After Bitcoin was introduced to the world, the economy was changed and the way we dealt with money also completely changed. Today, it is not necessary to carry physical cash with us, and there is not even a need for a bank account anymore when buying on the internet. The development of cryptocurrencies and blockchain technology has allowed us to carry digital currency with us, distributed through a network of many computers, these currencies allow for a more secure way to store your finances, pay for services rendered, get paid for providing services, and more.
As one cryptocurrency with a lot of potential, Ethereum was introduced as an alternative coin to Bitcoin, and has seen a tremendous amount of growth in just a few years. According to CoinGecko, the current Ethereum value, when converted to USD, is about to reach $1,000. The $1,000 mark is a milestone in this cryptocurrency’s lifespan, and marks the rise of a new superstar to the cryptocurrency world. Today, however, we do not want to focus as much on Ethereum itself, but rather discuss how you can get started mining your own Ether.
Getting Started Guide For Mining Ethereum
The first factor that we should cover before providing a guide to mining Ethereum is the fact that, while both Ethereum and Bitcoin can be mined, there is a difference in how they are mined. With Bitcoin, miners are awarded cryptocurrency for solving complex mathematical problems through intense computing power. With Ethereum, Ether, the coins used to describe value in this network, is not awarded to the miners, but rather earned through a more complex set tasks that need to be completed by the miners.
When you decide to get into Ethereum mining, the very first step is to choose whether you will purchase your own equipment for mining, or rather choose to sign a contract with a cloud mining company. Both have their own advantages and, of course, disadvantages, but it should be noted that using your own hardware do tend to hold a significant initial investment, and breaking even can take several months.
Should you choose to mine Ethereum yourself, then you should start by choosing the hardware that you will equip your miner with. While both CPU and GPU power is important, it should be noted that the GPU of the miner computer tends to have a more significant effect on the computer’s ability to mine for Ethereum. Thus, try to favor a better GPU over the CPU, but try not to purchase a CPU that will not be powerful enough to handle the tasks that need to be performed in order to earn Ethereum.
The alternative option is to choose to sign a cloud mining contract with a company in order to mine Ethereum. This option takes a lot less initial investment, and many people find that they are able to reach a break-even point sooner when they opt for cloud mining as compared to buying their own hardware. When choosing a cloud mining company, it is important to do some research first and read reviews on your top choices to ensure you make the right decision.
Conclusion
The Ethereum network also allows for individuals to mine the blockchain for Ether, but there are some distinct differences between how Ethereum and Bitcoin are mined. For this reason, it is important for a person wanting to mine these coins to be aware of these differences, and to know exactly what steps they should follow in order to effectively mine Ethereum. In this guide, we have explained how to get started the right way should you want to start mining Ethereum yourself.
About Kevin Lee
Kevin Lee is a former tech advisor who cut his teeth in Silicon Valley. He now spends his time sharing his passion for investing in diamonds and jewelry. You can reach Kevin for any comments by using the contact form on this site. Don't forget to sign up for his free "Investing 101 Guide" by clicking on the button at the top right of this website.