How to mine Monero (XMR) | The complete guide 2020

What is Monero

Monero is a secure, private and untraceable monetary system that uses a special type of cryptography to ensure that all your transactions remain private and 100% untraceable.

 As you can read on the website dedicated to this crypto currency:

“Monero is the leading crypto currency with a focus on private and censorship-resistant transactions.

Most of the existing crypto currencies, including Bitcoin and Ethereum, have transparent blockchains, which means that transactions are openly verifiable and traceable by anyone in the world. In addition, the sending and receiving addresses for these transactions can potentially be linked to a person’s real-world identity.

Monero uses cryptography to protect the sending and receiving addresses as well as the transaction amounts”.

So, while Monero is similar to Bitcoin in many ways, it’s different from it in two key ways:

1. It’s designed to be totally anonymous and private. As you may have read before, unlike Bitcoin (where wallet balances and transaction information are completely public and traceable), Monero focuses on transaction privacy.
2. It uses a very different mining scheme from Bitcoin, which focuses largely on ensuring that people remain able to mine it profitably.

We’ll take a closer look at this last aspect below.

MINING MONERO WHY IS IT DIFFERENT?

In this section we will see what the mechanisms behind Monero are and find out what makes it so special.

If you don’t know, just as there are different types of cryptomoney, there are also different types of mining. This is the case of Monero, whose mining process differs from that of Bitcoin

Monero’s mining is not that different from Bitcoin. Like BTC, Monero uses the Proof-of-Work method.

However, Monero is a very popular crypto currency for those who want to get into the world of mining, mainly for the following reasons:

Anonymity

The most notable difference between Bitcoin and Monero mining is anonymity. Although it’s often said that Bitcoin is anonymous, if we go deeper into the subject, we’ll discover that it’s not exactly that way, since in its blockchain it’s possible to know all the transactions and addresses.

This means that, although we can’t know the person behind that transaction, we can know and control every payment from and to their address.

Monero, however, has always active privacy features applied to its transactions. When someone sends you Monero, you don’t know who sent it to you. And when you send a Monero amount to someone else, the recipient won’t know it was you unless you tell them. Because you don’t know their wallet address, you can’t track their transactions.

Mining

Monero mining does not rely on highly specialized, application-specific integrated circuits (ASICs), but can be run on any CPU or GPU. Without ASICs, it’s almost useless for a normal computer to participate in the Bitcoin mining process. The Monero mining algorithm does not favor ASICs, since it is designed to attract more “small” nodes instead of relying on a few farms and mining pools.

Block boundaries

Another difference in the mining of Monero is represented by the limit of the blocks. Bitcoin’s blockchain has a 1 MB block limit, while Monero’s blocks do not have a size limit. So, Bitcoin transactions will sometimes have to wait longer, especially when the transaction fees are low.

Therefore, we can summarize the advantages of Monero compared to Bitcoin in the following points:

• It’s not traceable;
• You can effectively use “normal” computers for mining;
• It can perform transactions faster.

WHY MINING MONERO

If you are wondering why you should mine Monero and what are its advantages, here are a couple of good reasons to invest in the mining of this crypto currency.

First of all, Monero can be easily exchanged with bitcoin (BTC). Similarly, BTC can be easily sold on the spot, so mining XMR can be a good way to earn money. XMR can also be directly exchanged for fiat money on some of the major crypto platforms.

Furthermore, XMR Mining is based on the CryptoNote algorithm. This means that it uses less electricity than Ethash coins (Ethereum, Ethereum Classic, UBQ) and Equihash coins (Zcash, Zencash, Hush) and should also contribute to longer GPU card life cycles.

Finally, if you buy mining equipment suitable for mining, the mining itself will allow you to generate revenue.