Making some basic supplies a source of passive income
The word mining originates within the context of the gold analogy for cryptocurrencies.
Simply put, Ethereum mining is the process of maintaining the Ethereum decentralized distributed database or ledger through solving complex mathematical problems in order to confirm transactions to the rest of the network by including them in blocks — hence its importance.
Why should you make the effort to mine Ether (ETH)?
Nowadays, ETH is the second prominent cryptocurrency in the world after Bitcoin.
You can buy Ether with cryptocurrency exchanges, but mining is considerably a lot more profitable.
- You’re valuable : being an active member of the blockchain, mining makes you contribute to the stability and enforcement of the network.
- It’s an easy way to get Ether (ETH) : mining is more guaranteed than trading and has better cost investments to start obtaining cryptocurrency.
Ethereum Hardware overview
Ethereum mining is considerably a lot of more profitable than mining other altcoins (alternative cryptocurrencies).
Using the Ethash algorithm, powerful GPUs are essential. In order to make some profit, you need to have the right gear at the right price.
Before assembling your core equipment, you will need different components first :
An effective motherboard for a mining rig will allow up to at least 6 graphics cards but you can start with less for your first rig.
Make sure it’s compatible with the deployment of multiple GPUs.
Since all the wokload for mining will be executed on the GPUs, you can just take any processor generation that are compatible with the 1151 socket.
We recommend buying
Power Supply Unit (PSU):
Your choice depends on how many GPUs you’re going to handle for your Ethereum mining rig. Any PSU with at least 1000 Watts is recommended like the digital power supply
Efficient Ethereum mining won’t require much RAM, so just get a cheap DDR4 Stick of 4 GB. Just enough to run your OS. You can get something like the Patriot Memory
An SSD would be your best choice, even a 100GB could be enough to hold your
operating system and your mining software.
Unlike Bitcoin mining, Ethereum mining can be done with a Graphical Processing Unit (GPU) only. Your choice will depend on 3 factors, Vram size, Hash rate and Power consumption. You can also use the website miningbenchmark to check different GPUs and how they perform.
As time goes on, and people solve more problems hence creating more blocks on the chain, the difficulty of these calculations will increase. In order to keep up with the competition you will need a very powerful and efficient GPU. We recommend buying several ones like :
Installing these GPUs will require more components such as PCIe slots which can be found here :
Power cables to ensure your GPUs are fully functional
With all of this set up, you’re ready to mine Ethereum.
Upcoming Changes :
Ethereum is a whole sector of the crypto-industry, which employs tens of thousands of people. Coins are the energy feed of the ETH network – they are needed for all internal operations (transactions, smart contracts, IEO, ICO, etc.).
However, you might want to switch mining altcoins if Ethereum decides to fork as an answer to the new ASIC miners, or if they go ahead and migrate from Proof of Work to Proof of Stake.
To know more about the mentioned topics above, you can check out some of our other articles :