With all the hype surrounding Bitcoin and other cryptocurrencies recently, it wouldn't be surprising if you were also looking to get involved. Some of you might just want to buy and trade Bitcoins and make a profit, while others might want to take the mining route to earn Bitcoins. If you are the latter and looking for a head start, in a nutshell, this will show you how to mine Bitcoin.
SummaryWhat is bitcoin mining?Bitcoin mining optionsBecome your own miner1. Buy Bitcoin2 mining hardware. Get Bitcoin3 mining software. Create a Bitcoin wallet4. Join a bitcoin mining poolBefore going into details, let’s clarify what bitcoin mining is. According to the Bitcoin Wiki, “Mining is the process of adding transaction records to Bitcoin's public ledger of past transactions. Simply put, you use your computer (or other device) to perform complex calculations and get paid in bitcoins as a reward.
There are contracts for $1 or $2 per day and also contracts for thousands of dollars per month – it all depends on how much processing power you buy. The main risk here is that if the provider is a scammer, you end up without bitcoins or the fees you paid.
If you decide that bitcoin mining contracts aren't worth it for you and it makes sense to become your own miner, here's what you should do.
Gone are the days when you could use a simple PC to successfully mine coins. With the increased difficulty and competition from other miners, using a simple PC is pointless as you are almost certain to pay more electricity than you earn. Moreover, mining is quite resource-intensive and it is quite possible that you will burn your PC.
To mine bitcoins, you need dedicated hardware. You can create your own mining rigs or buy a dedicated miner, such as the AntMiner series. When choosing mining hardware, you should mainly worry about its price per hash and its electricity consumption. You can get miners for as little as $500, but basically the more expensive ones are more achievable if you're serious about mining Bitcoin.
After getting the bitcoin mining hardware, you need software. The most popular programs are open source and free. If a command line doesn't scare you, you can get CGminer or BFGminer. If you prefer GUIs, check EasyMiner.
If you don't have a Bitcoin wallet yet, create one. You need a wallet to receive your payments. You can use a free online wallet, such as SpectroCoin or CoinSpace, a software wallet that you store on your computer, a paper wallet or a hardware wallet for maximum security. If you are new to bitcoin, start with a free online wallet and then move on to more advanced wallets.
Although you can mine yourself, you can earn more if you become a "worker" with a Bitcoin mining pool. As with wallets, there are hundreds of pools to choose from, and I can't recommend any better. I hear that BitMinter and SlushPiscine are two of the best, but don't take that for granted, check it out for yourself.
Bitcoin mining certainly isn't easy (or cheap) these days, but if you're serious and willing to take some risk, it could be a really profitable business. Either way, be prepared to lose some money – it might not happen, but don't count on it. In fact, it may be cheaper to buy coins from the market than to mine them, and it is better to make your profitability estimates before buying the mining equipment.
