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Crypto Mining with Stablecoins: Explained!

Crypto Mining with Stablecoins

With the rise of cryptocurrencies and blockchain technologies, crypto mining has gained significant attention in recent years. As the popularity of digital assets grows, many wonder whether crypto mining with stablecoins is possible in the same way as crypto coins.

In this blog, we will explore crypto mining and the potential to mine stablecoins. We'll discuss which coins can be mined, which are most profitable, and how one could buy, sell, and invest in stablecoin through the regulated crypto services provider Cryptobunq. Let’s begin!

Some projects are exploring alternative mining models with stable assets, even though stablecoins aim to maintain a steady value and are not intended for mining like other cryptocurrencies.

Crypto mining traditionally involves validating transactions and adding new blocks to a blockchain network in exchange for newly minted coins. Stablecoins pegged to external assets do not undergo new minting during mining because they have a backed and controlled supply.

However, some projects are experimenting with allowing users to stake stablecoins and earn transaction fees as a reward, providing yield without risking coin price volatility.

Overall, though, stablecoins are not directly mined using the same proof-of-work or proof-of-stake consensus mechanisms used by major cryptocurrencies.

Can stablecoins be mined similarly to Bitcoin and Ethereum?

Stablecoins cannot be mined using the same energy-intensive proof-of-work consensus that is commonly associated with Bitcoin and Ethereum Classic.

Real-world reserves hold back their supplies instead of being newly minted through mining block rewards. Some, however, allow staking to provide yields without volatility.

For example, with the euro stablecoin EURK, users can stake their coins and earn a portion of transaction fees paid on the blockchain network as an alternative form of "crypto mining.".

Rather than release new supply, it rewards users for providing liquidity in stablecoin and helping to power the network. In this sense, stablecoins provide yields without traditional mining price speculation.

mining with stablecoins

Which coin is easy to mine?

When looking for the most accessible mined cryptocurrency, less computationally intensive coins like Litecoin, Monero, or even Dogecoin can be somewhat "easy" to start mining with a mainstream PC or laptop.

However, most major "mineable" cryptocurrencies now require specialized ASIC mining rigs to efficiently mine due to increased hashing difficulties and network competition.

Coins like Bitcoin, Ethereum Classic, and newer proof-of-work chains generally require dedicated equipment, advanced technical skills, and cheap electricity to mine profitably.

Some alternative coins are still mineable on consumer PCs, but margins will be thin. Overall, it's difficult to call any major cryptocurrency "easy" to mine nowadays without significant upfront costs and energy use.

Which coin is most profitable to mine?

When it comes to the most profitable coins to mine, there is no single definitive answer, as profitability fluctuates daily based on network difficulty, coin price volatility, and electricity costs.

However, some of the top considerations for crypto mining profitability currently include Ethereum Classic, Ravencoin, and Ergo, based on their current prices and mining algorithms that favor certain ASIC or GPU setups.

That said, newer chains may offer more profitable proof-of-work mining opportunities before networks develop. Everything also depends on an individual's exact mining hardware, location, and electricity rates.

The most important thing is to continually research the most up-to-date crypto mining calculators and profit comparison tools to choose crypto coins with the best potential returns based on personal costs.

Is it possible to mine EURK?

EURK, as a regulated euro stablecoin, cannot technically undergo the energy-intensive proof-of-work process associated with early cryptocurrencies.

EURK holders, on the other hand, can stake their coins and earn a portion of the network transaction fees as a yield alternative. By staking EURK tokens and validating transactions, users can essentially mine network fees without risking volatility.

This provides utility and returns to EURK users, helping power a regulated, highly liquid stablecoin network. So, while not directly mineable, staking EURK allows participants to passively earn yields, contributing to the network's security.

stablecoin mining

How do you buy and sell EURK?

Investors can currently buy EURK from supported crypto exchanges and Cryptobunq, by acquiring another asset and then trading it for EURK.

Once you have EURK tokens, you can store them in a regulated euro stablecoin wallet. In this regard, Cryptobunq is an expert custody and wallet provider. You can easily store and manage your EURK euro stablecoin and even earn staking rewards by providing liquidity to the network.

Users can buy EURK directly with fiat currency or other cryptocurrencies through onramps integrated into the Cryptobunq wallet. To sell EURK, users can trade their tokens back to major assets on exchanges and then withdraw funds or cash out to fiat.

Why should you use Cryptobunq to invest in EURK?

Cryptobunq provides the most seamless and secure solution for transacting stablecoins, cryptocurrencies, and crypto tokens. As a secure crypto services provider, CBQ offers a wide range of solutions in this aspect.

For example, by storing EURK in a Cryptobunq wallet, users gain access to the same institutional-grade security and regulatory compliance that protects over $100 million in digital assets.

For passive euro exposure without volatility, earning staking rewards, or utilizing unique payment rails, Cryptobunq's unified platform is the easiest way to invest in the regulated EURK euro stablecoin.

With insurance, compliance, and the strongest crypto custody solution in the industry, Cryptobunq provides unparalleled peace of mind for cryptocurrency investors of all kinds.

The bottom line

Developers are creating innovative alternative models for crypto users to generate returns from regulated stablecoins, rather than mining them in the traditional competitive proof-of-work sense.

Through a crypto exchange API, crypto checkout and invoicing, and secure types of crypto wallets, Cryptobunq empowers people globally to leverage regulated digital currencies for payments, yields, and as a long-term store of value without risk of loss from volatility.

With simple and compliant solutions, Cryptobunq remains the premier destination for any new investor looking to capitalize on the incredible potential of blockchains and digital currencies in a secure, regulated environment.

Make sure to check our case studies and CBQ blogs to stay up-to-date on our expert crypto and blockchain services, and always feel confident using crypto with the industry's most trusted institutional provider. Contact us today and integrate CBQ solutions into your business for potential growth!

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