You will learn (1) howbitcoinminingworks, (2) howtostart miningbitcoins,(3) what the best bitcoinminingsoftware is, (4) what the best bitcoinmininghardware is, (5) where tofind the best bitcoinminingpools and (6) howtooptimize your bitcoinearnings.
Bitcoinminingis difficult todo profitably but if you try then this Bitcoinminer is probably a good shot.
Before you start miningBitcoin,it's useful tounderstand what Bitcoinminingreally means. Bitcoinminingis legal and is accomplished by running SHA256 double round hash verification processes in order tovalidate Bitcointransactions and provide the requisite security for the public ledger of the Bitcoinnetwork. The speed at which you mineBitcoinsis measured in hashes per second.
The Bitcoinnetwork compensates Bitcoinminers for their effort by releasing bitcointothose who contribute the needed computational power. This comes in the form of both newly issued bitcoinsand from the transaction fees included in the transactions validated when miningbitcoins.The more computing power you contribute then the greater your share of the reward.
Purchasing Bitcoins- In some cases, you may need topurchase mininghardware with bitcoins.Today, you can purchase most hardware on Amazon . You also may want tocheck the bitcoincharts .
Tobegin miningbitcoins, you'll need toacquire bitcoinmininghardware. In the early days of bitcoin,it was possible tominewith your computer CPU or high speed video processor card. Today that's no longer possible. Custom BitcoinASIC chips offer performance up to100x the capability of older systems have come todominate the Bitcoinminingindustry.
Bitcoinminingwith anything less will consume more in electricity than you are likely toearn. It's essential tominebitcoinswith the best bitcoinmininghardware built specifically for that purpose. Several companies such as Avalon offer excellent systems built specifically for bitcoinmining.
Best BitcoinCloud MiningServices
Another option is topurchase in Bitcoincloud miningcontracts. This greatly simplifies the process but increases risk because you do not control the actual physical hardware.
Being listed in this section is NOT an endorsement of these services. There have been a tremendous amount of Bitcoincloud miningscams.
Hashflare Review : Hashflare offers SHA-256 miningcontracts and more profitable SHA-256 coins can be minedwhile automatic payouts are still in BTC. Customers must purchase at least 10 GH/s.
Genesis MiningReview : Genesis Miningis the largest Bitcoinand scrypt cloud miningprovider. Genesis Miningoffers three Bitcoincloud miningplans that are reasonably priced. Zcash miningcontracts are also available.
Hashing 24 Review : Hashing24 has been involved with Bitcoinminingsince 2012. They have facilities in Iceland and Georgia. They use modern ASIC chips from BitFury deliver the maximum performance and efficiency possible.
Minex Review : Minex is an innovative aggregator of blockchain projects presented in an economic simulation game format. Users purchase Cloudpacks which can then be used tobuild an index from pre-picked sets of cloud miningfarms, lotteries, casinos, real-world markets and much more.
Hashnest Review : Hashnest is operated by Bitmain, the producer of the Antminer line of Bitcoinminers. HashNest currently has over 600 Antminer S7s for rent. You can view the most up-to-datepricing and availability on Hashnest's website. At the time of writing one Antminer S7's hash rate can be rented for $1,200.
NiceHash Review: NiceHash is unique in that it uses an orderbook tomatch miningcontract buyers and sellers. Check its website for up-to-dateprices.
Eobot Review : Start cloud miningBitcoinwith as little as $10. Eobot claims customers can break even in 14 months.
MineOnCloud Review: MineOnCloud currently has about 35 TH/s of miningequipment for rent in the cloud. Some miners available for rent include AntMiner S4s and S5s.
BitcoinMiningHardware Comparison
Step 2 - Download Free BitcoinMiningSoftware
Once you've received your bitcoinmininghardware, you'll need todownload a special program used for Bitcoinmining.There are many programs out there that can be used for Bitcoinmining,but the two most popular are CGminer and BFGminer which are command line programs.
If you prefer the ease of use that comes with a GUI, you might want totry EasyMiner which is a click and go windows/Linux/Android program.
You may want tolearn more detailed information on the best bitcoinminingsoftware .
Once you're ready tominebitcoinsthen we recommend joining a Bitcoinminingpool . Bitcoinminingpools are groups of Bitcoinminers working together tosolve a block and share in its rewards. Without a Bitcoinminingpool, you might minebitcoinsfor over a year and never earn any bitcoins.It's far more convenient toshare the work and split the reward with a much larger group of Bitcoinminers . Here are some options:
For a fully decentralized pool, we highly recommend p2pool .
The following pools are believed tobe currently fully validating blocks with BitcoinCore 0.9.5 or later (0.10.2 or later recommended due toDoS vulnerabilities):
The next step tominingbitcoinsis toset up a Bitcoinwallet or use your existing Bitcoinwallet toreceive the Bitcoinsyou mine.Copay is a great Bitcoinwallet and functions on many different operating systems. Bitcoinhardware wallets are also available.
Bitcoinsare sent toyour Bitcoinwallet by using a unique address that only belongs toyou. The most important step in setting up your Bitcoinwallet is securing it from potential threats by enabling two-factor authentication or keeping it on an offline computer that doesn't have access tothe Internet. Wallets can be obtained by downloading a software client toyour computer.
For help in choosing a Bitcoinwallet then you can get started here .
Kraken - The largest European exchange with same-day SEPA
Buying BitcoinGuide - Get help finding a Bitcoinexchange in your country.
Local Bitcoins- This fantastic service allows you tosearch for people in your community willing tosell bitcoinstoyou directly. But be careful!
Coinbase is a good place tostart when buying bitcoins.We strongly recommend you do not keep any bitcoinsin their service.
Staying up todate with Bitcoinnews is important for your bitcoinminingprofits. If you want general Bitcoinnews then we recommend the WeUseCoins news section.
Contribute and translate!
We want tospread knowledge about Bitcoineverywhere, do you think you can help us increase our content or translate for those who don't speak English?