Monero is currently the #11 cryptocurrency in terms of market capitalization. Cryptocurrencies use cryptography in order to secure their network. Monero operates using Proof of Work, and more specifically the Cryptonight V7 algorithm.
Is Monero mining profitable?
Mining Monero is certainly profitable with the right hardware and setup. Depending on the electricity cost in your area, Monero will be more or less profitable to mine. If you have access to cheap or free electricity you can make a lot of money mining Monero.
If you want to cut to the chase and buy Monero, check out our guide to learn how to buy Monero with every method imaginable.
What hardware do I need to mine Monero?
Lucky for you, we have created a guide comparing and contrasting different Monero mining hardware.
In the guide, you will learn about:
- GPU’s (Graphical Processing Units)
- CPU’s (Central Processing Units)
- PSU’s (Power Supplies)
Originally, cryptocurrency was intended to be mined using CPU’s. People discovered that GPU’s were much faster for mining.
In order to support your GPU or CPU, you will need to make sure your power supply can support the Watts of your setup.
What software do I need to mine Monero?
Mining software is used to connect your Monero mining hardware to your Monero mining pool. We recommend using:
To see this different software compared and contrasted, check out our Monero mining software guide.
What are Monero mining pools?
Mining pools allow miners to receive more frequent payouts by reducing the variance involved in cryptocurrency mining.
Some pools we recommend are:
For a full guide on these pools including their fees, uptime, and more, check out our Monero mining pool guide.
Who Created Monero?
Monero’s original creator is still unknown, but before disappearing they had the name Bitcointalk thankful_for_today on the Bitcointalk forums. Now, one of the main contributors to the project is FluffyPony.
What is the CryptoNightV7 algorithm?
CryptoNight is an algorithm used on Monero, that focuses on ASIC resistance. ASIC’s (Application Specific Integrated Circuit) are a way of maximizing hashing power by creating a device specifically for Monero mining. Certain parts or components can be left out of the hardware increasing its efficiency. ASIC’s can be expensive, which restricts the number of people who can mine successfully.
Due to this algorithm being ASIC resistant, cheaper GPU’s and CPU’s can be used by the average person allowing them to contribute to the network fairly.
What is Cryptocurrency Mining Actually Doing?
When a user is cryptocurrency mining, they are helping secure the projects blockchain. Monero operates with a proof of stake consensus algorithm, which means miners use their computers computing power to verify transactions to add to the public ledger. Here’s an informative video about cryptocurrency mining.