So, you’ve known about Bitcoin which is one of the most well-known Cryptocurrency, and you’re prepared to get your hands on some Digital currency. Where you can purchase and sell or trade bitcoins, or you can even “mine” for them.
Mining for bitcoins is really makes little excitement the procedure of verifying the other bitcoin transactions, for which miners will get reward as in the form of bitcoin.
After each transaction of bitcoin i.e. if the users buy the bitcoin or they sell the bitcoin, each time it will mark as transaction, where these transactions were known as blocks, and the miners need to find the valid blocks among many other invalid blocks and verify them, after verifying the valid block the miner will get reward in the form of bitcoin.
This guide will explain how to mine bitcoins and potentially earn a fair amount of money:
At the point when Bitcoin first began, it was bit easier to mine using our desktop’s CPU and GPU. We can do that now as well, but the profits you make running this Bitcoin mining in normal Computer which we are using currently does not make any sense of Bitcoin mining, because for Bitcoin mining, it consumes more power, so power cost will be greater than profit that you get from Bitcoin mining from your CPU or Laptop.
Must Required Hardware For Mining:
- Effective Motherboard that should be capable of running 24/7.
- GPU(Graphic Cards), need to accommodate more Graphic cards.
- Standard Power Supply.
Before Mining the Bitcoin, you need have Digital Wallet to store your Bitcoin. These Bitcoin wallet will be either online or offline. My personal recommendation is to store Bitcoins offline, because if you store bitcoins in online then it is less secure that, any online wallet data collapsed then, you cannot get bitcoin back. So be carefully guys.
Most established bitcoin users recommend using a local or offline wallet for security reasons.
Local wallets or Offline Wallets need to verify the entire blockchain, by which it is the complete history of all bitcoin transactions till date. Hosting a complete blockchain is that helps you to keep your Bitcoin safe and secure. Once you downloaded the wallet, then it will synchronous blockchain for very first time will take a day to synchronous.
As if now, the much known local wallets include BitcoinQT, Armory, and Multibit. You can get BitcoinQT directly from Bitcoin original website Bitcoin. Then Multibit is not required to download the entire blockchain.
Mobile Apps also available in the same website, but these Apps does not require to download entire Blockchain. Where some of the popular Apps that include: Blockchain and CoinJar.
Do Remember this thing: If you lose your wallet, you lose your money.
In this wallet there is no “ownership” to the wallet, if you had shared your credentials with someone or somehow they access your wallet, then easily bitcoins will be transferred. Once transferred cannot be tracked back, that is power of bitcoin. To prevent this enable two-factor authentication and better store in your private computer, which does not have access to internet.
Follow this Tip to secure your wallet
Best idea to store your wallet is in pen drive, SD card, or any other hard drive by which while Bitcoin mining you can connect the device and after that you can unmounts it.
It’s time to start Bitcoin mining, before that you need to decide that, you will mine a bitcoin alone or you will join in some pool for bitcoin mining.
Let me Clarify on this:
Bitcoin Mining Alone: If you want to Mine Bitcoin alone then you should have big setup of huge computers, because now a days mining become harder than earlier, so if you are a starter, then better join in a Bitcoin mining pool.
Bitcoin Mining in a Pool: If you are a new to this world, then start mining Bitcoin by joining hands with appropriate pool. In the Pool, with you there will be a huge number of miners will join you to mine the bitcoin, in simple words for mining a bitcoin you need more power, if you join in a pool, then the power of all miners in the pool will mine a bitcoin easily and for that your pool will get bitcoin as a reward. The rewarded bitcoin will be shared among the pool miners based on the power you supplied to the pool to mine a bitcoin. Here if you want to join in the pool then you will have small fee from your earnings, where most of the pools joining will be free.
Mining software’s that will be available for free in the internet because those are open source. There are different kind of mining software available based on you configuration of your hardware or OS. These Mining software will run in the command window, and it requires batch file, to start perfectly, especially if are connected to the pool.
If you prepared to mine solo then connect with your personal wallet, such as online or offline, after mining you will get rewards of bitcoins, those bitcoins will be deposited to your wallet.
If you prepared to mine in a pool then make sure to connect your wallet with the pool software with the bitcoin address which was provided by the wallet.
Want to Know Best Mining Software?
I found two best mining software till date are CGminer and BFGminer.
See your pool’s help section for specific details on connecting to the pool with your mining program.
After configuring your miner perfectly, check once and start mining operations. In early step I have mention about batch file, so you have to run that batch file now to start mining. That it, mining starts.
Designed Mining software will pull the maximum power from your hardware or computer to mine a bitcoin, in that case your hardware will soon heated up, for that use AC or any other fans and exhausters to cool the temperature and never ever cross the high temperature to 80 °C (176 °F).
Before this step, you need to design a Excel sheet. After sometime, you need to check and mark those values in the excel sheet, so that you will come to know whether you are in the loss or in profit.
How to estimate Loss or Profit in Bitcoin Mining?
When you start the Bitcoin mining, then it consumes more electricity to mine. So calculate the how much bitcoins you have earned subtracts to the electricity bill generated and cost of the hardware to recover your investment. If you are getting a bitcoin after subtracting the electricity is your profit.
If you decided to mine a bitcoin is great idea, because it is the one of the top 10 cryptocurrency that available in the market. But these days to mine a bitcoin it is little harder, that many other like us have already been in this, if you are a beginner, then better start mining with different cryptocurriences.
Know what are the Top 10 Cryptocurriencies
If you have any doubt regarding above steps, do comment and ask your doubts