Ethereum (ETH) is the second most valuable virtual currency in the market right after Bitcoin (BTC). At the moment of writing, Ethereum has a market capitalization of $41 billion dollars and each Ether can be bought for $410 dollars. None of this would be possible if not for ETH mining; and the individuals and pools that do this work.
In order to process transactions and verify that everything works properly in the network, miners need to provide their power to the network. After it, miners receive a compensation in ETH for their work. In this way it is possible to keep the network secure and smoothly running.
And indeed, when the price of most of the virtual currencies skyrocketed at the end of 2017, investors realized that it was very profitable to start mining virtual currencies. But it may not be so easy for beginners to start. In this article we will tell you how to start mining this famous virtual currency.
How to mine Ethereum?
In order to start mining Ethereum it will be necessary to have a special computer hardware that will be dedicated full time to mine ETH. It is possible to use GPU and start processing transactions. It is not so easy to set up one of these devices, and is not so straightforward to decide which miner to use – that is, which GPU to buy.
The best thing to do is to set up a mining rig, that will give you the best hash rate at the lowest possible price. Buying a mining rig means that you will have multiple GPUs working together to extract as many coins as possible.
If you want to know the profits you will have, you can enter the hash rate and the price you pay for electricity. The calculator will later show you the amount of Ether you will receive per hour/day/month/year.
Once you have the mining rig working, you will have to install a mining software and a client that will allow you to connect to the Ethereum network.
One of the most important programs is known as geth, that runs an Ethereum node that is written using the programming language known as Go. If everything is installed properly, you will be connected to the network and you will have an interface for deploying smart contracts and sending transactions.
Now it is time to install the Ethminer. This is the mining software that will allow you to start mining Ether in just a very short period of time. If you have a client and the node you downloaded is part of the network, you just need to follow the instructions to start working with Ethminer.
Well, not yet. If you have already started, you will notice that you may not be earning ETH. Indeed, solo mining is a very difficult task that can be achieved once you have an extraordinary amount of hash power.
If you want to start earning some Ether, you will have to join a mining pool. A mining pool is a platform for miners that gathers the power of several miners to solve the cryptographic puzzles faster. If the pool finds an ETH, the prize will be shared with the miners.
In order to start mining Ether, you will need a mining rig, a software to run the nodes, the Ethminer, and join a mining pool. If you have already done that you can consider yourself a cryptocurrency miner!
If you have moved past the beginner’s stage and want to learn more about ETH (or other coin) mining, you can read our more comprehensive guide here.