Learning to Mine Bitcoin from Zero
Bitcoin mining has changed since the time it only appeared. Now, it has become more difficult and it is harder to make it profitable. However, a lot of people still want to start the process. If you know the basics and do it right, you can make it effective.
What is Bitcoin Mining and How Does It Work?
In simple terms, miners get mining equipment which runs a special software to solve calculations and create Bitcoin transactions. Miners contributing to the process get a reward – Bitcoins to their crypto wallet. Today, to make Bitcoin mining profitable, it is important to be involved a lot: get an effective equipment, give a lot of computing power, spend electricity. If you put enough effort, the compensation should be worth it. So, let’s get started!
How to Start Mining Bitcoin?
1. You Need Effective Bitcoin Mining Hardware
There were times when you could mine Bitcoin just using your computer. These good old days are over. Those who will use their computer for Bitcoin mining, will earn nothing but will spend huge sums on electricity. Now you need to get a special equipment, designed for Bitcoin mining specifically.
Bitcoin Mining Hardware Comparison
Bitcoin is mined with ASIC chips created only for this process. Choosing the most effective ASIC, you should consider price per hash and electrical efficiency. Currently, the most effective miners are AntMiner S7, AntMiner S9, AntMiner R4, Avalon6, Dragonmint 16T.
If you don’t want to deal with mining equipment yourself, you can make the process more simple by buying a cloud mining contract and renting a mining equipment. A lot of cloud mining servers turn out to be scam, so you have to choose one for yourself carefully.
|Hash power||Price||BTC earned/month|
|AntMiner S7||4.73 Th/s||$479.95||0.1645|
|AntMiner S9||13.5 Th/s||$1,987.95||0.3603|
|AntMiner R4||8.6 Th/s||$1,000||0.0199|
|Dragonmint 16T||16.0 Th/s||$2,729||0.0304|
Best Bitcoin Cloud Mining Services
- Hashflare (you must purchase at least 10 GH/s)
- Genesis Mining (largest Bitcoin cloud mining provider)
- Hashing24 (employs ASIC chips from BitFury)
- Minex (customers buy Cloudpacks)
- Hashnest (operated by AntMiner producer)
- MineOnCloud (has AntMiner ASICs for rent)
2. You Need to Join Bitcoin Mining Pool
Mining pools are groups of miners working together because uniting, sharing the work and then splitting the reward is much more profitable than mining alone. Yes, mining by yourself (solo mining) can bring greater rewards, but it is the matter of luck: if the hashing power you have is not enough, your mining may not give a result at all.
Best Bitcoin Mining Pools
- CK Pool
- Slush Pool
Mining is a very popular way of getting profits from cryptocurrency in Britain: a lot of investors and crypto enthusiasts start cloud mining or join top Bitcoin mining pools in UK.
3. You Need Bitcoin Mining Software
To mine Bitcoin, you need to use a special program which you can download for free. This is what hooks your hardware into your pool.
Best Bitcoin Mining Software
- BFGminer (ASIC, FPGA, GPU and CPU miner for Linux, Mac, and Windows)
- CGminer (multi-pool GPU, FPGA and ASIC miner)
- EasyMiner (GUI based miner for Windows, Linux and Android)
4. You Need a Bitcoin Wallet
Bitcoins which you get during mining should be safely stored somewhere. It is important to choose the safest wallet from the variety of all available ones and make sure to set it up so that it will be protected from the possible hacking.
Remember that the most secure wallets are hardware or desktop ones. It is better to get a wallet with the possibility of setting a two-factor authentication and keep a computer offline in order to protect your crypto.
Best Bitcoin Wallets
- Copay (available on iOS, Android, Windows Phone, Linux, Max OS X, and Windows)
- Ledger Nano (hardware for any computer)
- Armory (most secure desktop wallet)
After you have followed all these steps and have got everything, there is a couple of thing left to do: connect miner to computer, start the software and login to the pool.
Now the mining process starts and Bitcoins will flow into your wallet.