A digital revolution is underway and this revolution is going to shape your future and the future of money. Day by day the money in your pocket is becoming worthless, opening doors for future financial systems, which will also give a chance for wealth creation opportunities for a generation.
We’ve been hearing news about Bitcoin and more news about cryptocurrency mining. More people are becoming curious about it and now internet searches are full of ‘What exactly is Bitcoin? How does it work? And what impact does it have?’
Bitcoin can be described as a cryptocurrency, a digital currency, or a virtual currency. It’s a type of money that is 100% virtual which you can use to buy products or services. However, not many shops accept Bitcoin. The great news is that companies are now buying into the growing influence of cryptocurrency.
Bitcoin was launched in 2009. By then, there was no competition in the digital currency. By 2011, other types of cryptocurrency emerged as investors continued to tap into blockchain technology. To date, there are different types of crypto, Ethereum is one of them.
Some people prefer earning crypto through trading, others go for mining cryptocurrencies and selling them on a coin base. Ethereum mining can be profitable.
For this reason, several pools can help you get closer to the goal of earning more profit from crypto, and today we shall look at two popular mining pools: NiceHash and Ethermine.
If you have interacted with cryptocurrency miners, then you’ll agree that they are nothing less than resilient. The crypto mining process is energy-intensive and requires customized mining systems that compete to solve mathematical puzzles.
Mining Ethereum involves using computing power to validate blocks and solve complex puzzles. There are different methods of mining Ethereum ranging from cloud mining to pool mining like NiceHash and Ethermine.
Ethereum miners will tell you that there is little time left to mine Ethereum and that mining Ethereum can be daunting at first.
A mining pool is the simplest way to crypto mining. However, if you are new to crypto mining, it is prudent to review pool options before moving forward.
While you are likely to find out that NiceHash is the safest and easiest option, it is imperative to understand how it compares to Ethermine to make better mining decisions.
Anyone can become a miner on the Ethereum network as long as they have a computer. However, not everyone can make a profit out of it.
Mining Ethereum requires you to have to purchase dedicated computer hardware as the chances of an average computer earning enough block rewards to cover the costs of mining are minimal.
Mining pools are associations of miners who work together. When you join a mining pool, you can receive a more secure reward through small and frequent payouts, as opposed to a lump sum you receive when you find the block.
Before you choose a pool, ensure that you are certain about the size of the commission and profit.
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NiceHash is not a process of mining crypto but rather a marketplace for buying and selling the hashing power. The NiceHash application gives power to crypto miners to sell their computing power and purchase mining power in specific algorithms for profit.
NiceHash was launched in 2014, when there was a major spike in crypto mining. During this time, starting coin mining was complicated and NiceHash came in to lower the barrier to entry and get rid of worries about what coin to mine.
With NiceHash everything happens in real-time. You do not have to commit to a certain period when trading your computing power. As an incentive to you as a crypto miner, NiceHash auto-switches to the most profitable Ethereum algorithm at regular intervals to maximize your earnings.
The crypto market is constantly fluctuating. The whole marketplace uses bitcoin and Etherium, which means regardless of the algorithm you use, you will be paid out in crypto.
The NiceHash application is easy to download and while it might not be the best option for veteran miners, it is a top choice for many people.
Check out the best alternatives to NiceHash here.
Ethermine offers a crypto mining platform that accommodates users who prefer the pool to solo mining. Since 2021, the Australian-based pool has been offering the L2 polygon payout. The polygon network gives chance to both small and large miners to have access to the top layer of the Ethereum chain.
Ethermine is the pool with the highest hash power and one of the most popular pools with a large number of servers. Ethermine has a 1% fee and requires you to share transaction fees from the block. To get started with the Ethermine platform, you need to launch it on a Linux console or a Windows command prompt.
The pool has various servers spread across Asia, America, USA, and Europe. Ethermine is owned by Bitfy Crypto Mining Company, which also has products such as Etherchain, Ethernods, Baeconcha, and Zchain.
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Ethermine platform is made of distinctive features for all crypto coins. Ethermine offers anonymous mining, meaning you don’t register on the pool. Ethermine was released for two operating systems, Linux and Windows, and supports video cards from two manufacturers, AMD and Nvidia.
Ethermine is real-time, offers accurate hash reporting, and gives the full reward. The pool offers users a PPLNS payout system that can accommodate those who prefer solo mining. Ethermine gives an effective mining mechanism with a low percentage of orphan blocks.
Ethermine gives detailed global statistics of each miner. It has an email notification system and also comes in third-party apps for IOS, Android, and Telegram.
All these features give confidence in service and position Ethermine as a competitive player in the crypto market.
NiceHash is not a pool. With NiceHash, miners are paid directly from the buyer of hash power but not from the block reward. NiceHash gives power to buyers to decide where the hash power should be directed.
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Miners using NiceHash are paid based on the number of valid acceptable shares they send through a system called the pay-per-share (PPS) reward system.
At first, the features and services provided by NiceHash may seem similar to cloud mining due to its remote leasing of computing power.
However, what sets the two apart is that NiceHash doesn’t have its data centers. NiceHash offers exclusively intermediary services to help some users buy hash rates from others while acting as a guarantor for the transactions.
As a buyer of hashing power, you’re more interested in buying the mining service from someone else. You can do that by committing to mining contracts, renting mining rigs, or ordering hash power at NiceHash. You can acquire your hashing power through the following steps:
- Get a new account.
- Complete the KYC verification.
- Deposit cryptocurrency to your NiceHash wallet addresses. The currencies may include BTC, XRP, ZEC, LTC, ETH, or BCH. Make sure that you account for transaction fees when making deposits. For you to submit an order, you’ll be required to exchange the deposited altcoins for BTC.
- Determine the coin you want to mine and pick on the pool you wish to mine that coin in.
- Register at your preferred pool provider and create a worker.
- Save your pool in the list of pools.
- Use a pool verification to verify your pool. Some pools will ask you to custom set the worker’s difficulty, which is usually the worker’s password.
- Place a new order on the marketplace and ensure that you select the right algorithm for mining that coin. The good news is that you can always find a list of all supported algorithms plus a list of the most popular coins mined with the algorithm of your choice. Keep in mind that every hash power has its prices, and once you decide on the amount you wish to spend, the amount will be expressed and paid in bitcoins.
- Check your income at the pool of choice as the pool determines the rewards you’ll earn. NiceHash only assures you that the hashing power you acquired will be delivered.
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We’re in the middle of the cryptocurrency bubble. For the longest time, the stock market has remained one of the greatest wealth creators across the world.
For a while, the business world thought the stock market had lost its glory to housing, gold, oil, and other sectors until crypto came along a little over a decade ago.
If you are eager to learn how it works, then a little guidance on how to build a small cryptocurrency mining operation will bring you closer to achieving your goal.
- Step one is having your crypto wallet. It will only make sense to mine crypto if you have a place to put it. The good news is that crypto wallets are easy to install, simple to set up, and compatible with multiple cryptocurrencies.
- Join the Ethermine mining pool. When the time comes to configure windows bat files before you could start mining, make sure that you choose servers close to you here.
- Connect your wallet to Ethermine. In this step, you may need to know the IP address of your mining computer and you can find it here.
- Download and configure your mining software. On Ethermine main page, you’ll come across a Phoenix miner and configuration guide. Click on it to ensure that you configure your mining software to work with the Ethermine pool. Follow the instructions carefully to the latter, and when all this is done, you can start mining!
- But just before you get going, overclock and tune your GPU. Crypto mining is all about efficiency. Power is costly. But when you waste power you damage the environment. Profitable mining involves striking a balance between speed, power, and accuracy.
- Note that overclocking your GPU can destroy your computer. Therefore, do not overdo it. Limit your GPU power to a maximum of 70%. Stay safe by turning your fan auto function off, cranking it up to 80%, and letting it stay there. Avoid touching the core of the clock or the memory clock setting.
- To ensure that your GPU is working as efficiently as possible, consider updating your GPU drivers by installing the latest available updates.
- Start mining. Open your browser with the mining pool, run Afterburner to keep track of what is happening on your GPU, and start Phoenix to begin mining Ethereum.
- Collect your rewards. After mining for some time, visit your pool’s page to check your available earned rewards. Copy and paste your public Ethereum wallet address into the search bar to get an overview of the rewards.
Depending on your pool of choice, you can claim your rewards manually or receive them automatically to your crypto wallet once you reach the minimum payout level.
NiceHash charges a fee for all services provided to users. The amount charged varies depending on the type of operation.
NiceHash charges 0.0001 BTC against spam for the creation of a new purchase order. In addition, 3% of the amount spent on each order applies. However, the 3% does not apply to the unspent amount due to canceled applications.
Service fees for buying hash power
|TYPE OF SERVICE||FEE|
|A non-refundable new order fee||0.0001 BTC|
|Amount spent on orders for buying hash power||3%|
Service fees for selling hash power
This applies to miners who use NiceHash miner, NiceHash stratum servers, or NHOS.
|Payouts made to NiceHash wallet (minimum balance of 1000 satoshi =0.00001000 BTC)||2%|
N/B: payout is made every four hours.
When withdrawing to external wallets, NiceHash charges the following commissions for the sale of power:
- For balances less than 0.1 BTC – 5%
- For balances more than 0.1 BTC – 3%
NiceHash has a well-structured and simple fee arrangement with maker and taker fees. Trade levels are calculated based on your lifetime activity and once you reach a certain level, you will never go to a higher fee again.
Here are more details on NiceHash’s payouts and fees.
Transaction costs affect the earnings of small-scale miners. Ethermine is an ETH pool that is run by the same administrator as Ethpool. Ethermine has a 1% fee and shares transaction fees from the block.
Ethermine has a specific amount of ETH that you have to earn to reach your required threshold. The payout frequency happens every 24 hours. The payouts are an approximation based on your past earnings, and actual payout times may fluctuate.
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Last year, Ethermine announced changes to its payout policies starting at block 12,965,000. The policy stated that:
- Instead of 80%, 100% of the Fleshbot MEV rewards to be paid to miners
- The minimum payout threshold was to be reduced to 0.01 ETH and monthly automatic payouts were ruled out.
- Manual payouts and changing thresholds now can be initiated through IP verification.
- The policy also stated that the miner should pay the payout tax fee for all the Ethereum main net payout transactions. The policy also gives freedom to miners to the maximum gas price they are willing to pay. The pool no longer covers the miner’s payout transaction fees.
Here is how the policy was adopted:
Ethereum layer 1: (gas limit: 1000)
Daily automatic payout of balances above your setup payout threshold:
- 0.01-10 ETH
- Network tax fee paid by the miner
- Default maximum recommended gas price will be 40 GWei
Manual on demand payout of all balances above 0.005 ETH:
- Network tax fee paid by the miner
- Can be initiated through meta mask and IP
- Daily automatic balances payout of all balances above 0.01 ETH (network tax fee paid by the miner)
If you are a smaller miner, it is advisable to use polygon/Matic to receive prompt payouts.
- If you are interested in earning money from mining cryptocurrency, NiceHash is the easiest way to help you get started. NiceHash saves you the time of researching mining pools or software, as everything is done through a graphical application.
- NiceHash is easy to understand, and you don’t need to have cryptocurrency knowledge to participate.
- NiceHash can be trusted. It has been around for over six years with users spread across the world and is fully anonymous and risk-free. NiceHash is a reassurance that the crypto space can be trusted and is not a scam.
- It has a low payout threshold that can be achieved within hours of an average mining rig. While thresholds for other pools are a lot higher that require a couple of weeks to achieve, NiceHash uses internal accounting that allows small amounts of cryptocurrency to be transferred to miners.
- NiceHash pays you directly to your internal NiceHash wallet. This means you can withdraw your earnings or trade your mining earnings whenever you want. If you find transaction fees too high, you can always wait for a more reasonable transaction rate.
- NiceHash product features auto-update. Yours is to set it and let it run until you stop it. The team behind NiceHash takes care of all updates and ensures that your platform has the latest features. The software also gives you the freedom to switch algorithms if one is paying more than the other for maximum profitability.
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- NiceHash is a third party in itself and that may be a big concern for some people. Third-party arrangements can decide how much you’ll earn depending on their profitability. However, NiceHash tries its best to maintain transparency by offering real-time statistics. Even with the single incident that occurred in November 2017, NiceHash was able to bounce back.
- NiceHash is not profitable enough to sellers. Compared to dedicated pool mining, users who mine only a particular coin make much more, hence high profitability with pool mining. Mining crypto with NiceHash is less profitable because you still need to cater to pool fees. Pool mining on the other hand maximizes whatever you mine and turns it into pure profit.
- NiceHash is unsuitable for long-term investment. It is best for short-term purchases with massive hash power. It is a real-time thing meaning its prices are likely to fluctuate with the market. This means that if the crypto market will boom in the future, you only have the advantage of having bought the hash power at a lower rate.
- Ethermine is the largest Ethereum mining pool available. It charges a flat rate of 1% and does not charge you for transactions.
- Ethermine gives you the freedom to set a minimum threshold for withdrawing crypto. If you don’t wish to receive payments too often, you can set a threshold of 10 ETH. If you are a beginner who wishes to receive payments more often, then you can set your threshold to the lowest value of 0.05 ETH.
- Ethermine provides instant payout and pays all mining rewards including blocks and fees.
- Ethermine offers professional support in English, Spanish, and German languages.
- Ethermine pool access is limited to one internet IP.
- The pools do not have multiple mining systems.
- Ethermine does not have Cardiff and does not support merged mining.
You will not go wrong by choosing either of the two pools. Both pools offer users great crypto experiences and at the end of it all, great awards await you.
Analysts project that the global cryptocurrency market will more than triple by 2030. Investors, businesses, and brands can no longer ignore the rising tide of cryptocurrency.
If you are just getting started and would like to ace the crypto game from the onset, then the NiceHash pool is a great choice for you.
The best thing about NiceHash is that there are no long-term contracts. While there is a lot of hope in the crypto business, its future lies in uncertainty.
Therefore, you are better off using a cloud-based solution instead of acquiring expensive hardware only to sell it cheaply later on.
Scott L. Macarthur is a marketing consultant and an online author. He is mostly engaged in providing his expertise to startups and SMBs. He is also an author on TheNextWeb.