In addition to investing in ETH through direct trading on the exchange, many people choose to mine ETH as an investment for ownership purposes. Join Phuc to learn in detail about mining ETH? Should I participate in mining ETH and what are the most effective ways to mine today?
What is ETH mining?
ETH mining is the process of using specialized equipment to participate in the Ethereum network and solve complex algorithms. The reward for participants is ETH - used as payment currency for applications from the Ethereum system or used in transactions with other digital currencies.
The first miner to solve the computational equation will receive a reward of 2 ETH per block, along with commission costs for transactions added to the block.
Opportunities for ETH miners in 2023
ETH is currently ranked number two in the ranking of cryptocurrencies by market capitalization. This is a very popular and widely accepted currency, mining ETH is still profitable because the actual cost of mining is currently smaller than the value of 1 mined ETH.
The drawback is that it takes a long time, right from the beginning, investors have to spend a huge amount of money to prepare equipment and machinery for ETH mining.
In the long term, the ETH currency is still highly appreciated by many experts for its development potential, specifically:
Up to 94% of Blockchain projects are built on the Ethereum platform with the number of Apps on this network up to 1,9000+ applications, including more than 3,000 decentralized applications (dapps) currently running. on the Ethereum blockchain – According to Kevin Rooke, crypto researcher and YouTuber and the results of the crypto app tracker – State of the Dapps.
The number of Ethereum developers exceeds 250,000+ engineers, an average of 700 developers participate each month (report published by Electric Capital), up to 500,000+ Ether transactions are performed (estimated to be more than the total transactions of other platforms) – According to the Ethereum Development Community.
With the above data, mining ETH, whether in the short or long term, will bring better profit opportunities for investors, compared to other cryptocurrencies on the market.
The most effective way to mine ETH
There are 4 basic steps to participate in mining ETH:
Step 1: Create an Ethereum wallet
Step 2: Proceed to install the GPU and set it up on the computer.
Step 3: Join the Ethereum mining pool
Step 4: Proceed to mine ETH
Details of each step will be presented by Finhay in detail in the content below:
Create a wallet to store ETH
To create an ETH mining wallet, users can choose between two types of cold wallets and hot wallets:
Among them, cold wallets have high security but cost a lot to own. Two popular types of cold wallets chosen by many investors are Ledger Nano X and Trezor Model T.
For hot wallets, everyone should use a reputable wallet that many users trust like MyEtherWallet - completely free, flexible and convenient to use, providing high security for your assets. However, you should be careful not to reveal your login information or private key to avoid the possibility of being attacked by hackers.
Install GPU and setup on computer system
When choosing ETH mining equipment, you need to find reputable units that ensure machine quality during use. Currently, ETH miners must be set up with good hardware and software to increase mining performance.
The most important hardware of an ETH "farmer" is the GPU - Graphical Processing Unit - graphics processor. Famous card lines that can be considered include AMD, NVidia, GTX 1070, ...
For software, users need to use types that can connect well to the computer's hardware system, and can mine a variety of currencies at the same time. 3 famous software that are very popular with investors include ETHMiner, Claymore Miner, Phoenix Miner.
The Graphics Card fever is still going on in the market, despite the decline in the value of ETH due to many objective reasons. Therefore, to answer the question of where to buy an ETH mining machine, investors can easily find addresses selling machines with the best GPU sets on the market on the internet, at forums where miners gather. Professional mining, or at places that provide reputable ETH wallets,...
After successfully selecting the device, the user updates the Driver on the GPU supplier's website. Some update support websites like AMD or Geforce will help you quickly detect and fix errors that appear on your computer system.
Next, you need to create an Ethereum Client account to verify transactions on the Ethereum network, ensuring the system is safe and accurate. Users should visit the MyEtherWallet address to create an account, avoiding being scammed by similar web addresses.
Find a mining pool to join
Mining ETH by joining a mining group is recommended by many experts. Because investors can pool their computing power with many other miners, helping to improve and solve problems faster, the opportunity to earn more rewards.
Joining a Mining Pool will be better at bringing profits than mining ETH alone. Depending on the calculated power contributed by each worker, the reward will be divided according to the appropriate ratio.
Users need to find a good mining pool by evaluating information about the computing power of the entire pool, payment structure, safety, reputation of the pool, etc.
There are mining pools that only exist for a short time. If you don't research carefully, it can easily lead to wasting time resetting, spending money to participate, but not earning good profits. Mining pools usually have fees ranging from 0% to 2%, mines with an ETH balance greater than 1 often make ETH payments to members every 24 hours, 4-6 times a day.
Start mining ETH
After completing all the above steps, the user sets up the computer system to start operating. Depending on the type of device, the way to start the device is different. During that process, everyone can check the amount of ETH they have mined by accessing the storage wallet to confirm. On average, it takes about 60 - 70 days for a GPU to mine 1 ETH, this number will increase if the number of miners joining the network increases.
Important parameters when mining ETH
One of the important parameters that miners cannot ignore is Hash Rate: The speed at which mining equipment operates - the higher the Hash rate, the sooner the chance of finding the next block, thereby the ability to receive get a bigger reward.
Because the miner's operating principle is to try to solve the problem as soon as possible before any other tool, then the chance of receiving ETH will be higher. In addition, the following basic parameters should also be considered: Choose a machine with a GPU with 2-3 heatsinks for cooling because the machine will be very hot during operation, requiring a minimum memory of 4 or more. , ensuring stable power supply and internet,...
What is the total cost of mining ETH?
Determining the total cost of mining ETH for each miner is different. It depends on many factors from the type and characteristics of your excavator rig, electricity costs, and space in each location. However, in general, determining total costs requires attention to:
Storage fee: Varies depending on the type of storage, if you store using a hot wallet you will need to pay a fee to the provider, in case you choose a cold wallet it will cost money to buy the wallet initially.
Equipment maintenance fees: Machines need to be maintained and serviced to ensure their ability to operate for a long time.
Premises fees: A professional miner needs to invest in a giant machine that takes up a large area. You need to arrange them reasonably and scientifically in a space to facilitate controlling, monitoring and maintaining the operation of the mine. machine. This is a mandatory fee and must be paid monthly/yearly depending on each person's case.
Electricity fees: Computers need to operate continuously to find and mine ETH coins, increased electricity consumption requires workers to be ready to pay for this cost at each specific time.
Not to mention the amount of money you have to spend to invest in a good computer system, you can also visit the Cryptocompare site to quickly calculate the total cost with relatively accurate results.
Experience mining ETH effectively and optimally
Mining ETH requires you to have a certain amount of capital right from the beginning. The following advice from professional miners will help people save money and optimize mining speed:
You should not overclock your device too high because you want to mine ETH quickly, this will increase the speed but will waste electricity and risk the device's lifespan being reduced and not being able to run sustainably.
If an abnormal error is detected while the GPU is normal, the mechanic should turn on GPU-Z to check the VRM circuit temperature.
Instead of using VGA core, Memclock is more expensive because it has the ability to increase HMz to 700. People can consider using MSI Afterburner software to pull the core down to about 1MHz and still be able to mine ETH well.
It is necessary to change the power settings to avoid the situation where the operating machine automatically goes into sleep mode.
You should learn and update more technological knowledge to support the effective operation of the excavator system.
Regardless of the method, workers need to approach in the following direction: Reduce the system's power consumption or maximize the number of mined cryptocurrencies compared to electricity consumption. This will save more costs than just letting the machine continuously mine without regular monitoring and evaluation.
Popular forms of ETH mining on the market
There are many forms of ETH mining on the market today:
Mining ETH on your phone: You download mining apps directly to your phone in the form of a game. You just need to create an account to participate. You are paid in ETH when you complete the tasks given by the app. However, the amount of coins in this form is not much, it is only for entertainment and is a good way for new people to approach the basic ETH mining method.
Mining ETH on your computer: Use specialized software to mine ETH directly on your computer. However, because these software are very heavy, if not installed and operated carefully, the risk of affecting the machine's life is very high.
Mining ETH with CPU: Computer CPU is also capable of supporting ETH mining, you need to download tools and install to CPU, start and mine quickly. However, the risk of this method is that your computer will overheat to the point of damage.
Mining ETH with GPU: Mining is recommended if you have capital to invest and is suitable for those who choose to mine in large quantities. You need a computer system equipped with GPUs - specialized graphics cards to process and mine ETH. In addition, it is necessary to add a radiator fan to cool the system because in this form the machines operate continuously and the machine temperature will increase very quickly.
Mining with AISC tools: AISC is hardware created specifically for mining. Devices with AISC are extremely powerful, have good exploitation ability, and achieve high efficiency. They are often called specialized excavators and are only suitable for people with large capital because the investment price is very expensive and maintenance is also relatively difficult.
Above is all the information about ETH mining Phuc wants to convey to readers. Hopefully this article will help each person's investment choices and participation in the cryptocurrency market. Regardless of the form, investing in ETH has advantages and limitations that need to be noted.
Depending on needs, each person will have the choice to participate in mining ETH or trade directly on the exchange. As long as you take the trouble to learn and research carefully before participating to avoid risks in your investment process.
