Monero is a cryptocurrency that was released in 2014, several years after bitcoin. It is a decentralized currency, though it is driven on the tech of fungibility. The concept was to ensure that it offered more privacy and security than bitcoin and some of the other cryptocurrencies out there.
Monero (XMR) can be a beneficial cryptocurrency to explore because of the privacy that it offers.
There are a few things that make it popular:
- It’s easy to mine
- You can make a quick profit mining Monero
- Passive network monitoring makes it nearly invisible
With so many reasons that lead to Monero’s popularity, you’ll want to know why you should mine it, how you can mine it, and what’s needed to get started.
Why You Should Mine Monero
The obvious reason for mining Monero is that it can deliver a profit. However, if you want to be profitable, you have to use the right equipment and dedicate yourself to mining the right cryptocurrency.
Many miners look at the level of privacy offered to determine if a cryptocurrency is worth the investment.
While bitcoin is the most well-known of all the cryptocurrencies, it is not the most privacy-focused. That’s where Monero comes in. There are countless features built into the coin to offer more privacy within the transactions. Should someone send you Monero coins, you have no ability to view the source of the coin transfer. It’s the kind of security that many people desire.
On the flip side, if you send coins, no one knows it’s you who sent the coins. The recipient will only know if you tell them. If you don’t know the person’s address, you don’t know their balances. It offers a bit of protection so no one knows how wealthy you are.
With the ability to hide from the public general ledger a bit more than what is seen with bitcoin, Monero is being used by those who want more privacy.
How You Can Mine Monero
Mining Monero is similar to other cryptocurrencies. It involves using a machine capable of solving the complex cryptography puzzles.
Often, people will choose a CPU, a GPU, or even an ASIC machine. CPUs are the most basic machines, and most coins can no longer be used with a CPU. However, Monero allows you to use a CPU still, which means you can use your day-to-day desktop for mining cryptocurrency. It can cut down on the initial investment that you make.
Now, if you want to increase your mining capabilities, it is going to be better if you use a GPU. It will allow you to work faster, completing more blocks along the way.
Similar to other cryptocurrencies, it can be beneficial to mine Monero within a mining pool. It ensures that you work with others so that you’re getting paid more regularly without having to wait until a full block is solved. Hundreds or even thousands of miners can work together in order to solve blocks faster and earn rewards just as fast.
Your hashing power has to be taken into consideration. Unless you have dozens of GPUs working to do the Monero mining, you need a pool to get the hashing power needed to get the job done quickly.
What You Need to Get Started with Monero
Hardware is what makes the dream work when you want to start mining Monero (or any other cryptocurrency, for that matter). You’ll get better results if you set up a custom rig with dedicated GPUs. Using your laptop or desktop will not produce the same results because you’re sharing resources. You’ll mine slower and earn less – and there’s no reason for that.
Beyond mining, you need a wallet. You can choose to use a Monero wallet or any other wallet that is capable of holding this type of cryptocurrency.
Further, you need an internet connection that is available 24/7 with plenty of data allowance.
After that, you need plenty of power. Grid-based power is going to be the best. You shouldn’t have to worry about running out of power unless you either live in an area where power is not dependable or you’re running several dedicated rigs.
In summary, you need the following:
- A wallet
- A reliable internet connection
- Sufficient power
Once you have the basics, you can move on to a few more things to explore.
There are a few issues that you need to be aware of.
First, you run the risk of high electricity bills. The rigs can use more electricity than you realize. This is also why it’s important to choose hardware that is energy efficient.
Second, mining rigs can generate a significant amount of heat. While mining pools will often repurpose the heat, you won’t have that luxury when you are mining XMR within your home. This is when it can be beneficial to invest in several CPU fans.
Finally, you will want to explore the latency of your Internet connection. Should you and another miner find a block at the same time, the one responding faster will get the reward. When you have a high latency, you run the risk of missing out on block rewards even though you spent hours’ worth of resources on mining.
How to Set Up Your XMR Mining Rig
Setting up your XMR Mining rig will allow you to start mining for Monero – and reaping the rewards.
Step 1: Download the Monero mining software to your computer. Be sure it’s the latest version.
Step 2: Install the mining software by extracting the zip file. Ensure your AV package doesn’t try to block the install.
Step 3: Find the execution file. You’re searching for xmr-stak.exe.
Step 4: Sign up with a mining pool. This is one of the easiest ways to do more and get paid on a more regular basis. You’ll want to join a mining pool before you start mining in order to get the regular payout. Do some competitive research to find the best mining pools so that you find one with a low fee.
Step 5: Configure the xmr-stak.exe. It will run automatically and provide you with the configuration wizard. Answer questions accurately in order to help with setup. In the password section, you will also be asked for an identifier of the rig be using – and this is why it’s important to join the pool, first. Once the software has been configured, it will connect to the pool you have signed up for, allowing you to start mining XMR.
Step 6: Start up Your Monero Miner. Make life a little easier by making a shortcut so the miner will start up automatically. You can do this by dragging and dropping a shortcut to xmr-stak.exe. It will start the miner automatically each time Windows boots up.
More to Think About
You want to be as profitable as possible, which means you need to know how to calculate Monero returns. Consider such things as your cash rate, the power being consumed, as well as fees involved in joining the mining pool.
If you are mining using a basic CPU, it can take one full year to mine a single unit of XMR, based on a hash rate of 330 h/s.
By joining a cloud mining pool, you gain a few benefits:
- You don’t have to invest in equipment
- You don’t pay an electric bill
- Your rig will never overheat
Take the time to determine whether mining pools (cloud or otherwise) are worth the investment so you can mine Monero and turn it into a profitable way to earn money.
Additionally, it’s important to note that it is both safe and legal to mine XMR. However, you are earning money, which means that you will be responsible for the tax implications of these earnings based on where you live – and it may be beneficial for you to explore these before getting started.
How D-Central Can Help
Mining Monero or any other cryptocurrency can be a challenge. You need to ensure you have considered all of the technical components.
We have the technical expertise to help you with mining hosting, consultations, and more. We can also provide repairs on mining equipment to ensure diagnostics are comprehensive enough to solve the problems and get you back to mining as quickly as possible.
Contact us today to learn more about the remote and on-site assistance that we can help as it pertains to your mining operations.