While you may think mining the most valuable cryptos is the best option, it isn't always the case. Today, mining smaller, less well-known coins can still make you a healthy profit without incurring high costs. Vertcoin, an ASIC-resistant cryptocurrency, is one such option. But what's the best way to mine Vertcoin, and are there any risks or downsides you should consider before doing so?
What Is Vertcoin (VTC)?
Launched in 2014, Vertcoin is an open-source cryptocurrency designed with an ASIC-resistant mining algorithm known as Lyra2RE(v2). This means that it is not susceptible to ASIC mining; therefore, CPUs and GPUs are the only hardware option for prospective Vertcoin miners. The entire idea behind Vertcoin was to make mining more accessible to everyone, rather than solely those who have the means to invest in expensive hardware.
But how, exactly, should one go about mining Vertcoin? Let's start with the hardware.
Vertcoin Mining Hardware
As previously stated, ASIC miners won't work in Vertcoin mining. Rather, you'll need a CPU, GPU, or GPU rig. Financially, this is definitely an advantage, as ASIC miners can cost thousands of dollars. But should you choose a CPU or GPU for the Vertcoin mining process?
In general, GPUs are more effective at mining cryptocurrency than CPUs due to their increased speed and efficiency. And, in the case of Vertcoin mining, the Lyra2RE(v2) mining algorithm works very well with GPUs. So, while you can mine Vertcoin using a CPU, you'll likely be better off using a GPU. However, using a GPU rig is generally considered the best choice for Vertcoin mining, which involves the purchase of multiple graphics cards. Of course, this will push up the upfront hardware costs.
When it comes to mining Vertcoin, Nvidia's RTX series is a particular favorite, including the 3080, which can reach a hash rate of up to 100 Mh/s. You can currently grab an RTX 3080 for around $800-$900, but you'll rack up a higher bill if you're looking to build a rig.
Vertcoin Mining Software
The great thing about mining software is that, unlike hardware, it's often free to download and use. But some mining programs are better than others, with Vertcoin working particularly well with its own software, One-Click Miner. This free, straightforward mining program is great for any experience level. It's also easy to download via the Vertcoin official website. One-Click Miner supports mining using both GPUs and CPUs.
However, it's worth noting that One-Click Miner is only available for devices that use the Windows operating system (specifically versions 10 and 11). But if you do want to use this software, you'll need to start by heading to Vertcoin's One Click Miner download page to download the latest version.
Once you've opened One Click Miner, you'll need to create a password for your account. After you've created your password, you can start mining. One Click Miner is incredibly easy to use, so you'll notice that the interface is pretty basic. You can enter the Vertcoin wallet address to which you'd like to send your profits and see the estimated rewards you'll earn at any moment. Your earning balance is also available to view at all times.
Solo vs. Pool Mining
Another important element of cryptocurrency mining is whether you choose to mine on your own or as part of a pool. Mining on your own gives you the entirety of any reward you earn by mining a block, but because it's just you mining for yourself with your hardware alone, the chances of mining a block are low compared to a pool.
This is because mining pools can have thousands or even millions of members depending on their popularity and supported coins. In large pools, a huge amount of hash power is being donated by each member (as is required if you want to be a member), meaning blocks can be mined on a much more regular basis. Therefore, those who are part of a mining pool receive a much steadier stream of mining income. This is why many miners join pools instead of mine alone.
However, it's important to note that when you mine as part of a pool, you only receive a fraction of the reward. Many pools issue rewards in proportion to how much hash power each member has contributed, though this is not always the case. But regardless of the pool's payment structure, you'll never receive a reward in its entirety. Rather, you'll receive smaller amounts on a more consistent basis.
Though solo mining can be more expensive and time-consuming, the big advantage is that you keep the entire block reward. This is what incentivizes solo mining. Additionally, miners can avoid paying a pool fee when they mine on their own. Mining pool fees vary depending on your chosen pool but will usually apply to you as a mining pool member.
If you do want to join a Vertcoin mining pool, there are a number of reputable options out there today, including:
Vertcoin Mining Rewards
Before you start mining Vertcoin, it's important to be aware of the rewards you'll be receiving. At the moment, one VTC is worth around $0.13, though this fluctuates multiple times a day. In any case, it's safe to say that Vertcoin isn't currently worth an awful lot. But this doesn't mean you won't make a profit by mining this particular crypto.
The reward for mining one Vertcoin block at the moment equates to around 12.5 VTC. The reward has been halved twice, and initially stood at 50 VTC per block. This is because Vertcoin has a finite supply of almost 6.3 million VTC. So, as is the case with Bitcoin, the VTC reward periodically halves to mitigate the rate of new coin circulation.
The Downsides of Mining
Another thing to consider before mining Vertcoin is the downsides associated with the process. One of the biggest mining downsides is the upfront costs one must pay for hardware. In the case of Vertcoin mining, GPUs can be quite pricey, even though they're generally cheaper than ASIC miners. But the costs can steepen significantly if you're looking to invest in or build your own GPU rig.
You may think CPUs are cheaper because they're often less efficient, but even these can be expensive. The best mining CPUs on the market today can cost hundreds or even thousands of dollars.
Additionally, cryptocurrency mining can have an unpleasant effect on your electricity bill. This is because mining often requires your hardware to run around the clock, which boosts your daily energy consumption, and, therefore, your bill. Even if you buy a highly energy-efficient CPU or GPU, you'll still notice differences in your monthly electricity output. So, if an increased electricity bill sounds like bad news to you, cryptocurrency mining may not be your preferred venture.
Could Mining Vertcoin Supply Become Your Side Income?
Though you won't be receiving mammoth rewards through Vertcoin mining, you can still create an additional revenue stream. And, without the need for an ASIC miner, you can also avoid super steep upfront hardware costs in this venture.