Hey,
I just wanted to share an important message to you about alt-coins.
There has been many different alt-coins that have sprung up in the last few months. We all know that some may be more profitable than mining litecoins. This is why we mine alt-coins. Not because they are going to turn into a currency, it is because they can be lots more profitable to mine, and then you can just convert them into BTC or LTC. In the descriptions or websites of many alt-coins, they often advertise as being THE coin for the future to use as a currency. To think that this is true is not smart at all. Imagine having all the alt-coins as currencies in our world. Imagine walking to a corner store, and they only accept Grandcoin, when you have Globalcoin, Worldcoin, and Digitalcoin. Having hundreds of different coins would be like walking into a store with many different currencies. That would be impossible. The only coin right now that will effectively serve as a real currency will be bitcoin. Litecoin is becoming increasingly popular, but there can be only one, and that is bitcoin. Bitcoin also has many times more exchanges than the other coins.
I am not saying that alt-coins are bad. Alt-coins are actually very good for this mining hobby we all have
. It puts in the fun of choosing the most profitable coin to mine for the day, and also puts in the chance that maybe your alt-coin you are mining will take off and double (happened to me
). Alt-coins do nothing but benefit the whole cryptocoin idea. Yes, they may take away a few fractions of a percent off of litecoin/bitcoin's market share, but does it matter? Right now, the only 2 real coins are BTC and LTC. BTC is the root of the SHA-256 algorithm and LTC is the root of the scrypt algorithm. You should base everything off of those 2 currencys, as they are the base currency for each category.
Unless you already have some ridiculous ASIC miner for Bitcoin, don't even consider mining directly in BTC. The difficulty and the popularity is ridiculous, and even with a 250$ 5gh/s ASICminer you only make a few dollars a day. If you are interested in getting into mining, build a new computer with a cheap CPU, motherboard, and everything else. Make sure that your case has good airflow, as these are going to be on 24/7 running at 100% load. Actually, you may want to invest in a motherboard that has more than 2 pci slots. In the future, you may want to run 4 or more GPUs on the same computer to get an even better hash rate. When choosing a gpu, STAY AWAY FROM NVIDIA, they are extremely unefficient with mining, and the best NVIDIA will be 10 times slower than an average AMD. The best GPU's mining right now for performance per dollar and break even rate are the 7950, 7970, and the r9 280x. The r9 280x is a 7970, but with a way better price, so I would advice buying that instead of a 7970.
To benefit from all these alt-coins, follow my steps in what I do.
1. Make a bitcoin wallet. This will be your center money source, and you will trade all coins to this (we will do that later)
2. Make an account at cryptsy.com. We will need this later
3. Go to coinwarz.com, and calculate the most valuable coin right now.
4. Find a pool, and start downloading the blockchain
5. Start mining, and the blockchain should be downloading in the backround.
6. When the end of the day comes, just for fun find out how much you made.
7. Deposit the alt-coin in your cryptsy account
8. Trade the random currency to BTC
9. Deposit the BTC into your bitcoin wallet on your computer
10. Sell your BTC, but things with it, whatever. You now have more money than you would have mining LTC!
That pretty much warps up my guide on how to profit on alt-coins, and what do they serve a purpose of.
Thanks for reading this!
-j2543
