After the advent of cryptocurrency, many people began to show interest in its mining and look for answers to the question: how to start mining Ethereum (ETN)? This is not surprising, because the value of digital currency is growing daily, which means you can make good money. Let's try to understand all the intricacies of ETN mining.
How ETN appeared
Before we try to understand how to start mining Ethereum, we offer to know the history of its occurrence. ETN appeared four years after the debut of Bitcoin (BTC), which is currently the most expensive cryptocurrency in the world, and has become its main competitor. Ethereum is the fruit of the painstaking work of Canadian programmer Vitaly Buterin. As you already guessed, Vitaly moved to Canada from Russia, so do not be surprised if you hear that it was the Russians who invented ETN.
The talented programmer was supported by Gavin Wood, who not only was able to describe the principle of the system invented by Buterin, but also to prove the possibility of its creation. Gathering a whole group of enthusiasts around him, Vitaliy was able to find funds for the project, receiving $ 18 million as an investment.
How to start mining Ethereum
People who set out to mine cryptocurrency collect or buy ready-made “farms” on their own. Advanced, but unprofessional "farms", consisting of several modern and powerful graphics cards, can be installed at home, as they do not take up much space.
Ethereum has many implementations that are written in languages such as Jawa, C ++, Haskell, Go, Rust. The most common among miners is the Geth client created using Go. Soon, he will compete with the Parity client, working on the Rust engine. The Parity demo showed excellent results, riveting the interest of many miners.
There are also resources for cloud mining. You do not need to install expensive equipment, and the percentage of earnings directly depends on the capacities that you buy on a particular server.
But if you still decide to mine cryptocurrency yourself, then you should know the better to mine Ethereum. First of all, you need to download and install a client, for example, Geth. Only after that it will be possible to interact with the network from the console and blockchain synchronization.
What is blockchain?
This question is often asked by people who are looking for information on how to start mining Ethereum. Blockchain is a method of transmitting information from a sender to a recipient. This technology helps break down encrypted transaction data into blocks that overcome multiple verification steps before getting from the sender to the recipient. This method is considered one of the most reliable, as it guarantees not only the confidentiality of the data of both parties, but also leaves no history. This eliminates the possibility of hacking and theft of funds.
The principle of ETN mining is no different from the mining of military-technical cooperation, and the complexity directly depends on supply and demand. The more people start mining cryptocurrency, the slower and more complicated the process will be. The decisive role in mining is played by the pool, from which you can receive both ETN and any other digital currency. This begs the question: on which pool is it better to mine Ethereum?
Today, there are a huge number of pools whose servers are located abroad. How to mine Ethereum on Dwarfpool, the easiest way to figure it out. The interface here is quite simple, which attracts not only inexperienced miners, but also already advanced users.
In order to start making money, just download the Ethminer client and run it by setting the parameters suitable for the pool, for example:
ethminer.exe -F http://eth-eu.dwarfpool.com:95/1x34247s2dst324g4c12bv123jmdsa32c76h4fd12mnh8 -U
- F contains a link to the pool, as well as information about your wallet, to which the funds you earned will be transferred.
- U - indicates to the software that it is necessary to mine Ethereum, using for this purpose the power of a video card running on CUDA technology. If you have an AMD video adapter, then the letter G will be in the parameter value.
Each pool has its own setting, but the principle of their operation is almost identical.
Now we know where to mine Ethereum, but before starting the process, we need to go through a simple registration. The procedure itself is practically no different from the one you encountered when registering on other resources. First of all, you will be asked to enter a valid e-mail, to which a confirmation link will be sent, as well as a password. While on the site, you will see a whole list of pools from which you can choose the most suitable by changing the standard settings (optional).
Each of those who decided to mine cryptocurrency should have a special account on which the earned coins will be. When registering with any of the clients that are necessary for mining, you will need to indicate the wallet address. An Ethereum wallet can be created on the following resources:
- Mist (the most convenient for a Russian-speaking audience, since the interface can be switched to Russian).
The client programs are necessary to use the capacities of the video adapter and processor, converting them into hashes, of which the cryptocurrency itself consists. Each utility has its own unique interface, and some differ even in structure. The simplest and most reliable clients:
- Ufasoft Miner;
How to write code for bat files correctly
This file is extremely necessary, because through it you can optimize the parameters of your computer by distributing the power for mining a particular cryptocurrency. On the Internet, there are ready-made codes that are suitable for different systems. With the help of them, not only a certain power is set, at which the video card and processor will work, but also the optimal temperature parameters are set. If you are just going to mine Ethereum, then it is undesirable to write code yourself, since incorrect values can provoke overheating of components and disable them. You need to look for ready-made code for a specific video card and processor.
Solo mining with a video adapter
In order to earn money on cryptocurrency mining, it is not necessary to use any pool. You can mine yourself, for example, ETN. In this case, your system will collect blocks that other users will not get. However, in order to become a solo miner, you need to have several fairly powerful graphics cards, a good motherboard, processor, sufficient RAM, a powerful power supply and an efficient cooling system.
Equipment for the "farm"
Ethereum mining is possible only with the use of modern and productive components. It can be several video cards, for example, from the GTX or RS series. If you prefer video adapters from MSI, it is better to use the GTX 1050 TI and higher. Asus is very popular among miners who use RS-290 and higher video cards in their “farms”.
It is imperative that you carefully select your motherboard. It should be designed to connect four or more video adapters. A processor needs a high-frequency one, since exactly how many operations per second it is able to perform depends on this indicator. As for RAM, the optimal size is at least 8 GB. The greatest efficiency from RAM can be obtained if you install the bar with a higher data exchange rate. Their cost is much higher than that of ordinary ones.
Video card settings
Before embarking on a cryptocurrency mining process, you need to make sure that your system is optimized and properly configured. First, update all drivers. Regardless of which currency you will mine, you need to choose a client for mining, which is best suited for a particular model of video adapter. Client settings are the same both for working with the pool and for solo mining. Remember that integrated video cards are generally not suitable for this type of earnings!
A little more about pools
Any cryptocurrency, including ETH, can be mined by creating your own pool. The main problem is not at all the opening and registration of the pool, but in attracting people who will mine on your resource there. This is due to the fact that the vast majority of miners trust already tested pools, which provide stable earnings and do not have pitfalls. However, if you already have a target audience or a whole team of specialists has been selected, you can start a new pool. Remember that to create it you need to have at least the slightest understanding of programming.
Is it profitable to mine Ethereum? This question is asked by absolutely all people who are going to start mining cryptocurrency. At the moment, digital currency exchanges demonstrate exchange rate stability and offer optimal quotes. So if you invest a certain amount in the assembly of a good “farm” today, you will be able to recoup it within 7-8 months.
The Ethereum exchange rate to the dollar today is $ 283-290 for one ETH. Of course, Bitcoin is much more expensive, however, mining it will be much more difficult, and the process itself will be slower.
Today, there are many online services on which there is a free calculator to determine the profitability of Ethereum mining on your equipment. You only need to enter the average cryptocurrency mining rate on the “farm” and select the currency of interest. Knowing how to mine ETN, as well as the Ethereum exchange rate against the dollar, you can correctly calculate your own profit.
How much can you earn
Your possible profit depends directly on the capacities of the "farm", which will mine cryptocurrency. If there is no way to assemble a "farm", you should use a stationary computer that is equipped with a high-performance graphics card. For example, on an Nvidia GeForce GTX 1060 video adapter, you can earn from two to four dollars a day. Such a small amount indicates that mining is becoming an increasingly complex process that requires a lot of time. When the cryptocurrency just appeared, even the weakest video adapter could mine up to ten thousand bitcoins per day.
To increase profits, you will have to assemble a “farm” of four or five video cards that are paired with a high-frequency processor. With a design equipped with five GTX 1060s, you will make a profit of up to $ 20-25 a day. However, it is worth considering the fact that with increasing power, energy costs will also increase.
How to get real money
Having started mining ETN, you involuntarily think about how to turn cryptocurrency into familiar money, for example, rubles. There are several ways to do this:
- Online exchangers.
- Direct sale.
- Calculation of digital currency in online stores.
The first method is the most optimal. There are many services on the Web that offer their services for exchanging cryptocurrency for the state. You just need to choose the most favorable rate, indicate the face value that needs to be changed, wallet address and card details to receive money.
You can also find someone interested in buying ETH. In this case, you will have to agree on the course in advance and exchange the Ethereum wallet addresses. In online stores, they are increasingly starting to implement a cryptocurrency settlement system. You can order any product you like by paying for your purchase on the site with ethened ETN.