How to mine ethereum step by step?
If you’re interested in mining Ethereum, you’re in the right place, In this post I will explain to you any thing you need to know about mining Ethereum.
So what is mining and where the Ether come from? Simply mining ether or any and cryptocurrency is using your computer or other mining hardware in solving math problems to make sure no one makes transactions on the ethereum network or any other crypto network that aren’t true. If your computer manages to solve the problem you get rewarded, Everyone has an opportunity to help solve these problems and claim rewards.
Short Ethereum mining explanation
The Ethereum network has its own blockchain. All transactions that are made using Ethereum need to get approved by the miners. That’s why it takes a while before the Ether you send someone reaches them. The transaction has to be verified and put inside the Ethereum blockchain. This verification process is called proof of work, It is your job as a miner to make sure no one cheats.
Some ways to mine Ethereum
To start mining Ethereum they are ways you can mine.
- Pool mining (Recommended)
- Mining alone (Not recommended)
- Using Cloud mining services (Not Recommended)
Ethereum mining in a pool is the easiest and fastest way to get started. You work together with other people. All of the people that are mining within a single pool agree that if one of them finds the secret number, they’ll share rewards with everyone. How often you find blocks and share rewards depends on the pool size. However, not all pools are the same. These are the things that you should consider before joining a pool.
- Pool size
- Minimum Payout
- Pool fee
Why is cryptocurrency mining pool size important? Well, because if the number of people that mine increases, the chances of getting rewards also increase. However, as more people join the pool, the rewards are getting shared between more people.
You should try out different pools before you find the one that best works for your computer. Joining big cryptocurrency mining pools is usually a safer choice. You might be getting fewer rewards per 1 block, but at least you won’t go a day or a week without getting a reward at all.
You should look at the minimum payout as well. A minimum payout is the smallest amount of Ether you will need to mine before it gets sent to your wallet. If the minimum payout is 1 ETH, you will need to stay in the same pool for a long time before getting your cryptocurrency.
Pools with large minimum payouts are not beneficial to you. You should try to find pools with a small minimum payout. You want to be getting paid as frequently as possible, without having to commit your time to a single mining pool for too long. Having the flexibility to switch between different cryptocurrency mining pools is essential!
Every pool has a fee associated with it. You have to pay a small amount so that you could continue using the pool. This amount gets paid automatically, so you don’t need to worry about it. The payments are percentage based and are calculated in the cryptocurrency you’re mining. The amount you have to pay usually differs from 1% to 3%. You should look for a pool with around 1% fee as these are far more reliable than 0% fee pools.
Running a mining pool is a full-time job and computing and data center space isn’t cheap. 0% fee pools are usually supported by donations, they might be less stable than pools with a fee to cover the costs. If the pool fee is higher than 3%, you should consider looking for another pool.
Mining alone might seem like a great idea. You don’t have to share any rewards. You just turn your computer on and let the money roll in, right? Wrong. When you’re doing Ethereum mining alone, you are competing with other people and will only get rewards if you solve the math puzzle first. Since you’re competing with a very large network of people and companies that have a lot of resources, you would need to get very lucky very often. Mining alone is only profitable if you have a lot of resources at your disposal, we’re talking 100+ graphics cards. Having this much computing power has its disadvantages. You would need to worry about:
- Heating problems. If your equipment gets too hot, it could break. Once your equipment breaks, it’s usually not worth it to repair it. You would need to spend more money to replace your mining rig and fix the heating issues.
- Ventilation. To keep everything working correctly, you would need to have a lot of fans moving air very quickly. As I’ve mentioned above, heating is a real problem.
- Noise. All the fans that are spinning and cooling down your equipment would make a lot of noise. It would get very loud, very fast. Usually, you need something like a garage/warehouse or a remote location to keep everything.
- Electricity costs. Having so much equipment use power at the same time would use up a lot of electricity. For example, with only ten graphics cards you would spend around 3-4 dollars on electricity per day. Imagine ramping up to 100 cards to stay competitive. The cost to power them all would add up to 900-1200 dollars per month in electricity costs alone.
- Space. Having a place to store 100+ Ethereum mining rigs isn’t something that’s available to most people.
When you are using cloud mining, you are paying someone else to mine for you. The way this works is that you’re renting mining time from other people and in return, they give you all the rewards they can mine. Cryptocurrency cloud mining might seem a bit dumb.
- Why would someone use their equipment to mine for you when they can mine for themselves?
- Why would you pay someone else to mine for you when you can invest the money in equipment and mine yourself
- Why don’t you spend the money on buying the cryptocurrency you want instead of paying someone to mine it?
And all these are valid questions. It’s not better or worse than doing all the work yourself. Let’s analyze the benefits and hazards of Ethereum cloud mining.
- You are not responsible for any equipment that breaks. Once you pay someone to mine for you, you’re buying a certain amount of work that has to be done, And all of the repair costs are not your responsibility. However, be careful, some companies will make you pay for electricity and repair costs. Read the contracts carefully and avoid this!
- You don’t have to keep a significant amount of noisy equipment in your home or warehouse.
- You pay the money up-front if Ethereum price drops, you won’t have a chance to get your money back, And you’re stuck with the mining work you bought.
- You can’t change the mining software and hardware that the cloud mining provider uses.
Cloud mining is a safe way for mining providers to guarantee themselves profit for the equipment they’ve purchased. Cryptocurrency price doesn’t affect them because you pay them in advance. So, when you buy cloud mining services, you don’t have to deal with any troubles that come with making your ethereum mining rig. In an ideal situation, cloud mining is less profitable than mining yourself. Instead of using cloud mining services you can also just buy ethereum.
How to pool mine Ethereum: Tutorial
So your computer is going to be used to mine Ethereum, Let us go over the tools your computer needs to be an efficient miner. Here’s everything you will need to be a successful Ethereum miner:
- An Ethereum wallet to hold all of your newly found currency;
- GPU drivers;
- A mining application (nicehash);
- A mining pool address if you’re going to mine within a mining pool;
- A graphics card (GPU) with at least 4gb of RAM;
- A compatible operating system (Windows 7 or 10 64bit ).
How to start mining with NiceHash Miner
hey guys today we are going to show you how to start mining with nicehash miner
- first you need an account and if you don’t have one you have to register click get started and you have to fill out this form and when you log in for the first time this is how your dashboard will look like.
- you have to navigate through the mining section and here you have to click download miner
- now we assume you’re using PC or remaining Rick within AMD or Nvidia graphics cards so just click nicehash miner click download and you will be transferred to our github page now you have two options you can either download the installer version or the zip package one we recommend using an installer version because it gives you a very convenient way of updating your nice miner once the new version is up so I’m going to choose last version then you can start the installation process click I agree and follow the installation steps.
- now nicehash miner will download all the necessary files or proper operation and we will continue when all the files are downloaded.
- we need a Ethereum so you have to navigate back to your mining dashboard and here we can see that we have to use this mining address with a copy and if you accidentally close this pop-up you can always go here where your mining address is located so just copy this address and paste it in this Bitcoin address field.
- you can also name your worker any name I will just name it a rig and now I can click start all in the beginning all your devices have to be benchmark this can take a few minutes depending on how many GPUs or CPUs you are using.
- now go back to your rig manager so rig manager is a section where everything regarding your mining operation will be shown I can already see my rig has appeared in the my rigs a list here I can see the renamed current status like I said, it’s benchmarking currently I can see the highest temperature a current rig profitability and I also have these buttons where I can stop or start the the miner remotely so I have this remote control functionalities.
additional functions that that you can do but mainly this is an area where you will be able to control everything regarding your mining rigs if I click on this on this tile I get all the details about my devices so I can turn off or on specific devices and here I can also enable CPU mining so if I go back to read manager.
I see the list of my rigs I currently have only one you can have as many weeks as you want and everything is free so you don’t have to pay anything to add multiple rigs this will this section will turn green once everything is completed and the devices are mining here you can see the current profitability for all your rigs combined your unpaid mining balance once you reach 1,000 satoshi you will get payout and payouts happen every four hours.
we can already see that my rig is mining so I see that everything is working correctly again I can check all the details all the details here I can also navigate to history and stats section where all my where all my data about my mining process will be available if I go back to back to my desktop I can now see this black windows this is completely normal this means that miners are doing our hashing and now you are sending all your results to nicehash servers basically selling your computing power and you’re getting paid in Ether.
How Long Does It Take To Mine 1 ethereum?
As an Ethereum miner or enthusiast, you may have wondered, how long does it take to mine 1 Ethereum? Successful mining on the Ethereum network is valued at 3 Ether, in addition to all transaction fees and code-processing fees. However, on average, it takes only 12 seconds to mine Ethereum, whereas it takes about 10 minutes to mine a block of Bitcoin transactions.
Mining is a process of verifying a block of transactions or creating new blocks of cryptocurrency. Miners spend their time and computing power to solve mathematical puzzles that ultimately verify Ethereum transactions. The Ethereum network operates on a Proof-of-Work mechanism that the miners are rewarded for every new token they mine.
Miners must solve hash functions and start with a list of desired hashes based on the difficulty. The primary motive of any miner is to make money; they receive rewards for each block and any transaction fees paid by the users.
Let’s have a look at ethereum mining in the past vs. the present and move on to talk about the speed of mining and more.