How to Mine Ethereum?
There has been much hype on the increase in the value of cryptos these days, so I thought let me share my point of view about it and also clarify the question arising in your mind about why aren’t we mining Bitcoins, which on the contradictory has more value as compared to Ethereum.
Bitcoin indeed has a very high associated value compared to Ethereum. Having that in your wallet is what we can flaunt. Let us see why we are not focusing on mining them or saying that it is not preferable to mine Bitcoin these days. This blog mainly focuses on the audience trying to mine from home and does not have an exhaustive/large setup. Mining is considered even more profitable by those who work from their laptops and mine in the background. This does not imply that it is not profitable for the ones who do not meet similar conditions.
Before talking about why we are not going through with Bitcoin mining, let us talk about the future of Ethereum considering recent events with regards to EIP1559 which may lead people to act impulsively and give rise to skepticism for dumping all of their Ethereum at trash rates with a thought process that it might bring down the prices but I ‘think’ that over the years the Crypto is and has always been going up undoubtedly. We think that with EIP1559, the prices are likely to go up with no questions asked; hence we need to be pretty much optimistic about its growth no matter what. An interesting piece of advice is that frequently the Crypto usually does the opposite of what is logically going to make sense. It is obligatory to deal with it without having our eyes clouded/persuaded by emotional instincts. If you want to learn about EIP 1559 and how it affects miners then check out our Blog on How does the Implementation of 1559 Impact Miners?
Let us talk about Why Bitcoin mining is less profitable?
If we observe, Bitcoin has gained much popularity as compared to other cryptocurrencies. Earlier, you would have needed only a basic PC setup; you could have that pc solve complex math puzzles for you, so it is a no-brainer, and you would be rewarded for solving those puzzles in your wallet. Over time, by the year 2019, users have setup huge rigs in-house and escalated the competition for mining among the other users who used to mine with small specifications PC, along with that mining reward is cut to half every four years. You can join mining pools, but that comes with its perks, reduced profits. You can buy graphic card/s to set up your rig to enter the competition, do keep in mind that graphic cards are expensive also apart from all that, with an increase in hardware you are going to use up a lot of juice(electricity), the cost depends a lot on what is the price of electricity in your region. Keeping in mind the fact about competition in mining, hardware cost, electricity cost, and the rewards getting halved every four years for Bitcoin, most ordinary miners cannot cover up the overhead cost from the rewards gained; moreover, it all becomes non-profitable. It is time to move on to a different and second most popular cryptocurrency - Ethereum.
Ethereum, because of its comparatively less hype (but it is increasing day by day; hence we need to move fast), can be mined profitably but just taking into consideration the fact that we need to have a good GPU on the system to make the mining worth it, also do calculate per unit electricity cost in your region so that you can track if at all the mining is profitable. Better the GPU, more excellent the mining advantages associated as we are not alone on the job of mining, users are setting up bigger rigs in their houses/garage day by day, in turn, increasing competition.
Let’s Get to the Point.
How to mine Ethereum?
- First of all, you will need a web browser Google Chrome, Firefox, Brave, or Microsoft Edge is also acceptable.
- Now you will need a wallet because every miner needs a wallet to store the currency. I would recommend MetaMask. Once you get the payout, you would wish to utilize Ethereum to make even more money.
- Get the MetaMask plugin from the Chrome Web Store.
- We now need to download miner. Consider this, most of the miners on the internet are malicious, or at least the antivirus on your system or your Browser may consider it malicious, so you need to check that before downloading anyway. Here we are downloading lolminer v1.17 zip for Windows from Github (https://github.com/Lolliedieb/lolMiner-releases/releases/tag/1.17)
- Click on lolMiner_v1.17_Win64.zip, and it will get downloaded to your folders.
- Save the folder where it will be easily accessible.
- Right-click on the folder and click on extract all if you want to go through it in a standard way, or else if you are using 7-Zip or Win RAR, then I assume you already know your way around for this one.
- In the folder, you can see the files, and they are used for mining.
- There are some pre-configured .bat files. Keep that in mind, as this will be helpful for us later.
- Now that you have your .bat files, we need to obtain the rest of the information to configure the files.
- Go to Etheremine(www.ethermine.org). This mining pool has an international presence.
- On the top, you will find the ‘Start Mining’ button. If not the on the top left, you can see a hamburger button, click on it and find the ‘Start Mining’ button.
- Select your server from Asia, Europe, US East, US West, and so on. Also, on scrolling down, you will find all the ports(Stratum Port, SSL Port, etc.)
- Now we will be modifying our pre-configured .bat file from the miner that we downloaded.
- Find the file mine_eth.bat from your miner folder. Let’s talk about it. Your performance is going to be better on the cards over 4 GB of video memory when using typically this standard mine_eth.bat if you have a card with only 4 GB of video memory, then you have to play around with the mine_eth_4G.bat file.
- Since most users have over 4 GB of video memory, we will play around with the mine_eth.bat file. We will do ‘how to’ on the rest of the file later.
- Right-click on the mine_eth.bat file and click on edit. There is a high possibility that your Windows will come to protect your PC, so click on more info and run that anyway (we are going to add an exception to windows for this one)
- Notepad will open up there you will find ‘POOL=’ replace the address prefilled with your server address as found in point IX. After the colon ‘:’ you need to add the Stratum Port address (replace the numbers/alphabets present there with port and address)
- Following the line, you will find ‘WALLET=’ There, you need to enter your wallet public address by replacing the prefilled alphanumeric before .lol and then save the notepad file.
- Go back to the folder and double click on the .bat file, which we have edited to start the mining (command prompt screen appears)
5. Let’s learn how to read what is going on the mining screen.
- On GPU= Found share – you have found a share. Below that, you can see GPU= Accept share – here is where the GPU has started working
- Average Speed is calculated on Ethereum as mega hash per second(mh/s). The number before mh/s will provide you with a potential idea of your estimated profits.
6. To calculate an estimate of profit, go to What To Mine(www.whattomine.com)
- Under Ethash, type the number you see on your mining screen before mh/s. You can also scroll down to enter the electricity rate that is $/kWh or €/kWh and so on.
- For now, let’s keep it simple and enter mh/s. If you ask me, my hashing rate is average 63 mh/s currently (it may change consistently)
- Click on calculate and then scroll down to see that on an estimate how much $ Revenue Profit you are obtaining on a per-day rate.
7. Keep the miner running for a while, and then let us check how to read the pool.
- Head back to Etheremine(www.ethermine.org) and seek for ‘Ethereum Miner Address’ search bar
- Copy the wallet address(public key) and paste it on the ‘Ethereum Miner Address’ search bar and click search
- You will be presented with your dashboard, and here you will get all the details with regards to understanding and calculating your revenue and on pool revenue and hash rate (it will be low as we just started mining)
- Above, you will be presented with ‘Workers Active/Inactive’ , so this may turn out to be a great spot to see if you have mining rate down (I have 1/0)
- ‘Unpaid Balance’ – How much Ethereum is on the pool that you have earned, and once you have hit the minimum threshold, Ethereum will be pushed into the MetaMask wallet.
- ‘Estimated Earning’ – This shows your daily, weekly and monthly estimated earning and also can be converted into other currency formats like Bitcoin (BTC), USD, etc.
- Charts will fill up over time, and you will have the comfort to check directly when the miners are working/not working. If you have Valid Shares or Stale Shares, then you may have to check your overclock.
8. You can change the minimum payout.
- Scroll back up to ‘Dashboard’ and dropdown to ‘Settings’ tab
- You will enter your Email ID.
- Enter your IP Address
- Change the threshold. For hobby miners or since we have started out new, we need to keep it at 0.05
- To seek your IP Address, you can find it at What is my IP (www.whatismyip.org) or any other tool that you are comfortable with. This will change our threshold to 0.05 or whatever you have set.
- When ‘Unpaid Balance’ hits 0.05 in our case, the revenue will be pushed into our MetaMask wallet within 24 hours.
9. In MetaMask, we have the liberty of swapping it into another token and then using uni-swap to go ahead and add it to liquidity, earning some additional fees.
What can you do with the Crypto that you have earned?
Let’s talk about getting your money out into dirty fiat. You will have to set up something on an exchange. We have an option for Binance, Coinbase, Cryptocom. I prefer www.crypto.com. This will allow you to exchange currencies as well as you can add them to a card. You can get a debit card from them, add it to the app, and click the top button. I would not recommend keeping all your assets in cryptocom or even coinbase. I would feel better with a MetaMask wallet or an offline wallet all the way. I have shared more about the kinds of wallets you can store your Crypto in our course on BlockChain at. Do check it out as it has not only the concept of wallets but also an entire functional perspective of BlockChain Technology along with the internal functioning of mining and how miners are awarded an associated rip.