Cryptocurrency has been making a big splash in the news recently, and a lot of people have developed an interest in cryptocurrency mining and are considering investing in new ways to mine cryptocurrency.
If you’re reading this article because you’re interested in crypto mining and how to mine Ethereum or interested in entering the crypto-economy through some other coin, there are a few things that you must know before getting started.For instance, I expect you to know about Ethereum and how it works. However, before proceeding to learn Ethereum mining, It’s vital to know the best GPU for mining and GPU mining profitability.
That said, let’s start by exploring the question of why you need to start Ethereum mining in the first place and how it is done. We’ll discuss all the information about mining, which includes both good and bad. There’s an ongoing shortage of GPUs for mining and high-power computer components. Due to that, many suppliers and retailers are selling the component at high prices.
Keeping the ongoing situation in mind, buying a GPU for mining directly from the factory is better. Hashuni is one of the top Chinese-based companies which directly supply high-quality mining GPUs and computer components to customers. If you want to know more, you can visit https://www.hashuni.com/shop/gpu-miner/.
Brief Explanation of Ethereum Mining
Ethereum, like any other platform, has its own blockchain. Ethereum mining is the process by which new transactions are verified and added to a public ledger. The Ethereum blockchain data consists of every account balance, transaction, and contract stored on the blockchain. Miners are rewarded for maintaining the network with 1 ETH per block verified and added to the blockchain.
What’s the Difference Between Bitcoin Mining and Ethereum Mining?
At its core, Ethereum works similarly to Bitcoin. It’s decentralized, with many participants (or nodes) updating the database and verifying the transactions. The only way to add a new block of ether to the blockchain is by mining that block. However, conceptually both of these cryptocurrencies are much similar, yet still, there are some significant differences in the technicalities and functionalities of each.
Ether blocks are added every 10-15 seconds, while Bitcoin takes around 10 minutes to add a new block. Unlike BTC miner, Ethereum miner earns 2 ETH plus all transaction and gas fees, which is basically the processing fee for the block. In addition to that, ether miners can also earn a possible bonus by filling the uncles. Ethereum incentivizes miners to include a list of uncles when they mine a block because it increases the security and decreases the centralization incentives by rewarding miners.
Whereas functionality is concerned, Ethereum can be used to make smart contracts that enable you to create advanced applications that feature automatic logic and fulfill specific criteria when certain important events take place.
These advanced applications are known as dApps or Decentralized applications because they run on a network of computers rather than just one.
One crucial difference when it comes to Ethereum vs. Bitcoin is the difficulty level of mining, price, and hash rate. Unlike Bitcoin mining, Ethereum mining can be done with a Graphical Processing Unit or GPU only.
How Many Ways Can You Do Ethereum Mining?
Now that you’ve got the basic understanding of Ethereum mining and its functionality, we can proceed with choosing the method for Ethereum mining. Ethereum mining can be done using three ways.
- Pool mining: This is easy and recommended.
- Mining alone: This one is comparatively hard.
- Using Cloud mining services: This is not recommended as the majority of the cloud mining service sites are part of Ponzi Schemes.
All three processes of mining Ethereum have their pros and cons. It totally depends on the eth miner to choose anyone according to his/her preference and convenience. However, to become the best Ethereum miner, you must follow the ethereum mining guide properly.
How To Mine Ethereum: Beginner’s Tutorial
- Get an Ethereum wallet
- GPU drivers and installation
a. A high powered GPU for mining (Check the best GPU for mining)
b. A high powered GPU for mining (Check the best GPU for mining)
- A Compatible Operating System
- Install Ethereum mining software
- Join an Ethereum mining pool
- Start Mining
#1: Create an Ethereum wallet
In order to start Ethereum mining, you need to have a digital wallet to save your all earned crypto rewards and earnings. There are many secure digital currency wallets available. Some of the top Ethereum wallet mining wallets include Trezor One, Metamask, Ledger Nano S, Exodus, and Mist.
#2: Install GPU Drivers
After setting up an Ethereum wallet, the next step is to install the drivers of the GPU for mining. Your GPU mining profitability depends on how efficiently your computer hardware runs all the latest updates and drivers. Both Nvidia and AMD graphics card users can download the latest GPU drivers from the company’s official sites.
#3: Install Ethereum mining software
Similar to digital wallets, you can find many Ethereum mining software online. Some of the best Ethereum mining software of 2022 include;
- MinerGate
- With
- Go Ethereum
- Cudo Miner
- Ethermine
- EasyMiner
- Kryptex
- Phoenix Miner
You can choose anyone from the best Ethereum miner software as per the compatibility of your operating system. Also, installing and setting up software is very easy. You can find the instruction to install Ethereum mining software on the same website where you’ll download it.
#4: Join an Ethereum mining pool
After setting up the software, you now need to join a mining pool. You can join a mining pool by choosing any type of pool you want to join if you want to mine alone or set up a solo mining pool if you don’t have a full mining farm or a warehouse filled with mining rigs.
After joining the pool of your choice, you need to input the Stratum addresses of the pool into your mining software, connect your digital wallet to receive the rewards, and configure your mining set up according to your chosen pool.
#5: Start Mining
To mine, open a command prompt in the folder where you unzipped the miner and double-click the Bat file to initiate the miner (a small window should appear). Let it run for about 20 seconds, and then check your mining speed by clicking the “s” key.
You can also use this data in the GPU mining calculator while determining the earnings and rewards from your mining.
How to See How Much You’ve Mined?
It depends on the pool you’re using for mining, as every mining pool has a different interface. However, the principle of all pools for mining is the same. In order to check how much you have mined, you need to go to the pool’s website and paste your digital wallet address. Then click “Check Status.”
How to Calculate Your Ethereum Mining Profits?
Ether miners can check their profit by calculating the number of Megahasher per second their hardware is submitting (Mh/s). You can also access the GPU mining calculator online and type your Mh/s, cost of power, and it will show you the profits.
Final Takeaway:
Ethereum mining can be very profitable. By becoming an Eth miner, a person contributes to helping the distributed ledger stay decentralized and get rewarded in return.
An Ether holder basically holds valuable assets that can be traded for other assets or cash profit in the future. The Ethereum platform has already been successful in proving its work by solving problems or providing solutions for digital identity management, voting, smart contract enforcement, etc.
Several projects have already found successful funding through ICOs (Ethereum based model). Many developers and companies are benefiting from Ethereum in creating decentralized applications. And some high powered crypto hardware companies like Hashuni have been a great support in supplying the advanced computer hardware required for that.