If you’re a beginner interested in dealing with cryptocurrencies, but you’ve taken a step back every time because you don’t know adequately about mining methods of bitcoin, worry no more. By the end of this read, you’d know the bitcoin mining methods for beginners, right from experts, and you can start dealing with bitcoin and be a part of the digital revolution that cryptocurrencies are bringing about in the world.
Here are the mining methods you need to know, to get started:
1. Get hold of a mining rig
The first thing you need to do if you want to start mining is to get yourself a mining rig. Though when bitcoin first entered the picture, miners used digital computers or graphic cards, for mining purposes, but due to the developments in technology, these are obsolete methods. Nowadays, the standard procedure to mine bitcoin is through special hardware that uses algorithms for success and sustenance. Known as ASIC (Application Specific Integrated Circuit), it is useful for mining bitcoins faster by using lesser energy. The real pickle is picking an ASIC mining rig that’s appropriate for you. The three considerations that should drive your choice include price, hash rate and consumption of electricity. Choosing one might be difficult, but reviews and feedbacks will help you ascertain the sort you’re looking for. The demand for ASIC mining rigs are high, so consider yourself lucky if you get the best one. There are online calculators that help you measure the profitability of these mining rigs, so run a check before you make a purchase. These online checks tell you, or at least, gives you an estimate of the amount you might have to invest, in the beginning.
2. Procure a bitcoin wallet:
Yes, the second most obvious thing on the list is a wallet. This is how you’ll do your transactions, and be able to manage the bitcoin addresses you have. Each bitcoin address that you possess has a private key, and if you want to receive money from someone, you tell them your public key, and they send you the bitcoins there. All bitcoin addresses have public keys, which are unique to the bitcoin specifically. Now, there are simple online wallets you get to have, as well as software ones. What you need to determine is which one is best for you and your uses. Software wallet can be a good place for a beginner to start. They are secure and come with ease of use. It is important, however, the software and service you choose. You might want to opt for bitcoin code, for they come with the live trading feature, which is essential for doing good mining. They also have bots for you who would participate in live trading, if you’re busy or a beginner and can’t get to the technicalities. They also increase the chances of your success by using real-time data, to manipulate your gains, and give you the best of advice.
3. Be a part of a mining pool
Even if you have a good ASIC bitcoin mining rig, you might find it difficult to find good bitcoins. To do away with this problem, you can be part of a mining group where you mine together and the gains are divided equally among everyone. This cooperation tactic helps you mine faster and better. Go to Bitcoin Wiki, get an idea of the existing groups and choose the best ones for your perusal. Beginners can opt for Slush pool, as it has rave reviews. Keep in mind that you’ve to pay a subscription fee to the pool. You’ve to register yourself and make yourself an account, and then you’ll get a worker ID for being a miner which you’ll use in transactions and otherwise.
4. Pay for a mining programme
Having a mining programme for your computer is essential because it connects you entirely to the Blockchain and Bitcoin network. This will give work to miners, and update the full status report on Blockchain networks. They also monitor activities of miners, and other statistics, like average mining speed, temperature, cooling, hash rate and other technicalities that are important for you to mine well. You can often select a mining programme that works in close association with mining pools. Most mining pools have their own mining programmes, which are compatible with all operating systems.
5. Start mining
If you’ve done all the steps asked of you, you’ve nothing left other than to get straight on it and start mining and gaining profits right away. The process can seem overwhelming initially, but if you go over the technicalities, with patience and perseverance, you’ll realize you’d have mastered it sooner than you could have imagined. One of the tips that we would like to leave you with, would be, keep abreast with the news from the bitcoin world if you want to keep earning profits.