How do you mine crypto at home?

For those interested in mining cryptocurrency at home, the process can be quite intriguing but also demanding. Could you elaborate on the steps required to set up a home mining operation? Specifically, what type of hardware is typically needed? Are there any specific software requirements? How does one determine which cryptocurrency is most profitable to mine? Additionally, are there any safety considerations to be aware of, such as electrical safety or the potential for hardware damage? Lastly, what are some of the common challenges that home miners encounter, and how can they be overcome? Your insights into these questions would be greatly appreciated.