To dig into the digital gold mine of cryptocurrency, you will need tools to confirm and add transactions to a digital ledger called a blockchain. One way to do this is to use your computer’s central processing unit (CPU).

The arithmetic logic units (ALUs) in CPUs are in charge of doing advanced math and logical operations, which means CPUs can handle complex calculations. Even today, using your CPU to mine cryptocurrencies is still one of the most effective methods.

Key Takeaways

• In the world of cryptocurrencies, mining means checking transactions on a digital ledger using computer gear and earning cryptocurrency as a reward.
• Things that affect how much money you can make from mining include algorithms, difficulty rates, hash rates, reward rates, and other similar factors.
• It might take a while before you get a reward.
• Specific cryptocurrencies are changing their way of doing things to make it easier to mine using your computer’s CPU.
• CPU mining can turn a profit depending on your chosen project and whether you have the right components.

What is CPU Mining?

CPU mining involves using a regular computer’s central processing unit (CPU) to mine cryptocurrencies. In this process, the CPU’s arithmetic and logical unit (ALU) solves complicated algorithms, verifies transactions, and earns rewards for the miner. CPU mining utilizes Proof-of-Work (PoW) to demonstrate task completion. To mine, digital coins, standard desktop or laptop hardware is used along with cryptocurrency storage software.

It can be enhanced by setting up a CPU mining rig, which includes components such as a cooler, processor, motherboard, RAM, and other elements to boost efficiency. Some miners even combine multiple CPUs to increase productivity. CPU mining is beginner-friendly and offers a way to earn passive income. Its effectiveness relies on hash rate and power efficiency.

Why Doesn’t CPU Mining Always Work?

While CPU mining can be an option, it could be more profitable on challenging networks. In these cases, earning a reward would take a long time, and you’d spend a lot on electricity. As blockchain networks evolve and block rewards become scarcer, the difficulty level increases too. In the early days of Bitcoin, CPU mining was feasible, but that’s no longer the case. Now, if you want optimal results, you’ll need the true power of a GPU.

However, a few cryptocurrencies, like the popular privacy coin Monero, are optimized for CPU mining. Still, the earnings will be far from what you could get with a GPU. It’s also worth noting that due to ASIC GPUs, which are specialized mining GPUs, some cryptocurrencies are changing their hashing algorithms to favor CPU mining instead.

CPU Mining Rig Components

A CPU mining setup combines different mining components to enhance performance and efficiency. The critical elements of a CPU mining setup include:

• Cooling system to keep the hardware at optimal temperatures
• Processor for high-speed processing capabilities
• Power supply for reliable and efficient power delivery, ensuring a stable hash rate
• Motherboard for seamless communication and coordination among all the components
• Random-access memory (RAM) for efficient memory management and data transfer.

What Makes a CPU Good for Mining?

Not all computer components are made equal, and the same goes for CPUs. When it comes to finding the right CPU for mining cryptocurrencies, there are certain features to consider:

• More cores for improved performance
• Multi-threading capabilities for efficient multitasking
• Low power consumption for energy efficiency
• Effective cooling system to prevent overheating
• High clock speed for faster processing.

Cores

Having more cores in your processor improves the mining experience. Additional cores enable your CPU to handle multiple tasks more efficiently. A good starting point is an 8-core processor.

Threads

Depending on whether you choose an AMD or Intel CPU, you can also use threading. Threading allows your processor to divide its base number of cores into even more, resulting in faster and smoother performance. Generally, a processor can thread up to twice its base amount. For instance, a 4-core processor can generate an average of 8 threads. The more threads, the better.

Speed

Mining requires a decently high hash rate to be effective. You’ll need a processor with a competitive frequency, often measured in GHz, to meet this requirement. The higher the frequency, the greater your hash rate will be, giving you a better chance of outperforming other miners.

Remember, if a processor falls short in any of these aspects, it’s likely to be unprofitable. Such devices may be capable of mining, but the electricity costs will outweigh any earnings.

How to Start CPU Mining

Now that you understand what makes a CPU suitable for mining, let’s dive into the process. Here are a few ways to mine using your CPU:

Solo Mining

While it is possible to mine alone, it is not advised. As previously said, you must be the first to figure out a block’s algorithm to win. However, while mining alone, you will go up against powerful computers that perform better than your CPU. Only if you are confident in your ability to succeed should you do this.

Mining Pool

Joining a mining pool is a popular approach for CPU and GPU mining. In a mining pool, you collectively solve a block with hundreds of other miners. Combining everyone’s computing power significantly increases the chances of being the first to solve the block. After the block has been cracked, the prize is divided among the players according to their contributions.

Examples of mining pools for CPU mining include Nanopool, which supports various assets, and MineXMR, specifically for Monero mining. Remember that mining pools also charge a percentage fee from the profits.

Cryptocurrency Suited to CPU Mining

There are a few options regarding cryptocurrencies that are well-suited for CPU mining.

Monero (XMR)

Monero (XMR) is one of the most accessible cryptocurrencies to mine using a regular home computer. It prioritizes privacy and is based on the CryptoNote protocol. Monero utilizes the RandomX hash function, which generates increasingly complex mathematical equations.

You can mine Monero alone or join a mining pool, where your computer’s resources are combined with others to mine XMR. One advantage of Monero is that it is resistant to ASICs (expensive specialized mining hardware), making the mining competition fairer.

Dogecoin

Pay attention to Dogecoin when it comes to CPU mining. Despite its humorous origins, Dogecoin is a widely known cryptocurrency that can be mined on a PC. While it may not be my most lucrative coin, it can still generate some earnings. Dogecoin was created by programmer Billy Markus, who based it on a meme image of a perplexed-looking Shiba Inu.

It has gained popularity and currently holds a unique position on the list of coins with the largest market capitalization. Dogecoin uses the Scrypt hashing algorithm and plans to issue 100 billion coins.

Electroneum

Electroneum is a well-established cryptocurrency that offers an exciting feature – the ability to process payments through a blockchain-based mobile app. What may appeal to miners is its resistance to ASICs, meaning your CPU will face less competition. Additionally, the platform has recently launched a freelancing platform, which has brought it back into the conversation around blockchain technology.

Is CPU Mining Profitable?

CPU mining could be more profitable for short-term gains. This is especially true because CPU mining is no longer feasible for most widely used cryptocurrencies. Two main factors contribute to this:

• The overall difficulty and competition in the networks have increased significantly.
• Advanced ASIC (Application Specific Integrated Circuit) miners have become prevalent, making CPU mining less competitive.

These factors have rendered CPU mining largely outdated for popular cryptocurrencies. However, CPU mining still serves an essential purpose. It is possible to discover new promising cryptocurrencies that can be mined with a CPU and potentially generate long-term profits. Currently, most CPU mining coins are in their early stages, and profits are usually minimal.

The crucial point to understand is that by mining these coins at a lower yield during this stage, you can accumulate them for long-term storage. The idea is to gather new cryptocurrencies early and hold onto them until their value (hopefully) increases significantly.

Is CPU Mining Safe?

It’s worth being cautious, as your system’s antivirus software might detect a mining client as a virus. This occurs because CPU miners can sometimes be mistaken for Trojan horses. Add the mining software to the exceptions list in your antivirus settings to address this. It is also crucial to exercise caution when mining on laptops. Laptops are not as equipped to handle increased temperatures as CPUs, and mining can potentially damage the hardware.

CPU mining pros

• Simple to get started
• Assists in earning consistent passive income
• Requires low operating costs and minimal investment in hardware
• Provides the highest return on investment in the long run
• Accessible to anyone with a computer
• Enables easy mining of cryptocurrencies designed explicitly for CPU mining

CPU mining cons

• Prone to bot networks
• Unable to mine the majority of cryptocurrencies
• Not profitable due to excessive electricity usage
• Risk of permanent damage to the mining setup from unsafe temperatures

Some Best Practices for Mining With CPUs

If you’re concerned about potential issues with CPU temperature while mining, here are some essential guidelines to ensure safe CPU mining:

• Maintain your CPU temperature below 80°C (176°F). This is the target temperature to aim for, with some leeway on either side. You can check the computer’s temperature through the basic input/output system (BIOS) or use hardware monitoring software to track it.
• Limit concurrent processes. Remember that a CPU generates heat as it performs more tasks simultaneously. It’s advisable to minimize background processes while mining cryptocurrencies with your CPU. This includes activities like gaming, web browsing, and watching videos.
• Regularly clean fans and circuit boards. CPUs can accumulate dust and debris due to the heat they produce. Regularly blow off and clear the dust from your CPU and its components using compressed air.
• Consider using a cooling system. Utilize cooling equipment like PC case fans, dust filters, and CPU coolers to maintain safe temperature ranges for your system.
• Stay vigilant against crypto mining scams that exploit your processor for mining purposes. For instance, the XMrig CPU can install a Trojan horse on your computer and use its resources for mining digital currencies. These threats can lead to overheating and diminished performance.

By following these best practices, you can ensure a safer and more efficient CPU mining experience.

What are the Alternatives to CPU Mining?

There are a couple of alternatives to CPU mining:

• ASIC mining: ASIC stands for Application Specific Integrated Circuit mining. These are specialized mining devices designed for specific cryptocurrencies. They can mine any cryptocurrency except those that are resistant to ASICs. ASIC miners have a high hash rate, measured in terahashes per second (th/s), and can generate around 90-100 th/s.
• GPU mining: GPU stands for Graphics Processing Unit mining. Unlike CPUs, GPUs have multiple Arithmetic Logic Units (ALUs) and can perform various tasks simultaneously. They are beneficial for mining cryptocurrencies that need to be better suited for ASIC hardware. GPU miners can solve complex cryptographic equations using affordable and readily available hardware.

Final Thoughts About CPU Crypto Mining for Beginners

CPU mining is a method of mining cryptocurrencies using a computer’s CPU. However, growing competition has made it less efficient to mine high-value coins. While some coins are explicitly designed for CPU mining with reduced competition, the emergence of ASICs has also impacted their profitability.

CPU mining can still be profitable, especially for newly created coins and long-term gains.