The ultimate guide to Ethereum mining
If you are lured by the investments made in cryptocurrency network, then you must be searching for new ways to invest in this striking market. You need not to worry as you have arrived at the right place.
With the expansion of cryptocurrency market, more and more people are planning on investing in Ethereum, just like Bitcoin. However, most people don’t know that they can also mine in this platform to generate a passive income every month.
Even without having technical knowledge, a normal person can learn the basics of Ethereum mining.
But before getting into details, it is imperative to know why you should opt for Ethereum mining.
Why start mining in Etherrum?
This relates to the fact that Ethereum is one of the fastest growing crypto currencies only next to Bitcoin. The miners are rewarded for providing solutions to challenging math problems through blockchain technology. Few years ago, the price of Ethereum was $1, this has now elevated to a booming sum of $400. The rapid growth of popularity of this mining technology has injected excitement in the users worldwide to not to miss this ever-growing money-making opportunity. And you should not be the one to miss out in the race that is already started. Let’s know the methods of mining in Ethereum pools.
Starting Etherum mining? Here’s what you will need
The basic necessity for mining includes a computer and a graphics card. You must be wondering why to use graphics card other than playing games. This is because a graphics card will help in computing an algorithm that the computer attempts to solve to generate Ethereum. The trick here is to generate the block almost every 15 seconds by the GPU. The Ethereum pays a sum of money in the form of Ethereum or ETH, say 5 or 10, to miners who are able to find the block.
A complete professional mining setup might include 5-6 processors and will be able to find an average of 0.5Eth per month.
Joining the mining pool,
After setting up your equipment for mining, it is important to join a mining pool. Mining pools of Ethereum combines hashrates of all miners and increase the chances of finding a block. This helps miners as they can get a steady payout from the pool. There are various mining pools that can be used. For instance, NiceHash is a popular choice as the pool chooses the best algorithm to hash and pays out in bitcoin. Another pool is the Nanopool which has a large community. The main highlight of Nanopool is that it even pays if a miner was close to solving a block.
How do you get paid?
When your video card has successfully mined a block, you are entitled to receive 3 – 5 ETH rewards. You will also get the mining fees associated with the transaction of the money. This is also the reason, many miners offer to do the job with high transaction fees. The rewards are transferred to the Ethereum linked wallets of the miners.
After installing setup, you just need to sit and view your graphics card find the blocks and hash the algorithms. The approximate income is calculated on the basis of your hash rate and the exclusions will be your electricity bill. With passage of time, the difficulty of Ethereum mining is increasing, not to mention the increase in costs associated with the setup. However, if we look at the facts, the difficulties have dropped thanks to the decrease in the rewards. Either way, it is a field that tracts million of miners around the world and is worth a try.