A complete guide on Ethereum mining
While everyone is talking about Bitcoin, its main competitor - Ethereum (ETH) is developing at a rapid pace.
Ethereum, like Bitcoin, is based on blockchain technology and allows payments. But Ethereum can be called an “advanced” counterpart. Platform transactions are processed faster, there are smart contracts, and even its own Kickstarter.
The market capitalization of Ethereum recently reached $240 billion, and the financial giants as Visa and Mastercard began working with cryptocurrency for the first time.
Not only by large companies and investors are interested in Ethereum, but also by miners. Mining Ethereum is one of the most profitable today. DaggerHashimoto algorithm is used for mining.
What is mining
Mining is the production of cryptocurrency through computations. This is a mutually beneficial process: miners keep the Ethereum network up-to-date with their calculations, and the network pays them a reward for this.
In principle Ethereum mining is similar to generating other cryptocurrencies. Ethereum is based on the Proof-of-Work (PoW) protocol. All transactions must be confirmed and verified during the mining process, and then written to a block of transactions. Special cryptographic calculations are used to discover new blocks.
Ethereum block appears every 14 seconds. The reward is received by those participants who managed to find a unique value of the hash function. After completing the task, the discovered block is saved in the Ethereum blockchain.
The amount of computation required to discover a block is enormous, so most of the participants join up into mining pools to work together. You can also mine solo, but in order to receive income at solo mining you need to have at least 100-200 GPUs.
How profitable is Ethereum mining
Nowadays, Ethereum mining is very profitable. Any suitable graphics card provides a significant amount, even if you have expensive electricity.
You can easily estimate the profitability and hashrate of your video card when mining Ethereum and other cryptocurrencies in the mining calculator or look at the Table of the best video cards for mining.
Benefits of Ethereum mining
- Modern video cards allow you to get maximum income from Ethereum mining. Other algorithms/cryptocurrencies bring much less money to miners.
- Video cards heat up less during the extraction of Ethereum, and therefore have longer lifetime.
- Investments. You can store the extracted Ethereum and wait for further rate growth.
- The decentralized financial system and smart contracts set Ethereum apart from its competitors.
- The value of Ethereum is underpinned by a modular blockchain platform that allows developers to build applications without having to create their own blockchain.
What you need for mining
The minimum set of tools that are needed for mining looks like this:
- A computer with at least one video card
- A miner application
- The pool you will mine for
- In case you want to mine “directly” you will also need an Ethereum wallet. If you mine with Kryptex, you don't need a wallet
What equipment to choose
A mining computer doesn't have to be powerful. But you need to pay special attention to two components - the video card and the power supply.
The most important thing in Ethereum mining is choosing the right GPU. The main criterion is the amount of video memory. The minimum is 6 GB. It's because of a growing DAG file.
What is a DAG file? This is a specially formed file that is loaded into the memory of the video card. For every 30 thousand found blocks of Ethereum, the size of the DAG file increases by 8 MB. Therefore it is better to have memory with a margin. Now the size of the DAG file is 4.2 gigabytes and it is gradually growing. Some more space in the memory of the video card is occupied by Windows. Therefore, it is not recommended to take cards with 5 gigabytes of video memory - they will turn off soon.
The second criterion is performance or hash rate. It shows how many cryptographic operations the card makes per second. This parameter can be found in the table of the best GPUs for mining.
New products from AMD and NVIDIA are perfect for generating Ethereum.
AMD Radeon RX 6700 XT, Radeon RX 6800, Radeon RX 6800 XT, Radeon RX 6900 XT
NVIDIA GeForce RTX 3060 TI, GeForce RTX 3070, GeForce RTX 3080, GeForce RTX 3090
Important Be careful when buying a GeForce RTX 3060 as NVIDIA has added mining protection. It can be bypassed, but it will require additional configuration steps.
Let's not forget about old but still actual video cards:
AMD RX 570 8 GB, RX 580 8 GB, RX 590 8 GB, RX 5700, RX 5700 XT
NVIDIA GeForce GTX 1660, GeForce GTX 1660 Super, GeForce GTX 1660 TI, GeForce RTX 2060, GeForce RTX 2060 Super, GeForce RTX 2070, GeForce RTX 2070 Super, GeForce RTX 2080, GeForce RTX 2080 TI, GeForce RTX 2080 Super
Important! GeForce GTX1080, 1080ti, Titan X (pascal) and Titan Xp GPUs can also mine Ethereum, however, they require special overclocking to fully unleash their potential. Moreover, they consume quite a lot of energy.
Power supply unit for mining farm
Pay special attention to the PSU. You should not save on it, even if only one video card is involved in the Ethereum mining.
If you are building a rig (a computer specifically for mining with several GPUs), you can use a 1000-1200W PSU or two PSUs connected through a synchronizer.
How to choose the power supply for mining
- Sum up the power consumption of all video cards in your computer. It is best to use the maximum power consumption (TDP).
- Add approximately 100 watts for the processor, motherboard, and hard drive. If you have a powerful processor and several disks, this parameter may be higher.
- Multiply the calculated power by 1.25 to take into account the efficiency of the power supply.
- Choose a power supply that can provide you the power you need.
Let's say you have a computer with two video cards. Sum up the power consumptions:
- Nvidia GTX 1660 Super - 125W
- Nvidia RTX 2060 Super - 175W
- Processor, motherboard, disk - 100 W
The total power is 400 watts.
Then multiply it by 1.25 and you get the minimum power of the power supply unit - 500 watts.
Any modern CPU will do. You can take the budget series Intel Celeron/Pentium or AMD Athlon. The processor power does not matter for Ethereum mining.
4 GB is enough. The memory frequency can be ignored.
Any with support for multiple GPUs. If there are not enough PCI-e ports, the cards can be connected through risers.
Any will do. Typically, 120-240 gigabyte SSDs are installed.
Choosing a miner program
Mining is done using a special application - a miner. There are several of them and each has its own features. For example, some miners only work on Nvidia cards and some only on AMD cards. In addition, they often give different profits.
All the most popular miners are already built into Kryptex. In addition, the hardware bencmark system selects the optimal miner for each of GPUs.
If you choose a miner yourself, here is the list of the best miners:
- Phoenix miner
- T-Rex miner
- TeamRed miner
To find the most profitable miner, you need to download, configure and run them all. It can be quite difficult to do it manually. Kryptex does it all automatically.
Choosing a mining pool
Choosing a mining pool is not an easy task. You can focus on the capacity, the size of the commission and the minimum payments.
A complete list of all pools can be found at https://miningpoolstats.stream/ethereum
Kryptex has its own mining pools for Ethereum, Expanse, Monero, Ravencoin and Ubiq cryptocurrencies.
How to start mining Ethereum
Let's move on to the most important thing - mining. To do this, you need to configure and run the miner.
Ethereum mining with Kryptex
Mining Ethereum with Kryptex is very simple.
In about a day you will earn enough money for the first withdrawal.
Mining Ethereum directly
The first step is to create a configuration file for the miner you will mine on. A config file is a .bat file used for mining. All miners work in the command line interface, so it's more convenient to run them this way.
Let's analyze its components using the example of the Phoenix Miner configuration:
PhoenixMiner.exe -coin eth -pool eth.kryptex.network:8888 -wal 0xbaef4a87e8a92ad5911bc5b0a2a02ed9867c0124/v2d66ba96a -pass -cdmport 127.0.0.1:12000 -rmode 0 -logfile 1619437073_eth_12000_log.txt -gpus 1 -rxboost 1
- PhoenixMiner.exe - the name of the miner being launched
- coin eth - indicates which coin we will mine.
- pool eth.kryptex.network:8888 indicates the pool on which we will mine
- wal 0xbaef4a87e8a92ad5911bc5b0a2a02ed9867c0124/v2d66ba96a - wallet address to mine.
- pass xxx - password.
- cdmport 127.0.0.1:12000 - monitoring port
- rmode 0 - crash recovery mode
- logfile 1619437073_eth_12000_log.txt - log file
- gpus 1 - a list of cards that can be mined
- rxboost 1 - graphics card overclocking parameters
Full descriptions of all commands can be found in the Phoenixminer documentation
After the file is created, run it. The miner will start work and will mine the cryptocurrency.
Overclocking GPUs for increasing profitability
Once you have started mining, you can overclock your video card. If done correctly, it is safe. This increases the hash rate and your profit.
Usually an Afterburner app is used for overclocking. It allows you to adjust the frequencies of the core, memory, set the power consumption limit and fan speed.
Ethereum depends mainly on the video memory frequency and usually does not use the video card core at full thrust. Therefore, it is possible to increase the hash rate and at the same time reduce electricity consumption, heating and fan noise. Take three steps:
- Increase the video memory frequency until the computer starts to reboot or freeze.
- Reduce the core frequency and power consumption limit until the hash rate starts to drop
- Set the fan speed so that the temperature does not exceed 70 degrees.
This is a basic overclock that will suit almost any miner. Advanced users can go further and do undervolting to further reduce consumption.
How to withdraw Ethereum and get real money
When you have mined enough Ethereum, the question arises: how can you turn it into real money? You can't pay with Ethereum in a store.
Kryptex has an answer to this question: it offers withdrawals not only in cryptocurrencies, but also to the bank cards and electronic wallets.
If you only have cryptocurrency, exchanges and exchangers will help you.
The most common way is to withdraw through the P2P service of the exchange Binance.
And on Bestchange you can find many exchangers that allow you to withdraw cryptocurrencies to cards, wallets and even (for relatively large amounts) - to paper money.
Register in Kryptex and start earning today!