Originally Posted by MerkageTurk
Which coin is the most profitable,
I am doing Doge atm
This totally depends on your perspective and ultimate goals:
1) Quick and (relatively) easy money: use us.trademybit.com or middlecoin.com and exchange everything into BTC and then immediately into fiat or goods. Minimum risk, consistent
(though also minimal reward). You can also use this to focus on a single coin during it's early stage without concern - provided it is on an exchange somewhere
and hope for adequate returns. This would be KorruptedKaos' method.
2) Medium term with variable work requirement: use either us.trademybit.com or multipool.us or coinwarz and independent pools by coin and exchange. This requires a little more skill and research as something won't be profitable long (most likely) as it will be being dumped by all the big pools around the same time - thus driving the exchange price down each time. Coins with limited potential should be dumped quickly but timed during pumps - coins with good potential or growing popularity can be held for longer to get greater returns down the road. This would be similar to Jeffinslaw's methodology - although he also falls into category 3 somewhat.
3) Long term wealth building. This is where I fit in. I pick coins that I believe in personally and see long term growth potential in, either due to technology/market share (BTC/PPC/WDC/NMC) or popularity and application (BTC/LTC/DOGE). I then always provide some hash to the most profitable within those coins only
- for two reasons, one to get coins for long term return potential, and two simply because my mining operation is helping provide a stable transaction backbone to said coin. Then the rest of my hashrate I focus on pump-n-dump coins that I don't feel have long-term potential but have great short term profitability (MAX/UTC/VTC/DGC/TIPS/MOON/???) and then pick one or two total 'wildcards' (like NUT) which have virtually no profitability nor popularity in comparison... because it costs me nearly nothing to acquire over time (difficulty stays low because huge pools aren't mining) and BTC was once like this when I originally started mining it.
I held on to my BTC through people telling me that they would never again be worth $1/ea through people saying they'll be worth $1M/ea someday... I didn't believe either of those types of people - but I believed in the concept. Now it doesn't matter what a BTC is worth on a daily basis... mine all combined cost me something like $2/ea in electricity and GPUs I wanted to buy anyway.
How you go about mining/trading/spending cryptos is no different than it is with fiat in reality. You can take your paycheck and immediately spend it on stuff you want/need (#1), or you can spend some of it and save some of it for later on (#2), or you can invest nearly all of it in hopes that it will later be worth more than anything you could have bought with it in the short term (#3). Nearly all of that depends on your age, income, desires, philosophy, etc.. There really isn't a 'better' or 'worse' way... they're just different paths to different goals... pick the one that works for you.
As far as what you're doing... I also have miners working on DOGE at the moment - and will continue to do so no matter how high the diff gets. For that matter I've also invested BTC into DOGE to increase my holdings (thankfully before the current rise in value) - but I mine it solely to provide hashrate and stability to transactions... because I personally believe that it will outlast LTC, and possibly even BTC. Not because it's better (it's not) or because it makes sense (it doesn't) but simply because more people actually use
it on a daily basis than LTC and more people want
Couple that with the fact that it's actually designed right
(although accidentally) so that there isn't a hard limit to it's mintage... and I think you have a winner that can go the distance (regardless of how unbelieveably stupid I feel every time I open the wallet). Edited by DiGiCiDAL - 2/11/14 at 5:59am