- Ethereum mining is a process of creating blocks of transactions that will add to the Ethereum blockchain.
- Launched in 2015, Ethereum is a fast-growing decentralized cryptocurrency platform.
- As of March 18, there are 115,102,544.22 total ETH currently existing in the crypto market. The available ETH is valued at $210,364,862,890USD.
Mining is the lifeblood of every cryptocurrency, and this is what makes more of the currency available in the market. Many people ask questions on how to mine Ethereum. Mining ETH in a pool is the best and easiest way to get started.
If you are familiar with the cryptocurrency world, you know the vast potentials that Ethereum holds for investors. Bitcoin is the largest cryptocurrency in the market; 1 BTC is valued at $58,277, followed by Ethereum.
As of today, 1 ETH has a current market value of $1.816.8. Due to this cryptocurrency’s high prospects, many people have questions on how to mine Ethereum, how much they can make mining it, and all they need to know.
Transitioning to the ETH mining pool is profitable. Asides from that, mining pools pay you in ETH; they open you to more opportunities and mining tools. This article will explain what Ethereum mining is, different ways to mine ETH, among other things you should know.
What Is Ethereum Mining
Ethereum mining refers to the act of creating blocks of transactions using computer software and other tools. Miners worldwide spend time and resources to solve puzzles, thereby creating blocks added to Ethereum.
Ethereum came into existence in August 2015, and it keeps growing and increasing in value. ETH is a decentralized system with an open-source of mining it, thereby increasing its number in the market.
Just like Bitcoin, Ethereum uses proof-of-work (PoW) consensus mechanisms. If you want to learn how to mine Ethereum, PoW should form the basis of your knowledge.
As a decentralized system, Ethereum mining entails using different mechanisms, algorithms, computer software, and hardware.
Why Do Miners Exist
Mining any form of cryptocurrency entails solving complex mathematical problems and using software and hardware to create transactions. The transactions add to the number of a cryptocurrency.
PoW is the bedrock of Ethereum mining, and it is the work of miners to decode systems and solve problems to generate more transactions. Below are the most important reasons why miners are important;
- Miners play important roles in any cryptocurrency network. They create blocks of transactions to increase the existing cryptocurrency.
- For Ethereum, miners use different mathematical and systemic approaches to solve complex problems are generate new ETH.
- Miners create new ETH tokens using PoW processes and receive rewards for every task completed.
- Ethereum mining is a complex task that requires an in-depth understanding of the processes involved.
Ethereum mining offers rewards to miners depending on how many blocks of transactions they add to ETH daily. Different miners use different hardware and computer software to mine Ethereum. It is possible to mine 0.01508915 Ethereum per day with a hash rate of 500.00 MH/s
Different Ways To Mine Eth
Eth in today’s market, the total current supply of Eth is 115,102,544.22, with a market capitalization of $210,364,862,890. Do you imagine how they realise this number of ETH and the processes involved in mining a single block of ETH, not to talk of millions of ETH?
It does not take hours or days to mine ETH once you know the processes successfully. Unlike Bitcoin that takes 10 minutes or more to mine, you only need an average of 12 seconds to mine Ethereum.
If you are going to start mining Ethereum on your computer, you need the following to get started;
- Get a compatible operating system (Windows 7 and 10 are the best recommended)
- Install GPU Drivers on your computer (AMD GPU)
- Download and install miner or a mining application
- Get an Ethereum wallet to hold your currency
- Join a mining pool
- Create a mining pool (if you are joining a pool)
- Adjust your windows settings
- Start mining.
While the above are the basic steps to start mining, there is more to Ethereum mining. There are three significant ways to mine Ethereum, namely;
Ø Pool Mining
Ø Solo Mining (Mining Alone)
Ø Cloud mining services
Mining alone is not advisable; you should go for pool mining or clouding mining. The former entails working with other people to mine Ethereum, while the latter involves mining through a third party. You pay the third party for their time, equipment, and effort.
You can also use mining software such as NiceHash, hashflare.io for Ethereum mining in addition to the above. Below is a detailed description of different ways of mining Ethereum and how to get started.
How To Mine With NiceHash
Whether you are a beginner or advanced miner, you are always searching for easier ways to mine Ethereum. Mining with Nicehash does not only help miners solve complex problems; it comes with ease.
NiceHash is a mining software launched in 2014 to bring solutions and more accessible approaches to complicated mining processes. NiceHash presents you with software that gives you access to automated processes hints to mine Ethereum successfully.
NiceHash takes a small portion for every cryptocurrency you mine for charges and payment for using the software.
Often, people wonder how to mine Ethereum with NiceHash, not to worry, below is a step-by-step guide of using NiceHash;
- Register with NiceHash to use their service and software
- Create a wallet where you receive the Ethereum or Bitcoin you successfully mine
- Download the NiceHash mining software
- Install and configure the software on your PC
- Read and watch tutorials provided by NiceHash
- You are good to go!
There is an array of mining options you can explore on Nicehash, they are; QuickMiner, NiceHashMiner, and NiceHash OS.
How To Mine With A Mining Pool
Mining in a mining pool is another way to go about Ethereum mining. With this process, an individual miner joins a mining pool where their skills and resources are combined with other miners to produce ETH.
Mining a cryptocurrency entails a lot of work, from mathematical calculation to solving puzzles, using computer software and other processes to release new crypto into the system.
Without a doubt, mining in a pool is better than solo mining, but the challenge many people face is what mining pool to use. Before choosing a mining pool, there are important factors, including the pool fees and other contingencies.
Below is an easy guide on mining in a pool;
- Choose a mining pool (read and research extensively on the pool you are selecting)
- Set up a mining account
- Select a mining software
- Configure the software on your computer
- Launch your miner
- Then start mining with other members of the mining pool.
Different mining pools charge different fees; consider this before you select one. Also, free mining pools exist but are not as reliable as the paid ones.
How To Solo Mine Ethereum
Solo mining might sound like a great idea, but it is not. Solo mining is a miner mining process alone and using their own mining devices to create blocks of transactions to add to a cryptocurrency.
Before you bother yourself on how to solo mine Ethereum, you should know its nitty-gritty. Although miners won’t share rewards when they solo mine Ethereum, they take on all the risks and workload of mining Ethereum.
Is it profitable to solo mine Ethereum? The answer to this is not as straightforward as many think. Mining alone is profitable if you know mining cryptos and have all the solutions to the puzzles and mathematical problems.
However, if you are not confident of your mining skills or do not have the right software or hardware at your disposal, you could be disadvantaged.
Below is how to solo mine Ethereum;
- Choose your mining server
- Set up mining hardware and register with the chosen mining server
- Create a wallet
- Download mining software
- Read tutorials on practical ways to get started
- Begin your mining process
There are hardware and software requirements for solo mining. Although many miners mine blocks using any CPU/GPU, solo mining requires more.
You need to invest in special hardware such as a powerful ASIC (application-specific circuit chips) to solo mine. You also need to invest in solo mining software such as CGMiner.
How To Mine Ethereum With GPU
Mining Ethereum with GPU has become a highly profitable and straightforward process once you get the settings right. Graphics Processing Units (GPU) have been used for years to mine ETH.
If you want to mine Ethereum on Windows 10, you need reliable hardware such as GPU. There are several mining GPUs; the onus lies on you to choose the best. If you do not have the best graphic cards for mining, it will be challenging to create blocks of transactions successfully.
Before introducing GPUs, the mining of cryptocurrency was done using Central Processing Units (CPUs).
However, there is a drawback to using CPUs. They have slow processing speed and consume higher power. In all of these, CPUs mining produces limited output, thereby inefficient for mining processes.
The breakthrough came with the introduction of GPUs, which are faster and more efficient. For instance, if you use a standard GPU such as Radeon HD 5970, it is 800 times faster than a CPU and produces greater output.
Safe Setting for GPU Mining
Before you get started on Ethereum mining with GPU, you should note the following;
- Install an appropriate version of Windows
- Get a compatible GPU
- There are various GPUs, but GPU mining requires over 4GB of VRAM
- Before you set up your GPU, ensure you get an excellent spot
- Set up your mining rigs such as CGminer and NBMiner
- Once you have set up your GPU, install a compatible software
- Then, you can start mining
Although mining Ethereum with GPU is quite efficient, it tends to be expensive. The downside is the maintenance, as you have to constantly check if there are malfunctions with the graphics processing unit.
How To Choose Ethereum Mining The Right Way?
While different ways to mine Ethereum exist, it is not safe to use all the methods. You should study each of the processes and identify which is most compatible with you.
There are also criteria for choosing Ethereum mining options. They include;
- What type of ETH miner you are (Some do well with solo mining while others work better mining in a mining pool)
- Your knowledge of mining (Beginner or advanced miner)
- Tools at your disposal and how well you can use them
- Your mining target; how much Ethereum you want to mine per day
How much profit you intend to make mining.
All these and many more are factors to consider to choose the suitable form of Ethereum mining. For instance, solo miners who are knowledgeable about mining tend to make more profits than those mining in a pool.
However, mining in a pool offers the benefit of combined resources, skills, human resources, and mining equipment. Mining together is more accessible and way better than mining alone.
Ethereum mining continues to boom, being the second-largest cryptocurrency after Bitcoin. A lot of miners are putting the work to create more blocks in the market.
Crypto mining is not for some people, anyone with the proper knowledge and tools, and mine Ethereum. To mine this versatile crypto, you need mining guides and tutorials to get it right.
A proper understanding of Ethereum mining, how it works, PoW mining, solo Ethereum mining, Ethereum mining pool, and the terminologies associated with mining is vital for successful mining.