A Beginner’s Guide on How to Mine Ethereum (ETH) 2979

Ethereum mining guide

Despite recent price volatility, mining Ethereum is still a profitable activity, capable of bringing an impressive passive income. However, getting started may seem difficult, especially for users who are not well-versed in cryptocurrencies.

Luckily, the process is mostly straight-forward! In this article, we will outline the basics to Ethereum mining, and give several tips that will help you along the way.

Note: It has been confirmed that in the future, Ethereum will switch its protocol from proof-of-stake to Casper Fork. Alongside a list of improvements for the network, this means that Ether will no longer be mineable.

The Mining Rig

Ethereum mining rig

Mining is impossible without a mining rig, which is a computer that has been built using mining-friendly parts. As such, here is a list of necessary parts for your rig:

Graphics Processing Units, which is the essential part of your setup, as mining Ethereum is done solely via the GPUs. For a solid output, consider purchasing 6 GPUs of at least 3GB-4GB each.

  • A solid motherboard, with at least 6 PCI slots. You might want more, in case you ever wish to upgrade your system.
  • Central Processing Unit (CPU), almost anything goes, look for something of medium power/quality.
  • Random Access Memory (RAM), 4GB-8GB card, make sure to note whether it is DDR3 or DDR4, for compatibility with your motherboard.
  • Hard Drive, or Solid State Drive (SSD), any as long as it provides a minimum of 70GB for your operating system.
  • Power Source, at least 1,200W in power, rated gold, or platinum for energy efficiency.
  • Risers & Case, to help stack everything together. Those with built-in capacitors are often recommended.
  • Cooling Fans

When it comes down to building, and choosing the right hardware, you can find numerous suggestions with a quick Google search. Make sure to compare GPUs to ensure that you’re getting the best value for your investment.

With this system, you can expect to earn around half Ether on a monthly basis. Do keep in mind that earnings can be influenced by the current mining difficulty. You can use this service to determine a rough estimate of your profits.

Setup of your mining operation

ether wallet

  1. Get a wallet!

Without one, you won’t be paid for your effort. Blockchain.com offers a solid Ether wallet and transaction address that you can use. MyEtherWallet.com is also a great choice.

  1. Install a miner on your machine, such as Ethminer.
  2. Join a mining pool.

Unless you have invested several grand in building your system, chances are that your mining rig won’t earn a single penny unless you join a mining pool. Because of the mining difficulty, finding and cracking an ether block on your own seldom happens. Using a pool, however, once a block is found, the group of miners reaps the rewards, divided according to their hashrate. This guarantees a steadier income, as you won’t be mining alone.

Mining Pool Recommendations

mining screen

Things often get a bit cloudy, when choosing the right mining pool. As there are several options on the market, the first tip would be to check them out, read reviews and see which is best for you.

Nanopool and Ethermine are two of the most popular pools available on the market. For instance, Nanopool is the world’s largest, with over 130,000 active miners, 1% service fees, and payouts for both full and uncle blocks. Ethermine is mostly similar, with the only difference being a lower number of active miners.

We’ve recommended these two pools, thanks to their Claymore Dual Miner functionality. What this means, is that while your graphics card is busy mining for Ethereum, your processor remains idle. With the functionality enabled, your processor will continue mining for another coin, thus giving you access to a secondary stream of income.

Setting up the pool should be easy! Both websites offer a quick start option, which you need to click on, and then follow the instructions. They will guide you through downloading and installing the miners, setting up the configuration files, mining rig, and payment details. Once the installation is over, simply press on the start.bat file, which will start up the miner.

Future Tips & Other Costs

mining expenses

As the cryptocurrency mining market is fairly dynamic, and dependant on factors such as price volatility, sustainability, mining difficulty and a range of other costs, miners should constantly keep an eye on the network and the hardware. This will ensure that things are running smoothly at all times.

In terms of possible costs, these include electricity, part replacements, mining pool fees, exchange fees, and possibly tax. With this in mind, there is no sure-fire way to determine the universal profitability of a mining operation, as it depends on factors applicable only to you.

If, and when Ethereum switches its consensus protocol, your mining rig will still be suitable to be used for mining other coins. And if you ever wish to quit mining altogether, do keep in mind the fact that your rig is comprised of high retail value parts that can easily be sold.

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Daniel Dob
Daniel is a digital currency expert, writer, consultant and investor. He has five years of experience with the crypto market, and is now in the process of kick-starting his entrepreneurial career. In his free time, Daniel enjoys traveling the world, and collecting thrilling experiences.

Ethereum ETH/USD Reclaims Throne as Second Most Valuable Cryptocurrency – Here’s Why 3197

ethusd

From $83 to $155 in 30 days. It took an 86 percent price increase for Ethereum (ETH/USD) to reclaim its throne as the second most valuable cryptocurrency in the market edging out Ripple (XRP) and dragging the rest of the market up in the process. No easy feat.

ethereum top

Trials And Tribulations

2018 was a brutal year for cryptocurrencies with most suffering losses of up to 98 percent. Ethereum (ETHUSD) was no exception with its own set of roadblocks. The combination of bearish market sentiment and suffocating ICO projects that used ETH as a primary means for raising funds were forced to sell which meant that the road to price recovery would be twice as long.

February 10th, 2016 – Ethereum became the top-two cryptocurrency by market capitalization and since then held its ground throughout most of its lifecycle, only being knocked down briefly by rogue market fluctuations.

ethereum market cap dominance

Currently, as of November 16, this has been the longest stint for ether spending 46 days in third place since it was overtaken by XRP.

The ol’ Hard Fork Play

History has shown – hard forks can be very profitable.

Ethereum’s price increase is most likely to be attributed to the recently announced Constantinople hard fork; a process which essentially splits a cryptocurrency in two. The update is set for January 16 with the result being a decrease in block time; an attempt to improve scaling by making the network faster as well as the reduction of mining rewards which will fall from three to two ether.

Quite a bit of money goes into any cryptocurrency that is set to fork. The demand is fueled by speculators who will try to capitalize from receiving the additional forked coin and what essentially is seen as “free money”. It is not uncommon for the forked cryptocurrency to go back down in price soon after the fork has been completed and all coins are claimed.

eth split

We’ve seen it happen many times before with Ethereum/Ethereum Classic (ETC), Bitcoin (BTC) and Bitcoin Cash (BCH) and the most recent example being the Bitcoin Cash ABC/Bitcoin Cash SV split.

A Sign of Things to Come For ETH

The hard fork is thought to be a key component for transitioning from using a proof of work (POW) protocol to proof of stake (POS). Ethereum has always had the luxury of having some of the brightest blockchain minds on its side, so hard fork or not, the recent price increase is more of an inevitability than anything else. With that, the crypto Christmas rally rolls on.

Can You Still Make Money Mining Bitcoin? 5423

The crypto industry is changing in big ways. Take a time machine back one year and you’ll see a completely different environment. Because of this, certain tricks of the crypto trade are slowly becoming obsolete.

Is bitcoin mining one of them? Well, one can still make money mining bitcoin, but it’s certainly not the lucrative business that it used to be. That being said, there are alternatives you can take to keep up with this ever-changing ecosystem.

Is This the End of Mining Bitcoin?

In the early day of cryptocurrency, mining Bitcoin was a more profitable hobby. Back then, the competition was minimal and the block reward was higher. But with so many more miners in the game, operations costs rising through the roof and the decreasing block reward, mining bitcoin is losing steam.

On top of that, increased regulation is shutting down some of the largest bitcoin mining hardware companies and suffocating the market for everyone. But mining bitcoin is far from dead. The landscape is just changing and one must know how to adapt.

Mining Bitcoin Is Not Dead

Despite all the warning signs mentioned in the last paragraph, mining bitcoin, or any cryptocurrency is far from dead. ASIC mining companies like Bitmain are still advancing their technology and coming up with more efficient hardware that saves miners money on energy and mines bitcoin faster.

Furthermore, various bitcoin miner hosting platforms are popping up everywhere, offering a more transparent alternative to the scam-ridden cloud mining/mining pool industry.

Sure, the profits will probably never be as high as the early days but it’s still possible to make a nice passive income if you know where to look.

Profitable Alternatives to Mining Bitcoin

If you’re looking to supplement your bitcoin mining income and get out of the game entirely, there are other ways to make your money to work for you in the crypto space.

Take crypto lending platforms for example. By putting up your mined bitcoin as collateral, you can take out a loan on a site like YouHodler.com. You can then use that cash to pay for your mining expenses, purchase new ASIC hardware or simply invest it into crypto of your choice. You can then use the profits from this investment to pay back your loan and get your crypto collateral back. On top of that, your crypto collateral potentially rose in value that’s an added bonus of profit.

As the industry continues to grow, there are other ways to make money than simply mining and investing. So it’s best to adapt in order to maximize your potential.

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