Bitcoin Mining is the act of verifying transactions that occur on each Blockchain. It gives validity to each transaction and then shares the transaction publicly on a peer-2-peer network for all to see. Bitcoin miners are the people responsible for verifying and evaluating each transaction before it is added to the block to create the blockchain. Once a miner places the next block on the blockchain, he can claim a reward, usually in the form of bitcoins. The more maths you solve, the more rewards you get.
You don’t need to be a professional software developer or coder to participate in Bitcoin mining. Below is an easy to follow step by step guide for Bitcoin mining beginners.
Buy Bitcoin Mining Hardware
Bitcoin mining equipment
As higher computing power is used in mining, the world of mining is becoming increasingly complex. The higher the level of mining, the more difficult it is to make a profit, because the investment in equipment is very high. Bitcoin mining is very competitive and you should do adequate research before investing in a hardware. It used to be possible to use a personal CPU to mine Bitcoins, but with the complexity of mining, this method is no longer viable. You need to buy a specially built computer whose main purpose is bitcoin mining.
Get a Bitcoin wallet
You must have a local or online wallet to store your digital currency. The wallet comes with a Public Wallet Address and a private key or password which are the most important details to note. If the wallet is self-hosted, you will need a copy of the wallat.dat file to prevent you from losing your investment. It acts as a backup wallet in case of any mishap with your machine. They can even get wallets for their mobile devices. A highly recommended wallet is a self-managed or locally made wallet.
Find a pool to join
It is recommended that you join a mining pool or choose to mine solo. A mining pool is a group of miners who come together to share resources and share rewards. The pool guarantees you faster revenue when you pool your computing power for higher results. Each pool has its own rules, reward method and fee for mining. You should find the one that best suits your needs. Mining alone is complicated and you will never get any return on investment.
Get Mining Software for your PC
There are different free mining software depending on the hardware you use. Mining software helps you monitor and manage your hardware. Some common mining software are CGminer, BFGminer, and EasyMiner. If you’re in a pool, it’s a good idea to check with them when connecting your pool to your program. Programs run on the command line and may require a batch file to launch properly.
After all that, you’re good to go. Launch your mining software and start by entering your pool’s username and password. You will notice that your machine slows down while the miner is running.
It is very important to keep a close eye on the temperatures as the software heats up your device. Some programs like SpeedFan can keep the temperature under control. You don’t want to risk literally blowing your investment before you even get started. After some time, you need to check how much you have earned to see if your investment is worth running.