The Quick Guide to Mining Ethereum


If you are interested in cryptocurrencies, you probably know how profitable the mining process can be. But mining has its risks, and there are plenty of mistakes you can make along the way. This is the case when mining all kinds of cryptocurrencies, including Ethereum.

However, if you are willing to take the risk and continue, what do you need to successfully mine Ethereum? Let’s find out below.

What is Ethereum?


ethereum price statistics on screen

Before we get into Ethereum mining, let’s go over a quick overview of what exactly Ethereum is. The word “Ethereum” covers two things: a blockchain and a coin. Although Ethereum’s native token is often referred to by the same word, it is technically called “Ether.”

The Ethereum blockchain was launched in 2015, along with Ether. The blockchain is open source and uses smart contracts for transactions. Various tokens have been built on the Ethereum blockchain in recent years, but its native token sits at the top of the food chain.

The Ethereum coin is currently the second most valuable in the world, after Bitcoin, with a current 24-hour trading volume of more than $16.7 billion. It’s no surprise that Ethereum is one of the most popular coins to mine, so what do you need to get started?

1. hardware store

To mine any cryptocurrency, you need the right hardware. In the case of Ethereum mining, GPUs (graphics cards) are your best bet for optimal mining. You can use a group of these to build mining rigs. You can also use ASIC mining rigs, but they are not as suitable for Ethereum mining as GPUs.

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But this is not necessarily a bad thing, as ASICs can be incredibly expensive. Although it is by no means cheap build a GPU mining rig to mine Ethereum, it is generally more affordable than buying an ASIC platform directly. You can also mine with a single GPU if you are on a tight budget.

While you can use most major GPUs to mine Ethereum, there are a few that are preferred by miners due to their higher hash rate. So do your research before choosing your desired graphics card.

Nvidia GTX 1080 Ti


nvidia rtx 1080 graphics card

The Nvidia GTX 1080 Ti is excellent for mining Ethereum (and Ethereum Classic). This GPU features a hash rate of up to 32 MH/s and a memory speed of 11 Gbps. Because the GTX 1080 Ti doesn’t have the same VRAM (or Video Random Access Memory) timing issues that the GTX 1080 experiences, it works great for mining Ethereum.

AMD Radeon RX 590


amd radeon rx 590 gpu
Image Credit: MarcusBurns1977/Wikimedia Commons

AMD Radeon RX 590 is a solid and affordable option for Ethereum mining, especially if you are a fan of the red team. This GPU can offer a hash rate of around 28 MH/s and a memory speed of 8 Gbps. While it may not perform as well as some other models, the price of the RX 590 combined with its specs makes it a great choice for those who want to start mining Ethereum without breaking the bank.

Nvidia RTX 3090


MSI Supprim 3090 graphics card
Image credit: M: YES

Of course, you can go all out and get the RTX 3090 if you have the money to spend. it’s the only one GPU without LHR NVIDIA currently sells, but it will cost you a pretty penny. However, if you get a good deal once GPU prices drop, you can expect to get around 120MH/s with this top-of-the-line graphics card.


2.software

To mine ETH, you will need both the hardware and the software. But unlike mining hardware, you don’t have to spend hundreds or thousands of dollars on software. In fact, many kinds of crypto mining software they are completely free to use, and we have some of the best options for mining Ethereum in particular.

MinerGate


Screenshot of the Minergate website home page

MinerGate’s software is designed to mine altcoins, including Ethereum (and Ethereum Classic). With this software, you can join a trusted mining pool to increase the consistency of your rewards (we’ll talk about solo and pool mining a bit later). MinerGate already helps over five million users earn rewards through mining and has generated over $20 million in rewards so far.

MinerGate also offers up-to-date pool statistics and a mining calculator so you can easily determine your earnings. The software is free to download and is compatible with Linux, Windows, iOS and Android.

cryptex


screenshot of kryptex website home page

Kryptex is another solid option for Ethereum mining. With Kryptex, you can choose to get your mining rewards in Bitcoin and send your funds to a Bitcoin wallet address. Alternatively, you can receive payment in traditional currency and send it to your bank account. The software is quite easy to use so it will work well for you if you don’t have a lot of mining experience.

The Kryptex site also offers mining profitability and calculation tools, allowing you to determine your potential earnings before committing to anything.

cudo miner


screenshot of cudo miner website home page

Cudo Miner supports mining a variety of cryptos, including Ethereum. It supports both dedicated mining rigs and single GPU miners and currently supports over 100,000 users on its mining projects. Cudo Miner offers automated mining for laptops, PCs, rigs, and even mining farms and even has automatic coin switching so you can make the biggest profits whenever possible.


Cudo Miner is free to download, but it charges a fee if you want to use the automated miner. This fee varies depending on the amount of cryptocurrency you mine.

3. Individual and group mining


ethereum coin next to wallet, dollar bills and gpu

When mining cryptocurrencies, you will typically need to choose between two key mining methods: solo mining and pool mining. Mining pools are more popular than solo mining as they offer a more reliable stream of income. This is because thousands of users pool their computing power to increase the chances of successfully mining coins in a mining pool.

However, for the same reason, rewards are divided among group members (often relative to the amount of computational power a user has provided). Mining pool users also have to pay a fee just for being in the pool, which is usually deducted from their rewards.

On the other hand, independent miners do not have to split their earnings with anyone or pay a pool fee. But it is generally much more difficult to mine successfully on your own, although the profits will be higher each time you do it. Solo mining is more of a gamble because of this.

So when deciding whether to mine alone or in a group, consider the risks you’re willing to take and the kind of regularity or irregularity of income you’re looking for with each option. If you are willing to take more risks for a chance at big profits, then solo mining might be for you. But if you are looking for a more frequent stream of more modest income, you can try mining pools.

In case you are interested in joining an Ethereum mining pool, you may want to check out some of the options listed below as they are among the best out there right now in terms of reliability and profitability:

The Risks and Disadvantages of Ethereum Mining

Before mining any cryptocurrency, you need to consider all the risks and drawbacks. As you may know, crypto mining can be unreliable, expensive, and sometimes a waste of time and money. The initial costs of purchasing mining hardware can be steep, but this is not where the expenses end.

The Ethereum mining process can consume a lot of energy, which can lead to an exorbitantly high electricity bill. The cost of mining Ethereum will depend on the hardware you use, and it can also take a while to mine a coin. So if your profits don’t outweigh your hardware and power costs, the entire mining venture becomes useless.

Ethereum mining can be a good source of passive income

While there are already thousands of people making healthy profits from mining Ethereum, many have not been successful in the venture either. Mining is a tricky thing to navigate, and it’s easy to make costly mistakes along the way. So, check out the recommended hardware and software we discussed above and consider the risks and drawbacks before you decide to pay.



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