Monero came into the world in 2014 and quickly made an impression on cryptographers because of its advanced security measures. In essence, Monero is like Bitcoin except it keeps your activity confidential. You store your Monero “money” via Monero wallet, a software application created specifically for that purpose. You can share your wallet address to get funds.
Unless someone who sends you funds wants you to know his or her identity, you won’t know it. It’s the same when you send funds to someone else. This advanced security is part of what sets Monero apart from other cryptocurrencies. Basically, instead of having everyone’s wealth and money movements on public record, Monero keeps things on the down low for your privacy.
Monero is also immune from the authority of any single country or government because of its anonymity. When funds are transferred from one person to another, a network of computers worldwide has to agree that the funds moved. The network we’re referring to here is made up of miners, and the anonymous transactions are the Monero’s blockchain.
Monero currently sits among the top ten cryptocurrencies available, floating closer to the top five all the time. Aside from its status in the crypto market, Monero can also be quite profitable to a wide variety of people, even brand new miners. Getting started is as simple as downloading the Monero wallet and either buying Monero using real currency or starting to mine.
Monero’s algorithm is resistant to ASIC’s mining, which means that anyone with a CPU or GPU can mine for Monero. That opens up mining to a much wider pool of individuals since basically anyone with a computer can mine as long as you know how to get started. There are a few different ways to start mining, so today we’ll walk you through the best and simplest options.
Monero Mining Hardware
The first step in how to mine Monero is to get the right hardware. The hardware you use to mine has a direct correlation with how much profit you will earn, so it’s important to use the right equipment and to consider a few factors regarding profitability. Those factors include the following:
Hardware for mining any cryptocurrency can cost anywhere from a few hundred dollars to tens of thousands of dollars, so you’ll need to know your budget before you get started. As we said earlier, you can technically mine with any PC or Mac, but to get the most bang for your buck, you might want to consider additional hardware.
The most important equipment to consider, regardless of whether you purchase additional CPUs or GPUs to begin mining, is a cooling system. Mining takes a lot of work and produces a ton of excess heat, so a system to cool the room where you mining is taking place, and your mining rig is essential to the process. Fans made specifically for this purpose can add to the cost of your rig.
Monero Mining Software
Mining software connects your equipment (CPUs or GPUs) and your mining pool to the Monero blockchain. To decide which software is right for you, you’ll want to consider a few questions. Make sure to check if there is a developer fee, whether the software supports your hardware and operating system, and how difficult it is to set up.
This universal Stratum pool minor supports CPUs, AMD, and NVIDIA GPUs. It can mine more than just Monero too, so it has the potential to do double or even triple duty for you. It does have a developer fee of 2% of your hashing power by default, but you can change that donation fairly easily if you so choose.
XMRig is a high-performance Monero CPU miner that is supported by Windows. It has been completely re-written from scratch to make it more efficient and remove legacy code. Its default developer donation is 5%, but you can change that to as low as 1% if you want to keep additional mining rewards with a few simple clicks.
XMRig AMD or XMRig NVIDIA
These run with the same high-performance as the original XMRig from above but do so specifically with the needs of AMD or NVIDIA graphics cards in mind. The same 5% developer donation fee is in place in both of these, but you are still able to change it if you would like to keep more of your rewards.
Monero Mining Pools
The last step in the process of figuring out how to mine Monero is to join a mining pool. There are plenty of options, but choosing the correct one is vital to yield the maximum number of rewards back. Typically mining pools come with fees, so your goal is to ensure that the fees justify the income you’re making from the pool.
Some mining pools come with software, so you can eliminate a step or two in the process by finding a combination. One such pool is Minergate. Its software works with Mac, Windows, and Linux, and it is extremely user-friendly. You simply download the software, run the program and click on “Start Mining” to begin your journey. It’s that simple.
Other pools you could use include MineXMR, which comes with a minimum payout of .5XMR and a 1% pool fee; Moneropool, which comes with the same minimum payout, but no pool fee or data on how many users are connected.
Still more pools include Nanopool, which comes with both a 1% pool fee and a payout commission of .015XMR, but also a higher 1XMR minimum payout; or Dwarfpool, which charges a 1.5% pool fee and different payout commissions based on the type of wallet you have.
How Mining Pools Work
As you probably know, you get rewarded for mining based on how many blocks you generate and put into the blockchain. Mining pools help you to succeed in creating blocks by putting you in contact with a group of other miners so that you can all contribute to a single block and then split the reward based on how much processing power each member contributed.
The goal of these groups is to improve mining outputs in order to earn maximum profits for all of the individual members of the group and then also the pool owners via the pool fee, payout commission, or both.
There are really two different purposes for mining. The first is to verify transactions and add them to the blockchain, and the second is to release new cryptocurrency into the system. The latter purpose is where mining gets its name since it is a high tech version of gold mining. Essentially, we know the currency is there, but it hasn’t been dug out and made available yet.
Mining takes puzzle and equation solving to a new level, which is why it takes such a huge toll on your rig and electric bill. It’s also why it produces so much heat while processing is taking place. Since more minors working means more processing power is necessary to generate blocks, pooling resources is a good way not to overspend and end up losing money.
Learning how to mine Monero can seem complicated at first, but in the end, it is often a lucrative decision that can help to improve your technological skills and put money in your pockets. Monero is a great currency for new miners because it tries hard to avoid ASICs and can, therefore, be mined using just CPUs or GPUs, which are far cheaper and more widely available.
You’ll want to be careful when considering additional hardware to help you mine Monero, as some can be extremely expensive. You may be better off using limited hardware, but finding the best possible software and mining pool to work toward your goals with the help of other miners. Although your rewards won’t be as high with a pool, you’ll likely be rewarded more often.
The best way to ensure you’re using legitimate pools and software is to head to Monero’s website and utilize the links they have provided. Sometimes your computer’s anti-virus or anti-malware software will detect even legitimate programs as malicious, so you will need to turn that feature off, and therefore be extraordinarily careful that you aren’t downloading bad links.
Monero is worth a good amount of money right now, is in the top ten cryptocurrencies currently available, and is very simple to trade for Bitcoin if you should want to do so. All of these qualities make it an excellent starting point to jump into the world of cryptocurrency and mining armed with just your PC or Mac and a basic understanding of how the system works