In the highly competitive crypto space, Monero (XMR) is one interesting crypto that has carved out a palace for itself. It sits right at the center of what private, trustless, and decentralized crypto is supposed to be like – plus, it is the biggest privacy coin in the whole industry.
First launched nearly a decade ago in April 2024, Monero is one of the most popular cryptos in the world, with a market cap of nearly 3 billion dollars.
Due to its solid performance in the past ten years, Monero is a favorite among both miners and investors alike. For instance, in January 2017, Monero was at 10 dollars, and by the same month in 2018, it went up to 494 dollars. Isn’t that amazing, considering investors at the time enjoyed a return of nearly 4800%?
So, if you thought you were the only one considering Monero mining, you are not alone! Monero’s substantial growth spanning a decade has brought it under the limelight. But the question is: can you make money from XMR mining in 2024?
Moreover, Monero mining can appear to be a little complicated initially. You might think: how does it actually work? What is the type of software and hardware you will need? Where will you start? How long will it take for you to mine a single XMR? And so on!
Don’t get all worked up – we are here precisely to give you an overview of mining Monero.
Before we start talking about mining XMR, it is vital to understand that mining is not your only option. You can also get hold of Monero from any crypto exchange platform that supports the coin. If you don’t know where to begin, consider KuCoin, Kraken, Coinbase, or Binance.
So, What Is Monero Mining?
Monero mining is a procedure for validating transactions on the primary Monero network and developing new blocks. Obviously, the people responsible for mining Monero are known as Monero miners. In general, they do two vital tasks:
- Secure the XMR network and
- Confirm transactions.
The whole XMR network is built on a PoW consensus. Thus, XMR mining, based on the PoW consensus, is similar to BTC mining. So, Monero miners use high-powered hardware and software for solving complex cryptographic equations. But unlike Bitcoin’s SHA-256 algorithm, XMR mining uses the RandomX algorithm.
As a result, miners do not need to buy specialized hardware for Monero mining. Any individual with a standard computer can mine Monero since it can be done with the help of your computer’s GPU or CPU.
Monero Mining: A Dummy’s How-To-Guide!
Let’s clear one thing in the very beginning!
You cannot proceed with Monero mining without the right hardware. Apart from the hardware, you will also need mining software so that you can connect to an XMR mining pool.
Moreover, you do need a specialized ASIC(s) for proceeding with XMR mining. Instead, you can also do it with a GPU or CPU.
Before we talk about the actual process, there are two crucial factors that you need to take into account before you can select your hardware:
- Since electricity is the biggest expense in mining, you have to opt for hardware that consumes relatively less electricity.
- Since the hash rate is your hardware’s processing power, you have to opt for hardware that has a relatively high hash rate.
Mining Monero With A CPU (Central Processing Unit):
Follow the steps mentioned below to find out how to do Monero mining with a CPU:
- You can either buy a new CPU or use your current one. If you have to purchase a new CPU, then definitely go for an Intel Core CPU or AMD Ryzen CPU.
- Once you have purchased your CPU, you have to download the mining software. Here, you must consider using the XMR-STAK-CPU since it is one of the most well-known among miners.
- After you complete setting everything up, you have to join a Monero mining pool. While joining such a pool, remember that bigger mining pools will give your payout less frequently.
- Now, you will just have to finish the configuration of your miner in your chosen pool address and your own wallet address. Once you are done with the configuration, you can begin the mining process.
Mining Monero With A GPU (Graphics Processing Unit):
Follow the steps mentioned below to find out how to do Monero mining with a GPU:
- First things first. You have to buy a good AMD graphics card. We recommend the AMD Radeon Rx 580 or the AMD R9 280x.
- Then, you will have to install an AMD driver.
- Once you complete installing the graphics cards into your laptop or PC, follow the same steps you did for CPU mining. The best software for mining Monero with AMD GPU hardware is the XMR-STAK-AMD.
- Then, you will just have to type the pool’s address and your wallet address. Finally, you can start the mining process!
Is Monero Mining Profitable In 2024?
So, is Monero mining profitable in 2024?
In short, yes – it is profitable to mine Monero in 2024. But it is vital to remember that you will have to bear the required expenses.
However, there are multiple factors that you have to consider before you can determine if mining XMR is profitable for circumstances specific to you.
Miners who opt for solo mining are embracing a lottery-style approach or a game-of-chance style, considering solo mining can be a lucrative affair if a solo miner is able to mine a single block successfully.
This is because a majority of miners prefer joining pools so that the block rewards in the pool are divided among a whole group of miners. As a result, this causes every miner to obtain relatively fewer rewards but a higher chance of mining XMR blocks successfully for more standard rewards.
Currently, miners get 0.6 Monero for each block that is added to the XMR blockchain. Moreover, a new block is mined every two minutes approximately.
As a result, on average, most miners are making between 0.45 and 1 dollar profitably every day per mining system currently. However, these figures can vary significantly, relying mostly on factors like mining equipment, electricity consumption, hash rate, and more.
So, it is always safe to crunch some data and put in the right amount of work to be sure that you are able to earn some profits before you invest in any mining equipment and experience all the troubles associated with mining.