The Ultimate Guide to Start Mining in Ethereum Coins 2022
Cryptocurrency is a digital currency secured by cryptography. Unlike traditional currencies, you cannot forge fake digital currencies and push them into circulation. The two most popular cryptocurrencies today are Bitcoin and Ethereum. Most people know that Bitcoin is equivalent to $44,000.59. However, very few people know about Ethereum. When you have the question, what is Ethereum (ETH)? This article will help you learn about it.
Ethereum is the second most popular crypto coin globally, with a market cap of $374,384,321,886. As per recent data, the price of one ETH coin is around $3,130.32. There are two ways of owning Ethereum coins; you can buy them from the exchange with traditional currencies or mine these coins.
Now when you have a clear understanding of what is Ethereum, read about different stages of mining ETH coins:
Select Your Mining Approach
There are three different mining approaches for Ethereum, including Polo, Solo, and Cloud Mining.
- Pool Mining
It is the most straightforward way to mine ETH coins, especially if you don’t have much hardware. However, Ethereum mining is difficult and time-consuming, and pool mining allows miners to combine their computing power to solve Ethereum blocks in less time.
- Solo Mining
Solo mining needs considerable hash power and is quite complex. To solve the Ethereum mathematical puzzles yourself, you need a farm of elaborate mining rigs with several graphics cards.
- Cloud Mining
It is the most straightforward approach to mine Ethereum coins. In this approach, you don’t have to buy fancy rigs or invest heavily in mining equipment. Instead, you rent the equipment of other miners, and they will mint the coins for you for an upfront payment.
Open a Cryptocurrency Wallet.
Before starting mining, you need a secure place to store your ETH tokens. Cryptocurrency exchanges provide users with a digital wallet to keep their cryptocurrency assets safe. Cryptocurrency wallets are just like banks that hold your money.
Get the Right Hardware and Software for Mining
Mining cryptocurrency needs a powerful computer, and the hardware you need depends entirely on the mining approach you choose. Here are some details of the hardware and software you will need for Ethereum mining.
- A computer with one or more dedicated GPUs
- An Ethereum mining operating system.
- GPU drivers that enable communication between GPU and operating system
- A wallet to store your mined ETH coins
Select a Mining Pool
Mining pool refers to miners pooling their resources for mining and sharing the rewards equally. You need lots of processing power for mining ETH coins and building a powerful rig to solve complex mathematical puzzles is not easy. Hence, pooling the power of a computer on a network is an easy and affordable solution.
There are several mining pools, and they vary in structure, hash rate, pool size, payout, and fees. The block-solving speed and payout are two essential things when selecting a mining pool.
Reap Your Rewards
Once you have set up infrastructure and signed up for a cryptocurrency wallet, you can start participating in the mining process and collecting ETH coins. If you join a mining pool, you will receive payouts in periodic installments as per the block-solving success of your mining group.
To sum up, mining ETH coins can be an excellent way to build wealth. As per recent data, the price of ETH is expected to rise around 102%, which means your wealth will be doubled in a year.
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