For those who are unaware, investing in cryptocurrency comes with the opportunity to exponentially grow the money you contribute. However, it’s possible to make money through crypto (like Ethereum) by mining it instead.
For those who aren’t quite sure how this process works, we’ve put together a brief guide that outlines everything you need to know. Let’s explore what you should keep in mind about mining Ethereum 2021.
How Does the Mining Process Work?
For those who are unfamiliar with this process, it involves solving complex mathematical algorithms. To elaborate, computers are used in order to solve math problems that are virtually impossible to solve manually.
As these algorithms are completed, Ethereum is produced. Mining also helps make crypto payments more secure by verifying transaction information between two parties.
As more and more Ethereum is mined, verified transactions are added into groups known as “blocks.” These transactions are then added to a public ledger known as a “blockchain.”
You have likely heard this term before, and it simply refers to a database that stores information about crypto transactions.
Is It Profitable?
Under the right circumstances, mining can be extremely profitable. There are a few factors at play that influence how much money you can make, though.
- The overall power of your computer
- The frequency at which you mine
- Government regulations in your region
For those who engage in this practice as a side hustle, it’s not uncommon to make a few hundred dollars per month. Those who optimize the rate at which they mine, however, can make over $100,000 per year or more.
It’s worth noting that you also need to calculate your ongoing expenses. Mining uses a large amount of electricity, and people typically find that their electricity bill drastically increases.
You also need to plan for contingencies, such as replacing a computer or hard drive.
What Equipment Do I Need?
In order to mine at an efficient rate, you’ll need a high-powered GPU for your computer. This will help ensure that your performance meets the recommended standards.
For those who are just first exploring crypto mining, it’s not recommended that you optimize your setup. In order to make the most money possible, you’ll need a large number of powerful computers that have all been configured to mine as quickly as possible.
You also need to monitor the location you store these computers within, as strenuous processes on these devices will cause them to become excessively hot.
How Can I Get Started?
Getting started is as easy as downloading crypto mining software. However, it’s essential that you only use a program that you download from a reputable source.
You can check out this page to learn more about mining Ethereum.
So, Should You Start Mining Ethereum 2021?
If you have the capability to do so, it can be a lucrative endeavor. So, keep your mind open about mining Ethereum 2021 so that you can expand your passive revenue streams.
Want to learn more useful info that can help you out in the future? Be sure to check out the rest of our blog.