If you are aware of Bitcoin Mining and if you find it interesting, then you should try your hand at Ethereum Mining and make it a side income. Ethereum mining is basically similar to bitcoin mining as both use PoW that miners undertake to write transactions to a new block and add it to the blockchain.
So, if you want to mine Ether and start your Ethereum project in less than 20 minutes, do read this article as we have every detail you need that cover the topic.
There is this Cryptocurrency Craze Which Has Prompted Ether Mining
Cryptocurrencies are slowly and steadily changing the way financial systems and online transactions work. Cryptocurrency space is bubbling with activities with Bitcoin hitting its $18 k mark a year ago, hundreds of ISOs conducted in past one year, and a total of $316 billion in the market currently. In fact, the cryptocurrency market cap has potentially grown from $ 50 b to $150 bin over a year. So, all these lead to only one presumption –Cryptocurrencies and its bubble are not going anywhere, anytime soon.
And according to us, the best way to use the space and enjoy some quick monetary gain is by investing in Bitcoins and Ethereum. One can invest in Ethereum in an effortless way on AWS. However, if you want to learn how and what coins are available for purchasing and mining, you can check this amazing post on cryptocurrencies.
If you aren’t familiar with Ethereum, the next few headings will help you out.
Ethereum and Everything about It…
Ethereum is an open source software platform that is based on blockchain technology. Through Ethereum a developer can build and deploy different types of decentralized applications. Its ability to support several types of decentralized applications makes it more favorable and advantageous over Bitcoin.
Ethereum has seen a massive growth in 2017, around 230% from the previous year, which has made it second largest market cap after Bitcoin. So, investing in the second best will only give you more leverage in cryptocurrencies.
However, the only downside we are facing now is the difficulty level in Ethereum mining as the demand for Ethereum has increased due to the increasing growth in pricing.
Now that you know what exactly you will be mining, let’s talk more about crypto mining.
What is Cryptomining?
In simple terms, cryptocurrency mining is like winning lotteries by solving complex math problems. Here miners spend time and energy in decoding or solving the complex math problems, provide the answer to the issuers, who verify it, confirm it and reward the miners with a block of Ether. When the mining difficulty increases, it becomes harder to solve the problems.
This basically means fewer rewards and more time to comprehend the game.
As more and more people are joining the Ethereum network, it has become harder to solve the problem, leading to an increase in mining difficulty. Although the current cost to mining Ethereum is high and the returns are quite low, and moreover, the equipment are pretty expensive, everything will become worthwhile in future as the price continues to grow rapidly.
However, we always recommend you to purchase coins before you decide to become an Ethereum miner because mining coins is a space that is filled with uncertainty. So, you may never understand what could potentially come out of your time and cash investment.
How to Mine Ethereum on Windows
The good news is that getting started with Ethereum Mining is now very easy. You don’t have to download complete Ethereum Blockchain, neither do you have to manage heavy command miners with manual instructions. Go through these steps, and we are pretty sure, you will be able to make a real deal.
Primary System Requirements for Mining Ethereum
- Windows 10 PC with 64-bit installation
- Motherboard with enough PCI – E slots to support several cards
- Powered PCI-e riser for each additional GPU, if you are using more than one GPU
- Enough overall wattage to support total power draw. Give a buffer of 10 – 15% watts more
- A good site that will help you calculate your power consumption and identify how many pins PCI-E power connections you would totally require
- Extra cables to build multiple rigs
- Make sure your motherboard, CPU and RAM are compatible
- A standard keyboard, mouse and You can also manage your rig remotely; for that, you’ll need a headless HDMI dummy plug for remote access
Step 1: You Download Geth
Your foremost step would be downloading Geth, a computer software program that acts as an intermediator between the Ethereum Network computers and your computer and hardware. So, anytime another computer mines a block, Geth will retrieve the information and pass it on to your CPU or GPU for mining.
Step 2: Install and Unzip the Geth File
You have to move the Geth file on your hard drive by unzipping or unpacking it. It will be moved to your C drive and after that, you can copy and paste the file to your desired location in the pc.
Step 3: Run the Program
Now you have to run the program you just downloaded. Search the program in the Windows with the keyword ‘CMD’ and click on it and run Command Prompt.
Step 4: Create a Geth Account
Once your command prompt changes in C: / drive, you have to create an account in Geth. For it, you need to type the words ‘Geth account new’ and then press enter. Next, you will be asked to create a password. Make sure you remember your password for if you lose your Ether account password you lose everything in your Ether wallet that is held by a private key.
Once you have created your password and logged-in your account, you are almost there to start mining.
Step 5: Connect to Ethereum
Now all you have to do is start your Ethereum and connect it with the rest of the Ethereum network. Ensure that you allow access for your firewall to permit the synchronization with the rest of the Ethereum network.
To start mining, you would need an Ethereum wallet and join a mining pool where rest of the miners participate. You can generate a wallet by simply visiting https://www.myetherwallet.com and following the steps. By the end of the process, you will have your own wallet address.
There are several mining pools, you can feel free to use any of it. However, Dwarfpool is considered the best for mining ethers.
Here are Some Important Questions Answered about Ethereum Mining
- About Electricity, if done properly, you can earn more money by selling Earned Ethereum Tokens or Ether or ETH than what you will spend on electricity. You can calculate the profitability element of mining Ethereum before you take a decision.
- GPUs (Graphic Cards) are much faster than PC CPU, so much so that an entry-level GPU can work 200 times faster than a CPU for mining Ether. So, CPU is not profitable, neither worthwhile.
- Although Solo-mining is better and you get to earn the entire profit, pool-mining allows you to earn ETH in a predictable and secure Your odds of generating ETH on your own are quite low unless you have that kind of money to invest on a mining hardware.
- To get started with Ethereum mining, all you require is a suitable GPU with atleast 3 GB RAM and few painless tweaks on your Windows.
- Although Windows is the most supporting OS for Ether mining, there are various distros of Linux which you can use for mining. However, Windows (64 bits) is easiest to configure or tweak and faster to get up and run. Mac doesn’t support Ethereum Mining.
- You can use any ETH wallet address for mining; however, double check with the site if mining directly to a web-deposit address as some exchanges do not allow very small deposits and some do not allow mining at all.
- It is better to build a desktop for mining Ethereum as there could be potential impacts on your laptop, considering the amount of heat generated from mining. However, there are Gaming laptops that have high-end cards which you can consider using. ASICs are profitable for mining coins, such as Bitcoins, Litecoin and Dash. However, currently, there are no ASICs for Ethereum. But, there is nothing to worry about. Like how bitcoins are not profitable for home PCs, Ethereum and few other altcoins can still be mined in the home built Mining Rigs.
As Ethereum is easily traded for Bitcoins, mining Ethereum is a cost-effective way to build a position in Bitcoins. And mining can be a great way to fund for a new high-end GPU. ETH can be sold for several major exchanges and is a great way to fill up your bank account or earn a side income.
There is a bright future for cryptocurrencies; brighter than you think. One coin might worth 100x times in the near future, which will totally justify your mining today.
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