What are Mineable Coins?

Mineable Coins Explained

Mineable coins are any cryptocurrencies that one can mine through the process of crypto mining. In general, cryptocurrencies that follow the PoW mechanism are mineable—for example, Bitcoin, Litecoin, Dogecoin, etc. On the other hand, cryptocurrencies that follow Proof of Stake(PoS) are not mineable—for example, Ethereum.

Crypto mining is crucial for cryptocurrencies as no intermediaries like banks or financial institutions are involved in transactions. Nodes or network participants worldwide, called miners, will validate crypto transactions and add them to the decentralized blockchain ledger. All top cryptocurrencies like Bitcoin, Litecoin, and Zcash can be mined through crypto mining.

Since crypto mining is a highly technological and energy-intensive process, miners who successfully solve puzzles and mine new blocks get incentivized with freshly mined cryptocurrencies to contribute their expertise and computational resources. Thus, mineable coins play a crucial role in securing the blockchain network and bringing new cryptocurrencies to the market.

Non-mineable Coins Explained

Non-mineable coins are cryptocurrencies that cannot be mined through crypto mining. Often, non-mineable coins are already in excess in circulation. Users can get these coins from crypto exchanges or by participating in events like Initial Coin Offerings (ICO), such as XRP, EOS, Stellar, etc.

These cryptocurrencies are primarily non-mineable for two reasons.

• They reached their maximum supply limit and are not mineable anymore.
• The total number of coins is not yet known or has not been released completely.

These non-mineable coins follow the Proof of Stake (PoS) mechanism. They can be acquired only through wallet staking and by regularly adding extra coins to circulation.

Entendiendo la minería de criptomonedas.

Crypto mining is the process of verifying and validating crypto transactions in the blockchain network, such as Bitcoin or Litecoin, and adding them to the decentralized blockchain ledger. Since cryptocurrencies are decentralized and not governed by authorities like banks or financial institutions, crypto mining is crucial for validating crypto transactions. Nodes or miners worldwide verify and validate transactions by solving complex mathematical problems.

Crypto mining is an energy-intensive process that requires miners to use advanced hardware, such as ASICs, with high computational power to solve puzzles. Miners, in turn, receive freshly mined cryptocurrencies to share their computational resources and contribute to securing the blockchain network.

Crypto mining is an integral part of the crypto industry, not only for validating transactions but also for bringing new cryptocurrencies to the market. In other words, mineable coins are crucial in securing the blockchain network, enabling miners to earn cryptocurrencies and bringing new cryptocurrencies to the market.

Mineable Coins Vs. Non-Mineable Coins

Mineable coins and non-mineable coins differ majorly in their creation and distribution. Let’s see them in detail.

Pros and Cons of Mineable Coins and Non-mineable Coins

Pros of Mineable Coins

• PoW coins, aka mineable coins, are more secure and decentralized.
• PoW achieves better crypto coin distribution provided the coin has ideal block rewards and no premine.
• Government norms and the banking system have widely accepted the PoW mechanism. Thus, many people use it for daily transactions without relying on third parties.
• Mineable coins have more scope to evolve in the future. The field is already undergoing advancements to overcome negatives like energy consumption. PoW-PoS, a hybrid model, is already on the cards for some crypto projects.

Cons of Mineable Coins

• Mineable coins or PoW coins are more expensive to secure as they consume extensive computing power, demanding miners to use specialized equipment like ASIC miners.

Pros of Non-mineable Coins

• Non-mineable coins are more energy efficient, as they don’t require extensive energy to secure the network. That leads to substantially lower costs to validate transactions compared to PoW coins.

Cons of Non-mineable Coins

• Most non-mineable coins are premined. Plus, most of them are centralized due to poor initial coin distribution.
• Non-mineable cryptocurrencies have security issues as they are more centralized and prone to malicious attacks.
• The entire model of non-mineable coins is ineffective. Thus, it is prone to fraudulent developers and scam projects.

Factors to Consider While Mining Cryptocurrencies

Crypto mining is a potential way to earn cryptocurrencies without actually investing in them. However, it can make or break your finances if not done right. Here are some crucial factors that one should consider to maximize the profits and minimize the losses from crypto mining.

1. Cryptocurrency’s Price

The cryptocurrency you intend to mine, or the mineable coin’s price, directly impacts your mining profitability. Hence, thoroughly research the cryptocurrencies and pick the ideal one with a favorable price history. Checking past performances and price movements will help you predict the cryptocurrency’s potential and make informed decisions.

2. Mining Equipment Cost

Crypto mining requires miners to use specialized mining hardware, such as ASIC miners, which are finely programmed for the cryptocurrency’s mining algorithm. These ASIC miners have higher hash rates and energy efficiency, enabling miners to mine their preferred cryptocurrencies efficiently, thereby increasing the chances of mining success.

However, these ASIC miners demand a significant upfront cost, which would impact your mining profitability. Hence, considering the ASIC’s price and quality is crucial before embarking on your crypto mining journey.

3. Electricity Cost

Crypto mining is a highly energy-intensive process, demanding more electricity. Hence, you can expect significant electricity costs. Double-check the electricity charges in your area. Crypto mining can be quite profitable if you have access to free or affordable electricity.

4. Mining Pool Fees

Solo mining can be cumbersome, especially if you’re not an experienced miner. Joining a mining pool allows you to share resources and expertise with fellow miners and increase your chances of mining success.

However, you would need to pay a fee for the mining pool. Ensure the fees and payout schemes before joining the pool, as it would impact your profitability. Do your research, ask for reviews, and join a reputed and transparent mining pool.

5. Regulatory Affairs

Regulatory policies, tax implications, and legal guidelines often keep changing according to the evolving crypto mining industry. Hence, it is crucial to ensure the local laws and regulations regarding crypto mining to avoid getting into legal complications and potential losses.

Top Mineable Coins in 2024

Here are some top cryptocurrencies that you can mine in 2024.

However, as cryptocurrency prices are highly volatile, ensure you do your research and monitor the price movements before mining.