From the author: Rumor has it that solo cryptocurrency mining is already dead. Huge complexity and competition make it possible to mine crypt yourself only if you have a farm somewhere in a hangar. However, XMR users think differently. So how do you start solo mining Monero, and what apps are best suited for this?
General provisions for mining Monero
Cryptocurrency mining contains many elements, without knowledge of which there will be no good profit. As a matter of fact, for mining you need to draw up a full-fledged business plan, in which all of them must be taken into account. Regardless of the coin, the user must be aware of:
- algorithm;
- difficulties;
- equipment requirements;
- block reward;
- commissions;
- approach to equipment selection.
It is especially important for solo miners to understand all this, since it will be much more difficult for them, which means they need more scrupulous preparation for success.
Solo mining is solving hash functions of blocks without combining your power with other miners on the network.
Simplified hashing
The Cryptonight algorithm was developed to increase the anonymity of transactions. This is achieved thanks to a certain darkening of several sections of the code of each coin, as well as the so-called “mixing”. Thus, tracking transactions is much more difficult.
As for mining, the load on the equipment is significantly reduced. Your system will solve blocks efficiently despite average or even low performance. This is achieved due to the fact that it is not based on computing power (the speed of solving functions), but on the speed of access to the memory of the equipment.
RandomX: performance of the new AMD Ryzen 3000 processors
Looking at the first tests of the new AMD Ryzen 3000 processors, I would immediately like to note some interesting results.
The AMD Ryzen 3600 is a six-core, 12-thread processor that runs at a base clock speed of 3.6 GHz but can boost up to 4.2 GHz. The processor is capable of delivering superior hashing rates, reaching almost 6300 Hash/s (see Power Conversion Calculator - Convert to kH/s, MH/s, GH/s, TH/s, PH/s).
This processor currently sells for less than 200 euros and has very low power consumption, resulting in the best hashrate/price ratio.
In fact, users report average power consumption at factory settings close to 110–120 W for the entire system (only 80 W for the processor).
By overclocking the processor, you can reach 6700 H/s, although the power consumption doubles. In comparison, the old 6-core Ryzen 2600 from last year is unlikely to reach 4000 H/s with slightly higher power consumption.
How complexity is formed
Difficulty is an indicator that reflects the difficulty factor of solving a block. It depends on how much time was spent on the previous block, as well as on the overall hashrate of the network. Block Time of Monero is approximately 2 minutes. If it is found much faster, then the difficulty increases, if it is found slower, it decreases. It’s the same with the hashrate: if new miners come, it grows - the difficulty increases, and vice versa.
This indicator is very dynamic, but the network operates quite stably, therefore, as a rule, complexity more often increases than decreases. This is worth taking into account when forming your plans, since over time, profitability decreases slightly due to this.
Forecast and course chart for all time
What the Monero rate will be in the near future, in the medium term, you need to imagine if certain funds are invested in “drilling”. You can track exchange rate fluctuations on specialized resources. Today they give more than $150 for XMR. The graph displaying the rate of the coin over the entire period of its existence (sales began in 2015) shows that demand was greatest in December 2017-January 2022.
At the height of that cryptocurrency boom, the price of the coin was approaching $500. In order to make operational decisions to buy/sell Monero, you should focus on the indicators that are displayed on the charts for the month and quarter.
The main highlight
Based on the above, requirements for equipment are formed, because computing power is not always the main thing in mining. As already mentioned, the main thing in Monero is the speed of memory access. Therefore, in addition to choosing a good video card, it is worth choosing RAM more carefully.
The highlight of the algorithm is that to solve a hash function, it is not the speed of calculations that is needed, but the ability to allocate a certain amount of data in RAM, while excluding repeating elements. Accordingly, the larger this volume, the fewer calculations need to be carried out in the future. Therefore, the amount of RAM plays a significant role.
Best processor for RandomX? Epyc 7742
In early August, AMD also introduced ZEN 2-based processors for the server market. Among them are solutions such as the Epyc 7742, equipped with 64 cores, 128 threads and 256 MB of L3 cache, which, combined with a clock speed close to 2.5 GHz for all cores, allows this processor to achieve hash rates close to 39,000 H/s with very low power consumption, less than 350 W (250 W for processor only).
The result is a much more efficient solution than the 3900x, but the real problem with this hardware is the cost.
The AMD Epyc 7742 essentially costs just under $7,000, but there are also platform-related costs and the need for eight-channel memory, which significantly increases the price of a PC based on this processor.
However, there are other 64-core AMD Epyc processor models, including the 7702P, which has a slightly lower clock speed than the 7742 and can only be used in a single-socket configuration. This processor essentially sells for $4,400, making it much cheaper but still extremely expensive to mine.
What do they pay for?
The block reward is your bread. Today it is approximately 4.2 XMR, which is equivalent to $500. But do not forget to take into account that Monero solo mining is more complex, and you will not be able to open all the blocks in a row. Everything depends, to a large extent, on luck, so it is almost impossible to calculate approximate profits. However, you should always be aware of this indicator. Thanks to it, you can calculate approximate profits using mining calculators.
The fee for each transaction in a block is added to the reward for it and goes to the miner who solved the last hash function. Since the Monero blockchain is offloaded, transfer fees are quite low. On average, each block accounts for about 0.05 XMR. However, this is also a plus in the miner’s pocket.
Mining profitability and profitability calculator
If you decide to take up “drilling” seriously, carefully calculate how profitable this activity will be, what kind of profit you should expect if events develop according to different scenarios, and how quickly the investment will pay off. You will find tips on what you need to pay attention to when making calculations in the article “mining profitability calculators.”
To roughly imagine what you can expect when “drilling” Monero, let’s turn to the help of an online calculator. If you have purchased or rented sufficient computing power, participation in the mining pool will bring you approximately $19 per day.
A miner with experience can decide to do solo “drilling.” Decrypting one block will give him 1.2 XMR (about $185).
For a “solo miner”, it is important to correctly determine the complexity of the network and competently rent computing power.
Maximum effect
The right approach is very important for maximum profitability at the lowest cost. Not every build allows you to earn large sums, even if it is very productive.
The choice of brand does not particularly affect production, so you can buy both Nvidia and Radeon video cards. Similarly with the choice of processor: Intel and AMD will be equally good (although the first is recommended more often due to stability). However, you need to select a specific model. For this, it is best to consult with experts as they know the ins and outs of each card or CPU in relation to many cryptocurrencies.
AMD Ryzen 3950x
There are currently no benchmarks for the AMD Ryzen 3950x processor, perhaps the most anticipated solution from crypto miners, as it features 16 cores and 32 threads with a base clock of 3.5 GHz, but is capable of overclocking to 4.7 GHz, while power consumption remains at a level close to 12-core, with the same TDP.
This processor debuts in late September for $750 and could sell out very quickly due to low quantities and high demand.
It is assumed that the 3950x can easily reach 14-15 thousand H/s, keeping the entire system consumption within 200 W. The overclocking potential is unknown, however, it will most likely reach 16000 H/s quite easily, although the consumption will increase significantly.
System Setup
Mining on video cards requires preliminary device configuration. A small guide will help you configure your system correctly in order to avoid mistakes in the future, as well as get the most out of the process.
First of all, you need to decide on the extraction method. If you mine only on a card or processor, then mining will be easier, but less profitable. Therefore, many people choose the combined option. Moreover, Monero mining is quite accessible on a CPU.
First you need to install the latest drivers. For Radeon cards, you need to go to the Amd website, go to the Drivers and Support section, select your device and start downloading. For Nvidia, go to the Drivers tab on the GeForce website. For CPUs, you also need to go to the official websites of the manufacturer. After installing the software, restart your computer.
Then you need to download the miner program. Claymore is best suited for Monero, but you can download Cudaminer or Cgminer. Their setup follows one scenario: open the bat file, specify the launch file, pool address, worker name and wallet to which funds should be sent.
If you use a central processor, you will need to download a separate program for it. The most popular choice is Wolf's CPU. There is a weaker option - Yam Miner. However, it is not always stable.
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After that, you should configure the BIOS. Essentially, you need to disable the resource saving mode and activate maximum performance. You should find out the specific steps yourself, as they depend on the specific BIOS version.
Next you need to install the software. Two miner options were named above. However, there are still good options that are ideal for beginners - XMR-stak and XMRig. Their advantage is that they independently analyze the initial configuration for the equipment, and based on this data on Github, more optimal settings can be generated.
Mining via wallet
Monero provides block solving using full nodes of the system. So, you need to download the wallet and wait for it to sync with the network (download the blockchain data). This will take several days because Monero data takes up a lot of space.
After this, if you have a CLI client, you need to run the command: monerod —start-mining WALLET_ADDRESS —mining-threads NUM_THREADS. It will start the mining process. It is worth considering that if you are using a remote node, then this mining method is not available.
The GUI client is much simpler because it has a graphical interface. You just need to go to the “Mining” tab and specify the number of threads. After this, you can start the process. The advantage of this option is that there is a SmartMining mode. It automatically optimizes the process in order to reduce the negative impact of mining on equipment.
The developers have made it their goal to make mining permanent and invisible to both the user and the system. It will not bring big profits, but it will not drive you into a loss either. In other words, there will always be travel expenses. But this option is good for ensuring the functionality of the network.
How to buy, sell or trade Monero
You buy, sell, exchange XMR and other coins for rubles quite often, which means you can appreciate the advantages of the Matbea.com exchange service. Why Matby is in the lead:
- The history of the service began in 2014 and was not overshadowed by unpleasant stories;
- The multi-currency wallet opened here with exchanger functionality allows you to profitably carry out transactions with dozens of coins supported by the service;
- Operations are invariably performed quickly; you won’t have to wait more than a quarter of an hour for the transaction to complete;
- Safety is given top priority. It all starts with three-factor authentication (using SMS, PIN code, sending a message to the email address specified during registration). Nothing threatens the client’s funds entrusted to the wallet on the service, since a separate resource not directly related to it is used for storage;
- Anonymity is declared as a fundamental principle of the blockchain. Therefore, Matby does not gain access to clients' private keys. This allows you to achieve greater investment security at the same time;
- Reliability of storage of funds is ensured by constant copying of files. No matter what happens, up to the complete termination of the service, the owner of the wallet will be able to dispose of the deposited funds;
- You can always count on contacting the service’s technical support service to help solve the problem;
- The level of tariffs and commissions is not excessive. The rules of use are stated clearly, clearly, without hidden conditions;
- By seriously joining a multi-level affiliate program, you can earn additional passive income.
Other methods of purchasing and exchanging cryptocurrencies are less secure. Performing transactions not only carries an increased risk of losing coins, but also takes more time. You can change Monero:
- On crypto exchanges. You will have to wait until approvals for the withdrawal of funds are completed, and pay extra for services to a third-party service with which the cryptocurrency exchange cooperates. And also worry about whether an attack, technological failure, or interruption of work will occur;
- Through local services, the work of which is based on P2P protocols. The absence of intermediaries in this case cannot but be welcomed. But these services are not spoiled with offers; it will take a lot of time to wait until something suitable appears. The offered amount may turn out to be insignificant; there is also a possibility that the transaction will be disrupted by the counterparty (the service is not responsible for this);
- Through payment systems. They value their services at no less than 1% of the transaction amount. These are additional costs;
- With people you know or found using Telegram bots. The probability that they will try to deceive you reaches 50%. It’s hardly worth saving on paying commissions to an online service in order to take such risks.
Just for fun, you can try using a cryptomat for exchange. There are only a few of them in Russia so far. But there will be a reason to be proud that you carried out a unique exchange operation.
ASIC mining Monero
When this cryptocurrency was first created, the developers claimed that it was impossible to create an ASIC for it. The fact is that at that time such equipment was sold taking into account the fact that the main thing in mining is the hashing speed. However, as mentioned above, it is not important for Monero.
However, this is just another marketing ploy. You can create more powerful equipment for any system. After all, all of this, one way or another, is technology. The only catch is that for some cryptocurrency you need to spend more time and money.
Well-known mining hardware supplier Bitmain has bolstered its resume by creating the Antminer X3, which is specifically designed for cryptocurrencies based on the Cryptonight algorithm. Therefore, you can try your hand at it too. No configuration is required as these devices are configured by default.
The only thing worth considering is that due to the difficulties in building such an ASIC miner, it is much more expensive than devices for Bitcoin. For the father of cryptocurrencies, their cost is, on average, 3-4 thousand dollars. However, for Monero it costs 10 thousand.
What is the most profitable way to look for a new block?
Mining monero, like all other cryptocurrencies, can occur completely independently (solo mining) or together with others (pool mining).
In the first case, the one who finds a new unique block receives the entire reward, in the second only part of it. So why share, when you can find new coins on a regular computer? Of course, you can find it yourself, but let’s calculate how much time it takes.
The average search time for a unique hash is calculated using the formula:
Current Network Difficulty (diff) / Hashrate (H/s) = Time (seconds)
The difficulty as of 02/18/2018 is 111,216,341,640, the average hashrate is 200H/s: 111,216,341,640 / 200 = 556,081,708 sec. = 35 years.
As you can see, you need to have a lot of luck for personal monero mining to be successful. Alternatively, you can make your own pool of several devices, but the chances will not increase much, unless of course you are going to infect thousands of computers via the Internet with malware.
Now that we are convinced that one man in the field is not a warrior, let’s consider the next important factor in the coin mining process – the complexity of the network.
Reasons to mine XMR
Monero is considered the most favorite cryptocurrency among miners. Of course, it didn’t happen that everyone switched to it, but many allocate at least a third of their capacity to XMR. This is due, first of all, to high profitability and low resource costs. In addition, there are several other reasons:
- it can be easily exchanged for Bitcoin or fiat;
- a cheap way to increase your crypto ownership position;
- Due to low energy consumption, the load on the equipment is reduced, which extends its service life.
Also, as already mentioned, mining this cryptocurrency is one of the most affordable. Solo mining for many coins, especially on CPUs, has long since died out. Users did not even consider such options, but Monero changed many views on this process.
Do not forget that this is one of the most anonymous cryptocurrencies. Therefore, you can use the funds received for any payments without fear. Transactions will not be able to be tracked, no one will know your balance or who you are working with. An ideal option for personal safety.
Best result: ASRock Radeon RX 5700 XT Phantom Gaming D
Overclocking frequency : 1945 MHz | Memory : 8GB GDDR6 | Memory frequency : 14 Gbps | Power Connectors : 2 x 8-pin | Outputs : 3 x DP, 1 x HDMI
- High mining hashrate
- Very energy efficient
- Low power consumption
- No ray tracing acceleration
- Works at high temperatures
When it comes to mining Monero, the AMD Radeon RX 5700 XT is one of the best graphics cards for the job. Equipped with 10,300 million transistors, the RX 5700 XT is capable of delivering 19.51 teraflops at FP16 (half) compute performance and as such can achieve a hashrate of 980 H/s under the RandomX algorithm with a total power consumption of only 65 W. card is so popular among crypto miners because it runs very well at reduced voltage, meaning it can provide excellent performance while consuming less power. The only major downside to this fantastic graphics card is that it gets very hot, so you'll need to change its thermal composition frequently if you want to avoid damaging the CPU core.
Profitability
As has already been said, solo mining is almost a full-fledged business, so the question of profit in this case is more relevant than ever. Monero mining itself is quite profitable, especially in comparison with other popular cryptocurrencies.
So, for every KHash/s spent per day, miners receive approximately 80 cents. For comparison, you can get only 35 for THash/s on Bitcoin. Therefore, XMR mining is rightfully considered the most profitable.
In addition to the award, we must not forget about other indicators that have already been mentioned several times in the article. Thanks to a different hashing algorithm, there is a strong emphasis on RAM. This allows you to unload the video card and processor, which consume the most electricity.
Thanks to this, the costs of paying the same bills have decreased significantly. The load on the entire system has also dropped, which greatly extends the service life of all equipment. This means that after payback, you can receive net profit longer, which means the final percentage of capital growth will be higher.
Another important point is the unlimited emission of Monero. The main issue is 18.4 million coins. With a reward of 4 XMR per block, this goal will be achieved in 3-4 years. The first 16 million are already in circulation, but it is worth considering that initially they appeared much faster due to low difficulty.
But after the main volume is emitted, miners will still receive a reward for each subsequent block. In this way, the system will be able to function continuously, and miners will never be left in the red.
What is the best way to mine Monero?
The initial approach of the project founders assumed that they would “drill” Monero on the CPU. Over time, miners began to use video cards, because they have many times more computing power.
When the transition to RandomX occurred, miners were offered to use programs for both central processors and graphics. In 2022 you can expect:
- expanding the list of programs for XMR mining;
- the emergence of applications that are adapted to be used on smartphones with sufficiently powerful processors.
Mining Monero on CPU
How to “drill” on central processors is described in detail in the article “Mining on a CPU.” Among the cryptocurrencies that are suitable for this method of mining, Monero is the undisputed leader. This coin has come a very long way of development (as far as this is applicable to tokens), and was immediately conceived specifically for this method of “drilling”.
More often they choose powerful AMD models. There is also a demand for modern Intel processors.
Monero processor hashrate
How effectively the central processor copes with “drilling” Monero is shown by the level of hashrate. Installing 8 GB of RAM allows you to increase it to 700-800 h/s. Equipment performance will be higher by about 15-30% if the RAM is placed on two strips.
Locking memory pages also helps increase output by the same amount. Overclocking a processor is irrational; performance will not increase, and the level of security will decrease.
Mining XMR on video cards
GPUs turned out to be more suitable for mining than central processors, which was successfully confirmed in relation to Monero, until the transition to the RandomX protocol occurred. And not so long ago, developers introduced additional complications for using video cards in XMR “drilling”.
You will find a detailed description of the features of using GPUs in mining in the article “Mining on video cards”
Installing a modern high-performance video card will allow you to bring the Monero hashrate to the level that is provided by the central processor. Consider the cost of purchasing a GPU, the noticeably increasing power consumption, cooling costs and excess heat removal. To equip a sufficiently productive farm, install 4-8 video cards. They have a limited service life when working around the clock, which will lead to new expenses.
It’s hardly worth investing so much if you can achieve a similar result using a CPU and RAM.
