Bitcoin mining is an exciting and rewarding venture. But, if you are new to this trade and you wish to start mining bitcoins, there are a few things that you need to know. This article will outline a few things to know and steps to follow if you wish to venture into bitcoin mining.
As a Bitcoin miner, you are responsible for validating transactions and ensuring the security of the network. For doing this, you are rewarded with BTC. However, with modern technology and many people venturing into Bitcoin mining, becoming a miner is not easy and requires substantial investment. The following is what you need to know to get started.
1. Get a Bitcoin Mining Rig
Before you start Bitcoin mining, you need a mining rig. While in the past miners used personal computers and graphic cards, you will get no profit using these outdated methods in the modern era.
For substantial profit, you need specific hardware for Bitcoin mining and other cryptocurrencies. The special hardware is called Application-Specific Integrated Circuit chips (ASIC). The hardware is energy efficient and mines much faster. The fastest machine of this kind can complete 14 terahashe/sec. But how do you choose the ideal ASIC mining rig?
Choosing an ASIC Mining Rig
You should consider parameters such as hash rate (performance), power consumption, and price to ensure profitable mining. You have to consider the various different miners and choose one that is beneficial to you. Do not just choose based on price, but also performance and energy consumption. You can use online calculators to calculate and find the most profitable miner for Bitcoin.
2. Create a Bitcoin Wallet
Once everything else is ready, set up your Bitcoin wallet. This is basically like your bank account. The Bitcoin wallet makes managing your Bitcoin addresses easy. But, you should know that there are different types of Bitcoin wallets. There are simple online wallets, software wallets, and secure paper and hardware wallets. Each wallet comes with benefits and flaws. Some can hold only one currency, while some can hold multiple currencies.
Which is the Ideal Wallet for Beginners?
As a beginner, the best Bitcoin wallet is the Software Wallet. This one is secure, easy to use, and manage. It is also suitable for repeated manipulation with mined coins. You can effortlessly download the wallet and install it on your PC, where your Bitcoins will be stored safely. You also have the option of choosing between a Full Software Wallet or a Lightweight Software Wallet.
3. Join a Mining Pool
Unlike the old days when you could mine on your own, today, you need to join a pool even if you have a super ASIC miner. This is because one machine cannot profitably compete with large mining companies all over the world. This is why you need to join mining pools. When you join a mining pool, profits are shared among the group depending on a given power. You can make a small, but regular profit. However, there is a fee payable to the operator – usually 0-2% of your reward. Once you find the best pool, register with the website to get a miner ID.
4. Look For Mining Software for Your PC
Now that you have the hardware, Bitcoin Wallet, and a Mining Pool, it is time to find a mining program for your PC. The program links you to the Bitcoin network and Blockchain. The mining program will deliver work to miners, collect complete transactions, and add the information to the Blockchain.
5. Get Started
With everything else ready, you can start earning Bitcoins. All you need is to link your mining machine to a power outlet and link it with your computer and then install the mining program. Fill your personal information into the software, choose a device, and start mining…
For better results, store your miner in the datacenter and enjoy subsidized power costs and get the best internet speed. Your machine will also be secure and a cooled and monitored environment.