Bitcoin is the largest and the most famous cryptocurrency by market cap. Around 4.6 transactions are processed using Bitcoin every single second. Many people believe that Bitcoin is going to be the ruler of digital money, as they say, Bitcoin-is-the-future.
The good thing is, you don’t need to invest your money to acquire bitcoin directly. You can also mine it. Bitcoin Mining has gained a lot of traction in the past few years. Luckily, mining bitcoin doesn’t require you to pick up your axes or shovel and start digging in the dirt. You can mine bitcoins even at your home.
In this post, I’ve covered what is Bitcoin Mining, is Bitcoin Mining Profitable, and how to Mine Bitcoin? Let’s hop onto it!
What is Bitcoin Mining, And How Does it work?
The process of Bitcoin mining involves creating new bitcoins by solving a computational or mathematical equation. Bitcoin mining can only be done using computers capable of supplying enormous computational and electrical power that can answer complex mathematical equations.
The goal of the Bitcoin miners is to earn Bitcoin as a recompense for finishing the Blocks of verified transactions. These are then put on to the ‘Blockchain,’ and the miners earn a recompense of 6.25 bitcoins ( Until November 2020). The people in charge of Bitcoin Regulation are users of Bitcoin itself all over the globe as Bitcoin doesn’t have any connection with real-world money or banks.
Is Bitcoin Mining Profitable?
Bitcoin Mining can be or can not be profitable as it depends. The profitability of bitcoin mining depends upon some factors that you may want to know.
- First things first, you’ll need to consider the cost of the electricity that is supplied to your mining hardware.
- The second thing is the price of your mining rig or computer.
- Thirdly, the efficiency of your computing power.
These three factors are the main ones that determine whether bitcoin mining will be profitable for you or not.
How to Mine Bitcoin?
Here’s how you can mine Bitcoin in only 5 Steps:
Get a Bitcoin Mining Rig
In the good old days, people could mine Bitcoins using their ordinary day to day use computers, but then as more and more people started mining, the competition increased, and hence more power was required for mining them. Then, miners began using graphic cards or GPUs for mining Bitcoin. However, now to mine Bitcoin, you’ll need a specific built crypto mining hardware known as a Mining Rig.
A cryptocurrency mining rig is usually made up of many graphic cards connected with a computer. According to TechRadar, some of the best mining rigs are Shark Mini, Alienware Area 51, and Bitmain S17 Pro.
Get a Bitcoin wallet.
Setting up your Bitcoin Wallet is the next thing you should do. A Bitcoin wallet is a software where all your Bitcoin will be stored. Although scientifically, your bitcoins aren’t stored anywhere. Using Bitcoin Wallet enables you to send and receive Bitcoins to others. You can also transfer ownership of the bitcoin to your buyer if you want to sell them.
Every Bitcoin address comes with a type of Public Key and a matching Private Key.
The public key works like a bank account number. If you wish to receive bitcoins from somebody, you’ll share your public key with him. You can even trace any transaction passed through the key, as the address of a bitcoin is public.
On the other hand, your private key is private. You’ll have to keep it a secret. It’s used to send transactions and if you forget your private key, say goodbye to your bitcoins on that address.
Join a mining pool
Mining Bitcoin as a solo miner is almost not-possible even with the best mining machine. There’s a lot of competition, and a single machine can’t compete with giant mining farms around the globe. Mining-single-only-sounds-good. To make Bitcoin Mining profitable, it is necessary to join mining pools.
Some of the best mining pools to join are Poolin, F2pool, and BTC.com.
Use Bitcoin Mining Software for your computer.
Bitcoin is mined using hardware and Software. Mining software acts as a middle man to the Bitcoin Network and the Blockchain. Mining software delivers the work to miners and collects the complete results of their work. All the information is added by this software to the blockchain back using this software.
The best Bitcoin Mining Softwares, according to Investopedia, are CGMiner, Multi miner, and BFG miner.
Start Mining and Earning!
Now you’ve got everything you need to mine Bitcoins. Start Bitcoin Mining and let the cash roll in. You can link your miner to a power outlet or connect it with a computer and install mining software. Let’s go!
Bitcoin is the ruler in the Crypto world until now. Bitcoin as an investment is great as it can be a valuable asset. After you’ve mined Bitcoins, you can hold or trade them for better profits. But acquiring apt knowledge is important if you want to avoid any loss.