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As a total Noob I have a CPU and GPU intensive machine and want to mine some coin to earn. In addition, I try to get the best trade of between the earning from the mining and exchanging it to a real cash. Should I choose Bitcoin or Litecoin?

Is it also logical to mine Litecoin (since it is faster) then keep them as Bitcoin in Coinbase? But in this case, I don't know whether I got my litecoin mining earnings to Bitcoin in Coinbase.

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It is more effective to mine Scrypt coins (Litecoin, Mincoin etc) rather than Bitcoin (sha-256 cryptography). This is because as the amount of coins created increases, the difficulty of the blocks becomes harder to solve. Bitcoins have reached (or are close to reaching) that plateau. The cost of mining bitcoins isn't worth it compared to the amount it will cost in electricity consumption.

Your best bet is to research undervalued Scrypt coins and mine them. There is no way currently to use an ASIC miner to pump out large numbers of hash's / sec. The only way to mine Scrypt coins effectively is to use an array of GPU's.

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Most exchanges lack the capability to convert to fiat currencies anything but Bitcoin and Litecoin, some add Primecoin or PPCoin to that list.

But then the Bitcoin mining market is so competitive most miners barely cover their expenses plus there's a very high entry barrier - mining with GPU or CPU is just not worth it anymore.

Litecoin and the other scrypt-based crypto-coins aren't that competitive yet, but those with the biggest market capitalization (like Litecoin and Dogecoin) are approaching that level very quickly, so you'd better have a very energy-efficient cooling system and access to cheap electricity if you want to make money mining them.

Options for you, right now:

  • Mine for a short time (while difficulty is low) and then hoard a little-known, relatively new coin whom you think has middle-term possibilities. It might be based off something already popular (as Flappycoin) or use a very different algorithm (as megacoin's SHA3 or Vertcoin's scrypt-n). Should this coin become more valuable (as in 5x or 10x or more valuable) you could sell it for BTC, hopefully at a profit.

  • Join a multipool: you simply provide the hash capabilities of your GPU and the pool's admin gathers all that power to mine the coin deemed the most profitable to mine (taking into account expected block reward and current price in the market). Then pool manager later sells all such acquired coins and pays to you in bitcoins.

  • Join a merged-mining scrypt pool: You'd be able to mine 42coins, dogecoins, digitalcoin and a few others altogether at the same time so your final hashrate becomes ~25% higher than what you'd get mining just one coin. Of course, you'd need to have multiple wallets and an account at an exchange to sell them afterwards.

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  • I am mining in hypernova pool, what you think ? – erogol Mar 5 '14 at 21:10
  • Check coinwarz.com or a similar profit calculator. Put in the Kilo-hashes per second you're getting off your GPU as well as the $$$ you pay for electricity. You'll get not just which coin would be the most profitable for you to mine, also a gross estimate of how much $$ you should be making - do you get something similar? If not, try a multipool as middlecoin.com or multipool.us ; or try merged mining at manicminer.in – Joe Pineda Mar 5 '14 at 22:44
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Isn't the efficiency already at the point here mining with CPU/GPU (instead of specialized ASIC) will cost you more in electricity than you can earn from the mined coins?

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  • For Bitcoin, definitely yes. For Litecoin and its brethren - almost there, but not quite. – Joe Pineda Mar 5 '14 at 22:03

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