So you are interested in Ethereum Mining?
Mining is the creation of blocks of transactions. These blocks become part of the Ethereum blockchain. Sometimes, people rate the authenticity of a cryptocurrency by the proof-of-work census mechanism. Mining provides this proof-of-work.
To become an Ethereum miner, you need the mining software and hardware with enough computational power to process transactions and produce blocks. The time it takes to mine will depend on your computer hardware, but it will take about 7.5 days at optimal conditions.
We mine Ethereum to create new Ether coins and ensure all transactions are verified and logged into the blockchain. Usually, the miners computing power is used to verify and add all ether exchanges into a public ledger. This public ledger forms the blockchain. Ethereum is the ether’s blockchain. All details added to the ethereum are permanent. No one can alter or erase them.
Let’s look at the steps of mining Ethereum.
Step 1: Create an Ethereum Wallet
To be a miner, you need to have an Ethereum wallet. You can open one with my etherwallet or MetaMask.
Step 2: Building a Mining Rig
To build a mining rig, you need a motherboard, a Graphics Processing Unit (GPU), a power supply, computer memory, and an operating system to run on the motherboard. You shouldn’t use these components because the GPU gets very hot during the mining process.
If you are using an already assembled computer, upgrade its GPU and ensure it’s working efficiently. You also need to be updating your GPUs versions frequently.
Step 3: Download and Install Etherum Miner
You will also need mining software. Ethminer is one of the reliable ethereum mining software. It is an Ethash GPU mining software that connects your hardware to the mining pool. It also gives you the capability of mining every coin that works on the Ethash Proof of Work. These include the Ethereum, Ethereum Classic, Metaverse, Pirl, and Expanse.
After downloading and installing, launch Ethminer from the Windows Command Prompt( CMD) or the Linux Console.
Other mining softwares that you can use are Claymore dual miner, minergate, ccgmining, and hashflare.
Step 4: Join a Mining Pool
A mining pool enables you to combine your computational power with other miners and star mining as a group. As a result, you will increase the amount of ether you are mining. The mining pool will split the profits among the miners in the ratio of the contributed computing power.
You can also cloud mine by renting someone else computing power and hire them to mine for you. However, cloud mining only works if you trust the miner and if the mining rewards are more than renting and hiring the miner. Hashflare is one of the trustworthy mining platforms that offer cloud mining.
Step 5: Collect Your Mining Rewards
After mining for some time, you can go to your mining pool’s web page and check how many mining rewards you earned.
To do this, Paste your Ethereum wallet address into the search bar to get an outline of your mining rewards. You can claim your rewards when reaching the minimum payout level. You will receive the rewards in your Ethereum wallet.
Can You Make Money Mining Ethereum
Mining Ethereum can only be profitable if your electricity cost is low. Mining can be energy-consuming, and you can end up paying more for electricity than what you are making in mining.