Beginner’s Guide to Mining Bitcoins

One of the biggest problems I encountered when I was looking to get started in Bitcoin mining, to invest and make money, was that most of the sites were written for advanced users. I am not a professional programmer, I have no experience with Ubuntu or Linux, and I have minimal experience with Mac. So, this is for individuals or groups who want to get started the easy way.

1.Get a Bitcoin mining or rig

Bitcoin es un nicho muy competitivo. A medida que más y más mineros se unen a bordo con ewil hardware de minería más reciente, la dificultad para minar aumenta cada día. Before even getting started with Bitcoin mining, you need to do your own due diligence. This means you need to find out if Bitcoin mining is still profitable for you.

The best way to do this is by using a Bitcoin mining calculator. Just enter the data of the Bitcoin miner you intend to buy and see how long it would take you to break even or make a profit. However, I can tell you up front that if you don’t have a few hundred dollars to spare, you probably won’t be able to mine any Bitcoin.

Once you’re done with your calculations, it’s time to get your miner. Be sure to check out our different Bitcoin mining hardware reviews to understand which miner is best for you. Today, the Antminer S19 is the newest and most powerful miner.

As a side note, it is important to point out that in the past it was possible to mine Bitcoins with your computer or with a graphics card (also known as GPU mining). Today, however, the mining niche has become so competitive that you will have to use ASIC miners, special equipment made exclusively for Bitcoin mining.

2.Get a Bitcoin wallet.

The first thing you need to do is get a Bitcoin Wallet. Because the Bitcoin is an Internet-based currency, you need a place to store your Bitcoins. Once you have a wallet, make sure you get the address of the wallet. It will be a long sequence of letters and numbers. Each wallet has a different way to get the public Bitcoin address, but most wallets make it pretty easy. Note that you will need your PUBLIC Bitcoin address and not your PRIVATE KEY (which is like a password for your wallet).

If you are using a local wallet (i.e. you have downloaded a program to your computer and are not using an Internet-based service) there is a very important additional step. Make sure that you have a copy of the “wallet.dat” file on a USB stick and that you print a copy and store it in a safe place. You can see a tutorial on how to create a secure wallet here. The reason is that if your computer crashes and you don’t have a copy of your “wallet.dat” file, you will lose all your Bitcoins. They won’t go to someone else, they will disappear forever. It’s like burning cash.

3.Find a mining group.

Now that you have a wallet, you’re probably eager to get started, but if you really want to earn Bitcoins (money), you probably need to join a mining group. A mining pool is a group of Bitcoin miners who combine computing power to make more Bitcoins. The reason you shouldn’t go it alone is because Bitcoins are awarded in blocks, usually 12.5 at a time, and if you’re not very lucky, you won’t get any of those coins.
In a group, you have smaller and easier algorithms to solve and all your work combined will make it more likely to solve the larger algorithm and earn Bitcoins, which are distributed among the group members according to contribution.Basically, you will get a more consistent amount of Bitcoins and will be more likely to receive a good return on your investment.

When choosing which mining group to join, you will have to ask several questions:

1.What is the reward method?(Proportional/Payment per participation/Payment based on score/Payment for the last N participations).
2.What fees do you charge for mining and withdrawing funds?
3.How often do they find a block (that is, how often will you get rewarded)?
4.How easy is it to withdraw funds?
5.What kind of statistics do they provide?
6.How stable is the pool?

To answer most of these questions you can use this website. You can also find a full comparison of mining pools on the Bitcoin wiki. For demonstration purposes, I will use Slush Pool; to mine Bitcoins. Once you are logged in with a pool, you will get a username and password for that specific pool, which we will use later.

Follow the link to go to their website and click on the “Register here” link at the top of the page and follow the step-by-step instructions. Once you have set up your account, you will need to add a “Worker”. Basically, for each miner you are running, you will need to have a worker ID, so that the group can keep track of your contributions.

4.Get a mining program for your computer.

Now that you have the basics covered, we’re almost ready to mine. You will need a mining client running on your computer to be able to control and monitor your mining equipment. Depending on what mining equipment you have, you will need to find the right software. Many mining groups have their own software, such as Bitminer, but others do not. You can find a list of Bitcoin mining software here.

I’m using a Mac, so I’m going to use a program called MacMiner. The most popular programs I have found for PC are BFGMiner and 50Miner. If you want to compare different mining software you can do so here.

5.Start mining.

Well, hopefully now everything is ready to go. Connect your miner to a power outlet and start it up. Make sure you also connect it to your computer (usually via USB) and open the mining software. The first thing you need to do is to log in to your mining group with your username and password.

Once you have set it up, you can basically start Bitcoin mining. You will actually start collecting shares, which represent your share of the work in the search for the next block. Depending on the group you have chosen, you will be paid for your share of the coins. Just make sure you enter your address in the required fields when you sign up for the group.

Conclusion: maybe it’s better to just buy the coins?

To conclude this article, here is something to consider. Perhaps it would be more profitable for you to simply buy the Bitcoins with the money you plan to spend on Bitcoin mining. Many times, just buying the coins will yield a higher ROI (return on investment) from mining. If you want to dig into this a bit more, here’s a website that talks about just that. happy mining!!!!

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