What's the expected ROI on Ethereum (cryptocurrency) mining today, and what's the best way to get started?
Hello there! Thank you for your question on the expected ROI on Ethereum mining today, and the best way to get started. The short answer is that with an expected ROI of 3 months the best way to start earning is through buying parts and building the machine independently. Parts are readily available to buy on Amazon and I have found independent websites with recommendations. Below you will find a deep dive of my findings.
I began by familiarizing myself with the Ethereum mining industry. I conducted a comprehensive search of industry reports and trusted media sites to gather information on Ethereum mining today and the best way to start initial set-up. In order to provide a full scope of information, I used user forums and review sites to draw conclusions on the opinions and successes currently in the industry.
In order to determine the best method to start up in Ethereum mining, I used the revenue and set-up costs to determine an ROI and cross-referenced which were most commonly mentioned across all sources. I looked at the ratings and reviews of each strategy before deciding whether or not the source was credible to use. As such, I believe the lists of parts I have included in my findings to be highly accurate rankings.
Below I will breakdown my findings into sub-sections for your ease of reading. Any additional notable insights I have found are detailed.
This website allows for accurate tracking of the value of Ethereum, it also shows the percentage of Ethereum volume by currency. At the time of writing this, the USD share was at 26.45%. In general, it can be seen that market is steady with no drastic fluctuations up or down.
Here you can find a profit calculator specific to Ethereum mining. The calculator allows you to take into account all of the expenditures related to running a rig (power cost, hardware cost, etc), and so I believe it to be a useful resource during the initial start-up phase.
GPU ETHEREUM MINER
Mostly used for gaming and high-end the applications for computing graphics processing units have recently been extended. With the introduction of cryptocurrency mining, miners are able to use GPU's to mine cryptocurrencies like bitcoins, ethereum, and litecoins.
One this website you can find a detailed evaluation of the most effective GPU's to use. The rankings are determined using the four factors:
2. Mining Power or Hash Rate
3. Electricity consumption
4. Return of Investment
To round it up, the highest rated with this evaluation process are the AMD Radeon R9 295X2 and SAPPHIRE R9 290. Using three SAPPHIRE R9 290's reports a mining power of 75 Mh/s. If planning to buy hardware, this is the recommended GPU, at an ROI of 7 months. If not investing in a mining rig, the AMD Radeon R9 295X2 is the top recommendation due to its high mining power.
A useful website for comparing all GPU's can be found here. The listings also include a payback time estimate from Ethereum mining revenue. GPU's on this listing reach a high of $13,000 annual minings.
Here is a useful website listing pre-built rigs, at a minimum of $1599.00. The rigs here do come with a guarantee and assurance of quality. Higher quality rigs require a call to the seller for pricing. There is further support available in the set-up process and in the case of any problems occurring.
Another credible website selling entire rigs. Here they specify the Watt usage and so you are able to better determine the standing cost of using one. They also estimate your profit, at the most expensive listing the Ethereum GPU Miner 450MH/s projects a profit of $75.00 a day.
Independently sold and pre-used, this listing comes with in-depth specifications. If unsure about quantifying specifications or constructing from parts this is assuredly the best bet. Extremely minimal set-up would be required.
BUYING BY PART
At a much lower return on investment of 3 months, it's clear why constructing your own is highly recommended. On this website, you can find an extensive list of high rated parts, with links to their respective Amazon pages. An important note is that using Windows 10 is highly stressed, as an older version would induce a lower Hash Rate.
This resource also provides an explanation on the best way to put together your parts, recommending the use of zip-ties, power meter, and a surge protector. They also highlight their top choices for building a rig from scratch and report their earnings at around $5.50-8.50 a day using the described set-up. For such an extensive 6 way set-up, the ROI is calculated to be a lot higher at 380 days.
Similarly, this website also provides an in-depth guide of recommended parts and the construction process. Specific parts required are listed as:
• 6 Graphics Cards - Nvidia GTX 1070 GPU's
• RAM (system memory) - 4 GB RAM
• USB Riser Cables - 6 Pack USB Riser Cables
• Hard drive (SSD) - Solid State Drive
• Custom mining case - Open Air 6 GPU Mining Case
• Operating system - EthOS is free
For supplementary parts such as power supply modules and casings for constructing a well-ventilated rig see here. It is highly stressed to construct a rig in this way or the ventilation to the system will not suffice.
To summarize, I have found a wealth of sources provided detailed information on what products to buy, where to buy them, and how to set them up. In terms of ROI, the best method of setting up your Ethereum mining system is by buying separate parts and constructing a rig. Lower ROI's can be obtained by not using a rig and just one GPU, however, the return profit is substantially lower. Technical support and guarantees are provided by pre-built rigs may be worthwhile considerations. I have also endeavored to provide some background information on the Ethereum market to paint a full picture. Other important takeaways are the high importance of ventilation and up to date Windows software.
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