The increasing price of Ethereum has made some investors and traders decide to hunt for this crypto coin through the mining process. How to mine Ethereum slightly different from Bitcoin because Ethereum has its own blockchain system.
For novice miners who want to take part in the mining process, it is very important to equip themselves with the right way of mining Ethereum. Find a brief explanation of how to mine Ether coins and the choice of methods available.
What Is Ethereum Mining?
Ethereum is a blockchain system that generates Ether coins. Basically the mining process is carried out to collect Ether coins by recording and verifying all transactions before being entered into the Ethereum blockchain.
This verification process is known as proof of work. The miners or ethminers are tasked with carrying out all verification processes to ensure all data and information are transparent so that they are free of fraud.
In order to perform the task well, ethminer must solve complex algorithms with complex computer languages. Therefore, special hardware and software are needed that are capable of carrying out complex computing tasks.
All the miners will compete to solve the math problem. If it has been successfully solved and 51% of miners agree with the number, then a new block will appear and be added to the blockchain.
It is this block that stores verified transactions. Successful miners will be rewarded with Ethereum coins.
3 How to Mine Ethereum Free
Now that you know the basic information about mining Ethereum, it’s time to move on to the three ways you can mine Ether coins. Here’s the explanation.
1. Pool Mining
Pool mining is a mining activity that we do together with other ethminers in a pool. When joining a particular pool, you have to share every block you find with all the members so this method is perfect for beginners.
There are a few things you need to pay attention to when choosing a pool such as size, fees and minimal revenue. The bigger the pool size, the bigger the chance to get a prize. But of course the reward you get will be less because you have to share the results with many people.
In addition, also pay attention to the fees charged to participate in the pool. Choose a pool with a rate of around 1% to 3% so that it is not too burdensome.
2. Personal Mining
We are also familiar with the term independent mining, this method of mining Ethereum is not suitable for beginners. The reason is that ethminers must try to solve problems alone and compete with other ethminers.
However, the positive side of personal mining is that the blocks you get do not need to be shared with other miners. It’s just that Ethminer has to be extra patient because the opportunities to solve these math problems are very complicated.
There are several things that you need to pay attention to when you want to do personal mining, including electricity costs, device specifications, and maintenance. It is also important to provide air vents to prevent the computer from overheating.
3. Cloud Mining
Cloud mining is how to mine Ethereum which can be done to mine hassle free. In this way, ethminer can hire the services of a cloud mining service provider to get Ethereum.
Because it’s just renting, you don’t have to worry about maintenance and the mining process. The service provider will work so that the client just accepts it is wrong. Even so, investors need to be wary of scams under the guise of cloud mining Ethereum.
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