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How to Mine Monero (XMR)

Dec 24, 2021 5 min read

Monero (XMR) is a cryptocurrency that focuses on privacy. It is one of the cryptocurrencies that enthusiasts can still mine at home profitably. Would you like to give Monero mining a try? Then, read on and learn everything you need to know to start mining this privacy coin.

An Overview of Monero

Monero is an open-source cryptocurrency launched in 2014 with the stated goal of allowing transactions to take place privately and anonymously. Monero is technically similar to Bitcoin (BTC). However, this coin introduces privacy features that differentiate it from Bitcoin.

Usually, people assume that Bitcoin conceals a user’s identity in a transaction. The reality is that one can trace a BTC payment back to its source since blockchains are transparent. Bitcoin uses a wallet address instead of a user’s actual name, but with some effort, one can unveil the identity of the wallet’s owner.

Contrastingly, Monero obscures both sender and recipient through sophisticated cryptographic techniques in a transaction. The developers of this cryptocurrency prioritize privacy and security over efficiency and ease of use. As a result, anyone can make quick and inexpensive payments without censorship using this cryptocurrency.

Although some competitors have appeared, Monero is still one of the top privacy-focused cryptocurrencies in the market. At the time of writing, Monero has a market cap of over $3.47 billion. It ranks as the #46 most valuable coins per market capitalization. Currently, there are more than 18 million XMR coins in circulation.

Introduction to Monero Mining

Mining consists of verifying transactions on a cryptocurrency’s blockchain. For this service, miners earn rewards in the form of digital coins. In the case of Monero, the mining process is very similar to Bitcoin. These two cryptocurrencies use the proof-of-work (PoW) consensus mechanism for verification. Many people know about the difficulty of mining Bitcoin, particularly the enormous amounts of electricity consumed by this process. It results from using computers equipped with application-specific integrated circuits (ASICs).

Contrary to Bitcoin mining, you do not need expensive and sophisticated equipment for this activity. You can mine Monero using your personal computer's central process unit (CPU). Alternatively, you can use its graphics processing unit (GPU). The Monero developers believe that everyone should enjoy the same opportunity to participate in mining this cryptocurrency. Therefore, Monero mining doesn’t support ASIC hardware, which is usually more expensive.

So, all you need to start mining this cryptocurrency is the following:

  • A computer
  • A stable Internet connection
  • Monero mining software
  • A Monero wallet.

You can mine this cryptocurrency solo if you want. However, to increase the profitability of your mining activity, you can consider joining a mining pool. Another option is cloud mining services. Whatever way you choose, there are some technical things to consider before mining.

Profitability of Your Mining Activity

Most enthusiasts mine crypto to generate extra income. Hence, you should carefully assess the profitability of mining Monero before you invest in the necessary equipment. Luckily, you do not need expensive hardware to mine this cryptocurrency. But to maximize your profit, you should buy the equipment at a price below retail price. Also, the PoW mechanism consumes a lot of electricity. If electricity rates are high in your place of residence, your Monero mining may not be profitable at all. In such cases, joining a mining pool is the best option.

Hash Rate

Mining requires your computer to solve complex computational puzzles. Since many crypto enthusiasts mine Monero, you need a fast computer to solve such puzzles first. Otherwise, you will not get any reward. Therefore, you should get a mining device with a high processing speed. The processing speed is often referred to as the hash rate in the context of crypto mining. It corresponds to the number of calculations the device can perform in a second. The higher the hash rate of your device is, the better.

Solo Monero Mining

The most common way to mine Monero is by using your computer’s CPU. If you want to increase the profitability of your mining, you can buy a particular CPU for Monero mining. You can read our guide on the best Monero mining hardware for some advice. Now, you should follow these steps:

  • Get a Monero wallet. You should set up a crypto wallet to store your XMR rewards from your mining activity. Many wallets support this cryptocurrency. Select the type of wallet (mobile, desktop, hardware) according to your needs and preferences. In most cases, setting up a wallet is very easy.
  • Install Monero mining software. Next, you should install mining software on your computer. There are several options in the market. XMR-Stak, XMRig, MinerGate, and Monero Spelunker are some of the most popular programs to mine Monero. XMR-Stak runs on Windows or Linux and supports both CPU and GPU mining. Some of these programs, like XMRig, could trigger an antivirus warning on Windows. If it happens, you need to add a security exception for this software to prevent the system from removing the installation file.
  • Finally, you need to configure the software to tie it to your wallet. Read the instructions for the mining software you are using. In the case of XMRig, you can modify the configuration by customizing the file “config.json.”

Alternatively, you can use your computer’s GPU to mine Monero. Some enthusiasts prefer GPUs because a computer can support up to 19 of them, whereas supported CPUs are usually two only. When working together, GPUs can mine at very high hash rates. Commonly, gamers opt to mine Monero with a GPU as they already have powerful GPUs in their computers.

Monero Mining Pools

A Monero mining pool consists of a group of individuals that combine their mining hardware to increase their chances of finding new blocks in the XMR blockchain. The rewards are divided proportionally to the computational power each pool member contributed. To join a pool, you usually have to pay a fee. Some popular mining pools are MinerXR, SupportXMR, Unipool, and XMRNanopool. You have to configure your mining software to connect your computer to the mining pool of your choice.

Monero Cloud Mining

In this mining modality, you use cloud-hosted computing power to mine Monero. So, you don’t need any hardware or software of your own. Instead, you pay a fee to a cloud mining provider to use computing power. Make sure you use a reputable cloud mining service provider like Minergate or CCGMining.

Should I Mine Monero?

Now you know the different modalities to mine Monero. Should you give it a try? It is your decision. If done correctly, Monero mining can still bring in profits. It is easy, and you do not need to invest a lot of money to get started. It would help if you dedicated some of your time to setting up and configuring your mining rig.

However, if you want to invest in XMR without going through the mining process, you can buy this crypto directly from an exchange. For example, LetsExchange.io allows you to swap more than 340 cryptocurrencies for XMR. It is easy, fast, and secure.

Another option to benefit from Monero is to integrate it as one of payment methods on your website. Our white label crypto exchange enables doing so fast and with minimal expenses.

Disclaimer

Please keep in mind that the above information is based exclusively on our observations and is provided for informational purposes only. It doesn’t constitute any kind of financial advice nor represents an official forecast. Cryptocurrency is a highly volatile asset, and you are investing in it at your own risk.