Encyclopedia Of Bitcoin | From A to Z
Getting started with Bitcoin mining
You will learn
how bitcoin mining works,
how to start mining bitcoins,
what the best bitcoin mining software is,
what the best bitcoin mining hardware is,
where to find the best bitcoin mining pools and
how to optimize your bitcoin earnings.
Bitcoin mining is difficult to do profitably but if you try then this Bitcoin miner is probably a good shot.
How Bitcoin Mining Works
Before you start mining Bitcoin, it’s useful to understand what Bitcoin mining really means. Bitcoin mining is legal and is usually accomplished by running SHA256 double round hash verification processes in order to validate Bitcoin transactions and provide the requisite security for the public ledger of the Bitcoin network. The speed at which you mine Bitcoins is definitely measured in hashes per second.
The Bitcoin network compensates Bitcoin miners for their effort by releasing bitcoin to those who contribute the needed computational power. This comes in the form of both newly issued bitcoins and from the transaction fees included in the transactions validated when mining bitcoins. The more computing power you contribute then the greater your share of the reward.
Step 1 – Get The Best Bitcoin Mining Hardware
Purchasing Bitcoins – In some cases, you may need to purchase mining hardware with bitcoins. Today, you can purchase most hardware from Amazon. You also may want to check the bitcoin charts.
How To Begin Bitcoin Mining
To start mining bitcoins, you’ll want to acquire bitcoin exploration hardware. In the early times of bitcoin, it was possible to mine with your pc CPU or high-velocity video processor cards. Today that’s no much longer feasible. Custom made Bitcoin ASIC chips give functionality up to 100x the ability of old systems possess arrive to control the Bitcoin mining market.
Bitcoin exploration with anything less will consume more in power than you are likely to earn. It’s important to quarry bitcoins with the greatest bitcoin mining equipment built specifically for that purpose. Many businesses such as Avalon offer superb systems constructed particularly for bitcoin exploration.
Best Bitcoin Cloud Mining Services
Another option is to purchase in Bitcoin cloud mining contracts. 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 Bitcoin cloud mining scams.
Hashflare Review: Hashflare gives SHA-256 mining contracts and more rewarding SHA-256 coins can be mined while automatic payouts are still in BTC. Customers must purchase at least 10 GH/t.
Genesis Mining Review: Genesis Mining is the largest Bitcoin and script cloud exploration, provider. Genesis Exploration presents three Bitcoin cloud mining plans that are reasonably priced. Zcash exploration contracts are also available.
Hashing 24 Review: Hashing24 offers been involved with Bitcoin mining since 2012. They have facilities in Iceland and Georgia. They use modern ASIC chips from BitFury deliver the maximum performance and performance possible.
Minex Review: Minex is usually an innovative aggregator of blockchain projects presented in an economic simulation game format. Users buy Cloud packs which can then become used to build an index from pre-picked sets of cloud mining farms, lotteries, casinos, real-world markets and much more.
Minergate Review: Presents both pool and merged exploration and cloud mining providers for Bitcoin.
Has honest Review: Hashnest is definitely operated by Bitmain, the producer of the Antminer line of Bitcoin miners. harshness currently provides over 600 Antminer T7t for rent. You can watch the most up-to-date pricing and availability on Hashnest’s site. At the time of writing one Antminer S7’s i9000 hash rate can end up being hired for $1,200.
Bitcoin Cloud Mining Review: Currently all Bitcoin Cloud Exploration agreements are sold out.
NiceHash Review: NiceHash is unique in that it uses an order book to match exploration contract customers and sellers. Verify its internet site for up-to-date prices.
Eobot Review: Start cloud mining Bitcoin with while little seeing that $10. Eobot promises customers can break also in 14 a few months.
MineOnCloud Review: MineOnCloud currently has about 35 TH/s of mining equipment for lease in the cloud. Some miners obtainable for rent include AntMiner H4beds and T5s.
Currently, based on (1) price per hash and (2) electrical efficiency the best Bitcoin miner options are:
|Advertised capacity||4.73 Th/s||13.5 Th/s||3.5 Th/s|
|Power||0.25 W/Gh||0.098 W/Gh||0.29 W/Gh|
|weight||8.8 pounds||8.1 pounds||9.5 pounds|
|BTC per Month||0.1645||
Once you’ve received your bitcoin mining hardware, you’ll need to download a special program used for Bitcoin exploration. There are many programs out there that can be used for Bitcoin mining, but the two most popular are CGminer and BFGminer which are command line applications.
If you prefer the ease of use that comes with a GUI, you might want to try EasyMiner which is a click and go windows/Linux/Android system.
Step 3 – Join a Bitcoin Mining Pool
Once you’re ready to mine bitcoins then we recommend joining a Bitcoin mining pool. Bitcoin mining pools are groups of Bitcoin miners working together to solve a block and share in its rewards. Without a Bitcoin mining pool, you might mine bitcoins for over a year and never earn any bitcoins. It’s far more convenient to share the work and split the reward into a much larger group of Bitcoin miners. Here are some options:
For a fully decentralized pool, we highly recommend p2pool.
The following pools are believed to be currently fully validating blocks with Bitcoin Core 0.9.5 or later (0.10.2 or later recommended due to DoS vulnerabilities):
Step 4 – Set Up A Bitcoin Wallet
The next step to mining bitcoins is to set up a Bitcoin wallet or use your existing Bitcoin wallet to receive the Bitcoins you mine. Copay is a great Bitcoin wallet and functions on many different operating systems. Bitcoin hardware wallets are also available.
Bitcoins are sent to your Bitcoin budget by using a unique address that only belongs to you. The most important step in setting up your Bitcoin wallet is securing it from potential threats by enabling two-factor authentication or keeping it on an offline computer that doesn’t have access to the Internet. Wallets can be obtained by downloading a software client to your pc.
You will also need to be able to buy and sell your Bitcoins. For this we recommend:
- SpectroCoin – European exchange with same-day SEPA and can buy with credit cards
- Kraken – The largest European exchange with same-day SEPA
- Buying Bitcoin Guide – Get help finding a Bitcoin exchange in your country.
- Local Bitcoins – This fantastic service allows you to search for people in your community willing to sell bitcoins to you directly. But be careful!
- Coinbase is a good place to start when buying bitcoins. We strongly recommend you do not keep any bitcoins in their service.
Step 5 – Stay Up To Date With Bitcoin News
Staying up to date with Bitcoin news is important for your bitcoin mining profits. If you want general Bitcoin news then we recommend the WeUseCoins news section.