How to Mine Ethereum

Pool mining refers to mining in a group, which we refer to as a pool. Here you put your resources together with other individuals to mine. You all agree on how rewards will be split, normally according to the hash power provided by each individual. There will be a pool administrator who’ll be responsible for making sure puzzles are solved and each member receives their share. Pool administrators charge a fee for their work. We don’t recommend joining a mining pool whose administration fees are more than 3%. Also, consider the pool size and minimum pay-out. The bigger a pool, the higher its hash power, and the faster it will solve puzzles. You want to be part of a pool that allows even small cash outs. Don’t forget you’re in business and you need to start enjoying your profits.

Solo mining is for loners who love to walk alone. Here you’re on your own. You set up the hash power required and manage your resources to solve puzzles. The advantage that comes with this type of mining is that you don’t pay an administration fee, joining fee, or any kind of fee to anyone, and when the rewards come, you pocket all of them. No sharing. Sounds interesting? On the flip side, it might cost you a little more to be a solo miner as compared to joining a pool. A dozen of GPUs are necessary to give you the right hashrate for solving puzzles quickly. You also need good tech skills to go for this method. It’s mostly preferred by professionals.

Here you delegate all the work and become the boss. Cloud mining involves paying a third party to mine for you. So you don’t need to invest in computer software and hardware. There are lots of companies with massive computing power which you can rent. They hence do all the work for you and since you already paid rent, simply wait for the rewards. Cloud mining however is done on a trust basis. There is no way to prove that the person or the company you paid mining. So if you’re to go for this option, make sure it’s through a long and established platform. You may use a referral from friends that have gone ahead of you and succeeded.

How was that? Anyone can start mining Ethereum today in very simple steps as outlined in this article. Remember there is more than one method of mining Ethereum. Pool mining is however safe and sustainable in the long run. Soon solo miners will struggle to find alternatives as the difficulty levels of mining increase. So stick to pool mining, unless you have massive resources to set up your own mining farm and keep upgrading it. We hope you did not only learn, but also enjoyed reading our article. Feel free to share this link with your friends and family.