What is Monero Mining?
At the time of writing, there is a total of 15,829,795 XMR in circulation. This number will continue to increase until there are 18.4 million Monero coins in circulation.
So, how are new Monero coins created?
The answer is simple — Monero mining!
Monero miners perform two important tasks:
In the previous example, suppose Carl sends $100 to Ava via bank transfer. In this scenario, it is the bank’s job to make sure that Carl has enough balance to make the $100 payment to Ava. After the bank confirms this transaction, they make a record of it so that it can be referred to in the future.
Now, if Carl were to send the $100 to Ava using Monero, then who would validate and record this transaction? The answer is: Monero miners! This removes the need for banks to confirm transactions.
A question that often comes up is: what’s in it for the miners? Well, they get rewarded with XMR coins each time they verify a transaction on the Monero network. Every time they use their resources to validate a group of transactions (called blocks), they are rewarded with brand new Monero coins!
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Monero Mining Rewards
The current reward for verifying (mining) 1 transaction block is around 4.99 XMR, plus a transaction fee of 0.06573 XMR.
So, what happens to the miner’s reward after all 18.4 million Monero coins are mined?
Here’s the good news: after reaching 18.4 million XMR coins, new coins get added to the system at a flat rate of 0.3 XMR/minute. These new coins will be used to reward the miner’s and keep them incentivized for mining.
Do you know how long it takes to mine one Monero coin?
A Monero block is mined every 2 minutes, and we know that the current reward for mining transaction block is 4.99 XMR. So, by doing the simple math, we know that 1 XMR is mined every 24 seconds.
Now that you know what Monero mining is and why it is required, it will be easier for you to understand how to mine Monero.
Monero Mining: How to Mine Monero
As I mentioned earlier, you don’t need to purchase special hardware for XMR mining. Anyone with a computer can mine Monero. With that said, the more powerful the hardware, the better.
There are several ways to mine Monero, but before we get into that, you need to know what a Monero mining pool is.
Monero Mining Pool
Before you start mining, you need to decide whether you’re going to mine Monero on your own, or will you join a Monero mining pool.
In a mining pool, a group of Monero miners come together and combine the power of their hardware. This gives them a better chance of verifying transactions (yes, the competition is tough!). The reward they receive from mining is also split between the mining pool. Most mining pools charge you a pool fee, which is generally in the range of 0-2%.
Monero Mining: Full Guide on How to Mine Monero
Imagine that you contribute 5% to the total hardware power of the mining pool you are in… this means that you will also receive 5% of the total rewards earned by the Monero mining pool.
Solo mining (mining by yourself) is not recommended for the beginners. Solo mining will not earn you any rewards unless you are prepared to invest a lot of money into mining hardware.
You can choose from the many Monero mining pools in the market. You can find the list of the top Monero mining pools below.
MineXMR.com
Pool Fees: 1%
Number of Miners: 32157
SupportXMR.com
Pool Fees: 0.6%
Number of Miners: 10339
xmr.nanopool.org
Pool Fees: 1%
Number of Miners: 30132
monero.crypto-pool.fr
Pool Fees: 2%
Number of Miners: 2191
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