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. 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 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 mining rig.
In the meantime, you can also check out how to earn up to $200 just by installing the software.
What is Ethereum Mining:
- In simple, 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.
- 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).
Related article – Litecoin Mining.
How to mine Ethereum:
- The Ethereum mining is done using the regular high-end PCs by the regular miners and the professional miners build their rig specially made for Bitcoin 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 rig with a series of graphics cards or buy mining hardware to mine Ethereum. These devices will have a higher hashing rate compared to the regular PCs with a single CPU and GPU.
The Process of Mining Ethereum:
- 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 the 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 a 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 of Ethereum Mining for beginners:
- To mine ETH, you must have a PC with Nvidia (GTX 2000 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 a 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 an Ethereum wallet, learn how to create an Ethereum(ETH) wallet.
- 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 costs. 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 until the ETH value increases to sell it for a profitable price.
- As 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:
- To start mining Ethereum, you must download the Claymore Miner Software.
- 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 the same applies to the US servers.
- Replace the server string given in the red box. Similarly, enter your Ethereum address and give a name to your machine as shown in the second and third red boxes 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.
Alternative to the Ethereum Mining Mentioned above:
- If you feel editing the file is harder and worry about making mistakes, you can directly configure the file on Nanopool.
- Click Quickstart. 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 these alternate steps, you don’t have to edit the file(start_only_eth) manually.
Related article – 10 ways to earn Bitcoin.
How to Earn More by Mining Ethereum:
- Electric Power is the main concern when it comes to mining cryptocurrencies. If you can run a 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 the Hash rate of different graphics cards to buy the high-performance low power-consuming graphics cards.
- The heat is the enemy of 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 a 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.