This article focuses on how Monero cryptocurrency is mined and what sort of hardware and software is required to mine this cryptocurrency lucratively.
What is Monero?
Monero (XMR) is a privacy-oriented digital currency which was initially released in 2014. By market cap, it lies in the top 15 cryptocurrencies and amid the top 15 cryptos, it is the only privacy-focused cryptocurrency. Monero still uses a Proof-of-Work consensus mechanism which means it can still be mined by using regular CPU and GPU computational power.
- Monero — based on the CryptoNight hash algorithm.
- CryptoNight — a Proof-of Work consensus mechanism depends on the CryptoNote protocol.
- CryptoNote —an application layer protocol that aims to be an evolution of the ideas behind Bitcoin.
- Monero blockchain mines blocks in two-minute intervals – quicker than Bitcoin.
Monero can be mined by using regular consumer hardware, which makes it quite easy for almost everyone to get involved in Monero mining. Casual miners benefit from it because it lessens the ‘payoff’ from using specific hardware, which makes GPUs less effective from a cost perspective. So, as it’s already mentioned above that Monero can be mined by both using both CPUs and GPUs, this makes mining rigs more lucrative.
Hardware for Monero Mining
Casual miners can mine Monero by using consumer grade CPU hardware like GPU’s, ARM, x86, and x86-64. Compared to others, AMD graphic cards are best for Monero mining however, you will need some hardware components for setting up your own rig. Few of them are given below:
- CPU with at least 8GB RAM.
- Reliable internet connection and an open-air rig.
- A reliable power supply — depends on the CPU and GPU you pick.
- DDR3 or DDR4 SDRAM — depends on the CPU you choose.
- Motherboard — compatible with the selected CPU, with enough PCIE
- SSD or HDD.
Software for Monero Mining
Different software has been made for different hardware and software used for mining Monero is also quite important. Using the right mining software and enhancing your CPU/GPU is imperative to get the most profits. The procedure is usually the same.
- You will have to download the software and extract the .zip file.
- After extracting the folder, you can run the application.
- After running the application, choose Monero mining. It prompts you to enter a pool address.
- One of the best ways to mine is to be part of a pool. — solo mining can produce little to no results, as compared to pooled mining, which means it is essential for you to find a good mining pool.
- Pools often have a small fee; however, the fee is acceptable – considering the reliability and consistency of rewards and less alteration.
- Also, make sure that you have a Monero wallet setup so that you can receive your rewards.
Difficulty and Profitability Factor
Over the past few months, the over-all global hash rate for Monero has declined –so with the new Monero fork, however, it is still a lucrative crypto to mine, according to its price potential. The hashrate is linked to the price of the coin, and trouble thoroughly tracks the hashrate.
The level of difficulty automatically alters the computational difficulty of solving the subsequent block to sustain the two-minute block interval.
Many people are trying to mine Monero, which has made it even harder to mine. Here, difficulty means how hard the mining of Monero has become. Well, it depends on the miner as well and how powerful the miner is. To keep Monero’s supply in check, this information gets updated from time to time. For successful mining, the pool takes a certain fee from the profits.