Is it possible to mine Monero without investing in mining equipment worth thousands of dollars? And if so, is the effort worth it? This article will attempt to answer these questions. But before going into the details of XMR mining, take a look at what it is and how it is different from other cryptocurrencies.
Monero is an open-source, secure, private, and untraceable cryptocurrency. At the start of the crypto space, Monero was launched in April 2014. The total supply of Monero is 18,097,005 coins with 18,097,005 in circulation. The number of XMR is not capped as there is no maximum supply.
The use of ring signatures is what makes Monero so private. The digital signature of the person initiating the transaction is combined with the signatures of other users. By combining signatures, it is possible to give the impression that a transaction originates from any of the signatories. Therefore, it is difficult, if not impossible, to determine who initiated the transaction.
The origins of Monero date back to Bytecoin (CRYPTO: BCN), a privacy coin from 2012. Two years later, Bytecoin’s codebase forked to become Monero. The fork was caused by a disagreement between members of the Bytecoin community.
How to mine Monero (XMR)
So, is it possible to mine XMR without spending thousands of dollars on mining equipment? Yes, you can mine XMR using a laptop. There are different methods to mine cryptocurrency on a laptop. The first is to exploit the graphics processing unit (GPU) of the computer. Another option is to use your computer’s central processing unit (CPU). Some mining software will allow you to use the CPU and GPU simultaneously. Finally, you can mine XMR through a cloud-based mining service.
The first step is to download and sign up for mining software such as Cudo Miner, Kryptex, or NiceHash.
To open an account on Cudo Miner, follow the account creation and verification instructions. Change the default payment coin to Monero by clicking SETTINGS, the final selection under Menu. Under Payment, click to switch the payment display and coin to Monero.
Next, click on Management located at the top of the menu. Then click on DEVICE, which will open the Devices page. Here you will click on CONFIGURE A DEVICE, choose your operating system and download the miner. In the pop-up window where it asks for your username, copy your organization name and click GOES.
The Cudo Miner dashboard will open, allowing you to make further adjustments. You can customize the miner here. You can also enable a feature that will suspend the miner while the computer is in use. You will need to add a Monero wallet to the main Cudo panel. You can either download a wallet from the Monero website here or use one that supports Monero, such as Exodus.
It’s even easier to use a cloud-based mining service, such as Genesis Mining, which requires no downloads. Simply create an account and sign up for one of its three fixed mining packages. You can also choose between a 12-month and 24-month runtime subscription for each plan.
The 12-month runtime packages range in price from $525 for a hash rate of 17.5 MH/s to $4,498.50 for a hash rate of 150 MH/s. Runtime plans for 24 months range from 12.5 MH/s ($499.99) to 125 MH/s ($4,999). A custom package that lets you specify how much money you want to spend is also available. Besides Monero, you can mine Bitcoin, Ethereum, Litecoin, Dash, and Zcash.
Step 1: Buy hash power.
Are you dissatisfied with the amount of hash power provided by your CPU and GPU? You can purchase additional hash power. When you buy hash power, you are renting someone else’s mining hardware for a fixed amount and time.
You can use a cloud mining service such as Genesis Mining and purchase a mining package to get the amount of hash power you want. Alternatively, you can purchase hashing power from Kryptex or NiceHash. Kryptex rents GPUs for increased hashing power. You can do the same with NiceHash, which operates in four markets: European Union (EU)-West, EU-North, US-East, and US-West.
Step 2: Join a mining pool.
Most people should join a mining pool, especially if they are mining with a laptop. Being a member of a mining pool, which pools the processing power of members, will result in more consistent rewards. Mining by yourself and competing with mining pools or farms with large amounts of hash power is tough.
If you are using NiceHash, you can use SoloPool or Zergpool to mine XMR.
Step 3: Monitor the markets and withdrawals to your cryptocurrency wallet.
Once you start trading, monitoring the markets is essential. You will also want to determine the general state of the market. It will be very different if you trade during a bull market as opposed to a bear market.
If you are mining during a bull market, you may not worry about withdrawing your crypto as frequently. In a bear market, you would probably want to withdraw more regularly. Unless you are looking to develop a long-term position in a bear market, you may want to sell your crypto when you withdraw it.
Regardless of the market, if you are not selling, it is safe to move your cryptocurrency to a cold storage wallet. A cold storage hardware wallet is considerably more secure than a mining pool for storing your cryptocurrency. When it comes to hardware wallets, one of the best is the Ledger. The Ledger comes in two models: the Nano S and the Nano X.
What is the best cryptocurrency to mine?
You may find that almost any cryptocurrency will be profitable to mine during a bull market. But in other markets you have to be more selective. Profitability will depend on factors such as market price and network hash rate.
How do you determine which cryptocurrencies are the most profitable? You can outsource labor to sites like minerstat.com and WhatToMine.com. When using WhatToMine, start by selecting the type of mining equipment you use at the top of the page. This is usually an application-specific integrated circuit (ASIC) or GPU miner.
With a GPU miner, select the type of GPU and enter the number of GPUs you are using. Then enter your electricity cost in kilowatts per hour. You can also modify two other filters: the way the results are organized and the average income in USD. When you are sure everything is correct, click the Calculate button. A list will appear at the bottom of the screen displaying daily revenue and profitability.
Once your miner is up and running, you can come back and change the algorithm used. You can change the hash rate and power consumption to match the values displayed by your miner. By adjusting these factors, you can get a more realistic picture of profitability. There may be times when you want to mine a specific cryptocurrency without regard to profitability. This may be true for someone establishing a long-term position.
Should you mine cryptocurrency?
The decision to mine crypto is a personal one. Some people mine crypto just for fun; others are looking for an inexpensive way to accumulate crypto. It is possible to mine crypto without spending thousands of dollars on a crypto miner. You can use a laptop. But should you?
When you use your laptop to mine cryptocurrency, the added stress on the CPU or GPU causes heat. You could shorten the life of your laptop if you just start mining without putting in effort to keep it cool. Therefore, you need to assess whether the amount of cryptocurrency you can mine is worth the risk of damaging your laptop. Unless you can regularly mine a significant amount of cryptocurrency, it may be more profitable to buy it.
Where to buy Monero (XMR) and other cryptocurrencies
If you determine it’s not worth mining with a laptop, where can you buy XMR? You can buy XMR from Binance, Huobi Global, and Gate.io. All three are well-established crypto exchanges with excellent trading platforms.
However, if you live in the United States, you will not be able to use these exchanges. Instead, residents of the United States can use Kraken, another well-established exchange. In this scenario, you cannot buy XMR with USD; you need to trade another cryptocurrency for this.
However you decide to accumulate XMR, the most important thing you can do is educate yourself on how to protect your crypto. Educating yourself could prevent the loss of your crypto and make the experience more enjoyable.