xmr mining

XMR mining! There are many reasons why people start mining cryptocurrencies. After all, it can be a great way to subsidize the purchase of a new GPU. If you’ve just purchased a new computer system with powerful hardware, XMR mining might be a good place to start. Monero is built on the CryptoNote algorithm, using less electricity than Ethereum, Ethereum Classic, and UBQ coins as well as Equihash coins. This will result in lower temperatures so if heat output is a concern this is a great option. XMR mining isn’t very intensive on your GPU, so you can ensure better longevity by mining XMR.

How does XMR mining work?

Certain mining platforms are compatible with windows and mac. Services like xmrpool.net offer users the ability to mine with a CPU, GPU, or even with both at the same time. XMR mining using these types of services has a low barrier of entry, making this a viable option to a vast audience. The whole process of downloading your mining platform and setting up your configuration will take no longer than 20 minutes.
With the right hardware and configuration settings, Monero mining can definitely be a profitable option. The cost of electricity in your area is a factor that will heavily determine if cryptocurrency mining will be more or less profitable for you. With access to cheap or even free electricity, mining Monero could make you a considerable amount of money. Monero’s mining algorithm doesn’t support ASIC miners, as a result, the best option for miners would be to use their own personal computer. As a result, there are two main things to consider before mining XMR: The hardware you’re going to use, and if you’re going to join a mining pool or not.

Mining Pool XMR

If you’re just starting, joining a mining pool might be your best bet. Sites like moneropools.com provide a list of different XMR mining pools. With visible fees and hash rates, users are able to find the mining pool that best suits their needs. Though XMR mining is legal in South Africa, you will still need to pay tax on it. While cryptocurrency is not legal tender in SA, SARS state that it will still be subject to regular income tax rules. Almost any digital cryptocurrency wallet is compatible with Monero. Hardware wallets like the Ledger Nano S we are giving away also provide users the ability to store their Monero tokens
Mining pools provide a way for users to join their mining resources together, sharing their hashing power in order to split the rewards equally among all members in the pool. Rewards are equally split according to the number of shares they contribute towards solving a mining block. If you were solo mining, your expected payout as the number of blocks mined reaches infinity would remain the same. This is not as profitable as mining crypto comes with a level of variance. As a result, mining pools have pretty much become the golden standard if you’re trying to mine for profit.

Is Mining XMR Worth It?

Monero has one of the lowest costs of entry for mining. The gap in performance between GPUs and CPUs is miniscule with XMR. Be that as it may, with the current market environment it’ll be pretty hard to make a good profit without spending heaps of money on your mining rig.

If you’re not sure about which cryptocurrency is best for you, we have a blog post on Mining the Top 10 cryptocurrencies explaining how mining works for several different coins. Monero is a promising coin. At this point, even if the markets are low, mining any cryptocurrency will go toward building your portfolio. The coins you’ve mined may not be worth much now, but in the future? Huge potential.

Is Monero (XMR) legal in South Africa?

Monero and all other cryptocurrencies are completely legal in South Africa. However, they are subject to income tax. Despite this, SARS does not define the word ‘currency’ in cryptocurrency in the Income Tax Act. As a result, it is important to understand that cryptocurrencies themselves are not taxable.

Cryptocurrencies are neither official South African tender nor widely used and accepted in South Africa as a medium of payment or exchange. As such, cryptocurrencies are not regarded by SARS as a currency for income tax purposes or Capital Gains Tax (CGT). Instead, cryptocurrencies are regarded by SARS as assets of an intangible nature. 
All income received or accrued from the act of crypto trading or mining is subject to taxation under the laws of gross income. This means that if you’re dealing with cryptocurrency in South Africa, you’ll need to declare all of your profits and losses to SARS in order to be correctly taxed on your crypto earnings.
In South Africa, SARS has the ability to issue and manage fiat currency in the form of banknotes and coins. Because of this, cryptocurrencies fall outside of the South African Reserve Bank’s jurisdiction. As the South African Reserve Bank doesn’t deem cryptocurrency as legal tender, let alone a legitimate currency at all, they went as far as to state that cryptocurrencies shouldn’t pose any threat toward the value of the South African rand, nor any financial institutions.

What are bulletproofs?

Bulletproofs is a highly anticipated technology; built to make privacy features on the blockchain more scalable. Invented by Jonathan Bootle and Benedict Bunz, bulletproofs promises to dramatically reduce the weight that comes with confidential transactions. Monero is the first cryptocurrency on the market to deploy this technology. For the past year, implementing bulletproofs technology has been a priority for Monero.

Now is a great time to begin mining or even trading Monero. Just a week after the bulletproofs update released; Monero transaction fees dropped by a whopping 97% going from $0.62 to $0.02. There have been predicitons that these low fees could potentially open the door for additional uses for XMR. This bulletproofs upgrade definitely makes the notion of micropayments more palatable again.

I think you can safely say a typical [transaction] fee goes down by more than 95 percent – ‘Moneromoo’ Monero Core developer

If mining isn’t exactly your cup of tea, there’s always the option to trade Monero on our trading platform. With Monero’s trading fees at an all-time low, now may be a better time than ever to get involved! Do you think you’ll be mining or trading XMR? If so, why? Let us know your thoughts about Monero (XMR) in the comments below.
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Disclaimer Notice:

This article is intended to educate and should in no way be seen as investment advice or an enticement to use the ice3x.com platform. Bitcoin is highly volatile with big profit opportunities but you should also remember that you could lose part or all of your investment whenever you take part in any high risk investment. Bitcoin trading is not a regulated industry in South Africa, which in itself carries additional risks. IF YOU ARE NOT AN ASTUTE BITCOIN TRADER, SEEK INDEPENDENT FINANCIAL ADVICE BEFORE MAKING ANY INVESTMENTS.