime, fraud, or interference from a third party. Ethereum is the basis for its own currency, Ether, and is also a programming language that runs on a blockchain and helps developers build and publish applications. Ethereum itself states it can be used to “codify, decentralize, secure, and trade just about anything.” This range of features gives Ethereum and other altcoins additional value, even in their earliest stages.
Launched in 2011, Litecoin is likely to be one of the first real-world cryptocurrencies to be used to purchase goods and services due to its faster network transaction confirmations compared to bitcoin. Litecoin is based on an open-source global payment network not controlled by any central authority and uses scrypt as a proof of work. It was largely designed to make up for some of bitcoin’s more prominent shortcomings, producing four times as many blocks and allowing for four times the coin limit. Its speed and ease of acquisition have made it an increasingly popular altcoin over the past several years.
ZCash is similar to bitcoin in many ways but differs primarily in its level of privacy and in its ability to be exchanged for other currencies. It provides total anonymity for its users, meeting a demand held by many miners since big data started becoming more accessible. While bitcoin is in many ways an open ledger, ZCash operates as an encrypted open ledger, meaning only those with explicit access are allowed to view the transaction. This anonymity has made ZCash a favorable choice for miners looking to operate in complete privacy.
You need to be mining altcoins
Altcoins present higher growth potential, faster transaction confirmation, better technology, and more uses than bitcoin, but purchasing large quantities of any crypto outright can always lead to a big loss due to the high volatility of the market. Mining presents a much safer and more scalable opportunity. While cryptocurrency itself can unexpectedly plummet in value, mining equipment continuously generates revenue and maintains its value to be resold for close to market price at a later date.
Mining colocation maximizes profit
Mining altcoins is a consistent way to turn a profit, but you need to ensure your power costs don’t overmatch your revenue. The most profitable mining units in the world right now are utilizing mining colocation to access inexpensive power and high-quality resources. This allows miners to obtain a high quantity of altcoins while spending less on power. While altcoins do produce a lesser profit per coin, colocation allows miners to earn more coins overall in a small amount of time, thus maximizing profit.
Compute North’s colocation capabilities provide miners with a cost-competitive infrastructure and a secure environment to make the most of their mining operations. Contact us today to start taking advantage of our best-in-class colocation facilities and to take your mining efforts to the next level.