Mining Ethereum Guide 2018, Is It Possible to Get Rich by Mining?

Te a nutshell, mining Ethereum is good and profitable when done te the right way!

A Simplified Mining Ethereum Guide for Beginners

Te cryptocurrency, mining refers to the use of laptop hardware and special software applications to find blocks on a given blockchain or toneelpodium.

Ethereum mining: what is it?

To waterput it simply, Ethereum mining refers to the computational process of finding ether. Ether is required ter the implementation of ‘smart contracts’ that are useful te verifying, approving and securing transactions of various applications that run on the Ethereum blockchain.

To engage ter Ethereum mining, you need the following:

With the above te place, you can become a miner and get rewarded with ether every time you succesnummer a hash. Let us look at the various ways of mining Ethereum.

Ways of mining Ethereum myself

There are two ways of mining Ethereum: GPU Mining and Cloud Mining.

GPU Mining

What does GPU mining entail?

For you to engage ter Ethereum mining, you need to have specialized hardware commonly called GPU, brief for (graphics processing unit)

GPUs are preferred for Ethereum mining because they have more hashing power than the CPUs that were originally designed to do the mining. So, mining Ethereum requires you to have the best GPU and a equipment.

With this software and hardware ter place, you can go ahead and attempt solo mining.

Why GPU mining?

GPU Mining is the most effective and profitable method of mining since it is 200 times swifter than any other existing mining method.

However, it needs a loterijlot of tens unit to run the hardware and software. It also requires high costs of maintenance when it comes to the hardware.

How to mine ether with GPU

  • Firstly, you need to have the right hardware. Any rekentuig with a graphics card (or numerous graphics cards), of four gigabytes (or more) of movie RAM, will work.
  • Then download a miner. It is recommended that wij join a pool since it enables us to get more transactions going through our rekentuig. An excellent example of a mining pool is Claymores Miner.
  • Next, create an Ethereum wallet ter which Ethereum payouts will be paid.
  • Secure the wallet and save the credentials on different devices.
  • Get an Ethereum address and listig it up with your miner (spil vanaf the guidelines provided). -the address makes it possible to receive ether during from different transactions.
  • Ultimately, choose the mining pool and listig it to your Ethereum address.

After all the configurations are made, all you need to do is go to your miner and initiate the mining process spil vanaf the provided instructions.

The miner will execute a few directions and start the mining process. To check your miner’s progress, just go to your miner’s webstek, provide your ether address, and track your solo Ethereum mining process.

When it comes to mining ethereum, there is one common problem that you might face. While mining, your GPU equipment is likely to remain under total blast while it contributes the computational power. Ter such a screenplay, the ventilatoren ter the GPU equipment spin at their highest possible speed. This onveranderlijk high-speed movement of the ventilatoren usually causes them to wear out quickly. Hence, one would need to substitute parts permanently overheen time.

Does Ethereum mining harm GPU?

Up pui, the reaction is yes.

It makes a loterijlot of sense to mine ether using graphics cards spil a result of the profitability loved from the process. However, most of the ether miners simply set up their equipments and leave their hardware hushing away.

It is good to note that despite the hardware not needing frequent check-ups, it remains under a lotsbestemming of stress during the Ethereum mining process.

Since they are permanently under utter flow, their ventilatoren typically spin at their highest number of revolutions vanaf minute.

Keeping GPU ventilatoren permanently running at their highest speeds will wear them quickly hence creating the need for onveranderlijk replacements.

Our advice

– The wearing out of ventilatoren usually occurs when they are overclocked. However, you voorwaarde make sure that your GPU temperature does not go greater than 60 degrees centigrade at 25% fan speed. This way, your GPU equipment would work for longer. Te case your GPU equipment dies too soon, you will certainly not have mined just enough cryptocurrency so spil to voorkant its costs. Hence, you vereiste overclock it ter a way so that it would result te a lesser energy consumption and could at least work for years.

Cloud Mining

If you cannot lightly access the best hardware, cloud mining is a better option that I recommend for Ethereum mining. To waterput it differently, cloud mining is what I would go for if I want to invest ter Ethereum mining without having to go through the hassle of managing my hardware and software.

Cloud mining permits you to buy shares of mining powers (hash powers) of a hardware placed ter a remote gegevens center. You can then earn reserve revenue with little risks.

Cloud mining comes with the advantages of:

  • -low costs of entry,
  • -minimal risks, spil well spil
  • -minimal expenses.

There are a number of cloud mining providers including HashFlare, Genesis Mining, and X-Mining.

What about Mining Pools?

Use of pools is one of the most effective ways of mining Ethereum. Mining pools come with the advantage of frequent payouts ter addition to getting paid when you solve an ether block.

  • To join a mining pool, you need to have the necessary hardware and software.
  • The software points the hardware towards your selected mining pool.

How do you choose the best pool? Find a pool that:

  • charges low fees,
  • has reviews that suggest its reliable
  • And most importantly, whose servers are located near you.

There are a multiplicity of mining pools te the market including Ethermine, dwardpool, bw, coinotron, among many others.

What factors should you consider before choosing a mining pool or cloud mining webpagina?

To get the best out of a mining pool, consider the following factors:

On the other mitt, if you choose Cloud Mining, be careful on the websites you project to rely on before engaging any of them.

What should you do? Avoid those Cloud mining sites that promise an overnight fortune which is always too good to be true.

How mining Ethereum works

Te a blockchain, there are different blocks of transactions. For every block of the transaction, miners manipulate computers to come up with answers to a puzzle, until one of them eventually emerges the winner. They do this repeatedly and quickly (a matter of seconds).

Ter simpler terms:

  • Miners run the block’s unique header metadata, using a hash function.
  • Once a miner finds a hash that matches the puzzle, ether is awarded.
  • The block is then broadcasted across the network for validation by each knot and addition to their copies of the ledger.

Assuming Miner X finds the hash, Miner Y will zekering working on the current block and budge to the next block. It is difficult for any miner to cheat ter this process spil validation is done across the network. Coming up with the keurig puzzle is what is referred to spil ‘Proof of Work’ (PoW), and is awarded ether.

Miners randomly solve the puzzles thereby earning ether. Their profitability largely depends on the computing power faithful to the mining exercise and luck.

Can mining Ethereum be profitable?

A very good question if you ask mij.

The profitability of Ethereum mining majorly depends on hardware and electro-stimulation.

With the right hardware and tens unit, mining Ethereum is a sure way of building a profitable income.

What could determine profitability? Consider the following factors:

  • The hash rate
  • the cost of electric current
  • the cost of the hardware (regarding initial purchase and maintenance),

There are different methods of calculating profitability, depending on the software.

The major factors to consider while calculating profitability include,

  • ether hash rate (MH/s),
  • power consumption (te Watts),
  • cost vanaf KW/h, network hash rate (GH/s),
  • average block time (te sec),
  • And the price of one ether.

Is mining Ethereum safe?

Simply waterput, mining Ethereum is a safe task. There is a safety assurance spil long spil the right procedures are observed while mining Ethereum.

Most governments treat Ethereum, among other cryptocurrencies spil property, any transactions on such virtual currencies are therefore taxed spil property.

Therefore, general tax principles that apply to property, identically apply to transactions made via Ethereum.

To avoid being scammed, it is advisable that you be keen on ‘too good to be true’ Ethereum mining deals, especially those with suspicious cloud mining sites.

Is mining Ethereum legal?

Ethereum mining is 100% legal and largely depends on your location and what you want to do with the ether. Many governments are still learning the ropes of the risks and prizes of various cryptocurrencies including Ethereum. However, it always advisable to know what the law says ter your country or state.

To sum things up

Te a nutshell, mining Ethereum is good and profitable when done ter the right way. Spil long spil you have access to good hardware, software, and electro-therapy, you can reap a loterijlot from Ethereum mining.

I hope this pagina has given you the basics of Ethereum mining. For more information on Ethereum, check out our other pages. Gratitude!

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