For beginners who do not know what Bitcoin mining is, it is the process that creates a new Bitcoin by verifying all bitcoin transactions and recording them on the Bitcoin blockchain. Those who carry out the process are referred to as miners, who can either do this solo or be a part of a mining pool.
In recent times, many have considered this process a lucrative investment. However, it is worth pointing out that bitcoin mining involves a significant amount of resources. Besides this, it is important for enthusiasts to acquaint themselves with the required steps for bitcoin mining. To lend a hand, this guide will do just that. Keep on reading!
Steps For Bitcoin Mining
The first thing is to determine the viability and profitability of the mining operation. Other important steps you must consider include:
Buying Hardware
As of the time of writing, the best mining hardware for the Bitcoin network is the ASIC mining hardware. While operating at very computational speeds, they ensure that the consumption of power is kept lower than the GPU mining systems. With the increase in popularity of the mining process, the prices of these machines also rise. For a successful mining process, there is a need for a quality ASIC machine. Popular mining hardware includes AntMiner S7, AntMiner S5, AntMiner S9, Antminer U3, USB miners,
Selecting A Bitcoin Mining Software
For individual miners, mining software is needed to connect the blockchain network to the miner. However, for pool miners, the software links the individuals to the pool of miners. What mining software basically do is ensure that the computed work of the mining hardware is successfully transferred to the blockchain's distributed network. This makes it a vital component of the mining process.
The best mining software for Windows is BTCMiner, Bitcoin Miner, CGMiner, BFGMiner, and EasyMiner. For Linux OS, the best include CGMiner, BFGMiner, and EasyMiner. For Mac OSX platform, miners should opt for RPC Miner and Cash Out Your Coins.
You can join a mining pool
The computational power involved in mining bitcoin is enormous. Individuals that cannot mine on their own can pool their resources with other miners. Rewards are often based on the hash rate contributed by every miner in the group. Joining a mining pool makes mining easier than going solo. Joining a mining pool depends on how miners are rewarded in the pool, as well as the countries that mine the most coins.
Setting Up Your Bitcoin Wallet
Bitcoin wallet is akin to an encrypted storehouse, which contains all the payouts, as well as rewards. There are two basic types of crypto wallets: hot and cold wallets. While hot wallets are linked to the internet, cold wallets limit internet connection. You will find a lot of miners using both types of wallets, which provides them with a wide range of options. You use hot wallets for accounts that are active while cold wallets keep all digital assets safe. Oftentimes, miners store a little amount of cryptocurrency in the hot wallets needed for trading.
Start Mining
Besides all the hardware and software needed to make mining processes successful, you need to build on your knowledge while remaining updated about the latest Bitcoin mining news. As the interest in Bitcoin increases by the day, miners must keep learning about it, as well as the latest developments that can make the mining process easier.
Conclusion
Bitcoin mining is an energy-intensive process, which ensures that the cost of a successful mining process is very high. While it is possible to mine as an individual, pool mining is often a more feasible way to find and record blocks of transactions. To become a miner, the aforementioned steps are important. However, you should keep yourself updated on new developments in the Bitcoin network.
