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How do I start mining bitcoins?

mine bitcoins

January 26, 2021 | 

1157 Views | 

JOHN K MWANIKI | 

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Bitcoin is the most popular cryptocurrency in the world. Millions of people generate wealth from this investment by either trading or mining. This article will discuss how to start mining bitcoins and the various types of bitcoin mining.

But before we get started, let us talk about bitcoin mining. Like gold or any other precious mineral, bitcoin miners get these digital tokens through mining. The process involves using special software and high-powered equipment to solve complex mathematical algorithms. 

Upon solving and verifying the transaction, the discovered bitcoin goes to a blockchain, and the miner gets a bitcoin reward. The bitcoin token serves as an incentive for the miner and aids in monitoring and legitimizing bitcoin transactions. So, how can you start mining bitcoins?

Do you want to start mining bitcoin?

If you are technologically inclined, then you should consider starting to mine bitcoins. While the business is very competitive and risky, bitcoin mining is quite lucrative. As mentioned earlier, the process involves using sophisticated machines to solve complex mathematical algorithms. In turn, the miners get a bitcoin reward after verifying the transaction and registering it in the blockchain. 

Bitcoin mining is an expensive investment, especially for beginners. The machines are pretty costly and consume plenty of electricity. But, the result will not disappoint you. Beginners should join a miner's pool, as it will aid in bringing various resources together. Depending on individual bitcoin contributions, you can share your rewards with other miners. So, let us delve into how to start mining bitcoins.

1. Get the best bitcoin mining rig

When you start mining bitcoin, you need special hardware designed to mine bitcoins. In the past, it was possible to mine bitcoins using high-speed graphics cards or domestic computers. Now, there is mining hardware for this function. Some of them include application-specific integrated circuits (ASICs) and graphic processing units (GPUs). Most of these types of equipment are available on Amazon.

With the help of bitcoin mining hardware and software, miners increase their mining power 100 times more. As a result, there is less power usage and more savings on electricity bills. When buying mining hardware, some factors to consider are:

  • hash rate (performance), 

  • price, 

  • consumption of your preferred machine's electric power.

2.  Establish or join a mining pool

Once you decide to start mining bitcoins, it is best to establish or join the best bitcoin mining pool you can find. Not only is this a reliable and convenient way of obtaining mining resources, but it also enables you to discuss and gain more knowledge about bitcoin mining. 

Nowadays, it is almost impossible to gain a bitcoin. This is because of the widespread popularity of bitcoins. One single ASIC machine cannot compete with all the large bitcoin mining firms in the world. It is best for bitcoin miners, especially beginners, to join or create a mining pool.

Bitcoin mining groups allow their members to work together and combine their computing power when mining. Upon solving a crypto block, the members share the rewards equally depending on the amount of contributed shares. Failure to join a bitcoin mining pool may lead some to mining bitcoins for a long time and never earning any bitcoin rewards.

Slush Pool is an excellent mining group for those who want to start mining bitcoins. It is credible and easy to use. All you have to do is register and set up an account for yourself on the website. Upon registration, you will get a worker ID for your miner, and you can begin bitcoin mining. 

3. Get a bitcoin mining wallet

Another vital step to start mining bitcoins is setting up or using an existing bitcoin mining wallet. With this wallet, you can readily accept all the bitcoin rewards you gain from mining and manage your bitcoin addresses.

Your bitcoin wallet receives bitcoins from a unique bitcoin address with a private key and a matching public key. It is from sharing your public key that you can get bitcoins sent to your bitcoin wallet. In turn, the private key should be secret and is applicable when sending off transactions. You must safeguard your private key. By losing it, you will lose your bitcoins and your bitcoin address.

There are different bitcoin mining wallets, like paper wallets, software wallets, and simple online wallets. A software wallet is best for beginners as it is secure, easy to use, and preferred for frequent manipulation when dealing with mined currency. These wallets are also easy to download to your computer. 

Furthermore, there are two types of software wallets: lightweight and full ones. Third parties control the lightweight software wallets, meaning they are not under the miner's complete control. However, they are still connected to the blockchain. On the other hand, the full ones are safer but need plenty of storage space on your computer. 

4. Get mining software for your computer

The next step is to get mining software on your computer to connect you to the bitcoin network and blockchain. The software monitors miner activities, delivers work to miners, and gather all the completed work results. Upon verification of this work, it then adds it to the blockchain. The mining software also shows essential basic information like hash rate, temperature, average mining speed, and cooling rate.

There are several mining software programs available out there. The best ones are those that can operate on almost all systems. Some popular mining software programs are CGminer and BFGminer, which are command-line software programs.

For beginners, Nice Hash Miner is an ideal mining software. It allows the mining of many cryptocurrencies, is easy to use, and automatically picks the best and most profitable algorithm to use in a specific moment.

5. Start mining bitcoins

Upon following all the steps mentioned above, you can now start mining bitcoins and generating wealth. Proceed to connect your miner to a power source, link it to your computer, and download the mining software. Once you enter information about your mining pool and wallet into the software, choose your preferred device, and begin mining. It is also important to note that the more computing power you contribute, the more the share of the bitcoin reward you will receive. 

Conclusion

As you start mining bitcoins, it is vital to always keep up-to-date with crypto news. Ensure that you always follow the bitcoin price developments and mining-related adjustments to find out your bitcoin mining setup's profitability. It is also essential to keep in mind that bitcoin mining is an expensive and complicated investment. But with the right setup and approach, you can make large profits.

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