Mining Monero is a little different than what you think you know about standard cryptocurrency mining. Monero's focus on serious decentralization also extends to its approach to mining. This is often advertised as being more advanced. Mining Monero is a little different than what you think you know about standard cryptocurrency mining. Monero's focus on true decentralization extends to its approach to mining, and it is often touted as more “democratic” than Bitcoin, for example. The reason is the implementation of the CryptoNight hashing algorithm used to mine Monero's XMR token. This memory-intensive algorithm is thought to offer a more egalitarian approach to mining, as it can be computed on CPUs and GPUs, but it is also possible to use application-specific integrated circuits (ASICs) as mining-specific hardware. ) is completely unfriendly to users. .
Get the facts right before mining Monero
Monero miners use their resources to act as validators for groups of transactions (blocks) made on the network, and XMR coins serve as a reward for each successful validation. On average, one Monero block is mined every two minutes. To support Monero's drive for higher levels of decentralization, mining is primarily done using GPUs, with CPUs being a less efficient option. In fact, the Monero team's desire to compete with ASIC-based mining led to the currency forking into several spin-off tokens, including Monero 0 (ZMR), Monero Classic (XMC), Monero Original (XMO), and MoneroV (XMV). did. In March 2019, Monero underwent a hard fork. It was thought that this would further improve his ASIC resistance, among other things. Miners had to upgrade their mining software and XMR holders had to update their wallets to the latest version. In addition to mining, you can easily purchase XMR directly from various cryptocurrency exchanges such as Kraken, Binance, etc. XMR tokens can be stored in a variety of desktop, mobile, and lite wallets, whether you mine them or buy them.
Choosing the best approach to mine Monero
Returning to our Monero guide is a great first step to getting ready to mine this cryptocurrency. Knowing at least the basics about Monero is a shortcut to reducing disappointment, as is setting aside a budget for mining Monero in advance. The golden rule of investing applies here as well. It is better to be prepared to invest not more than a penny more than you are prepared to lose. But first, the good news. Considering that expensive investments such as ASICs are taken out of the equation, the decision to mine Monero will significantly reduce costs on your mining budget. Compared to Bitcoin, for example, Monero mining is more accessible to those who want to venture into the crypto hole without breaking the bank or becoming a mining expert overnight. This is an option. At the end of the day, Monero mining revolves around his three basic approaches.
- Monero mining alone. This option is best left to experienced users, but the good news is that it can be performed on a PC that serves as a mining rig. All profits remain with you, as well as the heavy responsibility of handling all mining operations yourself and performing associated hardware maintenance.
- Join a Monero mining pool. This option requires the utilization of computing resources as part of a group of miners who share the mined XMR tokens. Although you will have to pay a fee to the pool to join and share the profits, participating in the strength in this way allows for faster block validation and more stable access to your Monero tokens.
- Mining Monero using cloud-based services. In this case, you contract with a cloud mining platform, usually based in a data center, to perform the mining of Monero in exchange for a regular fee. This option is financially sound and accessible even to those who don't want to get into the nitty-gritty of mining and consider investing in their own mining rig an unnecessary hassle.
How to mine Monero as a solo digger
First of all, Monero doesn't require any specialized mining hardware, so there's no need to think that you can start mining on just about any PC you can get your hands on. The more powerful the hardware, the better. This refers to both CPU and GPU. Low domestic electricity prices should also help here, but this is unlikely to be easily changed, and moving to countries like China or Venezuela just to mine alone is no small undertaking. there is no. What you look for in your hardware boils down to two main things.
- hash rate. It can be said to be the basic “strength” parameter of hardware. The higher the rate, the better.
- Checking the power consumption of CPUs and GPUs in this segment is a must, as electricity bills can put a strain on your budget. This is the value that derives the mining cost per KWh, i.e. the cost of electricity per individual mining unit.
In this segment, a mining profitability calculator that provides support for Monero will be of great help. These include CryptoCompare, WhatToMine, and similar platforms. Once you have entered the necessary data for your hardware, you need to select the Cryptonight algorithm from the appropriate menu and retrieve the relevant information.
GPU or CPU?
There is yet another benefit to relying on a Monero mining performance calculator. Within your available budget, you are free to experiment with different hardware combinations to find the sweet spot of performance and power consumption. When it comes to Monero, the general consensus is that you will get better results using a GPU card, which means you should allocate more funds to get one. GPUs offer better hash rates overall compared to CPUs. This means you can take your CPU's processing performance down a few notches and opt for a more powerful GPU instead. It is also useful to know that Monero uses the CryptoNight algorithm, so AMD GPU cards are often said to have better performance compared to their Nvidia counterparts. In any case, going for less than the AMD R9 280x or Radeon Rx 580 is not a wise investment. Another thing to consider in the case of Monero's CryptoNight is that it still supports mining this currency using the CPU. With the price of Intel's i7 CPUs dropping, these models can be used as a starting point for hardware if you want to focus on CPU-based mining. Finally, if you prefer Nvidia hardware for any reason, or are stuck with one of these cards at the moment, keep in mind that they are also a perfectly viable mining option. Keep in mind that anything that offers performance below the level of an Nvidia GTX 1070 or Nvidia GTX 1080 will be of little use when it comes to mining.
Best software to mine Monero
No matter which GPU option you choose, you will need mining software, or a “miner.” Common options include:
- XMR Stak has several variants that support both AMD and Nvidia GPUs as well as CPUs. Its reputation rests on its reliability, relatively high hash rate, and overall optimization.
- MinerGate boasts the best performance combined with the accessibility of a graphical user interface. As such, it could be the perfect solution for prospective miners with little or no experience.
- CC Miner is another popular option and is often touted as a great all-around option for Nvidia card users.
- Monero Spelunker is a simple and accessible option for anyone interested in mining Monero using their CPU.
How to mine Monero with a mining pool
To mine Monero as part of a mining pool, you can be part of a group of miners who share hash resources as part of a collaborative effort to complete blocks and share minutes in the form of Monero tokens. Is required. Mining pools also charge royalties in the form of a percentage of what they manage to mine. However, pool-based mining has the advantage of providing a more regular income stream and requiring less initial investment in a mining rig. But ignoring the hardware side means you'll have to wait longer before you get your reward, so despite the fact that you're not engaging in solo mining, you'll need to install the best possible GPU in your rig or The pressure to choose a CPU is still on here. Popular pools for this type of activity include MineXMR, SupportXMR, and XMRNanopool. As with Bitcoin and other cryptocurrencies, to choose the best pool for you over the popular pools, apply some common sense beforehand and consider the reputation and size of your chosen pool beforehand. it needs to be checked. and any applicable fees charged thereby.
Search for Monero in the cloud
If you don't like both solo mining and pooling, or find them too complicated, the most beginner-friendly option is to look for a cloud-based platform that will mine Monero while you sleep. As with doing the mining yourself, your results may vary depending on your expectations, but getting a respectable mining platform that works on a contract basis will actually get the job done when it comes to acquiring his Monero hassle-free. It may be possible. manner. Advantages include not having to worry about hardware acquisition and maintenance, and providing ample space and cooling for the mining rig. The most important thing with this option is to avoid potential scammers offering cryptocurrency pie. Start by checking out offers from popular mining platforms like CCGMining and Minergate, and avoid platforms with a bad reputation or an unusually low number of subscribers.
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