How And Why Should You Mine Monero?
If you’re looking to get into the business of mining cryptocurrencies, then you should mine Monero (especially in the beginning).
Why? For starters, Monero (XMR) (launched in 2014) is the tenth strongest cryptocurrency in terms of market capitalization with a market cap of 1.75 billion USD (as on October 18).
It is one of the top cryptocurrencies, just like Bitcoin. It is used for online transactions and can be sent from one person to another through wallets. What sets Monero apart from other cryptocurrencies is the fact that Monero is highly focused on privacy.
Mining this cryptocurrency is also highly profitable considering that its cryptographic algorithm is resistant to ASIC mining. So, all you need is a CPU or a GPU to mine Monero.
Monero operates on Proof of Work concept. The proper hardware coupled with Monero software that can help the miner connect with the mining pool is a requisite for mining Monero.
And this blog post shows you the different ways you can mine Monero.
Cloud Mining Monero
Cloud mining is a method using which you can mine cryptocurrency without installing any special hardware or related mechanics. There are companies that offer cloud mining services like MiningRigRentals, Genesis Mining, Nice Hash.com etc. that allows you to open an account and participate in mining operations for a very basic cost. This makes the mining operations accessible to people across the world, blurring the geographical barriers. Each miner in a cloud mining pool buys a specific amount of hash power and earns profits proportional to the allotted hashing power. This method of mining eliminates the issues of energy costs and equipment maintenance costs on the miner’s side.
There are three types of cloud mining models in existence today.
- Hosted Mining
- Virtual Host Mining
- Leased Hashing power
Though cloud mining is a convenient setup for mining Monero, there are many fraudulent companies out there and you must check the credibility of the company thoroughly before joining their cloud mining pool.
Mining hardware for Monero
Hardware mining requires you to have your own hardware to participate in the mining operations, obviously.
What are the Hardware requirements to mine Monero?
The mining can be done with a Central Processing Unit (CPU) or a Graphics Processing Unit (GPU) without any specialized ASIC miners.
Below are a couple pointers for when you choose your mining hardware:
- High Hashrate
Hash Rate is the processing power of the Monero network. The higher hashrate is always favourable since it will increase the opportunity of the miner in finding the next block and and gain the reward.
- Low Electricity Consumption
We know that the mining operations are highly costly due to the extensive amount of electricity it consumes. Therefore, all those coins that can be mined with relatively less efforts and energy expenses are looked forth by the mining community.
Now, here is a list of recommended GPUs that would be ideal for mining Monero:
- XFX R9 295X2
This is the most efficient Monero mining GPU. It has a hash rate of around 1800 H/s and a power consumption of 500 W.
- Radeon HD 7990
Radeon HD 7990 is a viable option for Monero mining. It has a hash rate of 1120 H/s and consumes power of 375 W. This card has lower hashing rate when compared to 295X2, but is also considerably cheaper.
- AMD R9 280X
It currently costs around $150 and has a hashing rate of 500 H/s. the power consumption is around 300 W.
As with other cryptocurrencies, mining requires a dedicated hardware which is exactly what a GPU offers. So, a GPU is typically hundreds of times faster at mining than a CPU.
Here are some of my top hardware picks for CPU mining:
- AMD Opteron 6272
The AMD Opteron is certainly one of the most powerful CPUs out there. It has a hash rate of around 415 H/s and uses around 200 W of power.
- AMD FX 380
It consumes a power of around 300 W.
Software you need to mine Monero
- XMR STAK
XMR Stak is a universal Stratum pool miner. It supports CPUs, AMD, and GPUs. the software donates 2% of the user’s hashing power to the developer which can be altered in the donate-level.hpp file.
XMRig is a Monero CPU miner which has a high-performance record. This software works well on Windows. The software donation level is 5% that can be brought down to 1% if you want to keep the mining rewards to yourself with command line option “donate-level”.
- XMRig AMD
XMRig AMD has the official Windows support and supports AMD GPUs. The default software level is 5% which can be reduced to 1% with the command “donate-level”.
- XMRig NVIDIA
This software works well for the Nvidia graphics card users. It charges a software mining fee of 5%. This fee can be further reduced to 1% with the command “donate-level”.
Mining pools to mine Monero
If you’re unfamiliar with mining pools, they’re basically miners combining their hashing power by mining collectively. The rewards for mining are split equally in proportion to the amount of shares they contributed to solving new blocks. The share is awarded to the members of the mining pool when they present a genuine Proof of Work that their mining device solved.
While analyzing mining pools, consider these recommendations:
- Minimum payment should be lower
- Up-time should be higher
- The mining pool fee
With these three pointers in mind, I’ve selected a few mining pools that will gain you the maximum profits:
Minergate has an up-time of 00.7% and a minimum payout of 0.01 XMR. Minergate charges a mining pool fee of 1% and supports web mining.
Nanopool has a mining pool fee of 1 % and supports several other cryptocurrencies besides Monero. The payment rounds in Nanopool occur several times a day. The default payout amount is 1 Monero (XMR), but this can be lowered to any amount you want.
mineXMR has a pool fee of 1 % and a minimum payout of 0.004 XMR. The uptime is certainly above 95%.
MoneroHash has been up since 2014 and charge a fee of 1.6%. They are based in the United States and find an average of one block in every 2 hours. They allow you to mine directly to an exchange wallet, which is quite a positive thing.
- Monero Crypto Pool FR
Monero Crypto Pool FR has the lowest payment threshold among all of these pools. They charge a 2% fee and manage to find a block every 7 hours.
Well, now it boils down to the chief question – Is it recommended to mine Monero?
The profitability of mining is also incidental to the price of XMR. The value of the cryptocurrencies change very rapidly and these can have a direct impact on your mining profitability.
I can’t answer the question whether mining as a whole is profitable; but, if you want to mine, Monero is the way to go, in my opinion.
Of course, you can make a detailed analysis of all these factors and decide for yourself if you want to go ahead with mining Monero.
Storing your Monero safely
This is probably one of the areas where Monero is a bit lacking as it doesn’t have a multitude of options with wallets. Unfortunately, there are no hardware wallets available for Monero.
The two popular wallets for Monero coins are :
- MyMonero web wallet
- Monerujo for Android devices
Rumor has it that the Monero Community has funded a dedicated Hardware wallet that is now in the making. The Ledger Nano S is also in the pursuit of integrating Monero into their hardware wallets.
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Mrinalini Govind is a Senior Content Writer at Infinite MLM Software, one of the leading direct selling software companies in India. One of her most popular blogs, “ Everything you need to know about HYIP integrated MLM software “, is well appreciated and one of the widely read ones on the subject. A regular contributor of tech articles in popular websites and journals, she is a voracious reader and enjoys a broad spectrum of subjects ranging from romance and fiction to latest technology. She loves animals and lives with three lovely cats. Whenever on a break, you will see her sipping a nice glass of cocktail in some exotic tropical island, basking in the sun. You can connect with Mrinalini through her email, email@example.com or on the website https://infinitemlmsoftware.com.