How to Mine Ethereum: A perfect beginner guide
The Cryptocurrencies are steadily and slowly revolutionizing the whole financial sector and the way the transactions are done in this digital world. With Bitcoin touching the $18,000 mark and more than hundreds of ICO launched in just six months, the cryptocurrency is experiencing a massive change and attention of investors from all over the globe. Every transaction which is made on the cryptocurrency platform is recorded in the Blockchain and handled by miners. These people use high-end CPU and GPU for tallying the transaction and are paid in the cryptocurrency as their fees for each transaction by the vendors. Ethereum is one of the most popular and important Cryptocurrencies in the crypto world where mining is not just lucrative but easy as well. Here how to mine Ethereum and the different process of Ethereum mining is explained in deep.
What is Ethereum mining?
Miners play an important role in the smooth working of Ethereum. Ethereum mining is basically a process of generating Ethers without requiring a central Issuer. The process of Ethereum mining is the creation of the Ethereum token by using high-end hardware/GPU and at a rate of 5 Ethers per mine Block. Banks are responsible for accurate records of transactions in the Blockchain and the Ethereum mining process ensure that ETH token is not generated out of thin air and the users are not able to cheat the Blockchain and spend money more than one time. Ethereum mining process is analogous to the Bitcoin process in the Blockchain where for each block, miners use high-performance CPU and GPU to rapidly guess the answer of a puzzle and win rewards in the form of Ethereum. Basically, the users run the block’s unique metadata header which includes timestamp and software version and changes the nonce value by using the hash function. This impacts the resulting Hash value of the miner which decides the overall mining rate of the users. The modus operandi of hash rate is simple –whenever a miner finds a hash which is similar to the current target, he gets a bounty in the form an Ether and sends the Block across the web network to all the nodes after adding their own copy. A hash value is an estimate and not the exact time in which a user will find a block depending on the problem-solving rate. The miners randomly earn these rewards which depend on the luck, problem-solving capabilities, computer specification and many other factors. Now we will see how to mine Ethereum and what all things you require for the same.
How to mine Ethereum?
Ethereum mining is simple but you need to take care of certain things which are mentioned below.
Choose the mining hardware
Before starting with the Ethereum mining process, you need to choose an effective and fast mining hardware. There are basically two types of mining CPU mining and GPU mining. GPU has a higher hash rate than the CPUs but nowadays, GPU is only used for generating Ethers. With a GPU, the process of “how to mine Ethereum” is complex but by following the right steps you can achieve it. However, it depends on a number of factors like power consumption, hash rate performance and initial expense. First of all, you have to build a mining rig which is a mechanical system consisting of multiple GPUs. This process usually takes a long time of about a week. After that, you can head to mining profitability calculator. Mining profitability calculator tells you about the amount of Ether you will be able to earn according to your Hash Rate. Along with this, it tells about the difficulty in mining and also the profit you can make by considering all the cost of electricity and setup. After considering the hardware cost and GPU, you need to install the appropriate software.
Installing the software
Installing the software is not a difficult task as compared to the hardware part where choosing and setup of hardware can be expensive and time-consuming. If the mining software is correct, you can earn significantly more on ETH than the electricity cost. Miners with programming knowledge and Blockchain experts who are familiar with command line do the process by Installing Geth. But, this software runs an Ethereum node and has to be written in a scripting language called Go. So, people with experience in GO language can choose Geth Software. You can download Geth into your Windows, Linux or MAC OS easily from its website portal and then run it after unzipping. This software can help the user to interact with nodes which are connected to the Ethereum Blockchain network. In addition to that, it also provides the privilege of creating your own smart contracts and allows sending of transactions using the command line. You can check your profitability by going to the Ethereum calculator for extracting ETH.
It is important to test the Ether on your private network to understand how it deals with the smart contracts and decentralized applications (Dapps). For this, you won’t require any fancy hardware and there will be no difficulty for beginners as you just need Geth software along with a home computer.
What are mining pools and why they are used?
The exact amount of ETH which you can earn by using this platform is depended on Mining difficulty and can be calculated using Ethereum Block calculator which is nothing but the profitability calculator. As a miner, it is a great difficulty to mine Ether on your own, so it is suggested to join a mining pool. The pool is a tool where all the computational power of the miners is accumulated in what you call a mining pool. The pools help in improving your chances of problem-solving and enhancing your computational power thereby making the solution of cryptographic puzzles and earning Ethers easy and efficient. However, there are many things to consider while joining a mining pool as the computational power of each pool is constantly changing. There is a number of factors to select while selecting pools. Different pools have different payout structures and many pools have a sort of sign up process where the miners can connect to a pool and start mining. Mining pools are highly erratic with the computation power and a pool at the top of the list can drop significantly in just a day. The pools and the power depend on the industry shifts so it is necessary to consider that and keep yourself updated with it.
What is Cloud mining platform?
If you don’t want to buy the expensive hardware and spend thousands of bucks in maintaining it then you can use cloud mining. After choosing a mining pool, you have to proceed with Cryptocurrency cloud mining platforms like MinerGate, HashFlare, Genesis mining, etc. you can download any of the cryptocurrency cloud mining platform shown below for beginners.
What are the best Ethereum cloud mining platforms for beginners?
There are a variety of cryptocurrency cloud mining platforms which you can use as beginners for earning Ethers easily.
HashFlare is one of the best, if not the best cryptocurrency cloud mining platform which has a customer back up to millions. The great thing about this platform is that the fees associated with the mine blocks are extremely less and the company is working since the mid of 2015. You can opt for cloud mining if you don’t want the trouble of maintaining the expensive hardware and buying it obviously. The main principle of HashFlare is to maximize the earning of the traders by asking the lowest commission for that.
Genesis is another popular cloud platform for a miner which was the first company to start with this feature. It started back in 2013 and now has over a million customers and miners. It is indeed one of the best Cryptocurrency platforms for earning Ethers without having the headache of bearing high electricity cost and maintenance of hardware. This, in the cloud service, provides you a maximum Hash rate without struggling with expensive software and hardware.
Started by a group of young techies, MinerGate allows the miners to gain Ethers in the cloud with the help of just a computer and internet connection. It can allow you to gain Ethereum without any significant cost. The platform experienced ever-increasing users who were actually beginners with an aim to earn ETH without paying much. If you want to earn close to what earned by miners without having the high-end hardware while avoiding any difficulty associated with it, you must definitely try out MinerGate. Also, they have a benchmarking tool to suggest you a rough idea of your earnings per year without a need of Ethereum profitability calculator. It is actually a modified version of profitability calculator all in a single platform.
What do Reddit users think of Ethereum mining?
Reddit is a discussion community where you can discuss Cryptocurrencies and the process by creating your own thread or helping other. The posts on Reddit clearly state that how popular MinerGate is to mine Ethereum for both GPU and cloud mining. The Reddit post by Reddit users signifies that MinerGate is as a reliable and secure platform with a good return on investment. If you don’t want the expensive GPU mining, you can opt for Cloud mining with MinerGate for similar benefits according to many Reddit users.
How to mine Ethereum with MinerGate?
Here we will use MinerGate to mine Ethereum as the process is very straightforward and cost-effective. To know how to mine Ethereum easily for beginners, you can simply follow these steps mentioned below.
Step 1: Download the MinerGate client HERE
For downloading the MinerGate client, you have to head to the MinerGate portal. So, navigate to https://minergate.com and click on “Download Miner & Start Mining” button. This will allow downloading the MinerGate mining client. Click on “Run” if you are using Microsoft Edge and begin the installation process. MinerGate will request for the permission to make changes to your computer and you have to click on “Yes”. The setup will start and will ask you to agree to their terms and conditions. Close down all the open apps and select “Add MG to the system PATH for current user”. You can also click on create the MinerGate desktop icon and complete the installation process by clicking on Next and then install.
Step 2: Launch MinerGate
Once the installation is done, you have to click on the finish button which will launch the program automatically. After this step, you have to create an Account by clicking on it at the top right. Enter a valid email address and password and click on Register. After registration, MinerGate will display a message that the smart mining has begun. The MinerGate will then automatically use your computer resources for extracting Ethereum in the most efficient and profitable way.
Step 3: Benchmark your PC
The success of your hardware of coins extraction depends on the Hash rate which is marked by the specification of your processor and GPU. By clicking on the benchmark, you can check that whether our PC is available to earn Ethereum or not. This will produce an overall score depending on the ability of your computer.
Step 4: Start mining with MinerGate
After looking the benchmark score, you can click on the “miner” tab on the top to select particular cryptocurrency like Ethereum. As we are concerned with Ethereum mining, we will select Ethereum and then click on ‘Start mining”. You will get a Congratulation message from their team. You can click on view to deselect all other cryptocurrency and make sure that only Ethereum remains. It will load a DAG which is around 1 GB in size and represents proof-of-work algorithms.
Step 5: Check the numbers
Once the ETH extracting has started, you can click on the “Miner” tab to see your available balance which is the Ether you generated with mining. The CPU and GPU mining Tab displays the Hash Rate which you can increase by using more number of CPU or GPU.
Using MinerGate is one of the best solutions for mining Ethereum as the process is smooth and error-free while doing it. MinerGate allows both GPU and cloud mining solution which means that you can extract with expensive hardware and maintenance for earning high amount of ETH or use Cloud services without the headache of buying, setup and use High-end GPU which also need Technical knowledge.