The ETH is the fastest growing & second most dominant digital currency following the most used digital currency, the Bitcoin. As we know mining is the best and easiest way to accumulate any blockchain based digital currency, the ETH can be easily accumulated by mining. The Ethereum mining will be profitable only upon proper planning and creating your own strategy. The Ethereum is mined using PC by the small miners and the hardcore miners build their own mining rig to mine Ethereum. If you’re a beginner to Ethereum mining, this tutorial will help you to start profitable Ethereum mining using your PC and later build your own mining rig. In the meantime, you can also check out how to earn up to $200 by installing research software on your PC.
What is Ethereum mining:
- In simple, the Ethereum mining is the process of verifying/validating the Ethereum transactions.
- When the Ethereum transaction is made, the miners continuously work to validate the transactions by solving the mathematical calculations.
- The miners will be rewarded with ETH for validating the transactions. The Ethereum mining process is somewhat technical. But this would have helped you to understand what is Ethereum mining in simple words.
- The Ethereum mining is done using the PC or mining Rig. As the mining process gets easier, the algorithm gets harder eventually requiring more computational power(high-end rig) and electric power(watts).
How ETH is mined:
- The Ethereum mining is done using the regular high-end PCs by the regular miners and the professional miners build their own rig specially made for cryptocurrency mining purpose.
- The regular PC used for mining will have a high-end Graphics card/video card. Without a graphics card, it is impossible to mine ETH because GPU performance is several times higher than the CPU.
- The professional Ethereum miners build their own rig with series of graphics cards or buy mining hardware to mine Ethereum. These devices will have higher hashing rate compared to the regular PCs with single CPU and GPU.
The process of Ethereum mining:
- The mining process requires higher hashing power to mine the cryptocurrencies especially in the case of Bitcoin and Ethereum.
- Using a single PC or mining Rig it is impossible to mine Ethereum because other miners with better hardware might complete the process before you do as a single miner.
- So to prevent this, the group of miners organizes mining pool to attract miners to work together.
- The mining pool is the place where millions of miners work together to mine Ethereum. The ETH mined will be shared by the miners depending on the performance of their devices.
- As the result of working together, multiple devices generate more hashing power. So, ETH is mined very easily and everyone gets profit for the involvement in mining.
Requirements for Ethereum mining for beginners:
- To mine ETH, you must have a PC with Nvidia (GTX 900 series or better) or AMD graphics card(s). The driver must be up to date for maximum performance. The AMD outperforms the Nvidia Graphics cards when it comes to Cryptocurrency mining.
- The PC should have the 64-bit operating system installed to mine Ethereum. The 64-bit operating system works better assigning the memory.
- You must have an Ethereum address to receive the earnings. If you don’t have Ethereum wallet, learn how to create Ethereum wallet address.
- You must join a mining pool and download the Ethereum mining software to your computer to start mining Ethereum.
Ethereum Mining Tutorial for beginners:
- Before starting, check the hashing power, TDP of your Graphics card here to see if the mining can generate profit for using your hardware.
- If you’re going to use the PC at home, you must also calculate power cost. If the power cost is higher than the cost of ETH mined, then there will be a loss.
- If you’re using the PC in the office or somewhere you don’t pay the electricity bill, the mining will be profitable no matter what hardware you use.
- Sometimes, the Ethereum value might decrease from the time when you’ve mined Ethereum. In such cases, you must wait till the ETH value increase to sell it for the profitable price.
- As the time passes, you can buy new graphics cards to make a higher profit. The investment can be retained within a maximum period of three months.
How to start mining Ethereum:
- The download contains more than one version. Choose the latest version and extract the file.
- Before extracting the file it is recommended to turn off the Antivirus program because it might block few files in the folder.
- Go to the folder where you’ve extracted the files and click the file “start_only_eth”. In the new versions, it might be given a different name. Right-click the file and click edit.
- The file will look default as shown above. We must edit the file to add our information before starting the mining process. The first thing we have to edit is the server. Choose the server near to you. The server information is given below.
North America (East): us1.ethermine.org:4444 or us1.ethermine.org:14444
North America (West): us2.ethermine.org:4444 or us2.ethermine.org:14444
Europe (France): eu1.ethermine.org:4444 or eu1.ethermine.org:14444
Europe (Germany): eu2.ethermine.org:4444 or eu2.ethermine.org:14444
Asia: asia1.ethermine.org:4444 or asia1.ethermine.org:14444
- The default server selected will be the EU server. If you’re from Asia, copy and paste the Asia server info given above in the text file as shown below. And same applies to the US servers.
- Replace the server string given in the red box. Similarly, enter you Ethereum address and give a name to your machine as shown in second and third red box given above.
- Now save the file. You can add the folder to the exclusion list in the windows defender to prevent the file automatically deleted by the Windows.
- Now double click the file which you’ve configured to start mining Ethereum. The command prompt will appear with the information regarding the mining process. It will refresh automatically with the updates in the mining process.
- To monitor your earnings, go to Ethermine and enter your Ethereum address and click check status.
- Your mining stats will be displayed as shown above. The balance will be paid as per their TOS.
- If you feel editing the file is harder and worry about making mistakes, you can directly configure the file on Nanopool.
- Click Quick start. A popup will appear as shown in the picture given above. You can also download the Claymore Dualminer directly from here.
- To config, the start file click “generate your config”.
- This will generate the file we have edited above automatically based on the selection. So that we don’t have to edit it again.
- Choose the operating system, GPU vendor. Name your rig, select the stratum server location, entry the Ethereum address. Select the second algorithm as none if you’re going to mine only Ethereum.
- After completing the configuration, click generate. The file(s) will be downloaded to the computer. Copy the files and paste it Claymore miner folder extracted previously.
- If you follow this alternate steps, you don’t have to edit the file(start_only_eth) manually.
How to earn more by mining Ethereum:
- The Electric Power is the main concern when it comes to mining cryptocurrencies. If you can run PC using free power such as office, institutions, there should be no worries about the electricity bill.
- Use the best AMD Graphics card available in the market to earn more profit. Make sure you compare the ratio of watts and Hash rate of different graphics cards to buy the high-performance low power consuming graphics cards.
- The heat is the enemy of the electronic devices. Create more space and install additional ventilation in the CPU cabinet to prevent heat loss.
- Once you earn enough, invest in mining hardware with higher hashing rate. The investment can be retained within months.
- Save the Ethereum and sell it which the rate goes high. Do not sell it immediately. The Ethereum rate is said to increase in the future.