A BEGINNER’S GUIDE TO MINING ETHEREUM — WHAT YOU SHOULD KNOW!| Paro Exchange

Ethereum (ETH) is the second most valuable virtual currency in the market right after Bitcoin. In order to process transactions and verify that everything woks properly in the network, miners need to provide their power to the network. After it, miners receive compensation in ETH for their work. In this way it is possible to keep the network secure and smoothly.

To put it simply, crypto-currency mining is a process of solving complex mathematical problems. Miners are essentially the cornerstone of any crypto-currency network as they spend their time and computing power to solve those problems, providing a so-called “proof of work” for the network, which verifies ether transactions. Besides that, miners are responsible for creating a new Ether tokens through this process, as they receive rewards in Ether for successfully completing a proof of word task.

As more and more miners join in, the problem automatically become more difficult to solve, which means more time and computational power is required to solve them and the rewards become smaller. Many people see mining as an ideological incentive, a mean of directly supporting the network.

How to Mine Ethereum?

In order to start mining Ethereum it will be necessary to have a special computer hardware that will be dedicated full time to mine ETH. It is possible to use GPU and start processing transactions. It is not easy to set up one of these devices, and is not so straightforward to decide which miner to use.

The best thing to do is to set up a mining rig, that will give you the best hash rate at the lowest possible price. Buying a mining rig means that you will have multiple GPU’s working together to extract as many coins as possible.

If you want to know the profits you will have, you can enter the hash rate and the price you pay for electricity. The calculator will later show you the amount of Ether you will receive per hours/day/month/year.

One of the most important programs is known as “GETH” that runs an Ethereum node that is written using the programming language knows as Go. If everything is installed properly, you will be connected to the network and you will have an interface for deploying smart contracts and sending transactions.

source: Coin Revolution

Joining a mining pool

As a miner, you’re unlikely to be able to mine ether on your own.

That’s why miners pool together their computational power into “mining pool”, to improve their chance of solving the cryptographic puzzles and earning ether. Then, they split the profits proportional to how much power each miner contributed.

There are many factors involved in joining a mining pool. Each pool might not be around forever, and the computational power of each pool is constantly changing, so there are a number of factors that go into deciding which to join. One point to keep in mind is that mining pool have different pay-out structures.

Mining pools will have some sort of a signup process on the website so that miner’s can connect to the pool and begin mining.