Today, Ethereum mining is considered the most promising crypto mining industry. Ethereum is the second-largest cryptocurrency in terms of capitalization after bitcoin. But if bitcoin is almost impossible to get at home, then ethereum is possible.
Basic information about Ethereum
|Date of issue
|Course on 10/18/2020
Ether mining – where to start?
You should start mining ether with an understanding of how this process takes place. Ether is mined according to the same principle as mining Dash or mining litecoin , but with minor differences.
The Ethereum miner verifies and confirms the transactions of network users, forming them into a block. For this, computing equipment is used – video cards or asics. The miner who finds the block receives a reward of 2 ETH and a user commission for processing their transactions.
There are three ways to mine Ether:
- Using a mining pool.
- Individual mining.
- Cloud mining.
Pool mining is the most popular crypto mining option. The pool combines the computing power of the participants to achieve a common goal – the formation of a new block and adding it to the blockchain. The profit is distributed among the pool members in proportion to the capacity expended.
Due to the high power, the pool has a better chance of finding a block. The pool allows you to reduce the load on the equipment of an individual participant since it breaks down a complex task (finding the correct block) into small subtasks that are easier for the device to cope with.
An individual miner can only compete with a pool if there is a large-scale farm. To create it requires a serious investment. Although the equipment for crypto mining can not be bought but rented using a cloud mining service. The advantage of the service is that the tenant does not need to physically buy equipment and think about where to install it. In fact, he leases the computing power, and the devices themselves are from the rental company. The main risk of cloud mining is associated with a decrease in the cost of cryptocurrency when the profit from mining does not cover the cost of renting equipment and electricity.
Ethereum Mining Summary
- Step 1 – Install your GPUs and set up your computer.
- Step 2 – Get an Ethereum wallet (Mist or MyEtherWallet)
- Step 3 – Join an Ethereum mining pool.
- Step 4 – Start mining!
What is the best way to mine ether?
At the initial stage of the development of the ethereum mining platform, a computer with a powerful central processor was enough. But over time, miners began to use video cards more and more, as GPUs are better at mining. In 2018, Chinese scientists developed the first ASICs for mining ETH. ASICs are special processors created for solving a specific task, in our case, mining. They work thousands of times more efficiently than video cards, but they also cost significantly more.
Despite the emergence of ASICs, many miners continue to use video cards, since this option for crypto mining remains relevant. But speaking about where to mine ether is better, it must be admitted that mining with ASIC is much more efficient.
Ether mining software
Cryptocurrency mining requires special software. It can be a free program for ether mining, there are enough of them on the network. Let’s dwell on the three most popular programs:
- ETHminer – the program is designed for miners using video cards. Allows you to mine not only ether but also other coins running on the EtHash algorithm (Musicoin, EthereumClassic, Expanse).
- ClaymoreMiner – besides Ethereum, it also works with other coins (dikrid, siacoin).
- PhoenixMiner is a program for the parallel mining of two cryptocurrencies. At the same time, the efficiency and speed of the software do not decrease.
How to mine Ethereum on laptop and computer?
“How to start mining Ethereum on a laptop or PC” is one of the most popular queries in search networks today. Much depends on how relevant the technical characteristics of the computer are. The operating system of the device also matters. Consider mining on hardware running Windows.
How to mine Ethereum – step by step instructions:
- Make sure your computer is running Windows 7 series (64-bit) or higher. RAM – at least 4 GB. The PC must be connected to the Internet with a stable high-speed connection. Better to use a cable.
- Download a special driver for your video card, which will allow you to use it for mining. This can be done on the official website of the card manufacturer.
- Open your e-wallet for ether. For example, on the MyEtherWallet.com website or on the Binance exchange.
- Download one of the mining programs. Keep in mind that most programs are not universal and are not suitable for all crypto coins. For example, if you mine zcash , then you need special software for this.
- Configure the operating system so that the virtual memory size is at least 16,384 megabytes. Disable hibernation. When using an antivirus, add the mining program to the list of allowed programs.
- Select a mining pool (for example Eth.nanopool.org or Weipool.org).
- Configure the mining program according to the requirements of the pool.
If the computer runs on Mac OS, then first you need to:
- Install the mining program from the Minergate website.
- Register an account.
- Configure the software following the developer’s instructions.
If we talk about where it is better to mine Ethereum, on Windows or Mac OS, then the answer is not in favor of Apple computers. The difference between the two systems is quite significant. Mac OS is historically a closed architecture system. Finding the appropriate mining software in this OS is very problematic.
Ethereum cloud mining
Cloud mining is a remote rental of equipment for mining cryptocurrency. This approach greatly simplifies the work of the miner, especially with regard to technical aspects. And the advantages are obvious here:
- Minimum starting investment.
- You don’t need to think about where to place your mining equipment.
- There are no risks associated with equipment breakdown and renewal.
Among the disadvantages, the most significant is only the market factor – a decrease in the value of ETH. If the coin falls in value and the profit does not cover the cost of renting equipment, the user will suffer losses.
There are many services on the Internet that allow you to rent computing power for crypto mining (for example, StormGain). Some offer a free trial.
Mining Ethereum on a GPU
Mining ether on video cards remains in demand. Usually, miners use cards from Nvidia and AMD as the highest-performing ones. It is recommended to choose a card with a minimum memory capacity of 4 GB (DDR 5 standard). Such devices show the best results with minimal energy consumption.
The video card must have a 256-bit bus and at least two coolers for cooling (devices often fail due to overheating). It’s good if the video card has the ability to overclock because the power of the Ethereum network is constantly increasing.
Ethereum mining difficulty
For all its attractiveness, the cryptocurrency market is quite unstable. There are too many factors to consider here. Is it profitable to mine ether today? The answer is more yes than no. But the situation can change quickly. This should always be taken into account. Today Ethereum is the second-largest coin in terms of capitalization, it is easier to mine it with Bitcoin. But the main risk is that the price of the coin may sink. By the way, now the ether costs 3.5 times cheaper than in 2018.
Another complication is that Ether is planning to switch from a Proof-of-Work algorithm to a Proof-of-Stake algorithm. The algorithm excludes the possibility of mining using computing power. The reward will be received by those users who “freeze” a certain amount of tokens on the wallet.
It was planned that Ethereum with a new algorithm of work (Ethereum 2.0) will be launched in early 2020. But the new algorithm has not yet been implemented. The process is constantly postponed. Therefore, how much ether can still be mined using the standard method is unknown (as well as what kind of ether will be mined tomorrow).
Ethereum remains one of the most attractive cryptocurrencies for mining. It is quite expensive, but at the same time, it is easier to mine than bitcoin. But it should be borne in mind that in the near future Ethereum will switch to a new consensus algorithm. After that, it will not work to mine a coin on video cards or ASICs.