Ethereum was launched in 2015 and has been hailed by the Telegraph as the “rising star of the cryptocurrency world”.
Since the launch of the currency, it has grown in value by more than 2300% and is the second most used cryptocurrency after Bitcoin. The advantage of Ethereum over Bitcoin is that the technology allows for not just currency to be traded on the platform, but also applications.
As with other cryptocurrencies, you can purchase them through an exchange, but you can also mine them yourselves using specialist Ethereum Mining Hardware.
Miners of Ethereum will work to earn “Ether” as a crypto token instead of earning bitcoins. Ether can be used for trading as a currency as well as for payment of transaction fees on the Ethereum network.
Using the correct mining hardware will help you save costs when mining for Ethereum, however before you purchase mining hardware it is important that you have an ethereum hardware wallet to safely store your coins. Consider the Trezor vs Ledger Nano S wallets.
Ethereum Mining Hardware
In order to mine Ethereum, you will need a computer with a GPU (instead of a standard CPU).
The better the GPU, or graphics-processing unit, the faster the hashing power of the computer, which equates to more calculations possible per second.
It is important however to take the cost of electricity into account when purchasing a GPU.
The more powerful the GPU, the higher the electricity consumption will be. To calculate the estimated costs more accurately, find an Ethereum mining calculator and enter the numbers relevant to your requirements, investments and electricity costs.
Hardware can be purchased at different capacities from $200 upwards. The Raedon R9 295×2 is said to have the highest hash rate of all Ethereum rigs and so will give you the biggest returns on money.
Ethereum mining rigs can be dedicated to Ethereum mining only or can be a computer that performs any other necessary tasks and does mining on the side.
Should the price of a mining rig be beyond your budget, it is also possible to build your own Ethereum rig from basic computer parts. You will need GPU’s, graphics cards, motherboards, and power supply units. Each GPU will need about 200 watts of power. For more information on building your own rig, click here.
Ethereum mining is said to be resistant to application-specific integrated circuit (ASIC) as Ethereum contracts can include any type of computation and therefore ASIC’s would not add any benefit to Ethereum mining.
Ethereum Cloud Mining
Ethereum Cloud mining is a good alternative for potential miners that do not want the expense and maintenance of owning their own hardware. By signing a contract with a company that does cloud mining and depositing your money, you can be active as a miner almost immediately.
It is important to ensure the company you contract with is reputable and will not disappear with your money. Large cloud mining companies can keep their costs down due to the large volume of hardware and data they purchase and can therefore pass better earnings over to you.
Of course the downside to cloud mining is that you will be paying a percentage of the profit over to the company managing the hardware and mining in your behalf.
If you’ve already made the investment in hardware, you could join an Ethereum mining pool online to help share resources.
Mining is not the only way to invest in Ethereum. You can purchase a wallet and buy Ethereum through an online discount broker. Selected broker has a breakdown of the best Ethereum brokers online to assist you. This is of course a far less time consuming manner to invest, however the risks are greater as the currency is fluid and volatile.
Ethereum has made a significant impact on the cryptocurrency market and is considered to be a better investment than Bitcoin.