Last month’s $113 million is the highest ever month profits earned by Ethereum miners. The previous record was made in January 2018 when miners collectively earned $64 million.
Everytime we experience absurdly high fees like we've seen recently people come out of the woodwork looking to setup a miner to get their peice of the pie.
Miners play a critical role within the Ethereum network by ensuring transactions between users are verified and added to the blockchain public ledger. In return for mining blocks, you’ll receive ETH as well as fees associated with the transaction.
The main reason for the huge profits recently are the absurd amount of gas (fees) needed to process a single transaction, and of course the DeFi craze thats hitting the Crypto scene over the past few months.
Below are a few simple steps to get started as a miner, I personally started off with a single GTX 1050 ti in my gaming desktop and have since expanded to well over a 100 cards. (House cant take anymore power)
Step 1 - Choose the Coin you want to mine
For this guide we're just going to use ETH as its the main coin for GPU miners.
Step 2 - Choose your Hardware
When choosing a GPU, it’s important to factor in the cost of the hardware itself, as well as its power consumption and hash rate.
One thing to remember is the more GPUs you have the more motherboards, ram, power supplies, hard drives, risers, and most importantly space you need.
The cheapest and best cards to use are AMD RX 570/580 8GB GPUs (Graphics Processing Unit), you can get them used for $80-100 USD, they produce 28-32 MHs and have the fastest ROI. If you have a small space and density matters most AMD RX 5700 XT or non XT variation may be best.
At the end of the day what matters most is the price you're getting these parts at, the amount of power they need, and how much hashrate they produce. Below is what a typical hobbyist mining rig would look like.
Step 3 - Choose your Software
I've personally tried them all and prefer Phoenix miner, mainly due to stability reasons. For 1 reason or another my mining rigs are more stable and requires less upkeep with Phoenix miner, results may vary.
Step 4 - Choose a Mining Pool
Being part of a mining pool is the only real way to be profitable as a hobbyist miner than trying to mine Ether on your own. Profits are split between all the miners in the pool according to their contributed computational power.
You need to have some serious hashrate behind you to compete against the mining pools for blocks to mine. I personally use Nanopool but there any many other options to choose from.
Step 5 - Get Paid
If youre mining solo, after you've successfully mined a block you’ll receive the block reward and the fees associated with the transaction.
If you're mining with a pool, you will have to keep mining until you hit the pools minimum payout limit and from there the pool will pay you your share of the rewards.
Final thoughts - I would suggest to start off small and see if you're made for the miner life. Each GPU card is like a 80w space heater that also creates noise due to all the fans running 24/7, so as you start to scale you have to deal with the issues of the mass amount of heat and noise each rig produces. Search your local buy n sell for good deals on hardware.