Bitcoin Mining is the act of verifying the transactions that take place on each and every Blockchain. This validates each transaction and then shares the transaction publicly over the peer-2-peer network for all to see. Bitcoin miners are the people responsible for verifying and validating each transaction before adding it to a block to create a chain of blocks. Once a miner places the next block on the blockchain, they can claim a reward which is usually in the form of bitcoins. The more mathematical calculations you solve, the greater the reward.
You do not need to be a professional software developer or programmer to participate in Bitcoin mining. Below is an easy to follow step by step guide for a beginner in Bitcoin mining.
Get a Bitcoin mining hardware
bitcoin mining hardware
The world of mining is becoming increasingly complex as more computing power is used in mining. The higher the mining level, the more difficult it is to make a profit as the investment in hardware is very high. Bitcoin mining is very competitive and you should do your research before investing in hardware. Previously, it was possible to use your personal CPU to mine Bitcoins, but with the complexity of mining, this method is no longer viable. You need to buy a specially designed computer whose primary purpose is bitcoin mining.
Get a Bitcoin wallet
You must have a wallet that is local or online to store your digital currency. A wallet comes with a public wallet address and a private key or password, which are the most important details to keep in mind. If your wallet is self-hosted, you need a copy of the wallat.dat file to prevent you from losing your investment. It acts as a backup wallet if something unfortunate happens to your machine. You can even get wallets for your mobile devices. The highly recommended wallet is the self-hosted or locally made wallet.
Find a group to join
It is recommended that you join a mining pool or choose to mine alone. A mining pool is a group of miners who come together to share resources and rewards. A pool guarantees you faster returns as you combine your computing power for better results. Each pool has its own rules, reward method, and the fee that is charged for mining. You have to find the one that best suits your needs. Mining alone is complex and you may never get any return on investment.
Get mining software for your computer
There are several free mining programs depending on the hardware you are using. The mining program helps to monitor and control your hardware. Some common mining programs are CGminer, BFGminer, and EasyMiner. If you’re in a pool, it’s a good idea to refer to them while connecting your pool to your program. Programs run on a command line and may require a batch file to start properly.
After all you are ready to go. Run your mining program and start by entering your pool username and password. You will notice that your machine slows down as the miner works.
It is very important to keep a close eye on temperatures as software causes hardware to heat up. Some programs like SpeedFan can keep the temperature under control. You don’t want to risk literally blowing up your investment before you start working. After a while, you should check how much you are earning to see if your investment is worth continuing.