Ethereum is the second most expensive cryptocurrency after bitcoin which is based on different Ethereum blockchain, in this guide we will discuss on how to mine Ethereum using best Ethereum miner or mining pool.
Mining Ethereum is the best way to earn free Ethereum but this is not easy to get mined coin because of increasing competition.
Mining make sure that all the transactions happening on Ethereum networks are valid and legit so who does this mining and how to mine Ethereum and how much you can earn by mining?
I will answer all your queries in this guide but I hope you already got an idea what is Ethereum and Future of Ethereum, if not check our comprehensive guide.
What is Ethereum Mining?
Ethereum is blockchain based decentralized cryptocurrency, which has no central authority to verify their transactions. Hence, this typical job is done by the miner.
While any transaction initiated in the Ethereum blockchain network, it is originated with a mathematical puzzle.
Miner using their high power computer try to solve those puzzles and hard to find out one code which they call hash code.
If anyone found the hash code which matches with block than system automatically ask all another miner who is on active Ethereum blockchain network that I found the right hash code.
If 51% of total miner approve that hash code than that block will be mined and in reward, few Ethereum coin will be given to the miner.
Every successful mined block will be added in the Ethereum blockchain registry which is the same as bank ledger.
This is how Ethereum mining works. This time the competition to mine Ethereum is very high and ultimately chances of winning rewards are getting low.
But substantially the price is going high which somewhere equate the total reward bonus. Hence mining is still profitable if you want to get free money.
But How? Explained later in this guide.
Ethereum block validation time is of around 15 seconds hence after average 15 seconds new block will be available to mine.
Mining is the cause for your transaction to be delayed or received at second end as it will take time to verify in the blockchain.
Now let’s learn about how to mine Ethereum.
How to Mine Ethereum?
Before mining of Ethereum, the most important thing you have to learn is all about hardware and software required to start mining.
Mining of Ethereum is possible through CPU and GPU.
If you are having a basic computer than you can start mining of Ethereum using CPU but the ability to solve hashes using CPU is not much more efficient than GPU.
Hence it is advised to try with GPU only, which has more capacity to mine Ethreum quicker and faster.
Will learn all efficient hardware and software in a later guide.
If you ask about way of mining Ethereum than there are three ways which are listed below.
- Solo Mining
- Pool Mining
- Cloud Mining
Solo Mining of Ethereum
Obviously, this is the best way to get more rewards alone, if you are able to generate that much hash power which is capable of mine Ethereum.
Ethereum mining is possible using CPU and GPU only. It does not support mining through ASICS which is far better than CPU and GPU.
If you will try to mine using CPU will start creating heating problems, because ultimately it is going to use more power to solve hash problems.
The solution is to purchase GPU (Graphical Processing Unit), which cost around 500-2000$ and it has more capacity to mine Ethereum.
Here are few listed, so can purchase a few of them and make them in a single mining rig and try to mine using that which is more efficient and increase the profitability of mining.
Below are the few most listed mining GPU used by different companies.
But the concern is if you as a sole owner planning to mine Ethereum which require more investment for building mining rig which is a combination of multiple GPU.
There are lots and lots of companies outside investing in mining devices which is not easy to compete as a sole owner.
Using 1 or 2 GPU you won’t able to mine or solve those puzzles and this might be more problems as listed below.
- The excessive heating issue with your small computer.
- Need a huge amount of investment for purchasing 100+ Graphical Processing Unit(GPU).
- Need a huge amount of space to set up multiple mining rigs.
- Due to working mining rig can cause more and more noise pollution.
- Higher electricity charges can cause a burden on your pocket.
Above are most highlighted issues to have a solo account with Ethereum mining and if you set around 100+ GPU or multiple mining gigs in your house.
It will cost around 3-4$ per card which is around 30-40$ per day and this is not easy to handle and even you are not sure how much you can make through that.
This all how to solo mine Ethereum but to overcome its drawback now the solution is Mining Pool.
Pool Mining of Ethereum
This is the solution for problems of solo mining, where your reward for making Ethereum mined coin will be shared among all contributors.
Mining pools are the places where multiple miners go to the specific pool and do register yourself and then they can start sharing their mining power of CPU or GPU.
All around the world whoever is registered with such mining pool will contribute their mining power and will increase more capacity to solve mining problems.
Imagine you alone were competing to mine the same block to which other such mining pools were.
So the chances of solving mining problem by being a part the one of mining pool is very high as compare to solo mining.
But make sure below points while chose mining pool.
- Size of Pool
- Minimum withdrawal limit
- Pool Transaction fee
Size of mining pool will define the probability of successful mine as more people will join the chances of mining will be high but make sure profit will also divide among all.
While you planning to withdraw your mined coin, care about transaction fees and minimum withdrawal limit which define how much you should have in a wallet to take out as the payout.
Minimum transaction fee will increase your profit percentage because ultimately you are going to reserve space in disk and paying for electricity.
Hence here is my few suggested Mining Pool.
NanoPool – It is the largest mining pool of around 1,30,000 active miners which charge around 1% as transaction fees and it’s the payout in between 0.05-20 ETH.
Nano Pool supported multiple other mining as well such as Ethereum classic, ZCash, Electroneum etc
NanoPool does not require to register or create an account, simply add your Ethereum wallet address and start mining automatically your account will be created.
The payout from EtherMine will be instant as you reach a threshold amount, which you can set your own in between 0.05 ETH to 10 ETC.
It also offers a low transaction fee of 1%, Ethermine, and Ethpool both are different contributors sharing to the same pool.
That is what the reason this is among the biggest mining pool of Ethereum network.
This is why mining through Pool can be more beneficial than starting as a solo miner for cryptocurrency like Ethereum.
Yes but there are few alternative cryptocurrencies which can be easy to mine using CPU or GPU and might be very useful to make money, check all those best easy to mine Cryptocurrencies.
Cloud Mining of Ethereum
Cloud mining is the mining service you rent for a certain period of time. This is the best choice if you want to learn how much profit you can make by a certain investment.
But if you are planning to fully invest in cloud mining than I would say change your mind because the reason is advance money you are paying to reserve resources.
In Cloud mining, you will pay a specific amount of money to the Cloud miner company, who is owning resources.
So that much hash power will be allocated to you for a specific period of time and you have already paid for them and in case the price drops you won’t ask them to refund money.
Instead, it would be great if you will invest in Ethereum and buy some and reserve a few for future price lead.
- You can test with an investment that how much hash power you would need to mine a specific amount of coin.
- You can release your reserved resources any moment you want based on the plan you have chosen if you found this nonprofitable.
- You Won’t need space or management to maintain hardware resources.
- You have already paid for a certain period of time which does not sure how much you can make by mining.
- If any moment price drops it will be ultimately your loss.
This is an answer on how to mine Ethereum using cloud mining.
Till now, on how to mine Ethereum guide we had focused on ways to start and available platform now in a couple of steps I will quickly tell you how to set up mining process.
How to setup Ethereum mining?
Mining of Ethereum requires the setup of hardware and software. If you are planning to start by cloud mining then the process is simple.
Go to cloud mining providing companies and buy specific hash rates and they will mine for you such as Hash Flare Cloud Mining.
On another way, if planning to join any mining pool than as suggested earlier you should have an Ethereum address and follow steps to the signup mining pool.
In both, the cases your earned mined rewards Ethereum will be credited to your Ethereum Wallet check here top 10 best Cryptocurrency wallet list.
For better security, I would suggest going for Ethereum Paper Wallet.
Now coming to the solo Mining for which setup must be done by you only.
Ethereum Mining Hardware
First and foremost you should decide the hardware let say you are here with one of the GPU devices suggested earlier now you can create a mining rig or can use a solo GPU.
Never tries to mine Ethereum using CPU it won’t give you anything except Electricity bill or maybe bit maintenance cost to your PC.
This time is to install Ethereum software.
Ethereum Mining Software
If you are bit experience with command line then you can start with the Geth which is a command line tool for Ethereum Network.
It directly connects your application or system to connect with the Ethereum blockchain network.
It is the best Ethereum Miner.
For security purpose, different implementation has been introduced such as Gerth which is easy to install with Macos, Windows, Linux.
Eth which is implemented on c++ and Python based on Python language for various security features and available for all the three Mac, Window, Linux Operating system.
Instruction to setup is given here.
If you are finished with a setup that means your node can talk to another node on Ethereum blockchain network.
This time is to install Ethereum mining software called EthMiner for Window.
Instruction for other operating systems to set up mining software is given here. Which will answer on how to mine Ethereum on Windows and Mac.
Now mining software will use your CPU or GPU power to generate hash power and start mining the reward your earn will totally depend on hash power or ultimately mining hardware.
This is all answer on How to Mine Ethereum on Windows or How to mine Ethereum on Mac.
The payout for mined coin will be auto-transferred to specified Ethereum wallet and totally depends on hash power you are about to generate.
More hash power you generate the more coin you get in reward. So let me share your mining experience in the comment and to learn more about Litecoin Mining check our guide.
My View on How to Mine Ethereum
Mining means make money or cryptocurrency for free but this job is not easy after 2017 where cryptocurrency touched the new height of success.
Before 2017, it was not that much competitive to mine Ethereum or any other currency but now the number of coins are getting less day by day and miner are increasing.
If you are planning to start solo mining then drop your decision right now unless you can compete with large companies.
Make sure the hardware capacity else system might get crash and you can create trouble of own.
Ethereum is easy to mine using CPU and GPU and if you want to learn about Bitcoin cash mining using ASIC then can learn from here which you like the most.
This is what I was willing to share with you on how to mine Ethereum on Windows or Mac and to learn more join our Facebook group and keep reading keep sharing.