When we hea the term cryptocurrency, the term bitcoin pops into our minds. Bitcoin, being the first mover in the cryptocurrency industry, has gained huge popularity over the years. Very few people know more than 2900 cryptocurrencies are publicly traded in the global market. So, its obvious bitcoin is not the prime source of income for many crypto enthusiasts. Other popular cryptocurrencies like Ethereum, ripple, dash, etc. have gained huge popularity. To be precise, many reputed mining companies are mining ethereum instead of bitcoin due to complexity issues. As more miners join the mining competition it becomes harder to solve complex problems. So, compared to the most popular bitcoin mining, ethereum mining is much more logical in many ways.
Those who are familiar with cryptocurrency mining knows the process of bitcoin mining. But when you mine different cryptocurrencies, the process is slightly different. Using the process of bitcoin mining is not going to be efficient since every cryptocurrency follows a different level of protocols. In today’s article, we are going to share some amazing tips that will help you to mine ethereum.
Selection of the hardware
This is the most crucial part of mining ethereum profitably. Nnovice ethereum miners often think that they can mine ethereum with their CPU. But an entry-level GPU is at least 200 times faster when it comes to mining ethereum. GPU is much more efficient at solving complex mathematical problems since it has more hash power. Before you think about setting up the mining rig, you need to do some research on the basic components that you require to mine the ethereum. You need to find the perfect balance between electricity consumption and your hardware mining power or else it will be tough to make consistent profit at the end of the month. You might end up on the losing side due to high electricity bills.
Getting your mining software ready
Once you have selected your desired hardware it’s time to select the mining software. Just like with cryptocurrency trading software you need to download mining software that will allow you to initialize your node and connect it to the internet. But for that, you must download the entire ethereum blockchain which is just over 20GB at the time of writing. However, the size of the ethereum block is gradually increasing as many more users are embracing ethereum as a standard medium of payment. Once that is done, you are connected to the network and you can start your mining process without any further delay.
Run a test in the private network
Before you start the ethereum mining process in full swing, you do have the ability to test your mining power in the private network. This process is very useful since it allows you to find the approximate electricity consumption and rewards for setting up the mine. Those who are smart use this process to fine-tune their mining process which eventually boosts the productivity of the mining rig. Being a novice miner, you might find it hard but with some basic research you can find tons of solutions to optimize the settings.
How do I get paid?
This is a question novices ask, but this article is dedicated to rookie miners. Once you completed a puzzle or mine a block, you get three ETH as a reward. The ETH will be added to your wallet and you can use it for any purpose. You can exchange ethereum by using reputed exchange companies like bigX and your local account fund. Getting paid is easy but the real complexities depend on the mining process. Usually, you need to increase the mining power by using power miners to increase the hash rate. By doing so you can easily compete with the difficulties associated with solving the blocks. So, focus on your computing power to earn more.
