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Beginner’s guide to Bitcoin Mining, the essentials of mining crypto coins
Bitcoin presents you with the crypto token made and created for the people of the humanly realm, the famous bitcoins.
Mining bitcoin involves the use of computers to calculate complex mathematical puzzles on blocks of data which maintain the Bitcoin blockchain. It is a process of applying state of the art mathematical principles using highly powered gaming computers to solve these calculations. The miners who are successful are usually rewarded for their efforts using a certain number of bitcoins dependent on the resources (time and power) invested on the job.
Today as it stands, it’s a known fact that digital currency is fast spreading throughout the globe at a surging speed. From the furthest ends of sub-Saharan Africa to the most developed economies, you can hardly read a news article without seeing some mention of the word blockchain. In fact, it has become the order of the day.
Bitcoins are GPU mineable and very profitable. However, the profit you earn depends on a number of factors such as complexity of the mining; the running costs i.e. electricity costs and most importantly the ‘hash rate’. This is simply the actual processing power of your computer.
In this day and age to earn a substantial amount of profit from mining you need to have a high-powered set up in order to win and get rewarded.
Let this mining guide, help you as you prepare to start mining Bitcoin tokens.
Before thinking of getting started you must have a suitable special computer hardware that you will use for the entire mining period.
Currently GPUs are used for most cyptocoins mining. They boast a higher hash rate compared to CPUs and therefore can guess and solve many puzzles at a faster rate.
Even that being so, settling on certain GPU might prove a hectic task and requires exhaustive research. It is therefore important that you seek plenty of advice from other miners and the web concerning issues like hash rate performance of the GPU as well as the power consumption.
An example of a super-fast mining GPU in 2018 is the AMD Radeon RX 580 GPU.
For a more powerful and stronger computation ability you may wish to set up a mining rig, which is basically a machine composed of multiple GPUs and may take a couple of days to build.
Get a Bitcoin wallet
This is where you will be storing your bitcoins. Do not forget to take note of your wallet address. In case your computer might fail the address is very crucial to help you access you bitcoins. For software wallets back up the wallet.dat.file for retrieval purposes.
Join a mining pool
For efficiency, mining alone isn’t advisable nowadays. The mining difficulty has greatly increased from yester-years. It is therefore important that you join a mining pool. This is where miners pool their resources like computational power into pools with the aim of solving the mathematical puzzles and earn bitcoins. They then split the profits earned proportionally to the contribution of each member in the pool towards the solving of the algorithms.
Prior to joining a certain mining pool, be sure to know the specifics of how a mining pool operate, the stability of the pool and the joining fees involved as well.
Download Bitcoin mining software
A Special mining program is required to initiate Bitcoin mining on your computer. Before downloading the program ensure it is compatible with the hardware you are using for maximum performance. This program allows you to monitor and control everything happening on the mining rig.
Configure software and miner and start mining.
With everything done perfectly, you are now a few seconds away from mining your first crypto tokens and start earning profits.
If you are using the mining rig connect it to your computer and set up the mining software to initiate the process. Finally do not forget to enter your wallet address correctly in the pool you are using to mine. It’s of paramount importance and mandatory. Otherwise you may not get your share from the collections in the pool.
You are good to go. All the best!!