A popular way to capitalize on the cryptocurrency craze, mining offers users a way to support their favorite cryptocurrency network while earning cryptocurrency at the same time. Mining cryptocurrency assets remains a viable solution for those looking to earn cryptocurrency in 2019. Furthermore, the mining operations for cryptocurrency assets hopefully will be a continuous money-making opportunity for some time to come as these assets mature and gain greater mainstream adoption.
Privacy tokens, created in response to a desire for digital money to have the capacity for built-in privacy, have established themselves as a cornerstone to the cryptocurrency marketplace. These privacy-focused tokens include the popular Monero, which was created in 2014 to address the privacy needs of cryptocurrency users. Two great features Monero has implemented regarding privacy are the ability for users to hide their wallet balance and their transactions. Despite these hidden features of the system, the Monero network can still successfully confirm transactions using a unique privacy-oriented protocol.
With that being said, we will dive into an overview of the privacy-oriented coin, Monero.
At the onset of the cryptocurrency craze almost ten years ago, one of the main features of these emerging digital assets was their ability to give users more privacy than other existing digital payment methods. That being said, in time the cryptocurrency community realized even soft privacy features such as those offered by Bitcoin could easily be tracked to their owner. With that in mind, innovators developed a new algorithm which could offer a more complete privacy option for cryptocurrency users.
Based on an algorithm similar to that which governs the powerful Bitcoin network, Monero utilizes proof-of-work to confirm transactions. The proof-of-work model paired with the peer-to-peer network which confirms transactions empowers both Bitcoin and Monero to successfully operate as digital assets.
Yet the Monero asset utilizes a slightly different protocol for the proof-of-work algorithm to operate on the privacy-oriented network. To make this happen, Monero utilizes technology based on the CryptoNote protocol, an early modified version of the Bitcoin protocol. Furthermore, Monero deploys an algorithm known as ring signatures to ensure user privacy remains intact throughout their network.
GPU mining does require a more powerful graphics card or an application-specific integrated circuit (ASIC), which is a specialized machine created to more efficiently mine cryptocurrencies. However, Monero and the team behind this privacy-focused digital asset has opted to keep the Monero network ‘ASIC resistant.’ This means the team has developed a variety of different measures which will restrict the use of these specialized mining machines and hopefully keep the Monero mining pool more diverse through this process.
Requirements for Mining Monero
The first step to mining Monero successfully will be to get the proper hardware. This includes a powerful GPU unit such as those made by Nvidia or AMD. The interesting fact about mining Monero is that users can also elect to use a CPU, which can still turn a small profit. Remember that there are measures that have been put in place to make mining Monero with ASICs not worthwhile for users. So, instead focus on utilizing a high-quality GPU or CPU to secure your mining profits within the Monero network.
Once you have the proper hardware, starting the mining process for Monero will require the proper software. While there are a variety of different Monero mining programs out there today, users will want to be sure they download software from a trusted source. Malware and other malicious programs can sometimes be added into mining software when it's coming from a malicious source.
You can elect to work within an existing pool, which may be the best option for new users looking to break into cryptocurrency mining. Companies such as MinerGate offers users an easy-to-access mining system which only requires the user to put together the necessary hardware to join, contribute, and profit as a member of the mining pool.
Finally, establishing a Monero wallet can be a fairly straightforward process. Luckily, Monero remains one of the top cryptocurrency assets in the marketplace today. With that in mind, many of the largest wallet providers offer users access to store and transact with Monero. Furthermore, the team behind the Monero digital asset have released a Monero-specific wallet which can be downloaded from Get Monero.
All in all, if you are looking to profit from the cryptocurrency trend, entering into a mining operation for Monero tokens could position users in a great spot for any future positive market trends seen by digital assets such as Monero.