As technology growing rapidly to advance, it has changed the way of finance field. Today, the world is looking to invest their money in cryptocurrencies. And Bitcoin has become a leading cryptocoin in the market.
In general, bitcoins or cryptocurrencies are digital currencies and act like a tender or an asset class. The bitcoin price has surged and the first time its reached $14,000 at last year.
As a beginner, you always have a question in your mind-How to start bitcoin mining?
Here, we’ll guide you step by step to get start Bitcoin mining. But before getting started to mine bitcoins, first, you need to know what is Bitcoin mining and is it Profitable?
What is Bitcoin mining and is it Profitable?
Bitcoin mining is a lot like a giant lottery where you can acquire more bitcoins or you can say it’s the backbone of the Bitcoin network. It’s a process of cryptocurrency transactions in which the current records(blocks), are added to the past transactions record, known as the blockchain.
Today, you’ll need to invest heavily in equipment, cooling, and storage to get more profit. Bitcoin mining can still profitable with fast and efficient machines. You can also choose the best bitcoin mining applications which improve the performance and make more profit for miners.
How does bitcoin mining work?
Bitcoin mining is a decentralized network which has many aspects and functions. It creates new bitcoins in each block and confirms transactions in a trustful manner.
- What is proof-of-work: In blockchain, it’s a method to ensure that the information was difficult to be made but easy for others to verify. it works on the principle of complicated mathematical puzzle and a possibility to easily confirm the solution.
How to start mining bitcoins?
To begin mining bitcoins, you’ll need to acquire proper mining hardware and software.
Bitcoin mining hardware
In the beginning, miners relied on simple CPUs to mine bitcoins. But later on, codes became harder, and miners found a more robust alternative-GPU mining on graphics cards. When it comes to bitcoin mining, GPUs are 100 times faster than CPUs faster to translate complex puzzles.
A field-programmable gate array allows the mining manufacturers to customize chips into their equipment. This technology is customized specifically for bitcoin mining tasks. usually, it’s performance is much better than CPUs and GPUs.
Application-specific integrated circuits are designed to provide mining power at cruising speeds. It performs specific mining tasks without consuming more time. these devices can run up to 2 teahashes/sec.
Bitcoin mining software
After selecting specific equipment, you’ll also need software to make it work. Bitcoin mining software delivers the work to miners and also receives the completed work from the miners and relays that to the blockchain. the best bitcoin mining software can compatible with almost all operating systems such as OS X(for mac), Windows, Linux, and Android.
However, there are several types of Bitcoin mining software application out there with their own advantages and disadvantages. here are some of them, let’s have a look-
- Bitcoin Miner:- For Windows 10 and Windows 8.1
- BTCMiner:- Bitcoin miner for ZTEX USB-FPGA modules 1.5
- CGMiner:- Best Bitcoin mining app overall
- MultiMiner:- Best for ease of use
- BFGMiner:- Best for customization
- BitMinter:- Best for cross-platform usage
- Miner-Server:- Best for cloud mining
- EasyMiner:- Best GUI front-end for multiple tools
- Awesome Miner:- Best for centralized mining management
For Android users, the best bitcoin mining apps are- Debx, BTC Safari, Blockchain Game, etc.
Best Bitcoin miner download makes your way easy so we hope you’ll choose a right one for mining more bitcoins. Further, you’ll need a cryptocurrency wallet. Let’s see how to create a bitcoin wallet-
Bitcoin Mining Wallet
- First, go to the blockchain info homepage and then click on “Products” in the navigation bar. Select the “Wallet” option.
- In next Step, It’ll ask you email and password to create an account. Confirm your password and click the checkbox to accept terms of service. Now, hit “Continue” to complete bitcoin wallet sign up the process.
- Click the “Get Started” button.
- Now, your bitcoin wallet is online and you can create bitcoin wallet address with which to receive coins by clicking”Request” button.
- You’ll need to fund your wallet and then you can send cryptocoins by using “Send” button.
- Well done! you have successfully created a bitcoin wallet. Now, you’ll need to join a bitcoin network. You can join either pool bitcoin mining or cloud mining. But here, as a beginner, we’re recommending you to join pool mining.
Bitcoin mining pool
Bitcoin solo mining is more difficult so you can join pool mining and start finding bitcoin blocks with accelerated hashing power. In pool mining, a group of miners combines their mining power to compete more effectively. And the total reward is spread out between each pool members depending on their contribution.
However, every mining pool is not created equal, they use various best payout methods such as PPS(Pay-per-share), PROP(Proportional), PPLNS(Pay per last N shares), and DGM(The double geometric method).
- Hash rate Distribution in pool mining-
Bitcoin pool mining options:
- BTCC: It controls around 15% of the network hash rate.
- Slush Pool: It is the first mining pool run by Satoshi Labs and controls around 7% of the network hash rate.
- Antpool: It is operated by Bitmain and some believe that it is a malicious actor in the Bitcoin ecosystem because of the AntBleed scandal.
- Eligius: It was founded by Luke Dashjr, a Bitcoin core developer. Today, it controls less than 1% of the network hash rate.
- Kano CKPool: It was founded in 2014 and currently controls around 3% of the network hash rate.
- F2Pool: Second largest Bitcoin mining pool, with around 25% of the network hash rate.
Bitcoin Cloud mining
In cloud mining, you only need a home computer and local bitcoin wallets(optional). Cloud mining uses shared processing power run from remote data centers. it has some Pros like- no need to purchase equipment, a quiet, cooler home, no added electricity costs. And it also has some cons like- a risk of fraud, less fun, less profit, lack of control and flexibility.
Remember, most of the cloud mining companies are scams. They take people’s money and then not pay out. There is only one cloud mining company which is not a scam. we’re recommending you with Genesis mining.
- Genesis Mining: It’s a Hong Kong based company which offers 3 different Bitcoin mining cloud contracts- Gold(100 GH/S), Platinum(2,000 GH/s), and Diamond(10,000 GH/s).
Some best Bitcoin cloud mining services-
- Hashflare review: It offers SHA-256 mining contracts and also more profitable.
- Genesis mining review: It’s the largest bitcoin cloud mining company with Zcash mining contracts.
- Hashing 24 review: It uses modern ASIC chips from BitFury to deliver maximum performance and efficiency.
- Hashnest review: It’s operated by Bitmain and currently has over 600 Antminer S7s for rent.
How to optimize your bitcoin earning
Nowadays. it is possible to set your PC for Bitcoin mining tasks using algorithms and share the computational expense of mining in return for a share of profit. But there are many errors such as false positive and false negative results. It can push up your time and system power to recording and sorting these faults.
However, Our team found that mining Bitcoins using fast and small approximate hardware creates the opportunity to raise more bitcoins.
Wrapping things up:
**Note: Information contained in this guide is not an offer or solicitation to buy, hold, or sell any security. We’re not financial advisors and are simply providing information for educational purposes. Investing in ICO involves a high degree of risk and should be considered only by persons who can afford to sustain a loss of their entire investment.
Investors should consult their financial advisor before investing in ICOs. Furthermore, the SEC has warned investors residing in the United States and other jurisdictions that ICOs may constitute securities.
Hope! This guide will help you to understand how to start Bitcoin mining and we have covered the all important steps which are necessary.
If you have any query, feel free to tell us in the comment section. We are happy to help you.