Is it possible to mine Monero without investing in mining equipment worth thousands of dollars? And, if so, is the effort worthwhile? This article will attempt to answer those questions. But before going into the specifics of mining XMR take a look at what it is and how it’s different from other cryptocurrencies.
Monero is an open-source, safe, private and untraceable cryptocurrency. Early to the crypto space, Monero launched in April 2014. Monero’s total supply is 18,097,005 coins with 18,097,005 in circulation. The number of XMR is not capped because there is no maximum supply.
The use of ring signatures is what makes Monero so private. The digital signature of the individual initiating the transaction is combined with other users’ signatures. By combining signatures, it is possible to make a transaction appear to have originated from any of the signers. As a result, determining who initiated the transaction is difficult, if not impossible.
Monero’s origins can be traced back to Bytecoin (CRYPTO: BCN), a 2012 privacy coin. Two years later, the codebase of Bytecoin was forked to become Monero. The fork was caused by a disagreement among 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 various methods for mining cryptocurrency on a laptop. The first is to mine using the computer’s graphics processing unit (GPU). Another option is to use your computer’s central processor unit (CPU). Some mining software will let you use both the CPU and the GPU simultaneously. Finally, you can mine XMR via a cloud-based mining service.
The initial step is to download and register 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 payout coin to Monero by clicking on SETTINGS, the final selection under Menu. Under Payment, click to switch the display and payment 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 SET UP A DEVICE, choose your operating system and download the miner. In the pop-up window where it asks for your username, copy in your organization name and click GO.
The Cudo Miner dashboard will open, allowing you to make additional adjustments. You may customize the miner here. You also can enable a feature that will suspend the miner while the computer is in use. You’ll 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 doesn’t require downloading anything. Just create an account and sign up for one of its three fixed mining packages. You can also choose between a 12-month and a 24-month runtime subscription for each bundle.
The 12-month run-time packages range in price from $525 for 17.5 MH/s hash rate to $4,498.50 for 150 MH/s hash rate. The run-time packages 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 wish to spend also is available. Aside from Monero, you can mine Bitcoin, Ethereum, Litecoin, Dash and Zcash.
Step 1: Buy hashing power.
Are you dissatisfied with the amount of hashing power provided by your CPU and GPU? You can buy additional hashing power. When you buy hashing power, you rent someone else’s mining hardware for a set fee and term.
You might use a cloud mining service such as Genesis Mining and purchase a mining package to obtain the desired amount of hash power. Alternatively, you can purchase hashing power from Kryptex or NiceHash. Kryptex rents GPUs for increased hashing power. You can do the same thing with NiceHash, which operate in four markets: the European Union (E.U.)-West, the E.U.-North, the U.S.-East and the U.S.-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 members’ processing power, will result in more consistent rewards. Mining on your own and competing with pools or mining farms with large amounts of hashing power is difficult.
If you are using NiceHash, you can use SoloPool or Zergpool to mine XMR.
Step 3: Monitor the markets & withdrawal to your cryptocurrency wallet.
Once you begin mining, it is critical to monitor the markets. You’ll also want to determine the market’s overall state. It will be significantly different if you mine during a bull market as opposed to a bear market.
If you are mining during a bull market, you may not be concerned about withdrawing your crypto as frequently. In a bear market, you’d probably want to withdraw more regularly. Unless you’re looking to develop a long-term position in a bear market, you might wish to sell your crypto when you withdraw it.
Regardless of the market, if you are not selling, it is prudent 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 every cryptocurrency will be profitable to mine during a bull market. But in other markets, you need to be more selective. Profitability will depend on things like market price and the network hash rate.
How do you determine which cryptocurrencies are the most profitable? You can outsource the labor to sites like minerstat.com and WhatToMine.com. When using WhatToMine, start by selecting the type of mining gear you’re using at the top of the page. This is usually an application-specific integrated circuit (ASIC) or a GPU miner.
With a GPU miner, select the type of GPU and input the number of GPUs you are using. Then enter your electricity cost in kilowatts per hour. You can also modify two other filters: how the results are arranged and revenue averages in USD. When you are confident everything is accurate, click the calculate button. A list will appear at the bottom of the screen displaying the daily revenue and profitability.
Once your miner is up and running, you can return and alter the algorithm being used. You can modify the hash rate and energy consumption to match the values displayed by your miner. By adjusting for these factors, you can obtain a more realistic profitability picture. There may be occasions you wish to mine a specific cryptocurrency without regard for profitability. This may be true for an individual establishing a long-term position.
Should You Mine Cryptocurrency?
The decision to mine crypto is personal. Some people mine crypto just for the fun of it; others are looking for a cheap way to accumulate crypto. It is possible to mine crypto without spending thousands 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 lifespan of your laptop if you simply start mining without making efforts to keep it cool. As a result, you must evaluate whether the quantity of cryptocurrency you can mine is worth the risk of harming your laptop. Unless you can regularly mine a significant amount of cryptocurrency, it may be more cost effective to buy it.
Where to Buy Monero (XMR) and Other Cryptocurrencies
If you determine it isn’t worth mining with a laptop, where can you buy XMR? You can purchase 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 be unable to use those exchanges. Instead, residents of the United States can use Kraken, another well-established exchange. In this scenario, you cannot purchase XMR with USD; you must trade another cryptocurrency for it.
Regardless of how 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 whole experience more enjoyable.