Q #2) How long does it take to mine 1 Ethereum? Answer: It takes around 7.5 days to mine Ethereum as of Septem, at the hash rate or hashing power of 500 mh/s with an NVIDIA GTX 3090 that hashes at around 500MH/s. With a GPU that hashes at around 28.2 MH/S, it should take much longer.
A complete guide about How to Mine Ethereum with methods, proof of work, and proof of stake for Ethereum mining:
Ethereum is changing the base protocol from proof of work to proof of stake and, as a result, some changes are happening in terms of mining the cryptocurrency. Although it is still being mined profitably with proof of work GPUs in 2021, that is bound to change when the protocol shifting to proof of stake is complete by end of 2021 as per the plans.
Therefore, if you want to mine Ethereum, the best method, for now, is staking at least 32 ETH to become a validator.
This tutorial will discuss both of these methods of mining Ethereum – proof of work and proof of stake, the software utilized, how it is done, and what you can do to mine in both cases.
Guide On How To Mine Ethereum
Pro-Tips: Staking is the most sustainable for mining Ethereum. Proof of work mining will end by December 2021.
Find staking pools with less investment amount if you have a few Eth, run a node on a personal computer or VPS if you understand the ins and outs of blockchain, node maintenance, and VPS setup.
Fact Check: Total Eth locked for staking in staking contract is as of October 1, 2021 is 7,805,242 Eth.
Staking rewards on a node or VPS are 6% and 5.35% on a staking pool.
Ethereum staking charts:
[image source]
Frequently Asked Questions
Q #1) Is Ethereum mining profitable?
Answer: Yes, it is profitable whether proof of work or staking. For proof of work to be profitable, the cost of electricity needs to be around $0.15 and the GPU should work at a decent hashing rate. For instance, you would need at least a GTX 1070, which functions at a hash rate of about 25.2 MH/S when mining Ethereum.
Using Ethereum mining profitability calculator, a used $180 NVIDIA GeForce GTX 1070 with a hash rate of 28.2 MH/S using the Ethash algorithm can generate a daily profit of $1.71 on a mining pool. That pays it back in 8 months. However, a new $1755 NVIDIA GeForce RTX 3090 can generate up to $7.33 in profit per day.
Q #2) How long does it take to mine 1 Ethereum?
Answer: It takes around 7.5 days to mine Ethereum as of September 13, 2021, at the hash rate or hashing power of 500 mh/s with an NVIDIA GTX 3090 that hashes at around 500MH/s. With a GPU that hashes at around 28.2 MH/S, it should take much longer. The profit returned is not equal to the amount of Ethereum.
Q #3) How do I mine Ethereum?
Answer: The first step is to select the method of mining – pool, solo, or cloud. Then create an Ethereum wallet address, which you will use to get paid. If it is a cloud, simply select a good Ethereum cloud mining company and purchase a package. If using solo, buy GPUs that can mine Ethereum profitably and my solo or connect them to a mining pool.
Q #4) Can I mine Ethereum for free?
Answer: Yes, there are multiple cloud services that allow you to mine for free when testing their services. A few others will actually allow you to mine for free without any commitments at any time, but those will be very little earnings. In a nutshell, you will need to either buy a GPU, purchase a cloud mining package, or stake Ethereum to mine profitably.
Q #5) Can I still mine Ethereum?
Answer: Yes, until December 2021, when proof of work mining will become obsolete. The network’s detonation difficulty bomb data is in December following the EIP-3554 update. After this, you can stake Ethereum for profit, which is a method that replaces proof of work Ethereum mining.
Q #6) How many Ethereum can I mine a day?
Answer: It depends on the mining hash rate of your GPU, mining difficulty, and GPU efficiency. For instance, with a hash rate of 750 MH/S, that’s around 0.01416587 Ethereum at a difficulty of 9,148,751,736,166,109.00. with a single RTX 3080 giving off 98 Mh/s of hash rate and propped on Ethermine.org or a similar Ethereum mining pool, you would mine 0.006 ETH per day.
Methods of Mining Ethereum
Recommended Crypto Exchanges
Pionex
Pionex – The mined Ethereum can also be sent to a hosted wallet on Pionex, which can be used for auto-trading cryptos with a bot. Pionex also supports centralized order books and its stats show it has huge liquidity for Ethereum traders.
For Ethereum traders, the Pionex exchange supports deep liquidity books from HUOBI AND Binance. The exchange also supports trading crypto against USDC and USDT so you can hold the value in times of volatility.
Features:
Trade crypto for as low as 0.05% per trade in fee.
Hold crypto in in-built wallets – custodian wallets.
Deposit with a credit card though it takes some time – up to a day.
Buy up to 1 million worth of crypto in USD value.
Visit Pionex Website >>
Bitstamp
Bitstamp was established in 2011 and is therefore one of the earliest and best cryptocurrency exchanges because it is tried and tested for buying and selling Bitcoin.
However, it supports the trading, sending, holding, receiving, and withdrawing of 73 cryptocurrencies. As a trusted exchange, it has thousands of traders signed up who have completed millions of dollars worth of orders.
Mining of proof of work Ethereum cryptocurrency is not supported on Bitstamp but it has a staking option. Staking lets you store crypto in an Ethereum Bitstamp staking wallet and you can earn returns on that kind of investment.
Crypto so staked can be withdrawn at any time. The exchange lets you stake Algorand’s crypto as well. Staking Ethereum earns an APY of and the fee is 15%. You can deposit USD and other national currencies through credit cards, debit cards, SEPA, bank accounts, and wire transfers, to buy Ethereum for staking. You can also deposit and exchange other cryptos for Ethereum and then stake it.
Features:
Android and iOS apps. Web App, Linux, Windows, Advanced charting tools.
API to connect to advanced trading strategy customization tools and platforms.
Special crypto trading features for crypto trading brokers, neo banks, fintech, banks, hedge funds, prop traders, family offices, and aggregators.
Visit Bitstamp Website >>
eToro
Best for social and copy trading.
eToro allows the trading, sending, holding, buying, and selling of Ethereum and a few other cryptos. There are no mining features that are currently supported on the platform.
Features:
Trade Ethereum leveraging advancing order types, research, and charting tools.
Buy and sell Ethereum for fiat.
100k virtual portfolio when you sign up.
“Limited time offer: Deposit $100 and get a $10 bonus”
Visit eToro Website >>
Disclaimer: eToro USA LLC; Investments are subject to market risk, including the possible loss of principal.
#1) Proof Of Stake
Ethereum is moving to Proof of Stake completely by December 2021, which means ETH proof of work mining will become obsolete. Currently, you can either stake ETH to earn more of it instead of mining with a GPU, which uses more energy.
What is Ethereum Staking?
Ethereum upgrade stages:
[image source]
Ethereum staking is the putting of ETH crypto in a wallet that allows you to verify and confirm transactions while supporting and securing the network, and you earn more of ETH. ETH staking is now active following an upgrade to ETH 2.0.
To summarize the proof of stake algorithm in Ethereum, validators opt to run validator nodes by staking 32 ETH or sending the crypto in a staking wallet. The algorithm will choose, at random, who should create a block and check and confirm transactions of a given block.
Obviously, the randomness favors those with the most amount of ETH. The validators propose blocks and those are then attested by other validators.
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From the entire pool of validators, 4 to 168 random committees of 128 validator nodes are selected when a block is to be proposed. These nodes are assigned to a particular shard block and will then vote on the next validator to fill the committee apportioned slot. The weight of a validator’s vote depends on the size of the deposit or the amount of ETH staked.
Each ‘block’ or epoch has 32 slots, meaning 32 sets of committees must complete the validation process in each epoch. When a random member from the 128 nodes in a committee is given the exclusive rights to propose a block, the rest 127 will vote on the proposal to attest to the transactions.
Staking, in a nutshell, does not use computational power like mining. Therefore, it is less energy-intensive.
How to stake Ethereum for Rewards?
We can do it in the following ways:
#1) Buy 32 Eth and store in a wallet address: First, you require purchasing 32 Eth or more. You can do so from an exchange or peers. The more Eth staked, the more the rewards. Also, withdrawals are available only in future upgrades which can take 1-2 years, for instance, in a minor upgrade when mainnet merges with the Beacon Chain.
#2) Run an Ethereum staking node: Running a node simply requires downloading Ethereum 1 or 2 clients on your machine, doing the setups with the software, and ensuring it’s online. You can download and install software like Prysm, Nimbus, Teku, Lighthouse, Lodestar, and others that can run on Windows and other platforms.
The node must be connected to the Internet on a 24/7 basis. You can also run as many nodes as possible or choose to combine all your ETH into one staking node.
#3) Lock away the Ethereum or send it to a staking contract address:
The staking address in this case is 0x00000000219ab540356cbb839cbe05303d7705fa.
First, follow the ETH 2.0 launchpad and use the instructions there before paying to the address. After paying, your address becomes validated to become a blockchain validator.
During the process of paying, you create a key for signing and validating the block, and a second key for withdrawing funds. Currently, the second one can only be created when Eth 1.0 merges with Eth 2.0 in 2022.
#4) Run the node and watch out for the rules: A node can be penalized in case they break the rules. For instance, penalties like reduction (or slashing) of staked Eth or removal as validator can occur to rogue validators. Minor penalties also apply to offline validators.
Penalties and rewards are issued every six and a half minutes or epoch.
Running a node is sort of for pro-Ethereum users who understand the ins and outs of the blockchain. However, it is not hard to do for the average.
#5) Run an individual node on a VPS: You can also run a node over VPS or a virtual private server. A VPS basically rents you some computing power. It is a server physically away from your location, but online throughout, and therefore removes the need for you to run a machine and keep it online.
Once you rent, you can install staking software and other software that allows you to connect to the Ethereum blockchain for purposes of staking.
This requires some knowledge of VPS and software. You need to look for a VPS that provides at least 6 Core CPUs or more, 4-8 GB RAM, 400-500 GB SSD drive, etc. You can get options like Contabo, Strato, and Vultr.
#5) Monitor profits or earnings: For those asking about the profits from staking Ethereum, it depends on the number of Eth staked and the staking nodes. The profit currently is 6% to run an individual node and 5.35% to be on an Ethereum staking pool. As of October 1, 2021, 7,805,242 Eth is staked on the network.
Using Ethereum Staking Pools
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Just a few things to note about Ethereum staking pools. First, pools do not require each person to have at least 32 Eth – you can stake with fewer.
Using Ethereum staking pools is one of the best methods of earning staking rewards without having to run a node. The staking rewards are distributed to the pool members in proportion to the amount of ETH distributed. Furthermore, these stakings are supported by smart contracts such that the rewards are paid automatically once a pool confirms a block. Staking pools allow you to stake lesser or over 32 Eth minimum required running an individual node. Members of the pool earn rewards by combining staking power with other people in that pool. Staking power in the Eth network is judged based on the total Eth staked in the pool. Pools charge fees. Most pools issue tokenized versions of staking-locked Eth like rEth, some type of ERC-20 tokens used to track the amount of Eth a user stakes and the number of rewards they earn. But these Eth representatives are different if issued by different Eth staking pools. The top Ethereum staking pools include – Ankr, Coinbase, Guarda, Lido, StakingEther, Celsius, StakeWise, and Rocket Pool. Different pools have different annual payout yields.
#2) Proof Of Work
Proof of work Ethereum mining
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Ethereum proof of work is known as Ethash. It requires miners to perform calculations in form of trials and errors to determine a number known as a nonce for a block. The block with the valid nonce is one that is valid and thus confirmed and added to the chain of other confirmed blocks. Miners race and compete to create a block to get the 2 ETH reward for each block mined.
In proof of work, all miners receive common certain datasets ( for instance, transactions relayed in-network and some data from the previous blocks in the chain) from the blockchain and then use Ethereum mining software – which utilizes a mathematical function to combine the received data with the guessed nonce and then output the blockchain data. The output is to have a given data format or target, and that’s how the right blockchain is determined. The only variation here is the nonce.
transactions relayed in-network and some data from the previous blocks in the chain) from the blockchain and then use Ethereum mining software – which utilizes a mathematical function to combine the received data with the guessed nonce and then output the blockchain data. The output is to have a given data format or target, and that’s how the right blockchain is determined. The only variation here is the nonce. The target is valid as per the difficulty – a lower target has a smaller set of valid hashes and is easier for miners to verify it and vice versa.
Ethereum Block Time, Block Rewards, And Security
#1) Block time: This is the time within which a single block is created in Ethereum is about 10-19 seconds. Ethereum’s PoW algorithm rewards miners with Ethereum for supporting the network, verifying the validity of transactions, decentralizing the network, and of course securing the system since hashing makes it hard for anyone to duplicate data or double-spend coins.
Creating fake blocks is impossible, as is transmitting fake transactions on the network. That’s because a block must be attached to the most valid chain–the longest chain and not be malicious.
#2) A lot of computing power: 51% of the network mining power or hash power would be needed to create malicious but valid blocks that attach to the main chain. Otherwise, other miners will have to reject the malicious blocks by siding with the main chain.
Plus the energy spent on that amount of hashing power would be too huge to not justify the actions. Otherwise, forking would have to occur.
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#3) Miners are rewarded with 2 ETH currently, plus the entire transaction fee paid by users or owners of transactions in that particular mined block. A miner may also get an additional 1.75ETH in rewards for uncle blocks – which is a valid block created simultaneously and added to the successful block, for instance, mainly due to network latency.
How To Start Mining Ethereum
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Decide: Solo, Cloud, Pool Mining Or All
Deciding about which method to use depends on your capital, proficiency in mining setups, and other things. With sufficient capital, choose to buy a good Ethereum mining rig and connect it to a pool because this provides the highest amount of income.
Solo may be too costly unless you are a corporation or want to establish a mining farm to which you allow other people to buy hash rates. It can also be a good option for a group of persons or companies. Solo mining is also appropriate in case you are exploring mining and want to learn, educate, experiment, or practice something.
In that case, you can consider buying one mining rig or a few of them.
#1) Mining Ethereum in a mining pool
Ethereum pool is in which many or a few individuals collaborate and combine their hash rates – usually by connecting their hardware and/or renting/buying hash rate – to make up a huge amount of hash rate. That’s because, in a proof of work, the person with the highest hash rate in a network has the highest chances of mining a block of Ethereum.
In a pull, they, therefore, combine their hash rates and share the rewards.
Select an appropriate pool – Different pools have different sizes in terms of hash rates, minimum payouts, and fees. These are characteristics to consider. The trick is to find a pool with the lowest fee charged. Different pools impose withdrawal minimums and durations or timing. Therefore, ensure it suits your needs.
Some of the best pools for mining Ethereum are Ethermine pool, Spark Pool, F2Pool Old, and Hiveon Pool.
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#2) Solo mining: It may seem attractive than pool mining as you do not pay pool mining fees. However, is hard to make much income on solo mining unless you spend vastly huge sums of money buying and running powerful equipment on your own to gather a surmountable hash rate that actually earns anything.
GPUs are very costly and hence affording many of them to the extent of mining profitably needs a large sum of capital.
Buy multiple GPUs and combine them into an Ethereum mining rig or simply buy an Ethereum mining rig: Solo mining of Ethereum can take the form of you buying multiple GPUs like the Radeon R9 295X2 which has a power cost of around $1.44 and a return per day of $2.23; Radeon R9 HD 7990 (daily return of $1.29), or the AMD Radeon RX 480 (daily return of $1.21).
Multiple of each of these GPUs can be combined into a rig for mining. You can also buy a rig that is already constructed.
Install Ethereum mining software: Ethereum mining software works with GPUs to help you mine Ethereum. Just to mention a few, the Cudo miner works with Windows software, SimpleMining OS (SMOS) which works with NVIDIA and AMD GPUs, BeMine, ECOS, RaveOS, and ethOS.
See the top Ethereum mining software in the table below.
Software Best Features Rating CGMiner •Open-source
•Cross platform support.
5/5 BFGMiner •Dynamic clocking supported.
•Can mine multiple cryptocurrencies.
•Easy to customize.
4.8/5 Multiminer •Easy to use.
•Auto detect for mining hardware.
4.5/5 Awesome Miner •Can manage multiple rigs and pools with a single dashboard. 4.4/5
Update your GPUs regularly: One drawback about solo and pool mining is that you will need to update your GPU drivers regularly to ensure efficient mining of Ethereum. You can check whether your equipment is AMD or Nvidia and install the appropriate GPU drivers.
#3) Cloud mining: The difference between cloud and pool mining is that cloud mining involves the purchase or renting of hash rate from an individual/company that already runs mining equipment while pool mining involves connecting your hardware to a mining pool to combine hash rate with other miners.
Hence, in the first case, you do not own any mining equipment, although some companies rate their packages in terms of equipment. Others allow you to send your mining equipment so it can be hosted at their data center for mining.
Research and select a cloud mining company: In looking for a cloud mining company, there are many things to put into consideration – the first being fees, supported coins or algorithms to mine, payout frequency, minimum withdrawal amount, fraud risk, experience, support, and many other things.
Some allow for temporal renting in terms of contracts, while others allow permanent buying and owning of hash rates.
Ethereum cloud mining providers, or companies, include BeMine and ECOS. You also IQ Mining, which has been in operation since 2016, HashGains, and Hashshiny.
Buy hash rate: Cloud Ethereum mining companies simply require you to sign up for an account, deposit money via crypto or fiat methods like wire transfer and debit/credit cards, and then buy a package. Different providers charge differently per package depending on the amount of hash rate being sold or rented.
The more the hash rate, the higher the returns but also the cost. Choose one that favors you in terms of cost or pricing and profit.
Set up and add a wallet: Add the wallet address where your earnings will be sent. From there, you can use the web or mobile app interfaces to monitor earnings, allocate hash rates, renew contracts, and withdraw.
Some companies allow you to test by mining for free in a few days before you can purchase the hash rate.
If necessary install cloud mining software to set up an account and add things like wallet addresses. Some cloud mining companies need you to accomplish all that on their websites, which is OK.
Create an Ethereum wallet: Start by creating a wallet address where your earnings will be sent. You can do so on Matanuska and myetherwallet.
Withdraw earnings: Once the payouts are generated on your wallet address, you can then send the earnings to other wallet addresses as needed.
Conclusion
This tutorial dwelt on Ethereum staking and mining. We discussed the two methods of earning from Ethereum.
In conclusion, staking pool is currently preferred to mining Ethereum for anyone wanting to invest in it for a long time. GPUs for Ethereum mining, though operational, will soon be obsolete, although these can mine other proof of work coins as would be expected.
Profitability depends on the number of nodes in total. Individual nodes are generating an income of 6% currently. If you have 32 Eth or more and have some technical knowledge of hosting and maintaining a node, they are most preferable. The same case applies to a VPS-hosted node. Although you pay for renting the VPS – the maintenance costs will be lower.
For those without knowledge of hosting or maintaining a node either on a personal computer or on VPS, a staking pool is most preferable.
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