With the extensive growth of Cryptocurrency, a wide roar of interest couples it. After all, who wouldn’t want to earn some passive income. The current economy in different countries suggests having a side hustle to be the key to survival. Cryptocurrency trading, therefore, becomes a worthy survival technique. Enthusiasts then need to equip themselves with technicalities involved in this trade.
A Guide Into Ethereum Mining
Below we dive into the key areas in Ethereum trade that you should basically know. Let’s get right into it
What Is Ethereum Mining?
First, Cryptocurrency is a digital monetary form used to buy goods and services that uses cryptography to secure transactions.
Cryptocurrency mining, on the other hand, is the process of getting new cryptocurrency coins by solving complex Mathematical problems. Cryptocurrency is legal in several countries apart from Egypt, China, Bolivia, Indonesia and Turkey. So, if you don’t come from the five, you are free to participate in this trading.
What is Ethereum?
Etherium is a blockchain software platform that allows the trade of cryptocurrency. Ethereum miners spend time-solving Mathematical equations to show proof-of-work, to verify Ether Transactions.
Miners also create new tokens, which then reward them as a success towards completing PoW. Becoming a skilled Eth miner is easy, just follow the steps below and you’ll be there.
First: What You Require to Start Ether Mining
When venturing into this trade, ensure you have three entities; a Graphics Processing Unit (GPU), a crypto wallet and Ether software.
Ethereum trading is flexible because it offers a platform to users using different computing devices, unlike Bitcoin. With a GB of RAM and updated drivers, your first crucial step to start mining is set.
Then create a wallet where you will deposit Eth mining rewards. There are three types of wallets: the hardware wallet, mobile, and software wallet.
Finally, the Ether software is Ethereum. This is the platform that allows you to interact with other Ether miners and start bidding. To avoid getting viruses in disguise, download the software only from the official GitHub repository.
Second: Gather Your Data
Now you need to connect to a mining pool and obtain their coordinates. The pool listings are available in ethereum’s official website. From the website click on the tab written, START MINING. This tab will redirect you to a list containing the coordinates that you need. Head to vpn overview steps 4,6 and 7 to guide you into this process.
After completing the mining pool selection procedure, run the miner. Lines of code appear once you run the miner. Specifically, you should see a line “Started DAG gen on CPU 0”. This will translate further into “GPU 0: Share Accepted” indicating that the process is successful. It is at this point that you start officially mining.
Third: How to Mine
You need to be very keen when mining to avoid any risks involved. If you are mining using pools, try out different pools to determine which works best for you. The general concept is that the more members in a pool, the higher the chances of getting rewards. Although you may end up getting a small reward, you also have a great chance to continuously win each time you join. Eventually, you still win big.
As your mining skills grow, you can start individual mining. Individual mining allows you individual rewards, which then means you have huge rewards which you won’t share with anyone. If you decide to take this route, ensure you have very strong machinery. Remember,
Ether mining uses and generates a lot of power. This can therefore be a fire hazard to your equipment.
Mining also utilises high memory capacity. So, if you do not have very powerful equipment, it would be unwise to go solo; the stakes are too high.
You can also mine Ethereum using Cloud mining. There are several sites which offer safe mining for Ethereum.
Finally: Precautions You Should Take
When registering into your Crypto wallet, use a password manager to set an impenetrable password. Password managers offer a password that is difficult to hack, thereby protecting you from scammers.
You should also not use a CPU in place of GPU to run the mining. Mining is successful owing to the hashtag speed running on your computer. GPUs are stronger and therefore process hashtags very fast.