EOS Cryptocurrency Mining Guide

EOS Cryptocurrency Mining Guide

Decided to start mining EOS cryptocurrency? There’s a lot you should consider before you switch your hardware on. Let’s discuss why EOS cryptocurrency mining is so popular, what’s the most profitable way of mining it, and which platforms are better suited for beginners and which ones for advanced miners. 

About EOS Cryptocurrency

EOS project was initially based on Ethereum blockchain technology: its key purpose is establishing a versatile approach to blockchain-based app creation with scaling decentralized services.

The platform allows programmers to use system nodes, distribute application processes right to the kernel, use databases and asynchronous communication tools, authentication tools and accounts. This approach opens up the possibility for network expansion and performance of a million operations per second without any commission. 

TaPoS or transaction as proof of stake is another distinguishing feature of the network. According to software requirements, the hash of the last block header must be a part of each transaction. This approach prevents re-transactions on forks without a reference block. The hash also indicates that a certain user or share of participants belong to a particular fork.

How to Mine EOS?

Here we have to start with the bad news: in the EOS ecosystem, mining is absolutely impossible! Unlike Ethereum which still supports the Proof-of-Work (PoW) consensus algorithm, the Delegated Proof of Stake (DPoS) or TaPoS protocol does not allow for mining blocks. DPoS means that all network participants select a small group of users (21 validators) that create blocks. After 24 hours, this duty is transferred to the next group of producers and so on.

At the same time, the production of blocks does not occur: validators receive a reward for processing transactions. DPoS is a modification of Proof-of-Stake where the proof of the share was replaced by voting: the block reward was removed leaving the commission fees to the nodes. The system seems to be very democratic, but any electoral process can actually be manipulated.

Good news: you can mine Ethereum and exchange it to EOS – this is how EOS coin mining is mostly done. It means you are only three steps away from becoming a proud EOS coin owner:

  1. Create ETH and EOS wallets.
  2. Join an Ethereum mining pool and set up your hardware to start the process of mining.
  3. After you generate some Ether, convert it to EOS using the exchange platform that has the pair listed. For example, you can exchange ETH for EOS on Changelly.

Congrats! You have EOS crypto in your portfolio. 

Best EOS Miners 

As we have mentioned, there is no such thing as pure EOS mining. Thus, you have two options:

  1. Join an Ethereum mining rig. You can work together with a group of miners and combine your computing power for better results. Why is it better done in a group? Ethereum mining has a high difficulty, and mining solo might be very inefficient – in most cases, hardware and energy expenses are not compensated.
  2. Try Ethereum cloud mining. In this case, you lease the computing power for fiat: a remote server mines ETH for you. There’s no need to buy hardware or install any software – your PC is not involved at all.

If you’re a starter, Ethereum / EOS cloud mining would be a better solution. Let’s look at the most reliable and profitable platforms.  

1.Hashflare

This service is a subsidiary company of HashCoins corporation that focuses on mining equipment. They offer a contract for Ethereum cloud mining called “Ethash Miner”. Ethereum is mined on HashCoins GPU Rigs, and the minimum contract timeline is 1 year. The minimum hash available for purchase is 100 KH/s: it costs $2.2 without a service charge. Remuneration is paid every day.

One of HashFlare’s best features is the ability to independently distribute power among pools and thereby manage profitability. Another convenient tool allows you to reinvest your profits in the purchase of capacities.

Investments in HashFlare Ether mining contracts pay off within six months, and the return is 215%.

2. Genesis Mining

This is the largest cloud mining company in existence since 2013. Ethereum mining is carried out at the largest mining farm in the world – Enigma mining center, located in Iceland. Genesis Mining offers 3 types of contracts for Ethereum cloud mining:

  • “Small” at 1 MH/s for $ 29.99;
  • “Average” for a hashrate of 30 MH/s for $ 869;
  • “Large” at 100 MH/s at a price of $ 2799.

All contracts are concluded for 2 years with daily payments, and it is also possible to order an individual mining plan. Users receive their first payments within a day after paying for the contract. Investments in Genesis Mining contracts for Ethereum mining can be repaid in 7-8 months, and profitability will be at the level of 215%.

3. OXBtc

This Chinese cloud mining website was established in 2014 and offers three types of Ether mining contracts for three years, starting at $15/MHS plus a service charge of 5% of the profit and electricity charge of $0.164 for THS per day. Mining is carried out at the facilities of PandaMiner B3 Plus (the serves are located in the USA, Venezuela, Kazakhstan, China). The profit is distributed according to the PPS system – it makes payments transparent. 

4. Kikohash

The service has existed since 2016 and performs mining on graphic cards only. It allows customers to acquire ownership of a share of the power for mining Ether, and after the expiration of the contract, the video cards are sent to the owners. The data center is located in Iceland where Ethereum is mined on Sapphire RX580 8G and RX480 8G graphics cards. The total cost of one card for cloud mining is $ 299 plus daily electricity and the maintenance fee of $0.49. The minimum contract value starts from 0.01 BTC. Rewards are paid in Bitcoin once a week – on Mondays.

5. Minergate

Miner Gate is known to all miners as one of the largest pools. In addition to this, you can also order cloud mining on the site. The service has been operating since 2014. It is used by more than 1.5 million miners, 20 thousand of which are mined in the cloud.

All offered contracts are lifetime. You can rent capacities without making large investments. The service has an automated mining system, in which production will independently switch to the most profitable coin. Ethereum mining is performed with 1% PPLNS fee. 

Bottom Line

As you can see, it’s possible to perform EOS mining without even buying and setting up hardware and software – you can simply register on a cloud mining website. However, hashing power costs a pretty penny: be ready to invest heavily before you reap EOS crypto profits. 

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