Are you interested in Bitcoin mining but don’t know much about cryptocurrencies? After that, you can receive our beginner’s detailed guide that will tell you how to dig Bitcoin step by step. If you want to learn more about mining terms and how Bitcoin mines work, read our article Bitcoin Mining with a view: what is a mining system?
Find the rig of Bitcoin mining
If you want to start mining in the first place, you have to be a mine owner. Although at the beginning of the history of Bitcoin, miners used standard home computers, and later flashcards, today you will not get Bitcoin with these devices (or precisely you can gain something, but it will be a very small amount for a long time).
Nowadays, Bitcoins are encrypted with special hardware selected for Bitcoins mining or other currencies based on the same algorithm. Called ASIC (Application-Specific Integrated Circuit chips), it uses minimal power and mines Bitcoins very quickly. This device is expensive and its production is time-consuming, but its speed is amazing. The most powerful machines are capable of solving 14 terahashes per second (meaning it makes 1012 attempts to solve the block per second) and its growth is continuous.
How can you choose an ASIC Bitcoin mining rig?
If you are thinking of starting a mine, you should focus on the following parameters at the time of your choice: performance (hash rating), power consumption, and price. Hash’s level indicates how many attempts to resolve a block can be made by a machine in a second.
We recommend that you go through the various miner reviews and choose the one that seems most beneficial to you. Do not just choose by price, focus on price, performance, and usage. To put it simply, the most efficient miner is the one who excels. You can promote yourself on the Asic Miner Value web page where detailed information on new miners is displayed.
Keep in mind that it can be very difficult to find these devices these days because the demand is very high. It also affects the price of these devices that vary between hundreds or thousands of dollars.
Before buying an ASIC miner, try to calculate the profit of the selected device in an online calculator (i.e. Nice Hash or Coinwarz, for more money try What to include). Outside of the limits of your mining rig, calculations include the price of electricity, revenue from the mining pool or the level of mining difficulty. You will find out how the mines can be profitable or how much you should invest in the beginning.
As you make decisions, consider the growing difficulties of mining and declining profits over time. What does it mean to do? If the weight increases by about 10% after 14 days, the profit drops by about the same 10%. Find out more about the difficulty of mining in our article Bitcoin mining with a view: what is a mining system?
Requirements for Bitcoin Mining
Bitcoin mines require not only a lot of electrical power but also a special machine space as mining rigs are noisy and emit a lot of heat. The miners’ accommodation offers a solution to this problem – you can put your machine in a technical data center and remove all these worries. You will benefit from a low power price, low noise, constant monitoring and you will not be disturbed by any noise.
Get a Bitcoin wallet
The next important step is to set up a Bitcoin wallet. This is where you will get your Bitcoins and you will be able to use them. Bitcoin wallets allow you to manage your Bitcoin addresses (Bitcoins themselves are technically stored in Blockchain).
Each Bitcoin address has the same public key form and private key. The public key contains a unique combination of characters and looks like an example: 18ukxpD1eqnVjux13ehEz8r4d8py1dSdzw. It works just like a bank account number so if you want to get Bitcoins from someone, you have to tell them your public key. All bitcoin addresses are public and you can get track of everything done through it. In contrast, a private key is private and operates to send a transaction. If you lose your private key, you lose your Bitcoins stored at this particular address permanently.
In general, there are many types of bags ranging from simple online bags, software to hardware safe and paper bags. Each fund has its own advantages and disadvantages. Some of them can save a lot of money at one time.
What is the best Wallet for beginners?
The best option for starting miners is a software wallet. It is safe but still easy to handle and it is worthwhile to be deceived many times over with mined money. You can easily download the wallet to your computer, where your coins will be stored and no one can access them.
There are two types of software wallets: full-fledged Blockchain downloads or low-cost that keep only the right transactions. The first option requires a lot of space and memory on your computer but it is definitely very secure. In contrast, the low-weight variant is connected to a third-party Blockchain and cannot be completely controlled.
If you have decided to choose the full version of the wallet, you can download f.e. the real Bitcoin Core. Note that its full sync takes a few hours because Blockchain is currently worth tens of GB. Set your wallet password in the system and don’t forget to keep a copy of your wallet on another device, otherwise, your Bitcoins will be permanently lost in the event of a computer failure. If you choose a wallet that can hold a lot of money, you can try Exodus.
Join the mining pool
Even the best ASIC miner, it is almost impossible to find Bitcoin today. One machine cannot compete with many large mining farms around the world and mining Bitcoins on your own is not always profitable. But don’t worry, there is one solution to this problem – co-operation between miners in so-called mining ponds.
Miners give their computer power to the group and when Bitcoins mine, profits are divided between members according to the given power. Income is low but normal. However, pool members have to pay a person who works in the pool, the price of which is usually about 0 and 2% of the income you receive.
You can choose from many lakes, this graph from 2017 shows the representation of the largest lakes. For a better position, you can use comparing mining pools in the Bitcoin Wiki. It is recommended that beginners try Slush Pool, the first pool available and considered one of the most reliable. Here’s the interesting truth – Czech architect Marek Palatinus is facing the birth of the Slush Pool.
As soon as you select a mining pool, subscribe to its website and set up your account. After that, you will get your miner’s employee ID.
Discover the computer program for your computer
Now you have your hardware, a Bitcoin wallet and have chosen a mining dam, so it’s time to get a mining client to work on your computer. It connects you to the Blockchain and Bitcoin network. Mining software brings work to miners, collects the full results of their work and adds all the details back to Blockchain. In addition, Bitcoin mining software monitors miners’ activities and shows basic statistics such as temperature, cooling, hash rate, and average mining speed.
In general, there are many free programs used to dig Bitcoins, the best programs can work on almost all applications and each of them has its advantages and disadvantages. Some mining pools also have their own software.
Beginners will appreciate Nice Hash Miner. It is very easy to use, mines many ,cryptocurrencies and automatically selects the most profitable algorithm in a moment. Download the app and select the device you would like to mine with.
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