Ethereum buy or mine

How to Mine Ethereum: Mining and Profitability

Ethereum is the top altcoin. It is a blockchain based platform for decentralized applications created by Vitalik Buterin and also the second best cryptocurrency in the world. Let’s talk about Ethereum mining, ETH profitability, and the future of the project.

Look what we have – a short mining video guide!

What is Ethereum?

Developers see Ethereum as a blockchain platform for applications, which is confirmed by the info on the website of the project and many world famous games. The most popular one is Cryptokitties – users have spent millions of dollars on it.

Hodlers see Ether mainly as a cryptocurrency. As of now, it ranks second in the updated CoinMarketCap chart, and its market capitalization is $28 billion.

As of February 20 2020, its price is $255. The circulating supply is over 109 million coins with a 24-hour trading volume equal to $23 billion.

Where to Buy Ethereum?

After Bitcoin, Ethereum is the most popular currency so that means you can find it practically anywhere.

Ethereum is traded on at least 400 crypto exchanges. The most popular among them are Bitfinex, Binance, GDAX, Huobi, and OKEx. In the last 24 hours, they traded hundreds of millions dollars’ worth of ETH, which is quite impressive.

Ethereum (ETH) Future

Ethereum boasts a great team of developers headed by Vitalik Buterin that actively promote the project. And it’s not just mere words, and it’s about real actions and benefits to users.

The most talked-about upgrade is a transition to Proof-of-Stake, which will allow you to earn at the expense of 32 ETH shares. Have a look at the expert roundup: Upcoming Ethereum POS Switch prepared by 2Miners.

Ethereum Wallet

A small amount may be stored on exchanges. If you want to be less prone to cyber attacks, install the wallet on your computer. You can download bunch of wallets.

• MetaMask — browser extension and mobile wallet for iOS and Android;
• MyCrypto — web-based wallet;
• TrustWallet — mobile wallet for iOS and Android;
• MyEtherWallet — client-side wallet;
• Opera — major browser with integrated wallet.

Once you create the wallet, you can start mining.

Ethereum (ETH) Mining

They based Ethereum on the Ethash/Dagger-Hashimoto algorithm. You can mine it using 4GB+ AMD and Nvidia graphics cards.

Another option is ASIC-miner by Bitmain, Innosilicon and so on. Read our post “Innosilicon A10 for Ethereum Mining: Specs, Profitability and Setup Guide”.

What is Ethereum Mining Like in Reality?

Ethereum is the most popular altcoin and mined on over 10 million GPUs. It’s sad to say, but if you buy a mining rig with 8 GPUs, you are unlikely to become a millionaire. On the other hand, you can get steady income if you mine in the pool with other miners. Mining solo makes sense only if you have a lot of graphics cards.

Ethereum: Is it best to Mine Solo or in the pool? ETH Mining Calculator

2CryptoCalc mining calculator proves our previous point. Let’s say we have a rig with eight GTX 1070. In theory, it may find one block every three months. The calculator recommends mining solo only if you could find at least 2-3 blocks in 24 hours.

For example, here are the results for ten rigs with eight Nvidia GTX 1070 graphics cards.

It is impossible to earn anything in SOLO mode. It is better for you to join PPLNS pool and get a little less than $49.

Ethereum (ETH) mining profitability

Let’s estimate the potential profits using 2CryptoCalc. We enter the parameters of 300 Nvidia GeForce 1070Ti GPUs and calculate. Daily income is just above $ 180.

You will get approximately $5404 per month.

It’s possible to calculate the potential profits using 2CryptoCalc even for one GPU.

Ethereum Mining Difficulty

Ethereum network difficulty is 2.21 Ph. This value maintains a balance between the number of miners online and the block time. So difficult alterations allow you to see how popular the coin is among rig owners. Once the number of miners decreases, the difficulty goes down.

Getting Started. The Best Ethereum Miner

As of now, one found block is worth 2 ETH or $506 plus the blockchain transaction fees.

It is difficult to get this amount when mining solo, so we recommend mining on our Ethereum Mining Pool. To get started, download the latest version of Claymore’s Dual Ethereum GPU Miner from here. The password for the archive is 2miners.

First, change the wallet address to your own in /ETHASH/eth-pool.bat. Then launch the bat file. You will see a lot of numbers on the screen, among which you will find hashrate for each graphics card. The mining is on now – if everything goes well, coins will come into the wallet every two hours.

Settings for PhoenixMiner:

Settings for Claymore’s Dual Ethereum GPU Miner:

ASIC Settings:

Conclusion. Q&A

Is Ethereum mining a profitable business?

Yes, it is. In theory, if you buy 500 Nvidia 1070 Ti, you will get $300 a day. In reality, you can get less or more. This is a decent amount of money, so it won’t take long to cover the costs.

Is it easy to mine Ethereum? Is it worth it nowadays?

Everyone mines Ether, the hash rate is exceptionally high, and so is the difficulty. Besides, the currency is very popular, and users genuinely believe it has potential. Why not consider this project then?

Just remember to put your resources into perspective – mine solo only if you have enough power to do so.

How to mine Ethereum on a laptop or smartphone?

If it is a gaming laptop, it may bring around $1 a day. The steps to get started are the same as for a mining rig. Smartphones won’t do for mining.

Can you use the same hardware to mine both Ethereum and Bitcoin?

No, you can’t. Bitcoin is mined only by ASIC-miners today. Solving a block on graphics cards is impossible. For Ethereum it’s the other way round.

Can an Ethereum mining rig mine other coins?

Definitely. Any cryptocurrency available on 2Miners will do.

Should I mine Ethereum or Ethereum Classic?

It is much easier to mine Ethereum Classic – read this article to find out more. However, it is less profitable. One found block is worth 4 ETC or $34. The same goes for mining pools.

Where to buy hardware for Ethereum mining?

You can build your own rig following our instructions, or you can buy one. The latter option is faster but more costly. If you are willing to try, building your own rig can be a lot of fun – it’s like a Lego toy for adults.

Why does Ethereum mining difficulty increase when the currency rate goes down by 50%?

It is because of the trust the community has with Ethereum. Rig owners know for sure that the rate will increase in the future, so they switch their power to Ethereum. They do it to earn more coins through inexperienced miners that stop mining the currency when its rate goes down. But in the end, it goes up.

Don’t forget to read our articles about other cryptocurrencies.

Miner since 2017, the 2Miners pool co-founder. Became interested in cryptocurrencies at the dawn of the latest bull run and bought his first graphics cards. After having built and set up a few mining rigs, he realized that existing mining pools didn’t satisfy him – that’s how the idea of creating the 2Miners pool was born. John published a series of articles about the basics of cryptocurrency mining. He gave valuable tips on how to buy ASICs and GPUs from abroad and then shared their mining performance. On the website, you can find early articles about cryptocurrency mining, blockchain in general and mining pool operation principles. The readers gave positive feedback on John’s practical guides, such as building an Ethereum mining rig and Nvidia 1080ti overclocking.

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How to Buy Ethereum – Beginner’s Guide

By: Ofir Beigel | Last updated: 1/21/21

Ethereum is a DIY blockchain platform with smart contract functionality. It’s a platform for developers that was invented by Vitalik Buterin in 2013 to build decentralized apps. The platform has gained immense popularity and so did its currency, Ether. This post will cover the best ways to buy Ether online.

Don’t Like to Read? Watch Our Video Guide Instead

How to Buy Ethereum Summary

1. Get an Ethereum wallet
2. Find your Ethereum address
3. Go to CEX.io and choose the amount of Ether to buy
4. Enter your Ethereum address and payment information

That’s it! The Ethereum coins (i.e. Ether) will be sent to your wallet within a matter of minutes. If CEX.io doesn’t work out for you, here are the top exchanges for buying Ether online:

*eToro users: 75% of retail CFD accounts lose money. Your capital is at risk. US users – CFDs are not available for US users. US users can only trade (long) real assets without leverage.

If you want a more detailed explanation of the buying process and also a better understanding of Ethereum and its currency, Ether, keep on reading this post. Here’s what I’ll cover:

1. What is Ethereum?

Ethereum can be used to decentralize just about anything: voting, domain names, financial exchanges, crowdfunding, company governance, contracts and agreements of most kinds, intellectual property.

It’s a Do It Yourself platform for creating blockchains. The Ethereum platform is the base layer, and on top of that you can create different tokens (e.g. ERC-20 tokens) to run decentralized apps (aka Dapps). If you want to understand Ethereum completely, watch this video:

2. What is Ether?

Ether is the currency of the Ethereum platform. Ether will be required by anyone wishing to build upon or use the Ethereum platform. Just like Bitcoin, Ether can be traded around the web and mined. Most people use the term Ethereum to refer to the currency instead of Ether and that’s why it can get a bit confusing.

The total supply of Ether and its rate of issuance were decided by the donation gathered on the 2014 presale of the currency. The results were roughly:

• 60 million Ether created were granted to contributors of the presale.
• 12 Million (20% of the above) were granted to the development fund, most of it going to early contributors and developers and the remaining to the Ethereum Foundation.
• 3 Ethers are created every block (roughly 15-17 seconds) to the miner of the block (this was reduced to 2 Ether in 2019).
• 2-3 Ethers are sometimes sent to another miner if they were also able to find a solution but his block wasn’t included (called uncle/aunt reward).

The founders of Ethereum state that Ether is not a currency as much as it is “crypto-fuel”, meaning it’s a token that has one main use – to pay for the Ethereum platform.

3. How Do You Buy Ethereum?

Step 1 – Get an Ethereum Wallet

Before starting the buying process you will need to get an Ethereum wallet to hold your Ether. There are many types of Ethereum wallets. Here is a short breakdown of the most popular Ethereum wallets.

Ethereum Hardware wallets

Hardware wallets are the most secure way for storing Ether. It’s a piece of hardware that you connect to your computer (just like a flash drive) that stores your Ethereum private keys offline. A hardware wallet is probably the optimal mix between security and convenience you can find. The main hardware wallets that support Ethereum are Ledger and TREZOR.

Electrum Software wallets

If you’re just starting out with Ethereum, don’t have a lot of Ether to store or don’t have the money to buy a hardware wallet you can use free software wallets. These wallets are free of charge but are less secure since they are constantly connected to the Internet (and therefore can be hacked). The top Ethereum wallets for beginners are Exodus (for desktop), Edge (for mobile) and MyEtherWallet (for desktop / mobile).

Step 2 – Buy Ethereum with a Credit Card or Wire Transfer

The easiest way to buy Ethereum (i.e. Ether) would be through one of the popular Ethereum exchanges which are listed below.

Buy Ethereum through CEX.io

Cex.io is a cryptocurrency exchange that allows you to buy Ether with a credit card. If you use the company’s brokerage service (buying directly from the exchange) the fees will already be calculated into the exchange rate, that’s why it will seem higher than other exchanges. If you want to get better rates try using the site’s trading platform (suited for more advanced users).

1. Open a CEX.io account
2. Add your payment method (Credit card or bank account)
3. Go to “Buy/Sell” and select Ethereum
4. Choose the amount of Ethereum you want to buy
5. Click on “buy Ethereum”

Buy Ethereum through eToro

eToro – If you’re only into Ethereum for price speculation and don’t need to hold the actual coins or send them to anyone else, eToro is probably the easiest and cheapest option. The company offers a friendly and intuitive UI to help you buy and sell Ethereum for fiat currency (USD, EUR, etc.).

eToro is less recommended for accessing and using the actual coins, due to their relatively complicated withdrawal process. So, if you’re using eToro for investment only you can skip step 1 of getting an Ethereum wallet, as you won’t be using the coins you’ll buy.

Important:

Keep in mind that cryptocurrencies can widely fluctuate in prices and are not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework. So keep in mind that your capital is at risk. US users – CFDs are not available for US users. US users can only trade (long) real assets without leverage.

Buy Ethereum through Coinmama

Coinmama – A worldwide seller of Ethereum that has been working in the cryptospace since 2013. The site allows you to buy Ethereum with your credit card or bank wire transfer (SEPA and SWIFT). Exchange rates are relatively fair especially if you use SEPA transfers.

Buy Ethereum through Coinbase

Coinbase is a convenient and cheap way to buy Ethereum and the platform is open to 100+ countries). Coinbase will sell you ETH for a fee of 1.49%-3.99% depending on your payment method (credit cards have a higher fee than wire transfers). Here’s how you buy Ethereum on Coinbase:

1. Open a Coinbase account
2. Add your payment method (Credit card or bank account)
3. Go to “Buy/Sell” and select the amount of Ethereum you desire
4. Click “Buy Ethereum”

Buy Ethereum through Bitpanda

Bitpanda is a cryptocurrency exchange specializing in buying and selling cryptos inside the Eurozone. The company has a pretty intuitive interface for purchasing Ethereum and other cryptos and the service is relatively quick. The only issue is that there are no listed transaction fees and you’ll need to calculate the fee charged from the final price.

Swapzone

If you wish to exchange other crypto for ETH rather than buying it, you can check out this service from Swapzone. Swapzone provides a single view on which you can compare exchanges by rates, user reviews and delivery time. You can then exchange ETH instantly on the site.

At the time of writing, there aren’t many exchanges available on the site, however, that can be expected from a relatively new service.

Step 3 – Withdraw the Ether to your Wallet

Once you bought Ether remember to make sure the coins are sitting in your own personal wallet. If you leave your coins on the exchange and the exchange gets hacked or becomes insolvent you may end up losing your coins.

For this step you’ll need to send your coins to your Ethereum address. Just like you need an email address to receive emails, you have an Ethereum address to receive Ethereum. The address is a long string of characters and numbers that start with 0x and looks something like this: 0x123f681646d4a755815f9cb19e1acc8565a0c2ac. You can retrieve your ETH address from your Ethereum wallet.

4. Frequently Asked Questions

How do I Buy Ethereum with Paypal?

Most exchanges won’t accept PayPal since its buyer protection allows the buyer to reverse the transaction and that opens up the option for fraud (you can read more about this here). However, if you’re willing to pay a price there are several ways you can buy Ethereum with PayPal.

One workaround would be to buy Bitcoin with Paypal and then trade it for Ethereum on a cryptocurrency only exchange like Binance. The process will take time, as buying Bitcoin with Paypal isn’t straightforward, and you will pay a transaction fee for each step of the process. Only use this if you’re willing to pay up to 15% or more in fees.

Alternatively you can use LocalCryptos – a marketplace that allows individuals to connect with each other in order to buy and sell Ethereum. The concept is similar to LocalBitcoins. While the variety and flexibility of this marketplace are usually high, the risk is also high. You have to make sure the person you’re dealing with is legit before conducting a trade.

How do I Start Investing in Etheruem?

There are many forms of investing in Ethereum. You can mine, trade, buy and hold or even invest in different sites. However, many of these methods contain great risks. I suggest reading in depth about the different types of investments here.

How do you Sell Ethereum?

If you’d like to sell Ethereum you’ve bought you can do so on all of the exchanges listed about except for eToro. eToro will only allow you to sell Ethereum that was bought thought their platform. So here are your options:

For a complete list of Ethereum exchanges where you can buy and also sell Ethereum visit this page.

5. Ethereum (ETH) vs. Ethereum Classic (ETC)

Ethereum Classic is a cryptocurrency that was created due to a disagreement with the way original Ethereum conducted business. The catalyst for the split was due to a hacker finding a way to steal $60m worth of Ethereum coins.

The supporters of ETH said that the code should be altered and the stolen coins should be refunded, while the supporters of ETC said that “code is law” and whatever happened happened. ETC is actually the original Ethereum code and ETH forked their code to create a new Ethereum.

Therefore two identical competing currencies were created that have two different exchange rates. Today ETH’s price is much higher and is usually what is referred to as the “true” Ethereum in the crypto community.

6. You can also mine Ethereum

If you’re looking for an alternative for buying Ethereum you can try mining Ethereum. Using your own computer (CPU mining) will probably not get you too far. However, if you have a GPU on your machine then you can get some actual rewards. Mining Ethereum is similar to Bitcoin mining in many aspects aside from the fact that you don’t have to buy dedicated hardware to participate in it.

7. Conclusion

Ethereum is a disruptive technology that is set to change how the Internet works. Whether it succeeds or not remains to be seen, but for now you can easily get your share of “the Internet’s future” by following the steps mentioned above.

As Ethereum becomes more popular its currency, Ether, seems to be gaining momentum and appreciating in price. But as always cryptocurrencies are a very risky investment and things can change in a heartbeat (as demonstrated by Ethereum’s colossal price drop during 2018).

If you want to learn more about Ethereum you can use the variety of social channels dedicated to the platform: Facebook, Twitter, YouTube, Reddit, StackExchange and the Etheruem blog.

If you have additional questions or comments I’d love to hear about them in the comment section below.

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