Shortlist of the Main Mistakes and Misconceptions in Ethereum Mining
Obviously, those are beginners who make the main mistakes when mining Ether. But it also happens that the seasoned miners fall into the trap of “omniscience” or making the wrong bets. So, read and reflect as we’ve come up with a shortlist of mining fails.
I’ll Mine On a Laptop or Smartphone for a Start, I’m Not in a Rush to Get My Millions
This is probably not about you, our dearest user, but it is still worth mentioning. From time to time our support receives questions about whether it is possible to start mining “lightly”, namely, via your laptop or smartphone (nervous laugh). The complexity of the main cryptocurrency network (BTC and ETH) is so high today that it is common to start mining with devices that are several dozen times more powerful than your PC. And the income from such “micro-mining” will not even be enough to cover the cost of electricity. Why would you entertain yourself so strangely?
I’ll Set a Couple of Farms at Home, and I’ll Get Used to the Noise!
It only seems that one can get used to any noise (they say, some people live next to the railway). But trains do not put pressure on our ears all the time, unlike mining devices. Don’t even try to run FPGA and ASIC at home! They are too noisy and generate too much heat. Your neighbors will complain, and you will drive yourself crazy with the constant noise. There are many people in our mining community who design cameras to dissipate heat and noise, and while it’s fun to watch it, it is also quite expensive.
The Most Productive Equals the Best
Many newbies have no doubt that as soon as they purchase the most powerful equipment, the profit will flow by itself — just prepare your pockets! And they immediately buy the most expensive devices on the market, namely ASICs. Yes, they are good, but they practically cannot pay off due to constant product development and competition. They become outdated almost like trendy jeans — in one season, only they are much more expensive (on average, about 2 thousand dollars).
And do not forget about the cost of electricity, since these “heavyweights” consume a lot of energy! And if you really want to buy an ASIC, look carefully, and choose the one that has the lowest power in watts and the highest power in hashes, which directly affects energy efficiency. The more energy efficiency hash per watt, the better. Otherwise, you will just work to cover the bills. For example, if you take a video card Radeon R9 290X with high-performance indicators, then its power consumption indicator is 300W. With electricity prices operating in Russia, for example, mining with this card will not be profitable, since the main part of the income will be consumed by bills.
I Will Go With Solo Mining For a Start
Nowadays buying hardware and software for mining and running it solo is a mistake. Even in test mode. Solo mining is now relevant only for guys digging on an industrial scale. After all, if we talk about Ethereum, about 6.5 million video cards of the GTX1060 level mine it simultaneously, and even if you have ten of them, the chances of finding the block first are small. So it doesn’t with trying — look for a good mining pool instead. We have already written how to do this here.
I Will Improve My Equipment Even If It’s Good Enough
Expensive and very expensive, but quickly obsolete equipment, sometimes you want to keep it, beg it to stay and work a little more. And to overclock it a little, well, what’s wrong with that? Yes, those folks who dare to reflash their devices think so in order to increase its performance, and hence the profitability of mining. Indeed, as a bonus, there can also be a decrease in the noise level produced by the device and a decrease in energy consumption.
In one of the previous articles we wrote why you shouldn’t do this. In short, the greatest evil is the loss of the miner’s warranty, which leads to additional risks that can disable the device. Also, you can download “crooked” software that does not work correctly. And this is especially important in terms of device security.
Ethereum is Perfectly Protected, You Can Relax
Of course, thinking this way is already a mistake. The numerous incidents taking place on the Ethereum network are a perfect example. Attackers may gain access to your computer or account on a pool, cryptocurrency exchange, or web wallet. We’ve seen cases when the owners of crypto-exchanges, pools, and so on launch hands into the Ether storage. If you lose Ether, there is no way to get it back. To minimize risks, do not store large amounts of money in online services (wallets, exchanges, etc.). For long-term investments, it is better to keep your crypto only on personal devices (computer, laptop, smartphone). Moreover, it is best if you don’t use these devices. But a complex password to the crypto wallet will also help you. By the way, it should be stored separately so that attackers cannot get to your funds, even if they get access to the device.
Will Sell Some Coins to Cover Expenses Without Waiting For the Peak
This mistake, although not so serious and not always costly, can ruin the mood for a long time. And your sadness will grow in proportion to the exchange rate of the coin, which you did not wait for and sold your crypto to cover current expenses. For electricity, for repairs, for purchasing new equipment. Well, find other ways to get money: take a loan, ask your friends, sell something unnecessary … And crypto has a tendency to grow in case you didn’t notice. And if you are not sure if the peak has been passed, do not sell. But how can you be sure of that? ;)
