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Ultimate Ethereum Mining Guide

You’re here because you want to mine Ethereum.

Unfortunately, it’s not as profitable as it used to be.

Regardless, it can make for a cool hobby and possibly some decent passive income.

Keep reading this guide to learn more about how to mine Ethereum in 2019!

Ethereum Mining Profitability

Your returns mining Ethereum depend on the price of Ethereum, your hardware costs, your electricity cost, and your Ethereum mining pool’s fee. Cryptocompare is a great tool to calculate your mining profitability.

Plug in the relevant information, and have a personal estimate made on your profitability.

Ethereum Mining Pools

After picking out yourEthereum mining hardware, and looking at different Ethereum mining software, you will probably want to start looking at Ethereum mining pools.

Mining pools were created to eliminate variance from the mining process.

For example, let’s say your mining rig had a .1% chance to mine a block. After mining 1000 blocks, the expected blocks mined would be 1. However, due to probability, this isn’t always the case. You could find 0!

Mining pools combine hashing power of several miners to reduce variance. If collectively a block is found, the rewards are distributed proportionally to the hashing power contributed. In exchange for their services, mining pools take a small fee.
Now that you know why mining pools form, let’s look at your options for pools.

ETHPool

ethpool

Ethpoolis one of the most popular Ethereum mining pools out there. Ethpool is a predictive solo mining pool, meaning the block reward will be given to the miner who contributed the most work. While this sounds counter-intuitive to the idea of pools, this is recommended for users with larger mining setups.

When the pool mines a block, the miner holding the most credits is given the full block reward and his credits will be reset to 0. Ethpool currently charges a 1% fee for their services.

Ethermine

Ethermine Pool

Ethermine has instant payouts upon reaching your payment threshold. Just like Ethpool, Ethermine has a 1% fee on mining profits.

DwarfPool

dwarfpool

DwarfPool is another option that mines Etheruem Zcash, Monero, and Expanse. Dwarfpool also charges a 1% fee. Dwarfpool has a minimum payout of .01 ETH, making it convenient for smaller miners. Dwarfpool also eliminates Ethereum transaction fees upon payouts by using the pool fee to cover it.

NanoPool

nanopool

NanoPool is one of the most popular mining pools and supports altcoins such as Ethereum Classic, Monero, Siacoin, Zcash and more. Expect a 1% fee when mining with Nanopool. Nanopool has a minimum payout of .05 ETH.

Ethereum Mining Software

Ethereum Mining Hardware

One of the most important parts of the Ethereum mining process is picking the right hardware. Below are some of the most popular options out there for mining Ethereum.

R9 295 X2

TheR9 295 X2 has the highest hashing power out of any graphics card at 46 MH/S. If you are looking to get the most profit from mining Ethereum, look nowhere else. The Radeon R9 will use around 500W of electricity when mining. Most R9 295 X2 miners report profits of over $1,500 yearly. Expect these to sell for around $500 used.

Radeon R9 HD 7990

TheRadeon R9 HD 7990 is probably your next best bet for mining Ethereum profitably. These cards give you 36 MH/S at 300 W. Expect to pay around $300-$350 for a 7990.

Radeon RX 480

Next up is the Radeon RX 480. The RX 480 has an average hash rate of 25 MH/S and draws 150 W. An RX 480 will cost you around $300.

Radeon RX 470

TheRadeon RX 470 is the older version of the RX 480, but can still be used to mine Ethereum profitably. It costs around $300 too and has 24 MH/s on average and power consumption of 150 W.

Frequently Asked Questions

What is the best Ethereum mining pool?

There isn’t really a best Ethereum mining pool as it varies on a few factors such as your total hash rate, tech background, and country. Dwarfpool and Nanopool are probably better for smaller miners due to their payout structure while Ethpool and Ethermine are great for larger mining setups.

Is it possible to remove the pool fee?

Unfortunately no, unless you want to start your own pool. You may be able to find smaller pools with a lowe fee, but you generally want to use a higher tier pool to increase your frequency of payouts.

What is hash rate?

Hash rate is the speed your mining hardware can mine. Here’s how the units work.

  • 1 kH/s is 1,000 (one thousand) hashes per second
  • 1 MH/s is 1,000,000 (one million) hashes per second.
  • 1 GH/s is 1,000,000,000 (one billion) hashes per second.
  • 1 TH/s is 1,000,000,000,000 (one trillion) hashes per second.
  • 1 PH/s is 1,000,000,000,000,000 (one quadrillion) hashes per second.
  • 1 EH/s is 1,000,000,000,000,000,000 (one quintillion) hashes per second.
  • 1 ZH/s is 1,000,000,000,000,000,000,000 (one sextillion) hashes per second.

Do I want a mining pool with a high hash rate?

Yes and no. Mining pools reward you for the amount of work you submit proportional to the rest of the miners. If your pool has a high hash rate, you will find blocks and be rewarded much more often. However, the higher the hash rate, the lower % of the hash rate your rig will have meaning your reward is less.
A medium hash rate mining pool allows for somewhat frequent rewards, with higher payouts.

What is the best mining pool in the United States?

Of the pools stated above, all are supported in the United States. So depending on your setup, certain pools will be better than others.

Is it worth it to mine Ethereum?

This depends on how much extra time you have, and how much electricity costs in your area. A helpful tool for calculating mining profitability is Cryptocompares mining calculator.

What is the best Ethereum mining ASIC?

Ethereum has been able to avoid ASICs by increasing the amount of VRAM needed to mine. ASICs are extremely harmful to cryptocurrency mining, as it moves mining power from the average person to centralized setups.

Is it worth buying mining hardware?

This really depends on how much free time you have, and how much profit you are ok with. Typically mining hardware can pay themselves off in the first few months, making all the rest of the coins mined straight profit.

For some, it is easier to just buy Ethereum directly.

Where can I buy Ethereum?

Ethereum is the #2 cryptocurrency in terms of market cap, making it obtainable on a large number of exchanges. Coinbase and Gemini are two of the most popular exchanges to purchase Ethereum on. For more information on buying Ethereum, please check out our guide.

Where can I store Ethereum that I mine?

Ethereum can be stored on many wallets. Some of the most popular choices are the Ledger Nano S, Metamask and myEtherWallet. To learn more about Ethereum wallets, check out our guide.

What software do I use to mine Ethereum?

There are a lot of good options here, including Ethminer, Wineth and Claymore’s Dual Miner.

Claymore’s Dual miner is great because you can mine Ethereum and other similar algorithm coins at the same time, without harming your Ethereum hash rate. Even if you don’t want to keep the other coins you mine, you can sell them for Ethereum on an exchange like Binance!

We have a full guide on Ethereum mining software if you want to learn more.

What Ethereum mining pool should I join?

Ethereum mining pools help you receive more frequent payouts from your mining. Some of the most popular pools include Etherpool and Nanopool. Check out our Ethereum mining pool guide to learn more.

How is Ethereum mining different than Bitcoin mining?

While these are similar, there are a few key differences. First, Bitcoin uses the SHA256 algorithm to secure its network, while Ethereum uses Ethash.

While you could still mine Bitcoin with the GPUs stated above, they would be less successful as Bitcoin mining is dominated by ASICs. Ethereum purposely invalidates ASICs by increasing the amount of VRAM needed to mine.

What is the best GPU to mine Ethereum with?

There is no best GPU as depending on your circumstances one might be better than others. The R9 295 X2 will most likely bring the highest return on investment.

 

What is an Ethereum Mining Rig?

An Ethereum mining rig is a configuration of multiple mining GPUs working together to maximize your hashrate/power consumption ratio.

If you’re serious about mining ETH, you’re going to need a mining rig.

Think about it like this:

If one mining GPU makes you a certain amount per month, using two, three, four, or more mining GPUs at once will only increase your profitability.

However, if you build an Ethereum mining rig, you shouldn’t use a traditional PC case. Most cases won’t have enough room for all of your mining GPUs, and you probably won’t be able to wire all of the cables properly (or easily) either.

Cable management affects airflow, and believe me, your mining GPUs will get pretty hot.

You need to maximize airflow in any way you can to ensure they’re running at peak efficiency. Rather than using a traditional PC case, the best way to do this is with a stackable mining case stand.

They’re designed with mining performance in mind – they’re easy to use, have plenty of space, and cable management is easy as well.