how to start mining Ethereum

Welcome to another edition of “How to Start a Mining Rig”. This series of articles is aimed at providing readers with everything they need to know about extracting digital coins (such as Bitcoin and Ethereum) using mining hardware. The focus of these articles is to educate readers on cryptocurrency mining so they can make an informed decision about whether or not to get involved in the industry, as well as to provide them with the necessary tools to get started.

Recommended Reading

Besides writing the tutorial, I will also be recommending some of the best books on Bitcoin (and other cryptocurrencies) and how to trade them. This list is not meant to be exhaustive but rather a starting point for the interested reader.

Although there are a lot of good books out there, these are the five that I think are essential reading for anyone serious about getting into the world of Bitcoin (and other cryptocurrencies) mining:

1. The Birth of Bitcoin: How an Unregulated Market Entered the Financial World

Written by Charles Hoskinson and Mike Hearn, this is the indispensable history of Bitcoin and how it all began. From the very first version of the Bitcoin white paper, all the way to its meteoric rise in 2017, this book covers it all. With in-demand courses on the topic reaching hundreds of thousands of students worldwide, this is the definitive guide to learning about Bitcoin.

2. Rigorous Bitcoin Analysis

If you’re looking to mine cryptocurrencies other than Bitcoin, then you’ll need to get started analyzing them according to the specific algorithms used for each coin. Many wallets (e.g. MyEtherWallet) even have a built-in miner that you can use to do this automatically. However, if you’re looking to do this yourself, then this book is the perfect guide for learning how to analyze Bitcoin and other cryptocurrencies rigorously, and with great detail.

3. The New Digital Gold Rush: How Bitcoin and Blockchain Technology Changed Everything

If you’re looking to mine cryptocurrencies other than Bitcoin, then you’ll need to get started analyzing them according to the specific algorithms used for each coin. Many wallets (e.g. MyEtherWallet) even have a built-in miner that you can use to do this automatically. However, if you’re looking to do this yourself, then this book is the perfect guide for learning how to analyze Bitcoin and other cryptocurrencies rigorously, and with great detail.

4. The Bitcoin Standard: An Eye-Opening Exploration of Bitcoin and How It Works

Apart from explaining the inner workings of Bitcoin, this book also focuses on looking at the technology from a more academic point of view. With extensive coverage of cryptography, security, and money theory, this is one of the most in-demand books on Bitcoin.

The Bitcoin Standard provides a unique insight into the design and underlying rationale of Bitcoin, as well as the philosophy of its creator, Satoshi Nakamoto. If you’re looking for an accessible introduction to Bitcoin and how it all works, then this is the perfect choice.

5. The Bitcoin Bible: Everything You Need to Know About the World’s Favorite Cryptocurrency

If you’re looking to mine cryptocurrencies other than Bitcoin, then you’ll need to get started analyzing them according to the specific algorithms used for each coin. Many wallets (e.g. MyEtherWallet) even have a built-in miner that you can use to do this automatically. However, if you’re looking to do this yourself, then this book is the perfect guide for learning how to analyze Bitcoin and other cryptocurrencies rigorously, and with great detail.

This book, published in 2018, is the updated and definitive version of Mark J. Boland’s 2016 book, “The Bitcoin Book”. It continues where his previous book left off, providing a complete overview of everything there is to know about Bitcoin including its origins, design, economics, technology, and more. With a foreword by Bill Gates, this is the ultimate guide for learning about Bitcoin.

What Is Ethereum?

Ethereum is one of the largest cryptocurrencies by market capitalization. Launched in 2015 by creator Vitalik Buterin, this popular and innovative blockchain platform allows users to issue their own custom cryptocurrencies and to create decentralized applications (DApps) that run on the network. As the name implies, Ethereum is an extension of the concepts behind Bitcoin—using a “distributed” database instead of a central server to log transactions, verify payments, and maintain a record of ownership.

How Does Ethereum Work?

Ethereum is a decentralized platform that runs on thousands of computers around the globe. Made up of thousands of blocks (Ethereum analogs of the blocks used in Bitcoin), Ethereum stores data through a process known as “cutting” a cryptographic puzzle. The result is a distributed digital ledger that maintains a record of Bitcoin transactions and verifies ownership without the need for a central server.

To verify a transaction on the Ethereum network, users must first perform complex mathematical calculations referred to as “gas payments” in order to process the transaction. Because these gas payments are optional and decentralized, the cost of verifying a transaction on the Ethereum network is negligible. The decentralized nature of the network also means that malicious activity, such as a DDoS attack, would cause major damage to the network and its users. As a result, the Ethereum network is more resistant to attacks and bugs than other platforms.

Ethereum Vs. Bitcoin: Which Is the Better Investment?

Although Ethereum was not originally designed to be a store of value like Bitcoin, its popularity as a “second generation” cryptocurrency has rendered it as such. With a market capitalization of over $100 billion and daily trading volume of over $300 million, you’re likely to find many investors considering Ethereum to be a viable long-term investment option.

Currently, it’s a bit difficult to compare the advantages and disadvantages of Ethereum and Bitcoin. The truth is that they are two very different cryptocurrencies operating under different sets of rules and protocols. If we were to compare them based on criteria such as cost-efficiency, scalability, and security, then it would be best to say that Ethereum is the clear winner.

Where Can I Buy Ethereum?

You can purchase Ethereum directly from an exchange platform such as Coinbase using any credit card. If you want to be extra careful, you can also use a cryptocurrency wallet to store your money—and these wallets often come with a built-in exchange so you can buy cryptocurrency quickly and easily without needing to leave the app. Some of the most popular and well-known wallets for Ethereum include MyEtherWallet, MetaMask, and TREZOR.

How Do I Buy Ethereum?

If you’re looking to purchase Ethereum, the first step is to ensure that you’re buying from a reputable source. You can do this by visiting the exchanges‘ websites directly or using reputable bookmarking and review websites such as Google and Yahoo to find out more information about the exchange (e.g. Coinbase, Bitfinex, and Poloniex).

Once you’re confident that you’re dealing with a reputable source, it’s time to move on to the next step: finding the right spot to purchase the cryptocurrency. Keep in mind that all exchanges regardless of whether they are centralized or decentralized will take a cut (usually ranging from around 10% to 30%) of the value of every trade executed on their platform.

What Is a Decentralized Exchange (DEX)?

If you’ve been around cryptocurrency for a while, then you’ll undoubtedly have heard of DEXs (decentralized exchanges). Simply put, a DEX is a type of cryptocurrency exchange that operates without a central server. Instead of storing client data on a central server, as in most other cryptocurrency exchanges, a DEX stores the encrypted private keys of all users on a distributed network. The end result is a more secure and private experience for all users.

DEXs allow users to remain in control of their funds at all times, which is not the case on traditional exchanges where funds are held in hot wallets that are not entirely encrypted (usually kept on a server). With most other types of exchanges, once your wallet is compromised, all of your funds are at risk of being stolen by hackers.

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