When I was getting prepared to start mining ethereum, my first question was how can I choose the best GPU to mine Ethereum with?
How would I know the speed of Ethereum mining GPU’s vs their energy usage so I could calculate the potential profits?
Researching The Best GPU Mining Cards
I started my research on how to start mining Ethereum on your GPU Graphics Card on my Windows 64 bit home computer – and compared the stats of many different GPU cards that were recommended by crypto-mining specialists – so I could narrow down and find out which is the best Hardware for Mining Ether. (If you are new to the concept of mining digital currencies read more about Mining Ethereum.)
As I researched how to build an ethereum mining rig, I considered three important aspects: the cost of the card, the energy usage, and the hashrate – which must be considered in order to determine the ROI.
Ethereum Mining Tutorial
As I’m new to mining, I chose to start with an easy-to-use Ethereum Mining Pool with MinerGate. My first experiments were just using my computer CPU – and a few members of our forum started to benchmark their mining hashrates for comparison.
My First Ethereum Mining Hardware
I started with the EVGA GeForce GTX 1050 because it was the Amazon #1 Best Seller in Computer Graphics Cards, and I figured it would be easily compatible with my home computer.
This card has great performance for the price, and low energy consumption so I did not require a power supply upgrade on my computer.
It was pretty much plug and play. I installed the card and then loaded the drivers from the CD – and immediately started mining with far greater speed than my CPU could perform.
Before the GPU Card, mining with only CPU:
After the GPU Card, mining GPU and CPU:
Different Hashing Rates for Ethereum and Monero
As you can see in the screenshots, my new GPU mining hardware achieves about
- 260 H/s while mining Monero – and
- 7.4 MH/s while mining Ethereum.
And while I let the computer continue mining – I began to search for a ethereum mining calculator so I could get an idea of how much Ether (ETH) should be mined with my hashrate. While I was able to find a number of different Ethereum Mining Profitability Calculators the estimated profits I would make were still not clear to me. The GPU Mining Scores are helpful in comparing different GPU graphics cards, but without knowing more about my total energy usage of my computer – the details are still a ballpark guess.
Ethereum Cloud Mining Pool vs Home Computer Mining
Some months ago, I purchased about $80 worth of hashing power (which was 1 MH/s at the time) when I was comparing cloud mining pools that was advertising an estimated 150% return on investment. As soon as they had all their rigs online, the network difficulty naturally increased – and the estimated ROI after the one year mining contract is complete, is now somewhere around -50% at today’s price of ethereum. (Good thing I only invested a small test amount of money)
Today, with one simple low-cost GPU Card update (about $170 USD), my computer is mining ethereum at about 7 MH/s.
From the first estimates, I’m expecting the following earnings from my home computer Ethereum Mining Rig:
- 0.03 Ethereum per day
- 0.21 Ethereum per week
- 0.90 Ethereum per month
- 10.8 Ethereum per year
Is it worthwhile to Mine Ethereum? Or better just to purchase?
At today’s price of $9.50 USD/Ethereum – my mining rig is really not efficient enough to pay for itself in the first year of running. It likely uses too much electricity – and along with the cost of the new ethereum mining hardware – it seems like an overall loss in the first year.
Yet there are a few things to consider to determine the logic of this strategy – first, my home computer is now generating passive income that helps to offset the cost of running a computer that I would be running even if I were not mining. Second, I’m sure that the first people to mine bitcoin were spending what seemed like big investments in computer hardware – but as we know – over time, it has proven to pay back many many times over the initial costs.
Will A Bigger Ethereum Mining Rig Be More Profitable?
Mining Profits are all about the ratio between your hashing power and the total energy consumption – and the value of the coin you are mining.
My home computer is running two monitors, older hard drive, motherboard and now the lower-range performance GPU Graphics Card running at full steam. My thinking is that my first mining rig overall is using much more power per MH/s than I would get when I test the power consumption of a rig that is set up with six top-rated graphics cards with the highest hashrate per GPU, and a motherboard that is not running a separate computer monitor all the time.
Testing different Ethereum mining software
My first ethereum mining pool with MinerGate is the easiest to use – but some reports suggest that my computer will earn faster with a dedicated pool with more efficient Ethereum Mining Software. Watch for updates and reports as continue on my Quest to make money with GPU mining – I will test and report on the ethereum mining profitability using different mining pools.