Monero (XMR) is one of the biggest privacy coins in the cryptocurrency market today. This decentralized digital coin was launched in 2014, and it’s primarily designed for privacy and anonymity. The coin addresses what some of its proponents see as issues in Bitcoin, the first cryptocurrency launched around 5 years before Monero. In particular, XMR sets itself apart from other cryptocurrencies by obfuscating transaction details such as the sender, the receiver, and the amount of the deal.
A little less than a decade after the digital coin was released, XMR has amassed the third-largest developer community in cryptocurrency, just behind Bitcoin and Ethereum. And while the coin started out with a value of USD 2.47, the price of each coin hovered between USD 126 and USD 450 in 2021. This only goes to show that there’s a growing demand for a coin that protects the privacy and anonymity of the transactions that use it.
What Do You Need to Start Mining Monero?
Unlike Bitcoin and other cryptocurrencies that can only be mined using specialty hardware called
application-specific integrated circuit (ASIC) miners, Monero is ASIC-resistant, meaning it can be mined using commercially available hardware with GPUs and CPUs. Aside from putting together a mining rig, you also need a Monero wallet where you can store your earnings from your mining activities, and a program that’s been configured to your computer and has the details of your preferred wallet.
Once you have your setup ready, you can start mining and getting rewarded for your efforts. However, aside from setting up a basic mining rig, there are still plenty of things that you can do to maximize your profits and improve your overall mining experience. These are:
Determine Whether Solo or Group Mining Works Best for You
There are different ways of mining Monero. Miners can venture out on their own and do solo mining, or a group of miners can put their efforts together and form a mining pool. Each option has its pros and cons. If you’re determined to go solo, then you’ll have your earnings all to yourself at the end of the day. The downside, though, is that solo mining is not that profitable unless you have a powerful mining rig. The amount of processing power that your computer has determines the hash rate or the speed of mining. The more powerful a rig is, the higher its hash rate, and the more likely it is that a miner will succeed in solving cryptography puzzles before others do.
Take note, though, that the computing power of a mining pool will likely trump over that of an individual miner. This means that miners who have combined their computing power have a better chance of solving complex algorithms and earning a profit, which they then have to distribute among the members of the mining pool. Also, remember that joining a mining pool often comes with a minimal fee.
Tweak Your Mining Setup to Maximize Profits With Minimal Effort
Your basic mining setup may work well just as it is right now, but there are still a few changes that you can implement to make it more efficient. It’s a well-known fact that a miner’s rig tends to overheat, and there will be times when you need to invest in a cooling system to ensure that your rig is up and running at all times. If you’re tech-savvy enough or if you’re simply willing to try, you can tweak your mining rig so that it can remain functional without necessarily incurring additional cooling or electricity costs. This will improve the level of your mining efficiency and enable you to maximize your profits without spending extra.
Consider Signing Up for a Cloud Mining Service
Now, there’s a certain kind of satisfaction that comes with setting up your own mining rig and optimizing its performance. However, even if you want to skip this part, there is still a way to become a full-fledged Monero miner. Cloud mining is a way to mine cryptocurrency by using rented computing power and without investing in your own mining equipment or installing relevant programs. This service is offered by third-party providers who have their own mining rigs and lease them out to would-be miners who want to take part in the cryptocurrency scene in a rather off-hand manner.
Cloud mining is an ideal option for people who are interested in cryptocurrency but don’t have the technical knowledge that is required for those who want to strike out on their own. Compared to setting up your own rig, using a cloud mining service is much cheaper. The downside, though, is that centralized mining is susceptible to plenty of pitfalls if the service provider cannot cope with the demands of their clients.
What Do You Want to Do With Your Mining Profit?
Miners play an important role in the cryptocurrency scene, as they validate transactions and serve as the auditors of their respective communities. Once you become a miner, the work that you do for the community will be rewarded in the form of Monero coins. These coins can then be used to finance private and anonymous transactions or traded for other cryptocurrencies or fiat money. It’s also an option to hold on to the coins in your wallet and sell them to fulfill your financial goals later. It’s a good idea to think of what you want to do with your stash while deciding on the specifics of your mining operation.