Today, Ethereum is the second top-known cryptocurrency or digital currency in the mining market. The best part is Ethereum mining has become easier now through specialized graphic cards. An extensive mining guide is available in the market for beginners as well as experienced miners. If you have a keen interest in mining cryptocurrency and want to start mining Ethereum, you might have a lot of questions in your mind regarding this. Continuing the discussion, here are some of the FAQs related to Ethereum mining.
1. Which is the best GPU for mining Ethereum (ETH) that uses least electricity?
At present, AMD cards priced similar to NVidia cards are the best option for mining ETH in terms of efficiency.
2. How to start mining Ethereum?
There are many ways to get started Ethereum mining. If you love technology and have sufficient budget too that you buy a mining equipment and start mining Ethereum on your own. In case, you want to invest in the mining but do not have enough budget that you can buy a mining hardware, then joining an Ethereum pool is an ideal option. In the beginning, join a small mining pool and get block rewards as per each miner’s effort. Apart from this, you can sign a yearly, two year, and lifetime Ethereum cloud mining contract in order to earn profits on ROI.
3. Which GPU miner to use for mining Ethereum easily?
Previously, AlethOne miner was used to mine Ethereum. Now, Claymore miners are used for mining Ethereum.
4. What are the other ways of mining Ethereum with laptops, specialized ASIC hardware, and virtualized environments?
As long as the system or PC on which you usually works meet the basic needs and has around 3GB RAM then you can easily mine Ethereum (ETH) on your system only. In addition, gaming laptops have high-end card, so head generated from Ethereum mining will have an impact on your laptop.
Therefore, it is advisable to opt for desktop build. When talking about the virtualized environments, people rent the dedicated GPU that are not profitable enough. Till now there are no dedicated ASICs made for Ethereum mining. These specialized chips are profitable for Bitcoin, Litecoin, and Dash mining; however Ethereum home-built mining rigs are still profitable. Ethereum can be mined at home, but Bitcoin can’t be mined successfully on PC or laptop. It requires the powerful ASIC technology for mining.
5. My Ethereum Mist wallet has some syncing problem, so in place of it can I use Ethereum wallet address for ETH mining?
Yes, you can make use of ETH wallet address in order to mine Ethereum; however some exchanges doesn’t allow mining or small deposits in case mining is done directly to address. Another good option is downloading a mist wallet as it will allow to manage Ethereum wallet address and gives you full control of private keys.
6. What are the benefits of mining Ethereum?
There are plenty of benefits of mining Ethereum such as –
• Mining is an ideal way to purchase high end GPU (2 or 3).
• As Ethereum is the second popular cryptocurrency after Bitcoin, people are investing in this technology. Most of the influential people are investing in this digital currency.
• Mining Ethereum might be an ideal way to earn cash or fill bank account. This cryptocurrency can easily be sold on major exchanges, including Coinbase, Gemini, Bitfinex, Kraken, and BTC-e.
• To Ethereum markets, mining is a cheap way that is loved by investors. If you have the skills of a good trader or a lucky one, you can earn more and more profits through Ethereum mining.
• Now, building a big ETH position is possible with Proof-of-Work algorithm that enables investors to earn profits on holdings.
• Despite knowing the doubts of Ethereum approach and failure of DAO, if you are among the ones who believe in Ethereum concept, you can start mining Ethereum through different methods depending upon your budget and interest.
7. How blockchain of Ethereum is different from Bitcoin’s blockchain?
In comparison to Bitcoin (BTC), Ethereum make use of different hashing algorithm and this feature makes it contradictory to specialized hardware, such as ASICs. Algorithm used in Ethereum is called as Ethash. This is a memory-hard algorithm that is designed to withstand the development of ASICs for Ethereum mining. The algorithm is apt for GPU mining.
In a nutshell, if you are a smart investor, don’t wait, invest in cryptocurrency mining or start Ethereum mining with Hashgains, one of the leading cryptocurrency cloud mining service providers and earn profits.