Do you wish to mine Ethereum but do not know how to go about it and how long it will take? This will help you.
Is Ethereum Recognition Worth it?
The term ‘Ethereum‘ or ‘Ether’ (the native cryptocurrency of the platform) is no longer new to the majority of people, even those who are not into cryptocurrency might have heard of the word ‘Ethereum’ but does it really worth its recognition?
According to coinmarketcap, Ethereum is ranked the second crypto amongst other cryptocurrencies just after bitcoin another crypto monster in market capitalization.
According to Yahoo Finance, Ether (ETH) may overtake Bitcoin, which cites the platform’s custom contracts as a more versatile alternative to Bitcoin.
Ethereum as of the time of writing has a market cap of $311 billion with a volume of $7,820,090,445 in the last 24 hours. At the time of writing, Ethereum is trading at $2,599.
Wait a minute, do you also know that there is more Ether in existence than Bitcoin? How true is this? As recorded by Simplilearn, Bitcoin has over 18 million bitcoins in existence, and Ethereum has 118 million ether as of February 2022.
Although this is not enough to dethrone Bitcoin to the top spot, as Bitcoin has a market capitalization of $725 billion more than the $311 market cap of Bitcoin, at the time of writing.
As for the number of blocks that have been mined, for Bitcoin, it’s over 718,000, and for Ethereum, it’s about 13 million. This is because it takes less time for a block to be added to Ethereum than to Bitcoin, as the block size is 1,268 kilobytes for Bitcoin and 94 kilobytes for Ethereum.
So, we can rightly attest that Ethereum is truly worth its global recognition.
The next big question now is, how can I mine Ethereum? This brings us to the reason for this article which I believe is the reason you are reading this article at this time.
Before we dive into the main purpose of this article, we need to remind ourselves what Ethereum is all about.
What Exactly is Ethereum?
This is the question that obviously will be running through your head if you are new to the crypto world. Welcome on board! According to the network’s official website, ‘Ethereum is a technology that’s home to digital money, global payments, and applications.’
The second-ranked cryptocurrency was conceived in 2013 by programmer Vitalik Buterin. Ethereum transactions are not governed by a central authority. It uses a global network of computers to assemble and validate all of the platform’s blockchain transactions.
Firstly, we need to know that mining is the use of the computing power of dedicated hardware to solve complex puzzles. It enables the network to work. At the same time, it safeguards it against hacking and other malicious attempts.
In exchange for their services, miners are paid a transaction fee. Every block validation costs a set amount of ether.
Approaches to Ethereum Mining
There are numerous techniques to Ethereum mining, according to Carter Kilmann, a financial copywriter and Business Insider editor.
Pool mining is the most straightforward method of ether mining. It’s the greatest solution for those with limited hardware. Pool mining enables miners to pool their computer power in order to solve Ethereum blocks faster.
The benefits are divided among the group based on the amount of power contributed, as indicated by hash power.
Solo mining is a difficult procedure that necessitates a lot of brute force.
You should consider aspects such as ventilation, noise, electrical costs, and physical space in addition to the equipment cost, which may be hundreds if not tens of thousands of dollars.
Solo mining is normally only recommended for experienced miners ready to commit a considerable amount of money.
Cloud mining is the simplest method of mining. You pay a miner a fee in advance to mine coins for you.
However, there are risks associated with cloud mining, such as scams and fraud.
Step-by-Step Guide to Mining Ethereum
The next item on this article’s agenda is the main reason for this article. Do you wish to mine your own Ethereum but do not know how to go about it?
Here am I for you. Are you ready to go along with me on this interesting journey? Let’s go.
First, we need to put it at the forefront of our mind that mining ether is the process of using computing power to solve complex puzzles and validate “blocks.” but before we start mining we need to follow the following steps.
Step 1: Choose the Right Mining Approach
As discussed above we looked at the approaches to mining Ethereum. All we just need to choose the right approaches that are suitable for us.
Step 2: Open a Crypto Wallet
Yes, it is exactly what you are thinking right now. Just as our individual bank accounts help in housing our money, the crypto wallet stores our coins. Mind you, the crypto wallet stores all coins and not only Ethereum.
There are two major types of crypto wallets available: hardware wallets and software wallets.
Hardware Wallets are similar to a high-tech USBS. They are also referred to as ‘Cold Wallet’ because they house your crypto accounts’ private keys offline, that is without any internet connection.
Software Wallets, on the other hand, requires an internet connection to store your crypto and provides both public and private keys, unlike the hardware wallets that only provide private keys.
Further confusion about the private and public keys, right. The first is a public key, which enables other people to use your wallet.
The second is a private key that allows you to access your wallet. You must protect your private key, as the name implies, or otherwise, someone else could gain access to your funds. Sound scary, right.
Advantage and Disadvantage of Hardware and Software Wallets
Both the hardware and software wallets have advantages and disadvantages.
Because they are not linked to an online platform, hardware wallets are generally thought to be safer. However, they are frequently more costly and inconvenient than a software wallet.
Software wallets, on the other hand, are significantly more convenient because they can be accessed via a web browser or a mobile app. As a result, they’re more vulnerable to hackers than an offline wallet.
NOTE: You’ll need an Ethereum wallet if you wish to mine ether. You’ll get a public key once you open a wallet, which you can use during the mining configuration process.
Step 3: Get the Right Hardware and Software
Sure cryptocurrency is a digital currency, so we need to have the right hardware and software if we must mine any coin in which Ethereum is not excluded.
Obviously, a strong computer is required to mine Ethereum which is known as ‘rig’.
Consider joining a mining pool if you’re a more casual miner. In that situation, you’ll almost certainly need a mix of the following:
1. One or more graphics processing units in a computer or specialized mining setup (GPUs)
3. GPU drivers are software that allows your graphics card and operating system to communicate.
4. To store your rewards, you’ll need a wallet, which might be a physical device or a digital program.
Step 4: Choose a Mining Pool
A mining pool is the simplest method to get into crypto mining unless you’re ready to invest tens of thousands of dollars in equipment. However, wannabe miners should study their pool alternatives before moving further.
Time for all of that hard work (at least, from your computer) to pay off.
How Long Does it Takes to Mine 1 Ethereum
According to CoinWarz Ethereum Mining Calculator, at the current Ethereum difficulty level, with the mining hashrate and block reward; an Ethereum mining hashrate of 2,500.00 MH/s requiring 1,200.00 watts of power at $0.10 per kWh, and a block reward of 2 ETH, mining 1 Ethereum would take 28.4 days.