It is not easy to make bitcoin mining profitable, especially if you decide to do it alone. On the other hand, if you approach the subject with skill and knowledge, it could be a really good shot. In this article we will tell you how to start mining bitcoin currency.
What do you need to start mining bitcoin currency?
Mining is a process performed by a powerful computer which consists in solving mathematical issues. As a reward for successful solving, a user gets bitcoins. This is a central principle of Bitcoin economy that drives its functioning.
As we have already mentioned, getting into the niche of mining is not easy. The reason is that more and more people with powerful equipment appear on the market regularly. In addition, there are large mining farms with incredible productive capacities, so it is almost impossible for an individual user to compete them. Think carefully before you start and try to realize whether mining is anyhow advantageous for you.
Long time ago, it was possible to mine bitcoins using a personal computer. However, today you need to purchase the newest and the most powerful miner which will cost you a few thousand dollars depending on its speed and power.
Hardware is produced in a form of cards similar to graphic ones. Between the most popular hardware there are AntMiner, Avalon, Butterfly Labs, CoinTerra, etc.
There is even more powerful (and more expensive) hardware designed for bitcoin mining – ASIC (Application Specific Integrated Chip).
Bitcoins are transferred to the special digital wallets that store and protect your money. There are two types of them: local wallets and online ones. Online services that host personal wallets are considered less secure since they will not be held liable if something happens on their end.
Therefore, you’d better get yourself a local wallet. These wallets host blockchains and therefore protect your bitcoins from any catastrophes.
The most popular wallets are Armory and BitcoinQT.
Be very attentive and careful with your wallet. If you lose it, you lose your money with no possibility to get them back.
Mining pools are the groups of miners who get together to combine their powers and increase chances for getting income. They divvy bitcoins up according to the contribution made by every user. You should go in a group because this will increase your chances to receive money and return your investments. The most popular pools are Antpool, BTC.com, BCMonster.com, Slush Pool, etc.
To get started, you will also need mining program for your computer. Some pools offer particular software, the others don’t.
One of the most efficient programs is BFGMiner. There is also a program designed for Mac called MacMiner.
- Get started
To launch the process, you have to connect your hardware to a power outlet and your computer. Then open your software, enter your pool, name and password. From that point, the mining operations can be started.
- Keep your graphic card safe
Remember that mining programs force hardware to be stretched to the limits, which may cause problems. You have to watch the temperatures to avoid damage. Such programs as SpeedFan will make sure that the temperatures don’t rise above the tolerable limit. Usually, temperature harmful for graphic cards starts from 80 °C (176 °F).
- Check the figures
After your computer have worked a bit, check the profitability of its activity. Compare the profit you have made over the last time and to the amount of money you spend for electricity and hardware. Analyze the results carefully and think whether mining is your cup of tea. If not, consider some other options that might be more profitable for you. Besides mining, you can buy and sell bitcoins on an online marketplace.
So calculate expenses, weigh all the pros and cons, and get started with mining if your strategic vision holds promises for the future.