There is some buzz on Ethereum, the fuel of the decentralized crypto economy. CoinQuora will explain all you need to know on how to mine Ethereum, from hardware to software. Read on for a comprehensive guide so you know how to set up and mine correctly and Ethereum mining pools.
Moreover, Ethereum is the largest altcoin on the market to date. Besides its different uses as a platform, it can also be very profitable for you. This article will lead you through the process of how to mine the Ether by providing you a step-by-step tutorial. Choosing the proper hardware and learning to set up and configure your mining equipment.
If you don’t want to deal with hardware and configurations, there is another, easier alternative. You can also mine Ethereum making a cloud mining contract.
Table of contents
What is Ethereum?
Back in 2012, Vitalik Buterin, at age 17, his father proposed bitcoin to him. Besides, Vitalik is very interested in its technology. However, he started writing for Bitcoin Magazine and proposed improvements to the Bitcoin platform. But, when he didn’t make that improvement, he decided to make his own cryptocurrency instead. The Vitalik idea was Ethereum, and it went live in 2015.
Ethereum is created to enable developers to build and publish smart contracts. Simultaneously, it can be used without the risks of downtime, fraud, or interference from a third party.
However, Ethereum calls itself “the world’s programmable blockchain.” It distinguishes itself from Bitcoin as a programmable network that serves as a marketplace for financial services, games, and apps. These can be paid for in Ether and are safe from fraud, theft, or censorship.2
Ethereum Price Prediction
At the time of writing, Ethereum’s Price was hanging about $2,348, well on course for a rebound. Additionally, the token looks at setting breach the $2,787 and $2,930 resistance at FIB 0.618 and FIB 0.702. However, it started the month great by starting at $2,708 on June 1, after meeting a low of $1,716 on May 23.
Since then, it has been firmly maintaining a $2,500+ value, reaching a high of $2,893 on June 3. Also, it met the gradually rising 50 SMA for the first time since May 27. After that, the ETH price retreated on June 4, meeting a low of $2,550 after an Elon Musk tweet implied a breakup with Bitcoin. In fact, this also proved a strong correlation between BTC and other altcoins. Another reason after its recent decline could be the latest US non-farm payroll numbers.
As the number of US citizens recording for jobless claims dropped below the 400k mark for the first time since the start of the Covid19 pandemic, there’s a good possibility of the Fed turning hawkish, something that doesn’t augur too well for Ethereum and other cryptocurrencies. Even though the first week of June showed productivity for ETH, ensuring that its recovery of the May lows stays on track, the market seemed frustrated by the crucial $2,900 level.
The trading volumes also fell in the first week, which made sense considering last month’s decline. Even though ETH/USD witnessed a good bull run overall during the past six months, the coin’s price could not escape the market’s negative sentiment. It has been recently engaged in a good bear-bull tussle and is set to push upwards, testing the resistance levels of $2,787 and $2,930 at FIB 0.618 and FIB 0.702, respectively.
How to Mine Ethereum
The first thing to consider is the consensus algorithm that Ethereum uses. In fact, the algorithm is called Ethash. However, Bitcoin mining often uses ASICs. Besides, ASICs are computers built to mine crypto in a cost and energy-efficient way. Therefore, Ethash, as engaged to Bitcoin’s mining algorithm, is ASIC resistant.
For the miner, this indicates that a computer with a GPU graphics processor will work most and the special ASIC hardware. This technology is made so those specific users can mine Ethereum.
Both variants use complex calculations to do math problems. However, a block reward, Ethereum tokens, is put into the miner’s Ethereum wallet. Notably, this can then be traded, changed on exchanges, or sent between other Ethereum wallets.
Future variants of the algorithm are more ASIC resistant. In addition, there is the chance of the ProgPOW change, which will give GPUs an even bigger advantage.
Either way, you will require a computer with a suitable GPU or an ASIC machine to mine. Most home miners will have a GPU. The greater the hardware, the higher calculations the machine can do. The more calculations the computer can do, the more possible it is to solve a block reward problem.
How to Mine Ethereum on Android
Since 2018, various Android users have used the Minergate app to mine Ethereum on their Android phones. However, Google banned crypto-mining apps. Besides, it is still possible to mine Ethereum on Android by using cloud mining apps.
How to Mine Ethereum With a Computer
Most users would be more suitable for mining Ethereum on a PC. Moreover, this way is the most profitable way to mine Ethereum and add value to your Ethereum wallet.
Know the challenges
You’ll need to do some research to ensure this productively in the country where you live. Notably, electricity costs fluctuate wildly around the world – and in some developed nations. The electricity bill you’ll get every month could far exceed any returns you make. It’s also worth watching the levels of hardness that are associated with Ethereum mining.
According to Etherscan, they stood at only 0.121 Terahashes in July 2015. But it soared to a staggering 3,784,431 Terahashes by December 2020. Aside from electricity expenses and difficulty, you’ll need to invest in hardware that’s up to the task of completing the Ethereum mining pool. Plenty of computing hardware is required to solve the complex mathematical puzzles that subsequently validate a block – but if you are successful, the rewards can be handsome.
At present, 2 ETH rewards offer those who manage to add a block to the chain towards the end of 2020. This had a cash value of about $1,500. Miners will be given the total of the fees generated from transactions within the block, too. This is showing to be a more important source of income for miners – and congestion on the network brought about by the surge in DeFi protocols caused fees to reach record highs in 2020.
Buy the equipment
The next step in your Ethereum mining pool journey will involve investing in reliable graphics cards that have a high hash rate – and, as you’d expect, you’ll want this to be as high as possible. One of the more recent and desired players on the market has been Nvidia’s GeForce range, but getting your hands on one of these GPUs is easier said than done because of the unique level of demand among gamers.
Another suggested brand is AMD, and some claim that this company’s cards are better. Online, you’ll find a calculator where you will be able to get an estimate of ETH mining profitability. The estimations received are based on the current difficulty factor in the Ethereum ecosystem, your GPU hash rate, the block reward offered at present, the current trading price of ETH/USD, and your electricity costs.
Furthermore, don’t forget you’ll also need a powerful computer, ideally running on Windows or Linux. Make sure it will support your graphics cards as you begin to build a mining rig. GPUs are a crucial element of your setup because they are hundreds of times faster than conventional CPUs.
Once you update the drivers for your graphics cards, it’s time to install an Ethereum wallet. Next, you can open an account and download the blockchain. Lastly, you also need to perform research on the best Ethereum mining software for your machine.
Join a pool
Although your new rig will be flowing power, it’s frequently more efficient to enter an Ethereum mining pool. In fact, several miners combine their resources – increasing the chance to select on the validate blocks. The rewards produced are then distributed proportionately, based on how much power was provided by each member.
As an alternative to establishing your rig, you might also want to consider cloud mining. This process effectively involves leasing hardware based in a data center where electricity prices are a lot more competitive – and, generally, these savings will outweigh the cost of hiring these services in the first place.
Although cloud mining does have its advantages – as it means that you won’t have to worry about maintenance issues – you must select a reputable provider, as you may end up in an inflexible contract.
How to Calculate Ethereum Mining Profits
Accurate Ethereum mining calculator patronized by millions of crypto miners. Best Ethereum mining profitability calculator with difficulty, hash rate, power consumption (watts), and kWh preloaded for 2021.
The Ethereum mining calculator gives it simple and easy to quickly see Ethereum mining profitability based on hash rate, power consumption, and costs. Default inputs are loads with the latest Ethereum difficulty target and Ethereum mining hash rate for the best Ethereum miner.
Ethereum Mining Pools
Three factors usually categorize Ethereum Mining pools. Firstly pool size, larger pools have more chance of finding a block but offer smaller payouts. Secondly, fees, how much the mining charges miners in management fees. Lastly, payouts, the number of payouts, and how often they should be expected.
The number one choice is Ethermine. The best and the most common Ethereum mining pool between the Ethereum miners. With over 200k miners, it is one of the biggest Ethereum mining pools, contributing more than 100 TH/s, more than 20% of the overall network hash rate.
Ethermine uses a real-time PPLNS payment scheme and charges a 1% fee on each reward that you receive. It also allows you to set the payment threshold needed to receive your rewards. You can set your point to 0.05 ETH minimum to a maximum of 10 ETH.
Moreover, Ethermine pool does not require you to pay the transaction fees. Instead, it mines your transaction on their blocks, saving you the transaction fees and is advantageous for small miners.
Flexpool is small but a fast-growing Ethereum mining pool. It appears under the top 15 Eth pools that provide a little over ~6 TH/s. Even though it is a small mining pool, it has got a lot of attention among the Ethereum mining community. To bring in more profits to miners and be highly transparent.
Moreover, Flexpool profit is similar to Ethermine’s but is way more profitable than Nanopool and few other ETH pools. It has the lowest fees of 0.5% and uses the PPLNS payment system, which is excellent for long-term miners.
However, the difference between Ethermine and Flexpool is that Flexpool doesn’t avoid the charge of transaction fees when you withdraw funds. Anyway, you get the choice to set the maximum payout so that you can wait for a lower gas payout. The minimum payout is 0.01 ETH. Besides, you can set the min pay to 0.2 ETH or higher to offset the cost of the transaction fees. But remember, you’ll have to wait until you gather enough ETH needed for the payout.
Whether you are a small miner or one with a lot of hash power, Flexpool is one of the best Ethereum mining pools available for mining. Moreover, it would be best to see that joining a small pool supports decentralization and is healthy for the network.
Sparkpool was formerly known as ETH fans. The largest Ethereum mining pool on earth with the highest hash rate contributing close to 30% of the overall network hash rate—having the highest hash rate gives you consistent payout amounts. However, the problem with the largest pools is that it leads to mining centralization.
Sparkpool uses the PPS+ payment method. It charges a 1% fee on block rewards and has a minimum withdrawal limit of 0.1 ETH. It is a Chinese pool suitable for those who are from China and nearby nations. If you are from the west, this pool doesn’t offer much in terms of profit, so it is better to consider Ethermine or Flexpool over Sparkpool.
You must be careful and conduct thorough research about the software, hardware, or cloud mining service you’re going to use.
Ethereum mining pool offers you a little profit every day, depending on the number of hardware devices joining in the process.
By accessing the hashing power you have in our Ethereum mining calculator. If you have a hash rate of 442MH/s, you will receive 1 ETH for one month.
Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CoinQuora. No information in this article should be interpreted as investment advice. CoinQuora encourages all users to do their own research before investing in cryptocurrencies.