Ethereum Mining or Trading – The Complete Guide
Ethereum Mining The Complete Guide, the yearning for a better and easier digital operations is what gave birth to Crypto currency or what is known as digital currency.
There are hundreds of digital currencies in the market today. One digital currency that seeks to fulfill this yearning is Ethereum. The Ethereum platform is stocked with several applications that help users carry out everyday tasks in a simple fashion.
How Ethereum Mining Works
Ethereum mining is the process of mining Ether. It is a work that involves intensive computation and requires a lot of energy and power. It is the act of participating in a given peer distributed crypto currency network in consensus.
Ether is an absolute essential, serving as fuel for the smooth running of the Ethereum platform. It is more like an incentive used to motivate developers to create top notch applications. Sub sequentially, the miners are rewarded with Ether for providing solutions to challenging math problems. This is carried out by putting the computer’s hardware to use with mining applications.
The crypto currency transactions that was carried out on the platform must be embedded in data blocks. Each data block is linked internally linked to several other blocks, thus creating the blockchain.
Every developer seeking to engage and make use of smart contracts on Ethereum blockchain need Ether to proceed. It is more like the fuel for running the Ethereum platform. You can also decide to sell your Ether after mining.
Mining in Ethereum is also investing in Ether. A miner is an investor who provides the time, computer space and electricity for sorting through blocks.
For the validation of blocks in consensus, each block must have a proof of work of the given difficulty. The algorithm for validation is called Esthash.
In Ethereum mining, the difficulty is adjusted dynamically so that the network produces one block in every 12 seconds on an average. A plus to the synchronization of the system, it is not possible to rewrite history or maintain a fork except the individual attempting to do so has over half of the mining power in the network.
You can mine Ethereum from the comfort of your home. What it requires is script writing and some knowledge of the command prompt. Once the process is broken down into manageable steps, everything becomes very easy.
Things You Need To Know
It takes a lot of electricity to mine Ether. However, if mining practices are carried out efficiently more income is generated through the sale of Ether. There is no need to get worked up since you’ll get a profit at the end. Ethereum mining calculators are available for calculating profits.
You can use your personal computer to mine Ethereum, so long as it has a graphic card in the system with at least 2 GB of RAM. Using a Central Processing Unit is not recommended. It will only turn out to be an exercise in frustration. As it takes and extended period to complete, and the cost of running it makes the profit to be so little. GPUs are far better as they run 200 times faster than CPUs when it comes to mining Ether. Also AMD cards are more efficient than Nvidia cards.
It is also imperative that you create a lot of free space on your computer system’s hard drive. About 30 GB should be sufficient for the blockchain and other software.
Steps to Mining Ethereum
- First Download Geth application. It is an application that helps link you to the Ethereum platform at the same time coordinating your hard drive contents and reporting new development that require action on your part.
- Unzip the Geth application as it usually comes in a zip file. Transfer the file to the HDD. The C: drive is usually best for this.
- You will need the Command Prompt to execute the installed application. If you are unsure about this you can search in Windows for ‘CMD‘, then click on it from the search list.
- Locating Geth is the next step; type in ‘cd/’ into the command prompt terminal; this is an instruction to change directory. ‘C:>’ should be highlighted now, which means you are currently in the C: drive.
‘C:UsersUsername>’ the username placeholder being the name of your computer and is the usual display format by the command terminal.
- The next step is to create an account. To make a call to ‘Geth; type in ‘geth account new’ followed by the enter key. The command terminal should display ‘C:>geth account new.’
- At this stage you are to provide a password. You should exercise much care here. Be sure to remember your password, if need be write it down and be sure to type it in carefully. Press enter once again after typing in the password, and your new account will be created. Protect your password with Lastpass
- Before anything becomes fully operational, the Geth application need to link up with the network. Just type in ‘geth -rpc’ in the terminal and then press enter. This action starts the download of Ethereum’s blockchain and synchronizing with the global network. This process being time intensive is dependent on how large the blockchain is currently and the speed of your internet connection. You must wait for the completion of this process before mining.
- Now you need a mining software which aids your GPU in running the hash algorithm required on the platform. Ethminer is recommended for this heavy lifting.
- Install your mining software. Be it Ethminer or any other type of your choice.
- This time you need to repeat step 4 in a new command changing the command directory. To open a new command terminal, right click on the previously active terminal icon found in the taskbar and then on the menu click on the terminal.
- In the new terminal window, type ‘cd prog’ followed by the tab key. ‘C:>cd prog’ should now be on display, press the tab key again to display ‘C:/>>cd “Program Files” then push the enter key to show ‘C:Program Files>’.
- Now to go into the Ethereum mining software folder, type ‘cd cpp’ then the tab and enter keys. Press the tab once again and the terminal should now display ‘C:Program Filescpp-ethereum>’.
- To start mining with your GPU, type in ‘ethminer -G’ then press enter. The mining process will be initiated after building the DAG (Directory Acylic Graph), which is a large file stored in the RAM of your GPU for the purpose of making it ASIC (Application Acyclic Integrated Circuits) resistant. Before getting to this point, ensure that the space on your hard drive is sufficient enough.
- On the other hand, if you call for it, CPU mining can be done. Just type in ‘ETHMINER’ then enter the key start the process. The building of a DAG is still required in this step after which Geth takes over communication with Ethminer.
Where to Invest Ethereum
Investing in Ethereum will be great way to make higher profits. But you need to know where to invest your money to get a higher return. If you really want to invest for a higher ROI, then Markets.com is the best platform for investment. They are the leading investment company around the world. To get a higher return on investment, just signup to markets.com. The minimum deposit amount is $100. Happy Investing!