What is Ethereum Mining?
Ethereum is one of the easiest cryptocurrencies to mine, using idle computer resources to earn daily revenue in Ethereum (ETH). This is especially true if you have a high end computer, as they usually have the necessary hardware to mine Etherum. This guide will cover the basics of Ethereum mining and will get you started in less than 5 minutes. In order to get mining, you’ll need a Graphics Processor (GPU). GPUs are usually in gaming computers and high-end computers (eg MacBook Pro or Dell XPS).
Ethereum (ETH) is the cryptocurrency used on the Ethereum network – decentralized smart platform for running decentralized applications (dApps) and decentralized finance (DeFi). To learn more about Ethereum check out our Ethereum Guide.
Note: If you don’t have a GPU, check the bottom section of this guide and we’ll teach you how to buy and install one.
How Profitable is Ethereum Mining?
Daily Revenue from mining rewards differ everyday – this is because mining difficulty changes and hence the daily reward. Check out the latest up-to-date daily revenue for different hardware on https://whattomine.com
|Daily Revenue||Yearly Revenue|
|Nvidia RTX 2090||$0.50||$182|
|Nvidia GTX 1060||$0.30||$109|
Potential Revenue mining Ethereum (Calculated on Oct 29 2019)
Easiest way to mine Ethereum (Honeyminer)
Honeyminer is an all-in-one mining solution that automatically mines on your computer without any technical knowledge. Honeyminer automatically joins a mining pool, so you can get daily payouts of the revenue you generate from mining.
Once installed, the software will automatically mine the best cryptocurrency (including ethereum) using all available hardware – both CPU and GPUs available on the machine. To see the daily revenue, open up the “see full activity panel” to get a breakdown of the hardware being used.
When Honeyminer is running, the computer’s hardware will get 100% utilized. It’s still run simple tasks on the computer, like web-browsing or composing emails. However, running video games or editing photos/videos will become slower. It is advised to turn-off honeyminer when doing resource intensive tasks.
It is important to note that Honeymoney will mine the most profitable cryptocurrency at the time (including ethereum) and convert the revenue into Bitcoin (displayed in Sats, satoshi). If you want to specifically mine ethereum and earn ethereum, check the advanced guide below.
One disadavantage of Honeyminer is the platform fees. Currently, Honeyminer takes 8% fee for the 1st GPU and 2.5% for additional GPUs. This means a portion of the revenue will go to Honeyminer. If you don’t want to pay platform fees, you can try the advanced Ethereum Mining option
To install Honeyminer, download it here: https://honeyminer.com/
Operating System Requirements
To mine Ethereum, you can easily use any modern operating system: Windows 10, MacOS and Linux. For beginners, it’s suggested to try out HoneyMiner on either Windows 10 or MacOS to get the feel of mining. This is because it’s the easiest to setup up and can work alongside regular tasks on the computer. For higher mining performance, a dedicated linux based operating system is recommended – this allows for optimisation of the caching properties and remote management. Currently popular custom mining OS include: HiveOS, NicehashOS and ethOS.
Advanced Ethereum Mining
There are 3 main software miners for mining Ethereum. For each of the Ethereum mining software, there are advanced settings possible such as customization for the memory usage, caching and efficiency. For example, Claymore’s Dual Ethereum miner have advanced options such as optimized memory timings (increase performance by ~10-20%) and support for mining pools. Top 3 Ethereum miners are:
Ethereum Pool Mining
There are two main ways to mine ethereum – solo mining or pool mining.
Pool Mining (working together)
- Work with others to mine and share rewards
- Get paid per share, on a hourly or daily basis
- Less random / dependent on luck
- Pools take some fees (0.5-3% depending on pool)
- You mine the entire block reward (3 ETH per block) – no pool fees
- Random Chance and probability – you can go days or months without rewards
- Not viable if Hashrate is low – single GPU will take years to mine a block
Is it possible to solo mine Ethereum in 2019
Currently it’s not feasible to solo mine Ethereum in 2019. It would take 67 years for a solo miner to solo mine a block (assuming 30 MHash/s and current total hashrate of 181 THash/s). This would mean it would likely take an entire lifetime before the solo miner finds a block with a single GPU.
Ethereum Cloud Mining
In 2019, Ethereum Cloud mining contracts are not profitable. This is because mining has become more competitive with lower margins – forcing miners to reduce costs. Cloud mining is hit the hardest because of they have large overheads like advertising spends and legal costs. In our latest research, we found that cloud mining providers were charging 184% for the same hashrate than home-made solutions.
What is Ethereum ProgPoW and how does it impact mining
ProgPow is a proposed extension to the mining algorithm of Ethereum, designed to resist centralization of miners via ASICs (specialized mining equipment). The ProgPoW upgrade is meant to help Graphics Cards become more competitive by using more RAM and features unique to the GPU. Overall this will help Ethereum mining be more accessible and viable with commercial off-the-shelf hardware. Currently ProgPoW is in an ‘audit’ phase, and if passed will be included in Ethereum’s next hard fork.