If you don’t want to buy Bitcoin, but would prefer to get your hands on the world’s first and most valuable cryptocurrency through Bitcoin mining, let’s go through the basics you should know. It’s possible to mine Bitcoin and other digital tokens using your computer at home, provided you have the suitable hardware.
What is mining? Well, mining is the process of acquiring cryptocurrencies by solving extremely complex mathematical problems through the use of high-end computers or mining rigs. Anyone can become a Bitcoin miner if they have a heavy-duty computing system, the right mining software and ample supply of electricity.
To feed your curiosity regarding Bitcoin mining, here’s a list of the things you’ll need to get started:
Get A Mining Rig
The first thing you need to start mining digital currencies is a mining rig. It is essentially a customized computer that comes with all the basics from a good processor to enough storage to a graphics card. The last mentioned is considered the most important because it’s the graphics processing unit (GPU) that will be doing all the hard work to mine bitcoins and not the central processing unit (CPU).
This is why you need to invest in a very powerful graphics card for mining. You’re going to need more than one, and it is going to cost you a lot, especially if you consider the prices of graphics cards on the market today. Alternatively, you can opt for hardware that’s specifically designed for mining bitcoins.
Due to the digital currency’s popularity, cryptographic equations have become more complex, which has created a demand for more computing power in the form of Application-Specific Integrated Circuits (ASIC) miners. ASIC miners are specialized hardware designed to mine Bitcoins as efficiently as possible at incredibly high speeds. Due to this advantage, most Bitcoin miners today prefer using ASIC rigs.
Mining Pool
Once you already have your mining rig setup, it’s time for you to think about a mining pool. Participating in a mining pool gives you a good chance of making a profit and pooling your Bitcoins with others who are also in your mining pool.
A mining pool is a group of Bitcoin miners working together, pooling resources, sharing hashing power, and dividing the rewards according to the amount of shares each member afforded towards solving a block.
Alternatively, you can always go on with solo mining. But it will take a lot of time and resources. If you start mining on your own, don’t expect to earn any Bitcoin within a year. It’s considered more practical to share the work and split the rewards with other miners.
Bitcoin Mining Software
Out of all the points listed here, Bitcoin mining software is arguably the most vital. A mining rig won’t work if you don’t use the right software. Mining software is a computer program that instructs the hardware and controls its operations.
Reliable Bitcoin mining software should have a good interface, suitable analytical tools, and a great deal of information to keep you up-to-date. Whether you’re new to mining or not, choosing the right software can make life a lot easier. It is important to choose a program that offers you a high level of control over your mining process.
The good news is that most Bitcoin mining software is free and open-source. This means you can try as many options as you want and see what they offer until you fnd one that meets your needs.
Bitcoin Wallet
Once you start mining Bitcoin, you’re going to need a digital wallet to store your cryptocurrency. There’s a huge number of crypto wallets available on the market; so choosing one shouldn’t be a big problem.
Do some basic research to find the most recommended and trusted compatible wallets. Some of them are available free of charge. When you set up your Bitcoin wallet, you’ll be given an address where you can receive and safely store your digital coins.
Cryptocurrencies that you mine will be sent to your wallet using a unique address, which is only available to you. This helps in securing your Bitcoin from any potential threats. Digital wallets also come with added features such as two-factor authentication for better security.
Final Thoughts
Mining cryptocurrency is a very costly and complicated venture. But with proper research and planning, and the right setup, you can make a decent profit out of mining. Consider all the information mentioned above to help you get started with the tools and equipment you’ll need.
