How to mine bitcoins? A step-by-step guide to mining.
In this article, you will find out how Bitcoin mining works, how to start mining from your home without needing a professional, what the best mining equipment is and where to find the most effective hardware for mining from your house. Also, you will learn how to get profit from mining.
Let us start with the explanation how Bitcoin mining works. Before you start the process yourself, you should learn what Bitcoin mining means. This is a legal process that can be done by using SHA256 double round hash verification processes to check all transactions and providing a necessary security for the public ledger of the Bitcoin network. You also should know from the beginning that the speed of mining is defined in hashes per second.
The bitcoin network gives reward mine-workers for their efforts. The system releases bitcoins to those who contribute the needed computational power. This happens in the form as recently released bitcoins as well as fees for done payments that were approved while mining bitcoins. The more computing power you contribute, the bigger your reward share will be.
Here we will provide you 4 steps to start mining bitcoins. Follow them and start getting a real profit.
1. What do I need to start mining?
The very first thing that you need to do if you want to start mining is to purchase a mining equipment. Before you could use your computer or a fast-speed video processor card. Nowadays, these methods do not work. Custom Bitcoin ASIC chips give much more performance. Also, you should know that Bitcoin mining requires a lot of electricity. The expenses on electricity sometimes exceed the profit, therefore, for a lot of people mining became a way of losing money but not earning.
You need to consider buying the equipment that will bring you profit. Do not be greedy when it comes to purchasing a high-quality equipment for mining, otherwise, you will lose a lot of money. For example, Avalon is one of the greatest manufacturers of mining hardware that were created for this exact purpose.
Here we will provide you the list of the best and most trustful Bitcoin mining services. Such services do not require you to purchase hardware. At this services, you will be able to buy Bitcoin cloud mining contracts. This simplifies the whole process, however, you will not be able to control the equipment yourself. So, here is the list of such services:
The contact offers to mine with the help of SHA256. It provides opportunities to mine better coins by using this very equipment. Also, all automatic payouts will be done by Bitcoin. The customers who are interested in using the contract has to buy at least 10 GH/s.
The company is one of the most reliable providers of Bitcoin cloud mining. It offers three plans for mining. All of the come at reasonable price. Also, those contracts allow mining Zcash.
The organization has been dealing with cloud mining for the last 5 years, therefore, has a decent experience in delivering trustful products and various offers that match different requirements. The company utilizes modern ASIC chips that guarantee high effectiveness and performance.
The company is an innovative aggregator of blockchain projects that are provided in economical simulation format. Customers can purchase cloud packs that later can be used for using the index from pre-chosen sets of cloud intellectual farms, casinos, markets, etc.
The contacts will offer you a pool, as well as merged mining and cloud services for Bitcoin.
The company is controlled by Bitmain which is a producer of mine-workers called Antminer. At the moment, the company has got more than 600 mine-workers model S7 to rent out for customers. To rent a mine-worker will cost about $1200. You can visit their official site to check out current prices.
Bitcoin cloud mining
Right now all contracts provided by the organization are sold out.
The company provides a unique attitude because it offers an order book to match the customers’ requirements and those who sell contracts for mining. All valid prices for contracts are available at the company’s official website.
This quite a low-priced offer because everyone can start with them just by putting $10.
Right now, the company has more than 35 TH/s of mining hardware to rent out for customers. Some of the equipment that is available for rent are Antminer models S4 and S5 which are great for mining and making the profit.
2. Download a special software for mining
A next step is a special software. You can download it for free. After you downloaded it, you will need a special program that is used for mining bitcoins. On the internet, you can find a lot of programs that are used for mining, however, the most popular two programs are considered Cgminer and BFGminer.
You also can use EasyMiner which is a click and starts a program for Windows, Linux, and Android. The program has a graphic interface which simplifies the whole process. To find out more about software for mining, review different programs, their comparison, and choose one that suits you.
3. Join a Bitcoin mining pool
To mine bitcoins, you have to join a mining pool. Those pools are groups of mine-workers that work all together to find a block and share the reward. Without a mining pool, you will try hard for more than a year but may not find a block. It is best to spread work among a few mine-workers and share a reward. We would like to recommend you using p2pool. At the moment, the pools that we will add below are considered fully validating blocks with Bitcoin Core 0.9.5 or later:
- CK Pool
- Slush Pool
4. Create a Bitcoin Wallet
Finally, the last step is to set up a Bitcoin wallet. When you have a wallet, you will be able to receive bitcoins and send them when needed. The wallet also provides other options. The coins will be sent to your wallet when you give your payment address. The most important is to avoid threat and enable two-factor authentication. To get a wallet, you will have to download a special software client to your device.
Later, you will need to buy and sell bitcoins. For these two options we would like to recommend you the following services:
- SpectroCoin – the European exchange with same-day SEPA. Use your credit card to buy with bitcoins.
- Kraken – this is the biggest European exchange with same-day SEPA.
- Buying Bitcoin Guide – the service that will help you to find a Bitcoin exchange in your country.
- Local Bitcoins – this is one of the best services that allows you to search for people in your community that sell bitcoins directly. However, you will have to be careful when finding sellers as there can be a lot of scammers.
- Coinbase – is the place is you are interested in buying bitcoins. However, we would not recommend you to keep you bitcoins at the service.
Hopefully, this article was useful for you and simplified your vision of mining bitcoins. Start mining by following all the given instruction and get support if you do not get something.