How to mine ethereum. its relative mining simplicity, its wide presence, and its popularity have led many to wonder how to mine ethereum. Ethereum was established in 2015 as a platform for the development of decentralized applications. The platform’s eponymous internal cryptocurrency has become the second most popular cryptocurrency after bitcoin.
What is ethereum mining?
Ethereum mining is a process that verifies new transactions in the Ethereum blockchain and their addition to the combined blocks with the issuance of crypto coins.
It is based on solving mathematical equations on suitable computer equipment. The first miner to solve an equation receives a reward of 2 ETH per block along with all commissions for the transaction added to the block. Although only 18 million new ETHs can be made each year, there is no limit on the total number of coins that can be issued, unlike bitcoin.
How to mine ethereum using different methods?
There are several ways to mine ETH. Whichever you choose, you’ll need an Ethereum wallet before you start.
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Join an ETH miners cooperative
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Solo mining
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Create your own Ethereum miners cooperative
We will not be looking at how to start your own ethereum miners cooperative as the competition in this area is very strong and requires significant investment. Instead, we’ll look at more affordable methods.
1.1 Miners’ cooperatives
Due to the high number of ETH miners, the more complicated the task, the larger the reward for a block. Under these conditions, each miner has relatively little chance of solving the equation and getting the reward. So-called miners’ cooperatives solve this problem. They are created to combine the computing power of several individual miners, to reduce the random factor and to improve mining efficiency.
A miners’ cooperative is a server that breaks down a mathematical equation into smaller equations and distributes them among the connected computers. When the participants of the miners’ cooperative solve the equation together, the reward is divided equally among them.
1.2 How to join an Ethereum miners cooperative?
The most famous Ethereum miners co-ops are Sparkpool, Ethermine, Nanopool, F2pool, and 2miners. When choosing a miners’ cooperative, pay attention:
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to the hash rate of the cooperative
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to the reputation of the cooperative
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at the commission
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The minimum amount and frequency of payments
It is quite easy to join a miners cooperative, even as a newcomer. Most large co-ops have step-by-step instructions on how to set up your mining software and log into the co-op.
Cloud mining
Cloud mining rents mining equipment. In this case, the leasing company (lessor) owns the equipment and maintains it. The lessee pays for the operating time of the equipment. All parts mined during the term of the lease are transferred to the tenant’s portfolio. While this method has certain advantages, such as not having to buy, install or maintain the equipment and not risk damaging it, it also has clearly defined disadvantages. The main downside to cloud mining is the risk of a drop in the price of ethereum as the lease outweighs the profits.
The other thing you need to keep in mind is the high risk of fraud. In all cases, take the time to find the most reliable service. If you want to test cloud mining for free, try the new Cloud Miner tool on the StormGain platform.
1.4 Solo mining
Miners’ cooperatives have arisen for good reason. In today’s competitive environment, one would have to invest a lot of money in equipment just to have a chance of getting a reward for an Ethereum block.
The average time it takes for a solo miner to find a block can be several weeks or even months.
How to mine ethereum on Windows?
To successfully mine ethereum on Windows, you must have 64-bit Windows 7 or later. Here are the steps to start mining:
1.1 Check your hardware.
First, you will need a PC or mining equipment with 4 GB of GPU memory or more. Second, you will need at least 4 GB of system RAM. Last but not least, you will need a stable and constant internet connection.
1.2 Install your GPU drivers.
If you are an AMD user, go to their website, download the current version of the driver for your GPU and install it. Also, if you plan to use your GPU for mining ONLY, you can download a specialized driver. Nvidia GeForce users can obtain a current version of the driver from the Nvidia website. After installing the driver, don’t forget to restart your hardware.
1.3 Get an Ethereum wallet.
The simplest way to do this is on websites like MyEtherWallet.com or at a cryptocurrency exchange like Binance or StormGain. Keep in mind that some exchanges do not allow small deposits or deposits from mining co-ops. Once registered, don’t forget to save your private key!
1.4 Download the mining software.
There are many ethereum mining software out there. We will see the most popular later in this article.
1.5 Change your Windows settings.
Adjust the virtual memory size at least to 16384 MB. Go to Windows power settings and turn the sleep mode off. Go to Windows Update settings and disable it. If you are using Windows Defender or other antivirus software, add an exception so that it does not interfere with your mining software.
1.6 Choose
Choose miner’s cooperative according to your preferences.
1.7 Edit
Edit the .bat file of your mining program according to the instructions of the mining cooperative you have chosen.
1.8 Run
Run the modified .bat file to begin mining.
How to mine ethereum on Mac?
Ethereum mining on Mac is generally considered inefficient and not really worth the effort. Most popular ethereum mining software doesn’t have Mac versions. However, it is still possible to do this using a graphical user interface (GUI) miner like Minergate. To mine Ethereum with Minergate, you must:
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Download the software from their website.
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Open an account using your email.
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Log in to the software with your account.
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Start mining ethereum.
Unfortunately, even with Minergate, you still cannot mine with your GPU on Mac.
Profitability
When calculating the profitability of ethereum mining, keep in mind that the Ethereum blockchain is expected to transition to a proof-of-stake consensus algorithm at a currently unknown date. After that, it won’t be shabby anymore.
1.1 How to calculate profitability?
The profitability of ethereum mining depends on many variables to be calculated precisely. However, you can still calculate the present approximated profit. To do this, you need to know the hash rate of your mining equipment, its power consumption, and the cost of electricity.
You just need to input these numbers into an online calculator and you will get your estimated profits. Keep in mind such important variables as the fluctuating prices of ethereum and the increasing difficulty of mining.
1.2 Time it takes to mine 1 ethereum?
It depends on the hashrate of the mining equipment and the constantly changing difficulty. Yet even with a powerful and expensive AMD Radeon VII GPU and assuming the current mining difficulties remain the same, it will take about six months to mine 1 ethereum.
ETH mining software
Special mining software is an essential tool for mining Ethereum. Here are 3 of the most popular programs for this.
1.1 ETHminer
ETHminer is a well established Ethash GPU mining software. It allows you to mine all coins based on Ethash algorithm. You can download the program and find a guide on Github.com.
1.2 Claymore miner
It is another of the most famous ethereum mining tools. Unlike other mining software listed here, it supports the so-called “double mining” mode, which allows users to simultaneously mine ethereum and another coin from a limited list (such as Decred or Siacoin) without losing speed. mining for ethereum.
1.3 Phoenix miner
Phoenix Miner is a relatively newer Ethereum mining program which is considered to be faster and more stable than the previous software. The latest version supports double mining, which allows both ethereum and ubiq (UBQ) to be mined simultaneously.
How to make money with ethereum mining?
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Currently, ethereum mining may not be very profitable. However, cryptocurrency prices are subject to significant fluctuations, which means that it can be a good investment and a decent way to generate passive income.
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But miners are still trying to resort to various tricks to reduce mining costs. For example, they can look for cheaper electricity or use excess heat from mining equipment to heat their homes.
1.1 How to mine ethereum faster?
To mine ethereum faster, you need to increase the hash rate. The easiest way to increase hashrate is to purchase additional mining gear. As mentioned above, not all mining programs are the same. Some of them, like Phoenix Miner, are faster and more efficient. But there are also ASICs (Application Specific Integrated Circuits) created for Ethash mining, which are much more efficient for ethereum mining than a GPU. But they are costly and could prove unnecessary after the planned switch to a proof of stake algorithm. Having said that, buying them is quite risky.
1.2 How to sell mined ethereums?
Miners at times want to sell their hard-earned ethereum. It is not difficult to do. You can trade ethereum for other cryptocurrencies on most cryptocurrency exchanges. All you have to do is find one with the desired cryptocurrency pairs, create an account, deposit your ETH, and trade it.
To sell ETH for fiat currency, you need to find an exchange that is compatible with the fiat currency pair you want, such as Coinbase, Kraken, or Stormgain. After doing this, you can exchange your ethereum for fiat currency and withdraw it if you wish.
Another way to do this is to use an online trading service or to sell it directly to another person. Either way, be aware of exchange and withdrawal fees and the risk of fraud if you are selling directly.
FAQs
1. What are the best Ethereum mining pools?
There are 2 factors to consider when choosing an Ethereum mining pool: the location of the pool and its market share. The top priority would be location: the closer the pool, the better. This is because sometimes due to network latency, mined shares can be “stale” when new blocks are created, making older blocks obsolete.
It is also important to know that the Chinese servers are behind the Great Firewall of China, which means that connections can be cut periodically. This means that choosing a server with low latency and a close geographic location would give the best performance.
The second factor is the market share of the pool. The higher the market share, the higher the premiums. This is because the blocks are continually being removed from the pool and therefore can pay at a constant rate. This reduces the impact of the randomness of block creation.
2. It is possible to mine Ethereum on your own in 2020?
It is currently not possible to mine Ethereum on its own in 2020. It would take 67 years to mine a block by itself (assuming 30 MHash / s and a current total hash rate of 181 THash / s). That would mean it would likely take a lifetime before the solo miner finds a block with a single GPU.
3. How long can Ethereum be mined?
With the changes coming to Ethereum 2.0, Ethereum mining will be phased out. Mining will be phased out in Phase 3 of the ETH2 roadmap, which is expected to arrive no earlier than 2022. At this point, there will no longer be any rewards for mining Ethereum as the network will be at the test of the stakes.
4. What is the exploitation of the Ethereum cloud?
In 2020, Ethereum Cloud mining contracts are non-profitable. Indeed, mining has become more competitive with lower margins, forcing miners to cut costs. Cloud mining is hit the hardest due to the large overhead costs like advertising costs and legal fees. In our latest research, we found that cloud mining providers were charging 184% for the same hash rate as in- house solutions.
5. What is Ethereum ProgPoW and how is mining-affected by it?
ProgPow is a proposed extension of the Ethereum mining algorithm, designed to withstand the centralization of miners via ASICs (specialized mining equipment). The ProgPoW update is intended to help graphics cards become more competitive by using more RAM and GPU-exclusive features.
Overall, this will help Ethereum mining to be more accessible and feasible with standard commercial hardware. ProgPoW is currently in the “audit” phase and, if approved, will be included in the next hard fork of Ethereum.
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Conclusion
Ethereum is one of the easiest cryptocurrencies to mine, using inactive IT assets to earn Ethereum (ETH) daily income. This is especially true if you have a high-end computer, as they usually have the hardware to mine Ethereum.
Read Also
What is Ethereum?
What is Cryptocurrency?
How to Mine Bitcoin?