How to Mine Ethereum? A step by step process for beginners!

Is Mining on your mind? Which cryptocurrency should I mine in 2018? How should I mine? If these are the questions that you are thinking on and off, then you have come to the right place.

This article specifically explains step by step mining of the “Ethereum”. To know why have I selected Ethereum, I recommend reading this article before getting started - Why is Ethereum gaining more popularity than Bitcoin?

What is Mining? Cryptocurrencies are made available to the world after going through a process called Mining. To Mine any cryptocurrency, a miner attempts to solve a computational puzzle known as “Hash”. If solved successfully, then it will be added to the next block and these transactions are recorded in the Blockchain for all to see. All Miners compete among themselves to be the first to solve the Hash. Miners who succeed in solving the hash, receive a block reward or an amount of cryptocurrency they mined.

Now let’s directly jump on the mining process of ethereum. 

What do I require to begin mining Ethereum?

How do I Mine Ethereum?

1. Set Up an Ethereum Wallet
The First thing that you need to do is setup Ethereum Wallet so that you have a place to store your Ethereum after it’s been mined.

How to Mine Ethereum? A step by step process for beginners!
  • Navigate to this site - MyEtherWallet.
  • Enter Password to create your new wallet. Make sure that your password is strong and it is recommended to have 16 characters long which uses a combination of uppercase letters, lowercase letters, numbers, as well as symbols. Hit “Create New Wallet”.

2. Save your Keystore file safely
Now that you have created the wallet, you need to save the copy of your key store file which gives you encrypted access to your Ethereum Wallet.
  • Right Click “ Download Keystore File” and select Save Link As. Go to the desired location where you need to save your file and create a new Folder named “Ethereum”. The reason for doing so is to keep everything in one place and synchronized. Now directly save the Keystore file into this folder.
  • Once done, you will be asked to confirm that you don’t lose it, nor share and have a backup. Click “I understand. Continue.”

3. Save your Private Key
Save your Private Key as it is another similar way to access your Ethereum Wallet.
  • Left Click “Print Paper Wallet” and either take a print out or note it down safely.
  • Once you have saved this information properly, close the tab. Next, click “Save Your Address” and follow steps mentioned in Step 4.

4. Unlock the Wallet
Next step is to unlock the wallet so that you can access it. There are several different options available, in order to access your wallet.
  • As you have access to both Private Key and Keystore file, select “Keystore File” and a pop up will appear on the right side asking you to upload your wallet file.
  • Click “ Select Your Wallet File” and navigate to the Ethereum folder where you have saved your file. Select the file and click “Open”.
  • Enter the password that you created earlier.
  • Next click, “ Unlock your Wallet”. Now, you will be able to see all of your information which you would normally use when trading Ethereum.
Importantly, it shows your account balance as well as your transaction history. Once your wallet is unlocked you’re ready to move on to the next step.

5. Download Mining Software
Now you need to download the appropriate mining software so that you can start mining Ethereum.
  • Open this link in your browser - Claymore and download the latest version (Don’t select the linux version).
  • Open the downloaded file, unzip it into the folder Ethereum that you created earlier. Once the extraction process is complete, close down the program.
  • Navigate to the Ethereum folder and open the Claymore’s folder. Leave it open and start with the next step.

6. Join a Mining Pool
Now as you have a mining software, you need to join a mining pool. Navigate to Nanopool’s site. As you can see below that this website have pools for several different cryptocurrencies.

How to Mine Ethereum? A step by step process for beginners!

  • Under the Ethereum box, click “Quick Start” button. It will then show you basic information of the pool and also the process on “How to connect”.
  • Complete the steps as mentioned in “How to connect”. As you can see that you have already completed the first two steps, directly jump to Step 3 and click it. Generate your config as mentioned below
    • Under operating system, select appropriate OS.
    • IN GPU vendor, make sure to select the type Graphics card that you currently are using in the machine.
    • The worker name can be set to whatever you like but it's generally set to default as Worker 1 or Rig 1.
    • Mention your valid email address.
    • Under Main Server, select the server that is closest to your current location.
    • In first algorithm address, put in the address of your Ethereum Wallet. Log back to MyEthereumWallet, copy address of your Ethereum Wallet that is mentioned under “Account Address”.
    • Select “None” under Second Algorithm as you want to mine only one cryptocurrency - Ethereum.
  • After setting all this, click “Generate”. A download will start.
  • Open up the downloaded file and extract it under Claymore’s folder. Specifically, choose this path location - Ethereum folder -Claymore’s folder to extract that file. While extracting the folder, select “Yes to all” when asked for “Replace the existing files” as you are overwriting this file with a new config file that has your settings pre-configured. If you select no then it will have old files and you would have incorrect settings.

7. Verify the config file
Now you have mining software configured correctly and you just want to check that the changes you made to the config file have actually taken effect.
  • Navigate to Ethereum Folder and open the Claymore’s folder.
  • At the bottom of the folder you’ll see a file called “start.bat”. Right click on it and select edit.
If you have used the configuration tool correctly as well as extracted the file into the correct location, this start.bat is now going to contain your information such as address of your Ethereum Wallet followed by the name of the rig that you mentioned as well as your email.
If you see your information here then you have done this process correctly. If you see anything else you need to go back to the previous step and repeat it until this file is correctly setup. When the file is in correct format, close down the file.

8. Start Mining Ethereum
Now you can start mining the Ethereum.
  • After verification of the config file, double click the “start.bat” file. Once you double click a small command window will open and you are now mining Ethereum. Congrats!
You will see different text but the one thing that you will be looking for are accepted shares which will be show up in green text.
The recently found share indicates that your software is running correctly.

Once you have started mining, you would surely want to know how fast you’re mining and how much Ethereum you have actually mined. To check on your progress and to see how much of Ethereum you have actually mined, go to Nanopool and in the Ethereum box select “Overview”.

If you want to know your own stats, paste your Ethereum Wallet Address into the address bar on the top corner and then hit search. This shows relevant useful information about the speed at which you are mining as well as balance of your Ethereum.

In order to get paid to your Ethereum wallet, this balance needs to hit 20% of a single Ethereum. That’s going to take on average quite a long time. In order to change this, click “Settings” button and you can see that minimum payout is actually as low as five hundredths of an Ethereum, which is a much easier target to hit. Before you can make this change its important to know that you must have mined at least ten shares worth of Ethereum. Depending on your machine, it approximately takes 30 minutes to mine ten shares of Ethereum. Once you have reached that threshold all you have to do is change your minimum payout amount and type the email address that you have entered in your start.bat file during configuration. Hit “Apply Changes” and after a second you will get a success message.

If you have managed to start mining using this let me know how you are doing! How much you were able to mine per day? How much profit did you make?
How to Mine Ethereum? A step by step process for beginners! How to Mine Ethereum? A step by step process for beginners! Reviewed by StalkOwl on February 13, 2018 Rating: 5

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