Ethereum Mining is one of the interesting mining options which are similar to the Bitcoin mining. Ethereum is an open-source distributed computing platform along with an operating system based upon the Bitcoin. Well in easy words, Ethereum mining is a process which involves solving mathematics questions in order to get a reward.
Now, there are lots of things about Ethereum mining that you must know before you start to deal with it. The let alone concept of Bitcoin is sometimes tricky to grasp, and then putting Ethereum on top of it might confuse the aspiring people. So here is the complete guide so you can apprehend the concept for a better perspective to invest in it.
About Ethereum Mining Explanation:
For knowing better about Ethereum mining, it’s crucial to understand about Ethereum and what exactly it is. The network owns its blockchain. Also in Ethereum, the miners need to approve every transaction and that takes time to proceed. These transactions firstly have to verify and after that, they get added to the blockchain of Ethereum. The complete process of verification is also known as proof of work. Being a miner, it’s their job to approve the transaction by solving the questions of mathematics without cheating. So when one question gets solved, it’s a message for other miners that the number is found already. However, after rechecking and agreeing on the answer by other minors, the transaction get verified and finally added to the blockchain. But it’s important to have more than 51% of minors who agreed on the answer. After everything is done, the transaction added to the recorded and verified completely. Also, the minors get their reward for solving the mathematics solutions. Every single set of blockchain consists of transactions where minors need to solve it so they can get the reward in return. The blockchain keeps changing and get replaced by more new transactions with questions.
Three ways to Mine Ethereum:
Well, before starting the mining process and before you start getting the reward. Make sure you are aware of the ways that are used for the mining. So, for mining Ethereum there are basically three options that the minors get.
- Pool Mining
- Mining alone
- Using Cloud Mining
These are the most used ways, however, each option has its own benefit points but there are some basic things that the minors need to understand. For knowing better, here are the description of each method and what you must use if you are going for mining first time.
1. Pool Mining:
Considered as one of the easier ways for Ethereum Mining, Pool Mining is the fastest option that you got here. Well, in this way lots of minors work together with the help of a single pool. However, it’s a rule that if one minor gets success in cracking the number, he or she will share the reward with the entire group. But the chances of getting numbers and rewards are complete up to the size of the group that you have for mining. Well, the pool mining is categories into three different yet basic factors that every minor need to consider these factors are:
- The size of the pool for mining
- What will be the pay-out for the mining?
- Is there any fee for a pool?
These points are important, for example, deciding the size of mining is crucial as the size will decide how much reward you will get. Well, the more people will join the pool, the better the chance of getting a reward will rise. But it also increases the distribution rate of reward among the minors too. However, its recommend to join the pool, especially you are mining for the first time. Unlike the other two options, Pool mining will let you win something even its small reward. Also, you will be earning something every day too.
2. Mining Alone
However, it seems like a tempting offer to mine alone and enjoy the reward completely alone as well. But there are lots of hidden things that you must aware. When you mine alone, you basically are competing with other minors who are doing the same thing at same time. Also, for getting the reward you must solve the solutions before anyone. Not just that, the whole competing network is huge and there are some great companies who use their best resources for mining. Comparing to them, it’s hard to get a chance to win. Also, there are few more disadvantages like:
- It causes heating
- Ventilation issue
- High cost in electricity bill
- Too much noise
- You need space
3. Cloud Mining
Basically, when you opt for clouds mining you are paying for mining that is done by a different person. It’s like renting the mining and in return, you get the reward that they will earn. However, there are lots of errors that you will find in cloud mining, here are some listed points that you need to know:
- First thing first, Mining can be done by anyone. In that case, why someone will do mining for someone else. Also, those who are interested in mining, they can do it for themselves instead of doing it for someone else
- Also investing in paying someone else for doing mining, when you can invest those things for buying better equipment and software
- When it comes paying someone for mining, it’s better to buy Cryptocurrency instead of doing that.
However, there are some positive points that you must know about cloud mining:
- By paying someone for mining on your behalf you are basically fixing an amount of work that needed to be done in a fixed time.
- There will be no more expensive that you have to pay. Even some equipment gets damage that will be not your responsibility. You don’t have to pay for the fixing as well.
- There is no need to keep noisy stuff or equipment in your house.
How to pool mine Ethereum: Tutorial
For mining Ethereum, you need your computer. However, apart from that, there are a few more things that you are going to need along with your computer. This equipment makes you efficient and also raises the chance of getting more reward. Here is the list of things that you are going to need for mining Ethereum:-
1. Create a digital wallet
Well, before you start your work it’s important to create a digital wallet for the reward. It’s the same as the wallet you use in the physical world. However, in the digital world, the wallet will keep your hard earn ether.
2. Installing your graphics card drivers:
After creating a wallet, it’s important to install graphics drivers which make the process of mining profitable for you. Also, make sure your drivers are updated and ready for the further work.
3. Installing Ethereum mining software
For installing the mining software for Ethereum mining, you have to download the new versions of claymore duel miner. Makes sure you are aware of the latest software that you can find online. After download, installing and making sure that the software is ready to work. Click the okay button for completing the process.
4. How to check how much you’ve mined?
Well, no matter which pool you are using they all basically have same principal but the interface may differ. For checking how much you mine till date, there is a basic process that you have to follow. First, you have to visit the site and search your wallet address. After getting the results, you will see the page where all information related to your mining will be available. Once you crossed the basic amount, you will get the reward directly to your wallet.
5. How to calculate profits
If you want to know about how much profit you earned till now, make sure you follow this process:
- The first step, open the miner and see the submission rate of your hardware.
- Once you get your numbers, you have to open mining calculator.
- Paste the number (Mh/s) or write it down, including the power consumption rate and electricity cost. Well, in the end, you will get an average rate and the total amount of ETH that you have earned.
6. Tips and tricks:
Ethereum Mining can be more profitable if you are aware of some basic tips and tricks, these tricks can help you to get the award much faster as compare to others. However, there is no guarantee but it’s good to try then to ignore.
- Lots of minors leave their computer running as it keeps the mining process fast
- Well, if you are going for that then makes sure to change the setting of your computer. So when you leave your computer running it doesn’t only go to sleep mode but it will also stop the whole mining process.
Mining Ethereum is considering as an asset which also brings reward at the end. Well, there is no doubt that blockchain technology, as well as Ethereum network, proved themselves profitable and worth for trading. There are decentralized applications which are showing amazing results and success, not just that the market is also responding well. It’s not hard to believe that there is a bright and great result that the mining will bring in the future.
Krishna Murthy is the senior publisher at Trickyfinance. Krishna Murthy was one of the brilliant students during his college days. He completed his education in MBA (Master of Business Administration), and he is currently managing the all workload for sharing the best banking information over the internet. The main purpose of starting Tricky Finance is to provide all the precious information related to businesses and the banks to his readers.