Humaniq

Most profitable way to mine with your GPUs

Depending on what you want to achieve with your mining rigs you have many options to choose from. In this article I will explain the different ways to mine bitcoins with your GPU mining rigs.

If you are wondering whether you should mine using GPUs or ASICs please refer to THIS ARTICLE for an explanation. In this post I will assume that you have built a working GPU mining rig and know how to the process of mining works.

gpu

The first idea to look at when configuring your mining rig is whether you want stable return, or make a bet and have a chance for a larger return in the near future. Depending on the route you go there are different mining techniques for that. Depending on what route you choose you will have different options regarding the mining pools and the mining algorithm that you should choose.

If you are going to go with a stable return then you must immediately convert all your coins that you mined to fiat in order to ensure the stability. That limits you as a miner to mine coins that are already on exchanges. However, the other way to approach mining is similar to gambling. you can go to cryptocointalk and check out the releases for new coins, choose a coin that you believe will enter on an exchange and one that will have some sort of future and mine away. The difficulty will be low and once the coin goes on an exchange (hopefully) you will be able to dump it and make crazy profits.

If you want to go with a more stable return, there are many ways to do that. One of the ways is to mine the Scrypt algorithm on a multipool mining pool.  Scrypt is the standard algorithm that most GPU miners use and has quite a lot of hashing power devoted to it. The only problem with Scrypt is that there are ASICs coming out for it. ASIC stands for Application Specific Integrated Circuit. ASICS are cheaper, consume less power, and have way more hashing power then GPUs.  As a result, when Scrypt ASICs come out then those miners who still mine Scrypt using their GPUS will take a huge hit in profits. You see the more hashing power a blockchain gets the higher the difficulty rises, so unless you can keep buying more GPUs to match the ASICS there is no point mining an algorithm that already has ASICS for it.

Take for example Bitcoin. The only way to profitably mine bitcoin is to buy a Bitcoin miner. Miners like Antminer or Terraminer are all ASICS which are designed only to mine bitcoin. Mining bitcoin with GPUs or CPUs is obsolete because of the ASICS that overpower the other components. Similarly, if you want to continue making profit with you GPU mining rig you must switch to an algorithm which does not have an ASIC developed for it, and hopefully an algorithm which will never have an ASIC developed for it. Guess what? There is an algorithm like that, and it is called Scrypt-N.

Scrypt-N is an algorithm which modifies itself every couple of years, as a result developing ASICs for it will render useless after a year of mining and it takes way longer than a year to develop a functioning ASIC.

I currently mine vertcoins which use the Scrypt-N algorithm. I believe that Vertcoins are the next litecoin and will dominate the crypto market as the number 3 coin. This is not an article about promoting vertcoin but the only thing I want to say about vertcoin is that unlike other alt coins it has its own miner (vertminer) and as a result it looks very promising. Keep in mind there are other coins based on the Scrypt-N algorithm which are not vertcoin, you could possible mine a newly launched Scrypt-N coin if you believe it will have future and increase in value.

Back to the first idea that I was talking about. Do you want a small stable return or do you want to take a risk and invest and hope that the bitcoin market will go up along with the altcoin market? If you want a stable return then once you configure your miner you need to make sure to turn your profits from coins to fiat. If you are willing to take a bet you can either mine a newly launched coin that is not on an exchange, or go ahead and mine an established coin like vertcoin, which might go up in price someday.

If you need help configuring any mining software please feel free to post in the comments and I will write you a detailed tutorial on how to set it up.