Bitcoin is a digital currency that has taken the market by storm over the past few years. However, there is still a long way to go before the banks, government and business corporations worldwide start accepting as an authentic form of payment.
But this has not stopped the individuals to try their luck with BTC as the number of people looking to take a dive into Bitcoin world is increasing significantly. But since the majority of the lot consists of beginners, they lack the proper knowledge as to how to earn/generate bitcoins.
A process called “Bitcoin Mining” is what bitcoin miners all around the world use to generate bitcoins. Bitcoin Mining can be little tricky if you are a beginner. However, by keeping some basic steps in mind, it can be as easy as ABC.
In this article, you will learn about:
- How does Bitcoin mining work?
- How to start mining bitcoins?
- Best Bitcoin mining software?
- Join mining pools
- Getting a bitcoin wallet
How Does Bitcoin Mining Work?
Bitcoin mining is used to generate bitcoins and is completely legal. The speed at which a user earns bitcoins is measured in hashes per second.
How to Start Bitcoins Mining?
The first step is to acquire a bitcoin mining hardware. In the early days of cryptocurrency, it was possible to mine coins using regular PC. But it longer works that way.
Over the years, several custom Bitcoin ASIC chips have been developed that provide 100x more computing power as compared to your traditional system.
Mining with anything less efficient will only result in lower bitcoin generation and higher electricity bills.
Read our guide on how to set up a mining hardware here.
Best Bitcoin Mining Software?
There are several mining programs but CGminer and BFGminer lead the pack. CGminer is an open-source, cross-platform for OS X, Windows, and Linux and is developed in C.
BFGminer is also an open-source, cross-platform for Mac, Widows, Linux and includes support for OpenWrt-capable routers.
If you prefer user-friendly GUI, EasyMiner could be the most suitable option for you as it’s a simple, click and go Linux/Android/windows program.
Join Mining Pools:
After setting up everything, your next step should be to join a Bitcoin mining pool. These pools are groups of miners working together to solve a block. Once the block is solved, the pool will receive a reward which is then split equally among its members.
Getting a Bitcoin Wallet:
Bitcoin wallet works the same way as a traditional bank account does for paper money. They are used to send, receive and store bitcoins. A Bitcoin wallet address is protected by security key which is only known by the owner.
However, the fact that whole Bitcoin transaction process is based on services that work online makes bitcoin wallets vulnerable to security threats.
The best way to protect your wallet is by enabling two-factor authentication or keeping it on an offline computer so it’s immune to all kinds of attacks.
These are some steps to go through while taking a dive into bitcoin mining. In a nutshell, all you need is mining software, join a mining pool and set up a bitcoin wallet to store coins.
Good luck with the venture.