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  • Mon. Mar 4th, 2024

How to Mine Ethereum: A Crypto Guide

BySara

Mar 13, 2023
crypto betting

Ethereum is one of the more popular cryptocurrencies out there in the digital world. In fact, this form of currency is so popular that some analysts think it might become greater than Bitcoin over the course of many years.

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If you’re looking to get in on Ethereum while prices are still relatively low, you’re right that the time is now. However, there’s a lot you need to know about how to mine Ethereum.

There have been recent changes in the world of this kind of crypto mining that you need to be aware of if you want to make any kind of profit. What do you need to know? Read on and we’ll walk you through the basics.

Ethereum Mining is Over

The main takeaway you’ll need to understand right off the bat? Mining Ethereum, at least in the traditional sense of the word, has ended. It isn’t possible any longer.

Ethereum moved to a POS algorithm in 2022 – this move made mining a thing of the past. It is no longer to do what is known as ‘proof of stake’ mining, which is how Ethereum was initially created off of the blockchain.

This process required a massive amount of electrical output (bad for the environment) and led to some major scalability concerns, which led to the transition.

While mining might be over, that doesn’t mean the ability to make money off of Ethereum is over. The best replacement for mining is known as Ethereum staking, and it’s a practice well worth getting familiar with.

Understanding Ethereum Staking

Staking works in a similar way to mining. It requires a user to lock up Ethereum on the blockchain. When users do this and validate transactions along the blockchain, they get to take in more currency for themselves as a reward.

There’s a minimum spend required to become a validator and earn more Ethereum. You’ll need to lock at least 32 ETH on the blockchain in order to unlock this right.

Validators are then randomly assigned blocks of the blockchain, where they are required to validate and maintain the transactions located there. In return for this work, they earn a yield that is then paid out to them in the form of Ethereum.

The mentality of this work is quite similar to mining, but it comes at much less of a computing and electronic cost.

You can read more in this article about how to access the Ethereum that you earn from staking. There are more ways than one!

How To Mine Ethereum

If you’re looking to make money in cryptocurrency, it’s logical that you’ll be curious about how to mine Ethereum. However, it’s important to get familiar with the changes that have happened in the working process of this blockchain over the past few years.

The above information can help fill you in on what you need to know.

Need more crypto mining advice and information? Keep scrolling through our blog for more.

By Sara

My name is Sara Anslee, I live in Colorado. I am very fond of gaming, writing, and blogging. I share the latest news and tips about sports games, video games, gaming movies, gaming devices, and accessories. I also love watching movies and traveling.