What is Ethereum Mining and how long will it take?

What you will see in this article:

• How to mine Ethereum?

• What is an ethereum mining calculator?

• Ethereum network complexity

• Ethereum faucets

• How to choose an Ethereum wallet?

• Ethereum mining speed: how fast can you mine 1 Ethereum?

Ethereum mining is the creation of a cryptocurrency by processing settlements with ethereum on the network around the world. You help the system to conduct transactions, for which it pays you a reward in the form of accrued Ethereum.

When mining ethereum, in the process of processing transactions, a unique block of data is created that confirms the reliability of payment transactions. In short, it consists of the header of the previous operation, the hash of the transaction, and a random number. The chain of data containing information about all previous transactions with cryptocurrency is called a blockchain. For each processed transaction with Ethereum, you are entitled to a reward – a certain amount of cryptocurrency.

How to mine Ethereum?

Ethereum mining is best done using the Ethash / Dagger-Hashimoto algorithm, which can be done using graphics cards, such as AMD and Nvidia, with a volume of 3 Gig or more. However, unfortunately, you won’t be able to buy video cards at home and start making a lot on Ethereum mining.

Earning Ethereum without investments is impossible, for more or less normal income, you need to purchase more than 4 video cards, while the return on investment will exceed half of a year. Be prepared to face the difficulties associated with maintaining such a large amount of equipment (renting a room, cooling equipment, ensuring uninterrupted power supply and high communication speed, etc.) that it is difficult to provide solely on your own.

Therefore, for small investments, it is better to consider investing in ethereum pools, or as they are popularly called ethereum farms. The essence of ethereum pools is that you can purchase a small stake in large Ethereum mining projects using dedicated sites. Now there are a lot of such offers on the market, and the most popular ones are: 

• ETH NanoPool, 

• ETHpool / Ethermine, 

• Mining pool hub, 

• F2pool, 

• NiceHash pool.

What is an ethereum mining calculator?

Investments for self-mining ether require large, and counting losses in fact is a completely unpleasant business, therefore, before making a decision on investments, it is worth carefully calculating future income and expenses, namely: future ether accruals and its cost, expenses for purchasing equipment for mining, rent real estate for a farm, payment for electricity and Internet services, and others. Since there are a lot of variables, it is quite difficult to make calculations on your own, but for this you can use the help of all kinds of ethereum mining calculators. Among the best in 2021 are CryptoCompare, My Crypto Buddy, What to Mine and others.

Ethereum network complexity

Ethereum difficulty shows how long it will take to process a transaction and receive Ether from the system as a reward, and depends on the power of your hardware and the complexity of data processing. In addition, the more miners work in the Ethereum network, the greater the competition and the higher the difficulty of mining, because only the first one who processes the transaction on the network will receive a reward. In 2019-2021, the average mining difficulty on the Ethereum network was around 3.4 Ph.

Ethereum faucets

Ethereum faucets are specialized sites, by registering on which, you will periodically be credited with ether (or its shares). The fact is that the owners of such sites place advertisements on it (for example, cryptocurrency exchangers) and share part of the income received with you in order to ensure site traffic. To receive cryptocurrency, you may periodically be required to take some action, for example, click on a button or enter a code from the picture.

When choosing a faucet for work, pay attention to the presence of a cumulative threshold – the minimum value of the amount of cryptocurrency that can be withdrawn from the faucet, as well as the speed with which Ethereum is withdrawn from the site.

Cranes for collecting ethereum can be installed not only on a PC, but also on a mobile phone, for example, on an android. Ethereum faucets in 2021 with instant withdrawal of funds that actually pay are All Coins, MultiCoinFaucet, SwissAdsPayEthFaucet, YoBit, EtheremClix, Memeus. However, in order to earn an average Ukrainian salary on crane sites, it may take more than 200 hours a month, but if the ether rate goes up, the income will be more tangible.

How to choose an Ethereum wallet?

Whether you decide to make money on the Ethereum course, mining it or working with a faucet, you will need an ethereum wallet to carry out operations with cryptocurrency. To do this, you can choose one of the following types of ethereum wallet:

• Hardware wallets on a physical medium (flash drive)

• Web wallets

• Desktop wallets

• Mobile wallets

• Paper wallets

Ethereum mining speed: how fast can you mine 1 Ethereum?

If you want to get one unit of this currency, then you will spend 7.5 days with the current difficulty and hashing power of about 500MH / S.

But before starting this process, you should weigh the pros and cons, and also read what losses you will incur. The fact is that even if you can mine one block faster, this only means that you will increase the costs of the process and here it is important to do as absolutely all experienced miners do, namely to find a “middle ground” between spending and profit.