How to Mine Ethereum: The Easiest Method for Beginners
Mining Ethereum may seem difficult to a beginner. But you have to know how to mine Ethereum. Here’s the easiest method that any beginner can master.
We are in the middle of the cryptocurrency gold rush. Enterprising miners are hitting the internet to pan for coins of all kinds. The ethereum blockchain promises to make this gold rush as decentralized and democratic as possible.
Ethereum needs ether to run. No, I am not talking about the Nas track that launched his turn-of-the-century beef with Jay-Z. I mean the tokens that pay for the network’s computational resources.
Mining any cryptocurrency takes time and patience. Ethereum is no exception. But where do you start if you are a beginner?
That is the big question I will answer with this guide on how to mine ethereum. Read on to learn how to make money with ethereum for yourself.
What Is Ethereum Mining?
Mining for ether functions much like other cryptocurrency mining. I realize not everyone is an experienced crypto miner, so I will start from the beginning.
Simply put, mining for cryptocurrency involves solving complex math problems. Miners are the backbone of a cryptocurrency network. That is because their solutions to these problems provide proof of work for the network.
The process looks like this.
Ethereum miners mine for ether. Ethereum users use ether to pay for transactions. The mining itself verifies these transactions and keeps the network stable, which leads to more mining and more transactions.
Repeat this process millions of times, and you have a stable cryptocurrency network!
Why Ethereum Mining Is Difficult
Here is the rub. Just like bitcoin mining, ethereum mining is not as simple as repeating the mining process over and over. If that were the case, the network would get flooded with ether, thereby reducing the value of the currency.
To keep the currency stable, it becomes harder to mine as more ether enters the market. This increased difficulty presents a problem to miners.
The problem is this. The harder a currency becomes to mine, the greater computational resources you need to mine it. Running an ethereum farm on your home PC is practically impossible.
The rewards for mining ether are still great, especially comparing to mining for bitcoin. The computations take relatively little time, and much of the total currency remains to be mined. You just need the right equipment and method.
A Quick and Simple Guide on How to Mine Ethereum for Beginners
Now it is time to gather that equipment and learn that method. Here are the steps it takes to become an ethereum miner.
1. Obtain Your Hardware
Mining for ethereum takes heavy-duty computing power. You will want to purchase machines that are dedicated to mining around the clock.
You can get a CPU, or Central Processing Unit, or a GPU, or Graphic Processing Unit. Entry-level GPUs are hundreds of times faster than CPUs for mining, so we recommend paying the extra money up front for the GPU to make your mining worthwhile.
If you want to get serious, you can set up a mining rig, which combines the power of several GPUs into a single machine.
2. Install Your Software
Ethereum miners cannot mine on hardware alone.
First, you will need drivers for your video cards. Some video cards come with drivers. If they do not, you can get the drivers from the manufacturer’s website.
Once you have installed your drivers, you can proceed to download the mining software of your choice. Some popular options include Geth and Claymore Miner.
3. Set up Your Wallet
Your ethereum wallet is different from the mining software you use, though it may be a piece of software itself. There are also hardware ethereum wallets.
An ethereum wallet allows your mining rig to connect to the ethereum network. Trying to mine without a wallet is like trying to cross a ravine without a bridge.
You can download the official ethereum wallet through a program like Mist. Going the official route requires the full ethereum blockchain to sync, which can be a time-consuming process.
If you want to bypass it, you can use a browser-based wallet like the one at MyEtherWallet.com.
There is one thing to keep in mind when it comes to wallets and any other mining tools.
Cryptocurrency mining is still a new field, and it is like the Wild West in more ways than one. There are many scam websites phishing for your information.
Before you sign up for any services, make any purchases, or download anything, always triple check the name and web address of the resource you are using.
When you examine your tools closely, they will mine for you more effectively. Think of this like taking your pick to the shop to get it sharpened.
4. Join a Mining Pool
This last step is crucial. It could mean the difference between successful mining and an early flameout with nothing to show for it.
Solo mining is hard. You are just one person, and no matter how big your ethereum farm is, you can only run so many rigs yourself.
Joining a mining pool will allow you to use the computational power of the entire pool. This will lead to more effective mining and more profit in the long run.
You may have to split the profits with other members of the pool, but if you mine solo, you may not have many profits in the first place.
Some of the most popular mining pools can be found at Ethermine and MinerGate.
Learn Even More About Cryptocurrency
With this guide to how to mine ethereum, I hope you have found the resources to get you started. Mining crypto is an exciting pursuit, and ether is one of the most empowering coins to mine.
Once you have amassed a collection of ether in your ethereum wallet, let me show you how to invest it. Check out any of my guides to investing cryptocurrency now.