How do I mine ETH freely and legitimately?
Peter Mining originates from the gold analogy of the cryptocurrency sphere. In simple, cryptocurrency mining is a process of solving complex math problems. “Miners” are people that spend time and energy solving these math problems. They provide the solution to the issuers, who verify it and reward the miners with a block of Ether. Intuitively, an increase in mining difficulty means it becomes harder to solve complex problems, and therefore to fewer rewards. We’re at a current peak in Ethereum's difficulty due to its very high demand and popularity.
Is mining Ethereum still worth it?
As more miners join the Ethereum network, the harder it becomes to solve the problem, which leads to an increase in the mining difficulty. This is why it’s currently costly to mine Ethereum. The returns are very low and the equipment is still pretty expensive. However, as the Ethereum price continues to rise, it could become worthwhile in the future.
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Nonetheless, Ethereum is reportedly switching to a proof-of-stake framework later this year, which means Ether mining could no longer be relevant. Take in mind, that this could also lead to a significant increase in Ethereum price.
How to start your AWS Mining instance
The steps are pretty simple:
- Go to your EC2 console in AWS and change the zone to US East (N.Virginia). This zone happens to be the cheapest for the type of instance we’ll be using, and also contains a community AMI that has all the required mining libraries already installed for instant use.
- Under Instances, select Spot Instances and click ‘Request Spot Instances’.
- Search for a community AMI called ami-cb384fdd and select it.
- Under Instance type choose g2.8xlarge.
- Review and Launch!
How to start mining
To start mining, you’ll need an Ethereum wallet and to join a mining pool.
To generate a wallet, simply go to myetherwallet and follow the steps. By the end of the process, you’ll receive a wallet address.