Ethereum Mining Tutorial
Ethereum, known as the Queen of Digital Currencies, is the second most popular digital currency on the market with high hopes for its future. Due to the popularity of this network, many people have joined its miners, and this is one of the interesting features of open blockchains that everyone can participate in the mining and verification of transactions. After reading this Ethereum Mining Tutorial, you will learn how to mine Ethereum and the equipment needed to do so.
In general, to mine the Ethereum, you must go through the following process:
1- Preparation of powerful hardware system (mining rig)
2- Creating an Ethereum wallet in order to receive the mined Ethereums
3- Start working by running mining software and joining the mining pool
Before embarking on your Ethereum mining training, you should know that this is like an investment and every investment is risky. Therefore, mining Ethereum or any other digital currency does not mean plugging in the device and getting rich. Many factors, including mining Ethereum price, electricity cost, hardware cost, hardware depreciation play an important role in the profitability of mining. Also, while start mining may seem like a simple task, this activity has many technical complexities that, if ignored, can sometimes lead to hardware failure and even fire.
Therefore, before start mining, you should do a good research and answer your questions and ambiguities.
Preparation of mining rig
Mining requires a powerful hardware system and electricity. In general, this can be done with home computers or laptops, but by no means is it economically viable and cost-effective.
These days, most Ethereum mining is most done using a graphics card (GPU). Of course, a special mining device (ASIC) has also been introduced for Ethereum, but the graphic card is still the main Ethereum mining hardware. With graphics cards, many other digital currencies can be mined besides Ethereum. However, some large digital currencies, such as Bitcoin, Bitcoin Cash, and Litecoin, can only be mined with ASICs, and mining these currencies with a graphics card is not cost-effective. In the following, we will explain more about ASICs.
Therefore, since Ethereum mining is mostly done with a graphics card, in this article we will teach Ethereum mining with a graphics card and take a look at mining with ASIC devices.
To mine Ethereum with a GPU, you need to provide a “graphics card mining rig”. Rig means a pack of hardware. The graphics card rig is actually similar to a home computer case, except that it has a large number of graphics cards installed on it.
You can buy mining rigs ready-made, or assemble the parts yourself and assemble them like regular computers.
Although many pieces of hardware and components can be used in mining, an mining rig will definitely include the following components:
1. Powerful graphics card
The main part of the Ethereum mining rig is its graphics cards. You need powerful graphics cards to mine Ethereum. Certain models of AMD and Nvidia graphics are suitable for this purpose. Do not forget that not all GPUs have the necessary efficiency to mine, and it is better to choose a model that is used by many miners and has somehow passed the test.
Currently, the most popular graphics cards used for mining are the following models:
The best AMD graphics cards for mining:
- AMD Radeon RX 380 graphics card – hash power: Mh / s 19
- AMD Radeon RX 470 graphics card – hash power: 26 Mh / s
- AMD Radeon RX 570 graphics card – hash power: 27 Mh / s
- AMD Radeon RX 580 graphics card – hash power: 30 Mh / s
- AMD Radeon RX FURY graphics card – hash power: 29 Mh / s
- AMD Radeon RX Vega 56 graphics card – hash power: 36 Mh / s
- AMD Radeon RX Vega 64 graphics card – hash power: 40 Mh / s
- AMD Radeon VII graphics card – hash power: 78 Mh / s
- AMD Radeon RX 5700 XT graphics card – hash power: 51 Mh / s
The best Nvidia graphics cards for mining:
- Nvidia GTX 1050 Ti graphics card – hash power: Mh / s 13.90
- Nvidia GTX 1060 graphics card – hash power: 22 Mh / s
- Nvidia GTX 1070 graphics card – hash power: 30 Mh / s
- Nvidia GTX 1070 Ti – Hash power: 30.5 Mh / s
- Nvidia GTX 1080 graphics card – hash power: 34 Mh / s
- Nvidia GTX 1080 Ti graphics card – hash power: Mh / s 49
- Nvidia GTX 1660 graphics card – hash power: 20 Mh / s
- Nvidia GTX 1660 Ti – Hash power: Mh / s 25
- Nvidia RTX 2060 graphics card – hash power: 27 Mh / s
- Nvidia RTX 2070 – Hash power: 36 Mh / s
- Nvidia RTX 2080 graphics card – hash power: 36 Mh / s
- Nvidia RTX 2080 Ti – Hash power: 52 Mh / s
Note that the power or hash rate of each graphics card varies in different algorithms. For example, Ravencoin is mined on KawPow. The RX580 graphics card hash power is about 9.40Mh / s in the KawPow algorithm and about 23Mhh / s in the Ethash algorithm. Keep this in mind when calculating profitability.
The power of each graphics card is fixed on each algorithm, unless the development team makes changes to the algorithm that cause the hash rate to change.
Graphics cards generate a lot of temperature, so be sure to do the mining in a cool, well-ventilated room, check your device’s temperature every few minutes, or use heat alarm systems.
Also, keep in mind that the power consumption of graphics cards is very high, so a large portion of the amount of currency mined will be spent on electricity. Be sure to calculate your electricity bill before you start mining to make sure mining is cost-effective.
2. Rig chassis
The rig chassis is a means of mounting rig parts. You can prepare the chassis ready or you can make it yourself. The chassis should be such that rig components, especially graphics cards, are screwed well on it and are not unbalanced. Of course, other equipment can also be used as a chassis, and you do not necessarily need to have a completely standard chassis.
3. Proper power supply
Take this very seriously to prevent damage to parts. A 300-500 watt power supply is sufficient for home systems. But for some graphics cards you need power or powerful power supplies. For example, for six graphics cards, a power of more than 1,200 watts is required in the PlusGold version or higher. When collecting rig, be sensitive to choosing the right power supply and consult with experienced experts.
Mining does not require much RAM. For mining with 6 graphics cards, a 4GB DDR3 RAM is enough. If you want to mine more graphics cards or work on your system in other activities besides mining, you can get 8 or 16 GB of RAM.
You do not need a very powerful CPU to mine with graphics cards. For each rig with a handful of graphics cards, a fairly standard, mid-power CPU compatible with your motherboard will suffice. For more convenience when running software, you can provide processors with more capacity than required. For example, the Intel Skylake Pentium G4400 series processor is a good option for a mining rig.
6. SSD drive
You need a memory to install the operating system and run the mining software. A 120 GB SSD drive is suitable.
7. Cables required
For different connections in the sand, you need suitable cables, which are abundant in the market. PCI Express USB cables are required to connect the graphics to the motherboard.
Finally, you need a good motherboard to connect the parts. You must use a motherboard with a large number of PCI Express slots to connect multiple graphics cards. The ASUS B250 MINING EXPERT motherboard is currently the best option for miners. This motherboard supports 19 graphics cards. However, you can choose cheaper options depending on your needs.
9. Fixed internet and modem
Mining does not require very high speed internet, but it is important for its stability and continuous uncertainty. The best type of internet to mine is ADSL or TD-LTE fixed internet. The mining process does not consume much internet volume and the maximum consumption of a typical miner does not reach 4 gigs per month.
Assembly and installation of the operating system
After providing the required hardware, you must mount the components on the motherboard and chassis. This is fairly straightforward for someone who has already done computer assembly, but if you do not have experience, it is recommended that you do this with the help of an expert. There are many videos on YouTube that you can use. Just search for “mining rig assembly” on youtube.
You can use Windows, Mac, Linux and even mining operating systems to run mining software. We recommend installing Windows 10. Because you do not have a DVD driver on the mining rig, you must install Windows via flash memory. You must also install the required graphics card drivers as well as the network card driver.
After preparing the rig and installing the operating system, you now need to create an Ethereum wallet so that you can receive the mined Ethereums.
Build an Ethereum wallet
The process of Ethereum an Atrium wallet and getting its address is very simple. There are many wallets for Ethereum’s popular digital currency that you can use to your liking. Ethereum Wallet can be thought of as your bank account, which can be used to receive, store and send Ethereum.
Ethereum software wallets are completely free and can be easily installed on mobile phones (Android and iOS) or personal computers (Windows, Linux and Mac). Some wallets are also web-based and can be connected to Internet browsers (such as Chrome). But hardware wallets that are more secure are physically available and must be purchased.
The following table lists some of the best Ethereum wallets:
In addition to these six wallets, there are dozens of other wallets for Ethereum, all of which you can refer to the wallets section of the website.
Do not forget that in the world of blockchain and digital currencies, everyone is solely responsible for their own assets. Therefore, it is important to back up your wallet so that you can recover your money if your wallet password is lost or the device on which the application is installed crashes. So far, access to millions of dollars of capital has been lost simply because of the ease of backup. Wallets often serve as a backup to the user of a set of 12 or 24 English words that you should write down in a safe place. In this way, the user with those words can easily access their assets in any other wallet.
Join a mining pool and get started
After preparing the Atrium equipment and wallet, we now come to the most important part of the training, which is getting started.
To mine Ethereum or any other digital currency you need to join an mining pool. Simply put, a mining pool is a virtual location where miners assemble the power of their hardware and everyone tries to mine it. In this way, each miner or miner benefits based on their processing power.
Due to the vastness of the mining space, today, without joining the mining pool, your chances of making a profit from mining will be very low.
There are many mining pools for Ethereum, each of which can vary according to its processing power, fee and quality of service.
The three Ethermine mining pools, 2fpool and SparkPool, are among the best Ethereum mining pools. Here’s how to put one together for use with your pool. But the connection to the rest of the mining pools is done in almost the same way. Ethermine is one of the oldest and most reputable Ethereum mining pools.
The process of starting the mining work in Ethermine is as follows:
- Download mining software (in this PhoenixMiner tutorial)
- Edit software config file
- Run the software and start the mining
You need software to connect to the mining pool. With one of the following software, you can connect to the Ethermine mining pool:
In this tutorial we will introduce PhoenixMiner software. PhoenixMiner mining software is one of the best Ethereum mining software with graphics card. This software supports both AMD and Nvidia graphics cards. Be sure to read the development team instructions on the download page before running the software.
After downloading the software, decompress it, in the software folder, right-click on the “start_miner.BAT” file and select Edit. Then edit the bottom of this file and enter the settings you need.
In front of the phrase “pool-” should be the mining pool server. If you are carrying out mining operations in Asia, it is better to use the address of the Asian server of Ethermin Pool, which is as follows: asia1.ethermine.org:4444
You must also specify a second server in front of the phrase “pool2-” so that if the first server fails, the mining operation can be performed on the second server. We suggest you select the European server for the second server: eu1.ethermine.org:4444
In front of the word “-wal” you must put the address of your Ethereum wallet to be transferred the mining bonus. Leave the rest intact and save the file in the same bat format.
Now by executing the saved bat file, the extraction operation begins. There are also many videos on YouTube about running mining software.
ASIC devices for the Ethereum?
Until two years ago, only graphics cards were used to mine Ethereum economically. With the use of graphics cards, it is possible to mine from most people, especially people who love technology, because today the graphics card is used to play and run graphics software. This causes the Ethereum network to be largely decentralized. But graphics cards are not as powerful as ASICs.
The word ASIC stands for “Application-specific Integrated Circuit”. In other words, an ASIC chip is designed for a specific purpose or use. With this in mind, an ASIC can be used for any device, but today we see the main application of this idea in mining devices.
In early 2018, Bitmain, the largest manufacturer of mining equipment, launched the Antminer E3 for Ethereum. With a hash power of about 180MH / S and a power consumption of 800 watts, the device was officially unveiled as the first Ethereum miner. Innosilicon is another manufacturer of ASIC devices that continues to market new devices for mining the Ethash algorithm.
ASIC devices are many times more powerful than graphics cards and offer a faster return on investment for miners at lower cost than mining rigs. It is also very easy to set up ASIC devices, such as ADSL modem settings; All you have to do is turn on the machine and enter the mining pool information in the software of this machine. Today, the mining of digital currencies such as Bitcoin, Bitcoin Cash, Litecoin, etc. is done only with the ASIC device.
Risks associated with ISIC devices
Ethereum developers oppose ASIC devices. The main reasons for this opposition are simply:
Graphics card holders can no longer make a profit with the advent of ASIC devices and are giving up support and maintenance of the Ethereum network.
The use of ASICs puts the hash rate and network processing power in the hands of a wealthy minority, but the graphics card has other uses as well, and distributes the mining.
Decentralization, which is the most important principle in any digital currency, is under threat. With ASICs, a large group of miners can compromise network immutability and go against network goals.
Simply put, with the entry of ASIC devices into the market, Ethereum Miners faced two major risks:
1. For miners who do mning with graphics card, ASIC is a big risk because with the mass entry of ASICs into the mining process, the network hardness will increase and mining with graphics card will no longer be useful.
2. On the other hand, there is this risk for those who intend to mine with ASIC, because the main developers of Ethereum are strongly opposed to the entry of ASICs into this process and are determined to resist ASICs.
That being said, buying an ASIC device for Ethereum, even if it is available, carries a lot of risks, as the developers may change the algorithm at any moment and the ASIC devices will become useless.