Miner Ethereum consists in providing the ETH network with computing power to ensure its proper functioning. In exchange, miners receive rewards in Ethereum. ETH mining is therefore a way to earn money. But is it for you? This article tells you everything about ETH mining, how to do it and what the alternatives are to get Ethereum easily and quickly.
Miner Ethereum in 3 Quick Steps
- Go to the Ethermine mining software
- Install and configure the software
- Transfer the collected ETH
In the next section of this guide, we will detail and illustrate each of these steps. To start mining Ethereum, you will have to follow several steps, which may differ depending on the method. However, it often comes down to the 3 steps above.
How to mine Ethereum? Complete Tutorial
This section will present you with a step-by-step tutorial explaining how to mine Ethereum. In this example, we have chosen to talk about the registration on the Ethermine mining pool
Step 1: Getting to Ethermine
To get started, you’ll have to visit the Ethermine website, then click on the “start mining” button. You will not have to fill in any registration form. Thus, joining the Ethermine Ethereum mining pool is completely anonymous.
You will then be asked to choose a server. Ethermine pool offers 4 servers: Asian, European, North American and South American. Select the In a second step, you will have to choose an Ethereum mining software according to your computer equipment.
Note that Ethermine offers Ethereum mining software adapted to AMD or NVIDIA graphics cards, and available in Windows or Linux versions.
Step 2: Install and Configure the Ethereum Mining Software
Once you have downloaded the software, you will need to install and configure it. This is where computer skills are very important.
You will then see a dashboard like the one below. You will be able to follow the performance of your mining activity, your earnings, and many technical information.
EthermineOn easily understands with the picture above amounting to many parameters to understand that advanced computer skills are necessary to successfully mine Ethereum, whatever method you choose.
Step 3: Transferring Collected Ethereum
You will also be able to choose the earning threshold at which ETH crypto currencies will be sent to your crypto wallet, automatically. You will need to have already opened a crypto wallet, in order to enter the corresponding information in the Ethermine platform.
It is important to mention that Ethermine charges a commission on your earnings. This is a crucial fact to take into account when calculating the expected profitability of your investment in Ethereum mining.
Also note that Ethermine pool, allows you to customize the payout threshold. If your portfolio allows you to receive very frequent payments, a threshold of 0.05 ETH can be adapted. You can also opt for a threshold of 10 ETH if you don’t need to cash out your earned cryptos regularly.
To remember: The various parameters to be set in the Ethereum mining software require specific computer knowledge. Indeed, the profitability of your Ethereum mining activity may depend on the software settings.
If you are not comfortable with advanced computer skills, and you simply want to get Ethereum as an investment to profit from its rising price, investing in cryptocurrencies with a commission-free online broker like eToro is a better solution.
What equipment is required to mine Ethereum?
Ethereum mining practiced solo from home requires a relatively heavy equipment. It includes the following elements.
- Hard disk
- Power supply
- Operating system
- Mining software
- Air conditioning
- Secure wallet
Let’s detail below what are each of these elements.
The motherboard is the foundation of your mining setup. The number of GPUs you can use is directly related to the number of GPU slots your motherboard has. The more GPUs you can attach to your motherboard, the higher your hash rate, i.e. the speed at which you compute hashes, will be.
GPUs, or graphics cards, are the computer components that will perform the calculations needed to mine Ethereum. Before buying GPUs, you should ask yourself two questions:
How much power do you want to give your rig?
How much do you want to spend?
Indeed, the most powerful cards are the most expensive, but it is possible that less powerful cards but also much cheaper allow you to show a higher profitability.
A hard disk
You will also need something to store your operating system and mining software. For this, you need a hard drive. For this, a standard SSD (solid state drive) will do.
How big should your hard drive be? If you plan to upload the entire blockchain, you need to have enough space to compensate for future growth.
RAM or random access memory is needed for fast calculations and information processing. A RAM of 4 GB should be more than enough.
The Power Supply Unit
The size of the power supply unit depends on the number of GPUs you are using. So first you need to add up the power consumption of your GPUs and all other components to make sure that the capacity of the power supply is greater than the sum of your GPUs. So if you are using 2 GPUs of 220 Watts and the other components consume 250 Watts, your PSU must have a capacity greater than (2*220 + 250) 690 Watts.
An Operating System
Of course, your mining installation will have to run on an operating system. Most of the time, Ethereum miners choose Windows or Linux. Linux is probably more suitable, but its use is less intuitive for people who are not computer experts.
Of course, you will also need to equip yourself with a mining software. There are many mining software programs available, and you will need to select one that is compatible with your graphics card. Note that most mining software is available in Windows and Linux versions.
Adequate Air Conditioning
The graphics cards used to mine Ethereum, which run at full speed all the time, produce a lot of heat. It is therefore necessary to provide an efficient air conditioning. This is to prevent their temperature from rising to the point that they overheat. Indeed, they can definitely be unusable; the nightmare of all miners!
Therefore, you will also have to take into account the power consumption of the air conditioning, in addition to the consumption of the mining system itself when you make your profitability calculations.
A Reliable Crypto Wallet
Finally, you will also need to open a crypto wallet, or Ethereum Wallet, to be able to receive the Ethereum you will have harvested with your ETH mining activity. Be aware that there are software wallets, to be installed on your computer, online wallets, and hardware wallets.
It is important to note that not all wallets accept crypto currencies from Ethereum mining activities. Therefore, you will need to make sure that the crypto wallet you choose allows you to host payments related to Ethereum mining.
To remember: Mining is an activity that requires a lot of hardware and equipment. In addition, advanced computer skills are required to install, configure and operate Ethereum mining facilities in an optimal way. So it’s definitely not for everyone, and it represents a major initial investment.
What is Eth mining?
ETH mining is the process of creating a block of transactions to add to the Ethereum blockchain.
The Ethereum blockchain, like Bitcoin, currently uses a proof-of-work (PoW) consensus mechanism. Mining is the vital component of proof-of-work. Ethereum miners – computers running software – use their time and computing power to process transactions and produce blocks.
What is the purpose of Ethereum mining?
In decentralized systems like Ethereum, we need to make sure everyone agrees on the order of transactions. Miners contribute to this by solving hard-to-compute puzzles to produce blocks, which serve to secure the network against attacks.
How do I get ETH Transactions Confirmed by Mining?
Here is the step-by-step process:
- A user writes and signs a transaction request with the private key of an account.
- The user broadcasts the transaction request to the entire Ethereum network from a node.
- As soon as it hears about the new transaction request, each node in the Ethereum network adds the request to its local mempool, a list of all transaction requests it has heard about that have not yet been recorded on the blockchain in a block.
- At some point, a mining node aggregates several dozen or hundreds of transaction requests into a potential block, so as to maximize the transaction fees it earns.
- It checks each transaction request for validity (i.e., no one tries to transfer ether from an account for which it has not produced a signature, the request is not malformed, etc.). Then it runs the request code, changing the state of its local copy of the EVM. The miner allocates the transaction fee for each of these transaction requests to its own account.
- Begins the process of producing the proof-of-work “certificate of legitimacy” for the potential block, once all transaction requests for the block have been verified and executed on the local copy of the EVM.
- Finally, a miner will finish producing a certificate for a block that includes our specific transaction request. The miner then broadcasts the completed block, which includes the certificate and a checksum of the new claimed EVM state.
The Role of Nodes in Ethereum Mining
The other nodes hear about the new block. They verify the certificate, execute all transactions on the block themselves (including the transaction originally broadcast by our user).
Then they check that the checksum of their new EVM state after all transactions have been executed matches the checksum of the state claimed by the miner’s block. Only then do these nodes add this block to the end of their blockchain and accept the new EVM state as canonical.
This means that each node removes all transactions in the new block from its local pool of unsatisfied transaction requests.
New nodes that join the network download all blocks in sequence. Including the block containing the transaction of interest. They initialize a local copy of the EVM (which starts as an EVM in a blank state). Then they execute each transaction in each block on their local copy of the EVM, checking the state checksums at each block along the way.
Each transaction is mined (included in a new block and propagated for the first time) once. However, it is executed and checked by each participant in the canonical EVM state advancement process. This highlights one of the central mantras of the blockchain: don’t trust, verify.
The Different Types of Technical Mining Solutions
While ETH mining using GPUs, or graphics cards, is the most common technical solution for mining, it is not the only one, nor the best in all cases. Below, we will study all the technical options available to you if you want to start mining Ethereum on your own.
Miner Ethereum by CPU
This is the most basic form of mining. The idea behind CPU mining is simple. Anyone, anywhere, can use their computer to mine. Although this method is no longer really applicable, it is a good starting point.
Ethereum mining by GPU
Next, we have Ethereum mining by GPU. The GPU, or graphics processing unit, is part of the video rendering system of a computer.
The typical function of a GPU is to help render 3D graphics and visual effects so that the CPU doesn’t have to deal with them. GPUs offer a much more powerful system for mining than the CPU.
Ethereum mining by FPGA
FPGA or Field-Programmable Gate Array Mining is the next step in GPU Mining. The FPGA is a device that has a series of gate arrays that create truth tables to calculate inputs from a data stream and produce a desired result.
In industry, you can use it to optimize an industrial process, such as cutting 2×4 in a log, provide machine learning, or even perform DNA sequencing. FPGAs excel at any task that can be performed in a parallel process, such as mining hash to create an output resulting from a successful hash, and if you’re lucky, a successful block.
Ethereum mining by ASIC
ASIC stands for Application-Specific Integrated Circuit and was created for the specific purpose of mining Bitcoin and Litecoin. The idea of having machines specifically designed for mining was ahead of its time. So much so, that when KNCMiner launched its ASIC pre-orders, it received $25 million in orders in the first 5 hours!
Bitcoin and Litecoin are now exclusively mined by ASICs. Bitmain recently released ASICs for Ethereum.
Will the Transition to Proof-Of-Stake Kill Ether Mining?
A common concern for any potential Ether miner is the Ethereum 2.0 roadmap, which introduced plans for the transition to proof-of-stake, a consensus algorithm that would deprecate miners where all existing Ether miners have limited time available to earn a return on their investment. But fortunately, current PoW mining should still be functional until about 2023.
The launch of Ethereum 2.0 Phase 0 in early 2021 is a separate blockchain that will have no impact on mining. Only with Phase 2 could mining begin to be depreciated.
Phase 2 is scheduled for late 2021 or early 2022. But it’s worth noting that Ethereum has a long history of delays with its roadmap – back in 2017-2018, it was generally thought that the transition would be complete by 2020.
No one really knows when Ethereum 2.0 will be finished, but most estimates suggest that new miners should have enough time to recoup at least a fairly significant portion of their investment in hardware.
Who Can Mine Ethereum?
We saw at the beginning of this guide that Ethereum mining involves the acquisition of significant hardware. This implies that Ethereum miners need to have a large amount of startup capital, to buy the mining hardware. But they also need to have extensive computer knowledge, in order to make the best use of this hardware.
Although it is possible to learn on your own, mining with Ethereum successfully if you don’t have extensive computer skills could be complicated. There is no such thing as a mining system that you can just plug in and cash in. It is often necessary to set up the installations yourself, configure the mining software, and ensure that they are working properly.
Ethereum mining is definitely not for everyone. It is essential to have several thousand euros to invest in your installation (and in its energy consumption). And it is strongly advised to have significant computer skills.
If this is not your case, fortunately there are other solutions much more accessible to get Ethereum and earn money with cryptocurrencies.
How much money can you make mining Ethereum?
It’s fairly easy to estimate how much money you can make from Ethereum mining. There are several factors to consider:
- Cost of purchasing the mining hardware
- Computing capacity of your graphics cards
- Power consumption of your cards
- Duration of your graphic cards.
However, some studies estimate that an electricity price of less than $0.12 (€0.010) per kilowatt consumed in an hour at most is needed for Ethereum mining to be profitable. However, a rate of less than $0.06 (€0.051) is needed for ETH mining to be a truly viable business.
Knowing that in developed countries, electricity prices are generally higher than $0.20 (€0.17)/kWh, we rule out mining profitably in France, at least on its own.
For example, a mining installation that would cost $3,000 (€2535), generate $200 (€170) in revenue per month, and consume electricity at a cost of $0.20/KWh would be paid back in 150 months, i.e. over 12 years. And it is rare that graphics cards last that long, whether you use them occasionally or intensively like with Ethereum mining.
That’s why most professional mining companies are located in countries with low electricity prices, like China. Some even build their own power generation facilities.
Things to remember: The cost of electricity, the raw material of Ethereum mining, is too high in France for solo Ethereum mining to be sufficiently profitable.
Ethereum mining in Solo, in Pool or in Cloud?
There are several ways to mine. If you have a large amount of capital at your disposal, solo mining, with an Ethereum mining installation at your home operated by yourself, will be more suitable.
If you only have enough capital to buy a modest piece of equipment, it would be better to pool it with other similar equipment via the mining pool. And finally, if you have limited funds at your disposal, cloud mining will be the most accessible solution. Let’s detail each of these options and their pros and cons in the section below.
Solo Ethereum mining
Solo mining means that you will be mining blocks directly from the blockchain you join. This requires you to have a wallet before you start, as well as mining software.
This results in a lower probability of being rewarded but also a higher reward rate for each block mined.
Note that solo mining requires a lot of expensive basic equipment. Indeed, if your mining setup is modest, it is better to join a mining pool.
Advantages of Solo Ethereum Mining
- Solo Ethereum mining is less prone to failures than pool mining, resulting in a higher uptime.
- Ethereum mining allows for significant gains with a large installation
Disadvantages of Solo Ethereum Mining
- Solo mining tends to generate more irregular income.
- Solo mining requires heavy computer skills
- Not suitable for beginners: trading Ethereum via a broker like eToro will be more suitable for the uninitiated.
Ethereum Mining Pool
Mining pools were born to group together owners of low-performance hardware to have a chance to compete with high-performance farms. These pools pool hashing capabilities, dividing the blocks allocated per blockchain and the associated profits.
This results in a higher probability of being rewarded but also a lower payout for each block mined. Pool earnings are in small percentage “given away” when the pooler withdraws his profit and transfers it out of the pool (perhaps to a personal wallet or an exchange site).
With pool mining, you need your own mining platform and, through the use of the pool software, you bring the processing power of your mining platform to the mining operation. You will have to take care of purchasing and managing the equipment, running the equipment, cooling the equipment and managing the money.
Advantages of Ethereum Pool Mining
- Generates a more regular income.
- Pool mining can generate 1-2% more income (before fees, if any) due to the long polling provided by the pools.
- Pool mining allows you to choose between multiple crypto-currencies, so you can switch between them depending on your expectations.
Disadvantages of Ethereum Pool Mining
- Pool mining can experience downtime due to failures at the pool provider (pools are subject to DOS attacks and have other downtime, too. Backup pools and solo mining can be configured for these cases).
- Tends to generate lower revenue due to fees charged and transaction fees not collected.
Cloud Mining Ethereum
Cloud mining operations are mining farms – data centers dedicated to mining – that sell or lease hashing power to crypto-currency miners. The essence of the service is that a third party hosts the mining equipment and provides access to the rewards associated with that equipment.
Cloud mining has many advantages and disadvantages. First of all, the user has to trust the cloud provider in a space where scams and fraud are rife. The user has no control over the equipment or how it is used.
With cloud mining, you are essentially an investor in a mining operation; all you provide is money. Cloud mining companies recruit thousands of people who invest various amounts of money in the operation and in return take a cut of the revenue.
All you need to do is find a reputable cloud mining company, send them money and go about your daily business while they manage everything.
Advantages of Ethereum Cloud Mining
- No setup or configuration costs
- No noisy, heat-generating hardware in your home.
- Maintenance is taken care of.
- No extra equipment to buy to run your mining hardware
- No computer skills required
Disadvantages of Ethereum Cloud Mining
- You don’t own the equipment, which means you can’t sell it.
- You cannot direct your hashrate to the mining pool of your choice.
- The company can go bankrupt or run away with the funds if they are dishonest, which is common in this business.
Should you mine Ethereum?
In this section, we will detail the key strengths and benefits of Ethereum mining, so you can determine if mining Ethereum is a good idea for you.
Making Money with Crypto
The first motivation of Ethereum miners is obviously to make money. One spends on ETH mining equipment, hoping to get a higher amount of ETH from mining than what was spent to acquire the facility and run it.
Now, while some miners manage to make a good living, thanks to massive installations or their access to cheap electricity, there are actually better ways to make money with Ethereum, as we will see later in this guide.
Taking Part in the Crypto-Currency Rise
We should also not forget that mining has a very real use. Indeed, without mining, cryptocurrencies cannot exist. It is the miners who make the cryptocurrency networks work, Ethereum or others. Thus, mining Ethereum can also be seen as a way to participate in the rise of crypto-currencies by conviction.
Indeed, some crypto currencies have the objective to supplant national currencies, controlled by the government, and which are constantly losing value through inflation. Miner Ethereum is therefore also a militant act that participates in the revolution of decentralization of finance and currency.
Miner Ethereum to Reduce Heating Expenses
The heat produced by the graphics cards of the mining facilities is a problem for people living in hot countries. This is because they have to heavily air-condition the room where their Ethereum mining facility is located.
However, it is an advantage for miners located in colder regions. It is indeed possible to recover the heat produced by the Ethereum mining to participate in the heating of the housing! This reduces heating costs and helps to finance the electricity consumption of your mining installation.
Get Ethereum for free
Finally, if you are convinced of the potential of Ethereum in the long term, mining is a way to get this cryptocurrency, to store it and wait several years for its value to rise.
Most experts are indeed anticipating for 2021 and beyond an explosion in the value of crypto-currencies, and mining ETH is one way among others to profit from this explosion. However, we’ll see later in this guide that there are actually much more practical ways to obtain Ethereum in order to profit from its long-term appreciation.
What are the Risks of Ethereum Mining?
After looking at the advantages and strengths of mining, in this section we will look at the risks and disadvantages of this activity.
Mining Ethereum: A very important costminer ethereum cost
As you will have understood from the beginning of this guide with the important list of essential equipment to mine Ethereum, ETH mining requires a very important basic investment. A few thousand euros will be necessary for a basic installation, which will probably offer you a low profitability.
Several tens of thousands of euros are needed for a more efficient Ethereum mining installation. Moreover, after the initial purchase of the mining system, you will have to take into account the cost of electricity, as mining is a very energy-intensive activity.
In the end, the major disadvantage of mining Ethereum is therefore the prohibitive cost of this activity, both in terms of initial investment and operating expenses.
Difficult to Get Your Hands on the Right Hardware
Do you have a lot of capital available and think that all you need to do is buy the best graphics cards to easily succeed in Ethereum mining? Not so fast! Indeed, being able to pay is not enough. The graphics cards you want must also be available in the quantity you want.
However, the most powerful and most suitable graphics cards for mining, in addition to being expensive, are quite rare. The waiting lists are long, and you will probably have to wait several months if you don’t want to make any concessions on the performance of the hardware. And in the meantime, it’s not impossible that more powerful graphics cards will be released.
Mining Ether Is a Polluting Activity
As we have mentioned several times in this guide, mining Ethereum is an activity that consumes a lot of electricity. As electricity is still mostly produced in a polluting way, crypto mining is a polluting activity that contributes to global warming.
This may not be the case in the future, when all energy sources will be green, but for the moment, it is clear that mining Ethereum is far from being an ecological activity because of the electricity consumption. Before you jump in, you really need to take this into account. Thus, if you do not wish to participate in the destruction of the environment, it will be better to choose another method to get Ethereum.
Fortunately, we will present several of them later in this guide, including buying from an online broker such as eToro, a method that is simple, fast, and accessible with minimal capital.
Miner Ethereum : Where to store your ETH tokens ?
Ethereum mining involves equipping yourself with a secure crypto wallet to store your hard-earned Ethereum. In this regard, it is important to note that many wallets refuse, or at least advise against using them to receive mining payments!
Indeed, mining sometimes involves receiving small amounts of cryptocurrencies frequently, which is not adapted to the functioning or procedures of some wallets. The official Ethereum website recommends the following wallets:
- MetaMask browser extension for Chrome, Brave, Firefox and Opera
- Opera browser with Ethereum integration
What Alternatives to Mining Ethereum?
As this guide is coming to an end, you may have realized that mining Ethereum is not an activity that will suit all profiles. Indeed, if you only have modest capital; if you don’t have computer skills; or if you don’t have the space to host a mining facility in your home, you will have to choose another solution to get Ethereum.
In this section, we will therefore present you with several alternatives to getting into mining.
Trading Ethereum with an Online Broker
To get Ethereum easily, quickly and cheaply, buying from an online broker seems to be the best way. All you have to do is open an account with an online broker ($200 is enough at eToro), and use the broker’s trading platform to trade Ethereum in real time.
This way you’ll invest your money directly in Ethereum. You’ll get the cryptocurrency immediately, instead of spending your capital on a mining facility or a cloud mining service, both of which are highly uncertain in their profitability. If you are interested in this solution, you should know that the broker eToro is one of the best intermediaries. It offers a long list of cryptocurrencies available for purchase in addition to Ethereum. Moreover, it offers a very easy to use trading platform. And you don’t need a mining pool, graphics card or computing power! You can even trade on a smartphone, without impacting your power consumption too much.
You will actually trade Ethereum in CFD to practice short term crypto trading and take advantage of the daily variations of the cryptocurrency with crypto trading. This is of course impossible with mining.
Participate in a Faucet Ethereum
Ethereum faucet websites that distribute tiny amounts of free crypto-currencies to visitors in exchange for actions. This can involve clicks on banners, video views, survey responses, or other types of micro-tasks. The Ethereum earned slowly accumulates in your account on the site until you reach the minimum withdrawal limit. At that point, you withdraw your accumulated earnings into a personal wallet.
Some Ethereum fawns allow you to claim every 15 minutes, others every hour, and still others only once a day. The frequency with which you can claim is related to the payment. The more the site allows you to claim, the less ETH you will receive for each claim.
Note that while getting cryptocurrencies without any financial investment may sound tempting, it is actually not a viable way to make money with Ethereum.
In fact, even if you spend all your days on it, the earnings you’ll get from Ethereum faucets will remain anecdotal, and will never allow you to make a living from it.
Playing at an ETH Casino
Ethereum casinos are online casinos that allow you to deposit cryptocurrencies such as Ethereum, or Fiat currency that will be converted into Ethereum, and to play these ETH on online games. Any winnings are of course paid out in Ethereum, so ETH casinos are just one alternative to mining.
However, it should not be forgotten that the success rates in the casino are statistically insignificant. It is therefore not a viable way to make money, but rather a way to have fun in the crypto world with the hope of winning some Ethereum, by pure luck.
Mining Ethereum: 5 Tips Before You Start Mining Ethereum
As this guide comes to an end, we will present below 5 tips to follow before you decide to go ahead and mine ethereum. Indeed, this is a decision that should not be taken lightly, and you should ask yourself the right questions.
Take stock of your financial resources before mining Ethereum
We’ve said it many times in this guide: Ethereum mining is an activity that requires a very large amount of start-up capital, and involves massive expenditures on electricity. So before you consider mining Ethereum, you need to take stock of your financial resources, and determine how much you can afford to risk in Ethereum mining.
If you can’t risk several thousand euros, mining will probably not be the right solution to make money with Ethereum. Moreover, you have to take into account the fact that a long waiting period is necessary before your installation is profitable.
So mining is not a way to get crypto currencies quickly either. It is in no way a way to invest in the short term.
Train yourself in the computer skills necessary for mining
In addition to a large starting capital, mining Ethereum requires advanced computer skills. Indeed, you will need to know how to set up your mining device, install and configure the mining software, and monitor the performance of your installation in order to optimize its output.
If you don’t already have all the necessary knowledge, you will have to take the time to get trained. However, in order to understand mining training, prior knowledge in computer science is necessary.
In the end, if you are a complete beginner, it will take several months before you really know how to mine profitably. By comparison, buying Ethereum from an online broker like eToro requires no knowledge at all.
Choose the right hardware to mine Ethereum
If you have the capital and the knowledge to start mining and you want to get started, the most critical step will be the choice of your hardware, more specifically the graphic cards.They are indeed the most crucial component of ethereum mining installations. You must not make a mistake in your choice.
However, the choice should not only depend on the performance. Indeed, the most powerful graphic cards are the most expensive, and are difficult to obtain, as we have seen during this guide.
It is better to choose the right balance between performance and cost. Indeed, there is no need to spend 3 times more for a graphics card that is only 2 times more powerful.
Consider Alternatives to Ethereum Mining
Because of the high cost of mining, and the need to be a computer expert to put all the chances on your side to succeed, you must study well the alternatives to mining. Indeed, since the final goal is to make money with Ethereum, there are more suitable solutions.
In this guide we have mentioned 3 alternatives, namely buying from an online broker, faucet and casinos.
Now, among these alternatives, the most reliable, the simplest and the fastest is the purchase from an online broker. In any case, we invite you to weigh the pros and cons of each alternative, in order to choose the solution that suits you best. Indeed, ethereum mining is often not suitable for novices.
Take the time to do a Profitability Study
Precisely, to choose the most suitable hardware for your Ethereum mining activity, you will have to calculate the expected profitability of your graphic cards, and subtract the cost of electricity, and the depreciation of your hardware.
The calculations differ according to the methods you choose, but in any case, it is possible to make a predictive study of the profitability of a mining installation. Compare the options and make the calculations to choose the equipment that will suit you best.
Conclusion: Should you mine Ethereum?
Mining Ethereum is an expensive, complicated, risky and uncertain business. If the big miners are doing well, with prohibitively expensive installations, it seems to be an unattractive activity for independent investors. The cost of buying the equipment, the electricity costs to run it and air-condition it… make the bill rise quickly, and imply that it is necessary to wait a long time before paying back the costs.
Fortunately, we have also learned in this guide that there are better alternatives. They are simpler, faster and, above all, cheaper than mining.
The most suitable solution for small pockets and those who are not computer savvy seems to be buying from an online broker. All you have to do is open an account and deposit a modest amount, for example $200 at eToro, buy Ethereum, and wait for its price to rise before selling it back.
Frequently Asked Questions
Finally, we will end this guide by answering the most frequently asked questions about Ethereum mining.
How long does it take to mine 1 Ethereum?
A few minutes is enough for the largest professional mining installations in the world. However, it can take several months with a solo ETH mining setup. In any case, the exact time needed depends on the computing power of your mining setup. The more powerful your setup is, the faster you will be able to generate 1 ETH. However, the question is whether it will be profitable or not.
Is Ethereum mining profitable?
The profitability of Ethereum mining depends on the equation between the initial investment, the operating cost in electricity, and the computing power of the mining device. The most expensive devices are not necessarily the most profitable. But it is especially the cost of electricity that is important. Indeed, it is unlikely to reach profitability by mining Ethereum. Especially from countries where electricity is expensive, like France.
Is it complicated to mine Ethereum?
Yes, mining Ethereum is definitely a complicated activity. You have to choose the hardware and software to configure and install the hardware. Then, fine-tune the settings to get the best performance. As much as to say that advanced knowledge in computer science is necessary. Not to mention advanced knowledge of the cryptocurrency market and the technical functioning of the Ethereum network.
What equipment to mine Ethereum?
As we have seen in this guide, mining Ethereum requires a lot of equipment. We will note in particular the graphic cards, the mining software, the air conditioning avoiding overheating… But also the mining software, the installed operating system… Or even the wallet on which you will host the Ethereum earned during the mining.
How much Ethereum is left to mine?
Unlike Bitcoin, the maximum amount of Ethereum has not been determined in advance. This means that it is virtually possible to create infinite amounts of Ethereum. The amount of Ethereum that remains to be mined is therefore said to be indefinite.
Can we mine Ethereum from a smartphone?
There is indeed Ethereum mining software to install on cell phones. However, the computer components of smartphones are not well adapted to mining. So it is unlikely to be profitable. Not to mention the fact that it will shorten the life of your phone; due to the intensive use of its processors by the mining software.