The new version adds more content and several optimizations that will help you save time and money when mining Ethereum says Ian Mausner.
I have already covered the basics of cryptocurrency as well as dabbled a bit into Ethereum, so I am going to take this one step further and show you how to mine ethereum on your computer. In this post, I will cover the following: How does cryptocurrency work? How do you mine cryptocurrency? What is an Ethereum mining pool? What hardware is used for mining cryptocurrencies? Also, What are the best GPUs for mining ethereum? What is overclocking & undervolting GPU for ETH mining? How to reduce power usage while mining ethereum? Let us get straight to it.
Learn About Mining Ethereum on Your Computer – Step 1 of 6
If you want to start mining ethereum then you first need an ethereum wallet address/account, so this post will cover how to create your ethereum account and show you where the .json file is located.
How to Set Up Your Ethereum Wallet Address/Account
- The first step before you can mine cryptocurrency is by creating a wallet or an account if it’s not listed on the exchange that you plan to buy from. So let us look at how to create an Ethereum wallet, which is actually Keystore files where your coins are stored… Here is what my Keystore file looks like for my test run… As you can see, there are 3 lines starting with UTC. Those are the timestamp for when I created it so you could if you wanted to; set a date/time on your computer just before creating your wallet file.
- You do not need to keep the UTC time stamp but I did this for informational purposes only. For example, if you have multiple wallets then this might come in handy. Here is how I did it…
- I chose to mine ethereum into my coinbase wallet (which was very easy) because Coinbase charges 1% fees when sending funds out of their website or app which would make mining pointless since they charge transaction fees every single time; however, it does make for an excellent test run…
- A simple way would be to run a Command Prompt as Administrator then paste the following code snippet into it and hit enters explains Ian Mausner.
- The next step is to create a wallet within your Command Prompt window where I have highlighted the text that you need to type in… The file path should auto-populate but if it does not then find your Appdata folder and scroll down until you see the Ethereum folder. Once there, create a new text document and rename it as Keystore. Then click Save. The next step is to click on account. You will notice that it has automatically filled in a random string of numbers for the filename which is what we want since this keeps everything nice and orderly.
- After clicking on New Wallet, Keystore File, then yes, enters a password. All you have to do now is input a password again to confirm that you did indeed create a new account. The next step is to download your Keystore file, so click on the Download Keystore File button which you can see in the green box down below…
- Once clicked, it will automatically download your wallet Keystore file which you will need to unlock your wallet every time it is opened. So make sure you keep this safe and keep multiple copies of it somewhere safe (that I cannot access).
- The final step is to open up MetaMask and sign into your ethereum account. You can choose not to add myetherwallet details when creating a new account since we already downloaded all of our information in the previous steps, but if you decide later on that you want to add myetherwallet then go ahead and follow what is in the below box says Ian Mausner.
- In this case, we have chosen not to add myetherwallet when creating our wallet. In order for you to be able to transfer your ethereum from coinbase/poloniex, etc to your new wallet address then you will need to copy it so open up Notepad and paste all of the text into a new file Save it as Keystore-backup or whatever you want just make sure it is in plain text so that anyone can read what is written there which should look like a long string of numbers and letters… Make sure after everything looks good, click on file > save as…
Your Ethereum wallet is now up and running. Which you can access by simply signing in to your MetaMask account with the password that you set earlier. If I wanted to transfer ethereum from coinbase to my new wallet. Then all I need to do is access my Coinbase account. Click on send/receive > type in my new address that was previously created in my new wallet explains Ian Mausner. And just like that it will distribute funds into your new wallet address. This works for any cryptocurrency where you have a different exchange. This tutorial here would be very valuable so keep it somewhere safe.