You can buy Ethereum or mine it and add it to your wallet – the choice is yours. Whether you buy Ethereum or mine it, the returns would be the same when you trade in it at the opportune moment, as many have experienced during the recent boom of cryptocurrencies. Mining is a laborious and expensive process, and you must learn how to mine Ethereum, which requires technical expertise and an elaborate hardware setup with the necessary software. Moreover, you would face many other issues with mining Ethereum due to the severe environmental impact, which has tapered off the enthusiasm for mining cryptocurrencies. Despite the concerns about mining, if you are trying to mine Ethereum, remember that costs will be high but profits low. Now, you must decide – is it worth it to mine Ethereum?
How to mine Ethereum?
Mining is the process of generating new coins that involves using a high-end computer with appropriate hardware and software that consumes enormous energy. Those who mine for Ethereum must be ready to slog it out by solving challenging mathematical problems that help to earn coins. The process produces blocks and verifies transactions besides securing the network and providing rewards based on the current iteration of Ethereum POW (Proof of Work) consensus.
To get inside an Ethereum mine, you need a GPU (Graphics Processing Unit), appropriate software, and have mining capabilities.
Choose a GPU
The GPU is a special computer set up with very high capabilities in computing large volumes of complex data, and the setup can be pretty expensive. Besides the costly hardware you have to procure, the operating costs are also exorbitant because the system consumes massive power. Moreover, you could encounter GPU and other PC component shortages, increasing the expenses many more times. The hash rate or the device’s operating speed for mining is another critical factor. Since miners try to edge out their competitors with speedy mining and pocketing the coins before others, the hash rate is vital when you mine for Ethereum. Higher hash rates increase the chances of getting past the post first and earning rewards. Setting up a mining rig increases the hash rate and increases the chances of success in making coins quickly.
Software installation
Install the software to get the system running. You can download the drivers from the website of the software supplier in cases the drivers are not accompanying the graphics card. Next, connect your node to the network after downloading the Ethereum blockchain. After installation, your node will not only connect to the Ethereum network but also to other nodes.
Now you are ready to start mining, build centralized apps, deploy your smart contracts, and enter into transactions. Install the mining software Ethminer to complete the process.
You can test your mining capabilities before mining by testing Ethereum on your private network. It will help refine your knowledge about how to mine Ethereum. For augmenting your mining capabilities, you can join a mining pool that improves the chances of solving problems. On successfully mining a block, you receive payment in Ethereum and the associated fees.
