How to Mine Ethereum ETH?

May 14, 2021

Mining

Sean Korbett

Looking for information on how to mine Ethereum (ETH) coins? Then you have come to the right place. Also, find out what Ethereum mining is and where is the best place to buy Ethereum with credit card. Info on the latest ETH hard fork Berlin. All this and much more in our new article.

What Is Ethereum Blockchain?

Ethereum is the world’s most popular blockchain platform for building decentralized applications (DApps) backed by smart contracts. A smart contract is a code designed to automatically perform an action, such as an automatic transfer of funds, when certain conditions are met. As a result, the main difference between Ethereum and the rest is that it allows developers to write code that can manage digital assets and work exactly as programmed.

Proposed by Vitalik Buterin in 2013, the network quickly gained popularity among developers shortly after it was launched on July 30, 2015. Ethereum remains one of the most trusted cryptocurrencies today, and it continues to expand its horizons for the public without relying on any company. Since then, the network has grown stronger and stronger. At the moment, more than 200,000 tokens and 3,000 Dapps are based on the Ethereum network. 

What Is Ethereum Mining?

The ICO boom in 2017 revealed a lack of scalability – the main problem with Ethereum. With a maximum throughput of 19 transactions per second and security issues that the platform faced in the past, it could no longer meet market demand and provide the required level of security and decentralization. This prompted Vitalik Buterin to set a new goal for himself – to move Ethereum from PoW to POS consensus, mostly to address scalability and resilience issues.

Now that Ethereum has switched to the Proof of Stake consensus algorithm, its maximum supply is no longer limited by mining processes. The total supply of Ethereum is equal to its circulating supply, this figure is constantly changing as new coins are issued by block producers. With the Proof of Stake consensus, new Ethereum coins are minted. The average transaction fee on Ethereum is 0.0026 ETH. Block speed on Ethereum is 13 seconds.

ETH Mining Calculator

Vitalik Buterin created a cryptocurrency with unique properties. In addition to the operation of the platform, they also affect the mining mechanism, for which some of the chips are not suitable. Ethereum mining calculator should take into account not only the current network complexity, reward and computing power of the available devices, but also other variables:

1. Equipment power.
2. Electricity cost. 
3. Pool conditions.

Ethereum mining calculator for ASIC and GPU works correctly in both versions, since the same initial data is required for calculations. Only the absolute values of the variables will differ.

The main indicator of production is efficiency, therefore, in order to make the right decision, you need to regularly calculate alternative options, which is time-consuming. In addition, in the process of calculations, the human factor is not excluded, which can lead to an error and a new check of the results. Ethereum mining calculator simplifies the calculation process, and also helps to save time and eliminate incorrect totals.

Ethereum Mining Pool

To mine Ethereum, you also need to select a mining pool. It is advisable to choose them from the top ten by hash rate, as well as other parameters: You can determine a good Ethereum pool via the following parameters:

1. Pool hashrate.
2. Reward system.
3. Commission size.
4. Server location (ping).
5. Ease of use.

How to Mine Ethereum ETH?

It is still possible to mine Ethereum – the transition of Ethereum 2.0 to the Proof-of-Stake consensus algorithm began at the end of last year and will take several years. In 2020, the hashrate of the Ethereum network, that is, an indicator of the required power of equipment for mining increased from 187 TH/s to 440 TH/s. This means that new miners are connected to the Ethereum network.

There are several reasons for this growth in miners’ interest:

1. Bull market and the rise in the value of ETH.
2.  Network congestion due to the growing popularity of Ethereum-based DeFi projects.
3.  Growth of commissions in the network.
4. Interest in the ongoing upgrade of Ethereum to state 2.0, after which staking will replace mining.

There is no need to be afraid that Ethereum mining will die in 2021. The full implementation of the upgrade to the state of Ethereum 2.0 will take up to two years, and if something goes wrong, this process can be significantly delayed. During this time, you can manage to recoup your investment in mining equipment.

Can I Make Money Mining Ethereum?

Also, no one can say for sure how long the market will be in an uptrend. Yes, cryptocurrencies are growing now, but what will happen, for example, in two months? Alas, no one can guarantee your ROI.

However, crypto mining can still bring you good income, you just need to do your due diligence. Look for equipment that will allow you to achieve high hash rates without consuming huge amounts of electricity. Use software and firmware to reduce your electricity consumption. Choose the most profitable pools. Keep track of the condition of your devices and service them in time to avoid the cost of repairs or the forced purchase of new equipment. And don’t forget to keep your funds safe – protect your wallet. You can find out which wallet is better to choose from this guide – What Is The Best Crypto Wallet In 2021?

What Is The Best Way To Mine Ethereum?

Ethereum mining is possible with or without start-up capital investment. However, you need to understand that the result in the second case will be unsatisfactory.

It is not necessary to have or buy special computer equipment. You can rent the equipment. and the required hash rate from large farms offering such services. This process is called cloud mining. This option is a popular product on the Internet, since Ethereum is mined by almost all mining companies.

Best Ethereum Miner

It is better to invest money in creating a farm consisting of two or more video cards for maximum productivity. Look for equipment that will allow you to achieve high hash rates without consuming huge amounts of electricity. According to the developers, it is preferable to mine Ethereum on Nvidia graphics cards. 

Ethereum Hard Fork Berlin

On April 15, 2021, a Berlin hardfork took place on the Ethereum mainnet on block # 12,244,000. In anticipation of the event, the open interest in futures reached $8.1 billion. Berlin has implemented four proposals to improve Ethereum, including a change in the gas cost calculation algorithm and new types of transactions.

The final version of Berlin did not include EIP-1559, which implies the burning of part of the transaction fees. However, the activation of this offer is planned for the London hardfork, which is due to take place in July 2021.

It is noteworthy that in March 2021, Ethereum miners earned $1.37 billion. The share of transaction fees in the revenue structure was 47%. For comparison: for Bitcoin, this figure does not exceed 10%.

What Is The Easiest Way To Buy Ethereum?

If you are looking for information on how to invest in Ethereum or you want to buy Ethereum, StealthEX will help you.

You can study a detailed article with an exchange guide, watch a tutorial video on our YouTube channel, or just go to StealthEX and follow these easy steps:

1. Choose the pair and the amount for your exchange. For example, BTC to ETH.
2. Press the “Start exchange” button.
3. Provide the recipient address to which the coins will be transferred.
4. Move your cryptocurrency for the exchange.
5. Receive your Ether coins!

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The views and opinions expressed here are solely those of the author. Every investment and trading move involves risk. You should conduct your own research when making a decision.