How to mine bitcoin

How to mine bitcoin
How to mine bitcoin
Anonim

You have heard of Bitcoin and you are ready to get your hands on some virtual wealth. You can buy and trade bitcoins or you can "mine" them. Bitcoin mining is actually a process of verifying other transactions, which generates a reward for the user who verifies. It is a central mechanism of the Bitcoin-based economy and mining helps keep transactions safe and reliable. Over time, mining has become more and more difficult. These days, you need specialized and expensive equipment to mine bitcoin yourself. Although the cost and difficulty of mining continues to increase, there are many cloud mining services emerging. These services allow you to rent hash power and mine bitcoins remotely. You can then learn to mine bitcoins using cloud services, but also using your own equipment, such as ASIC miners.

Steps

Method 1 of 2: mine bitcoin in the cloud

Step 1. Open a Bitcoin wallet

Bitcoins are stored in virtual wallets which are encrypted to protect them. These wallets can be stored locally or online. Online services are generally considered to be less secure, as you could lose your money if a server-side crash occurs. With local services, you are responsible for the security of your data.

  • Most advanced Bitcoin users recommend using a local wallet.
  • Typically, these wallets require you to verify the entire blockchain, i.e. the history of Bitcoin transactions. Hosting the blockchain on your device is what keeps the protocol safe and functional. It might take you a day or more to sync the entire blockchain the first time.
  • Some of the most popular local wallets include BitcoinQT, Armory, and Multibit. Multibit does not ask you to download the entire blockchain.
  • You can also download wallet apps to your mobile device. You also won't have to download the entire blockchain. Among the most popular applications are Blockchain and CoinJar.
  • If you lose your wallet, you lose your money too!

Step 2. Secure your wallet

Since there is no "ownership" of the wallet, anyone who has access to yours can use your bitcoin for you. To avoid it, turn on two-step authentication and keep your wallet on a computer that doesn't have internet access, perhaps on a USB drive or memory card that you can disconnect later and keep with you.

Step 3. Choose a cloud mining service

Over time, the Bitcoin mining process demands more and more computing power. Today, it is very difficult for individuals to invest in the equipment necessary to mine bitcoin on their own. However, cloud mining allows users to rent hash power to mine bitcoin remotely. Usually you will be paid in bitcoins.

Among the most popular services are Genesis Mining and HashFlare. Cryptocompare offers a list of all cloud mining companies with reviews and ratings from their users

Step 4. Choose a package

Once you have chosen a certain provider, you need to choose an online mining package. To do this, you need to decide how much you are willing to invest and educate yourself on how much hash power you are going to get. Many companies will give you an estimate of your return on investment based on the current value of bitcoin. However, it is important to remember that this is a very volatile market and the return on your investment is never guaranteed.

Step 5. Choose a mining “pool”

Most online mining companies will ask you to join a mining pool. This is standard practice if you are mining in the cloud or mining bitcoin yourself. This increases your chances of winning bitcoin. It is recommended to join a well established and recognized pool.

  • Most pools will ask you to donate part of your winnings (usually around 2%).
  • When you join a pool, you will have to create a "worker". This is a secondary account that the pool will use to track your contributions. You can have several workers at the same time. Each pool will tell you how to create your worker.

Step 6. Keep your earnings in your secure wallet

It is recommended that you withdraw your earnings and put them in your own secure wallet as soon as you start to see a return on your investment.

Method 2 of 2: mine bitcoin yourself

Mine Bitcoins Step 1

Step 1. Purchase mining equipment

At the very beginning of Bitcoin, it was possible to mine them using the CPU or GPU of your computer. Now that’s practically impossible. You will spend a lot more money on electricity than you will earn on bitcoin. As the computational difficulty increases, more and more powerful hardware is needed to mine bitcoins. In 2018, you need to buy an Application-Specific Integrated Circuit (ASIC) miner to mine bitcoin. There are many places where you can buy an ASIC miner. Here are several things to consider when shopping for one.

  • Chopping power: it corresponds to the number of hashes per second that the miner is able to calculate. More expensive devices also allow more hashes per second.
  • Efficiency: ASIC miners consume a lot of electricity. To be able to make money mining bitcoin, you need a miner that efficiently converts your electricity into bitcoin. Otherwise, you'll spend more money running than you earn a return on your investment.
  • The price: a decent ASIC miner costs between 1,000 and 5,000 euros. It doesn't even take into account the cost of electricity or pool fees. You are also going to need to purchase a power supply for your ASIC miner, which should add another $ 100 to $ 200. Use the Bitcoin Mining Profit Calculator to factor in all the costs and calculate an estimate of your return on investment. It is important to remember that these calculators give you an estimate based on the current value of bitcoin. As the popularity of Bitcoin and mining increases, your earnings will also decrease over time. If an online calculator estimates that you can earn around 0.4 bitcoin per year now, it is possible that this value will drop to 0.1 or even lower towards the end of the year.

Step 2. Purchase a power supply

In addition to purchasing an ASIC miner, you must purchase a power supply compatible with the miner. ASIC miners consume a lot of electricity. It is recommended that you use a 20 A (15 A minimum) source to power your miner.

Mine Bitcoins Step 2

Step 3. Open a bitcoin wallet

Bitcoins are kept in virtual wallets which are encrypted to protect your money. These wallets can be kept locally or online. Even though the online services that take care of your wallet won't be able to access it, they are still considered less secure because you could lose your money if something happened on their server.

  • Most advanced users prefer a local wallet for added security.
  • Usually, you are going to have to download the entire blockchain, this is the Bitcoin transaction history. This will help with the operation and security of Bitcoin. You might have to wait a day or more the first time you download the blockchain.
  • Some of the more popular options are BitcoinQT, Armory, and Multibit. Multibit is not going to ask you to download the entire blockchain.
  • There are also apps that you can download to your mobile device. You also won't have to download the entire blockchain. Among these are Blockchain and CoinJar.
  • If you lose your wallet, you will lose your money too!
Mine Bitcoins Step 3

Step 4. Secure your wallet

Since there is no "ownership" of the wallet, anyone who has access to yours can use your bitcoin for you. To avoid it, turn on two-step authentication and keep your wallet on a computer that doesn't have internet access, perhaps on a USB drive or memory card that you can disconnect later and keep with you.

Step 5. Choose a mining pool

This is standard practice if you want to mine bitcoin yourself. This improves your chances of winning. It is recommended to join a well established and recognized pool.

  • Most pools will require you to pay a fee (usually around 2% of your profit).
  • When you join a pool, you will need to create a worker. This is a secondary account that the pool will use to track your contributions. You can have several workers at the same time. Each pool will tell you how to create your worker.

Step 6. Connect the power supply to the ASIC miner

There you will see many wires that you need to plug in. Connect each of them to the ASIC miner's hash card. Then connect the wire from the control board to the ASIC miner.

Step 7. Connect the ASIC miner to the router

Once you have connected power to the miner, use the Ethernet cable to connect the miner to the router.

Step 8. Start the ASIC miner

Once you've plugged the miner into the power supply and the router, you can start it up by plugging it into an electrical outlet or by pressing the on / off button that is on the power supply. There should be an LED letting you know the miner is on. It will usually take about ten minutes for it to be fully operational.

Step 9. Type the IP address of the router in the address bar of the browser

Before you can configure the ASIC miner, you need to find its IP address. You will find it on the administration page of your router. Type the router's IP address into the address bar of your browser to access the router's administration page. You can use any browser on a computer connected to the router to which your ASIC miner is connected. Take a look at your router's manual for its IP address, or do a Google search to find your router's IP address by manufacturer and model. Most routers use 192, 168.0.1, 192, 168.1.1, 192, 168.0.0 or 10, 0.0, 1.

Step 10. Find the connected devices section

Your router's administration page will depend on its make and model. You should find a section that shows all the devices connected to the router. This is where you will find the ASIC miner.

Step 11. Click on the miner

It should appear in the list of all devices plugged into the router. Click on it to display its information.

Step 12. Copy and paste the address of the miner into the browser

After clicking on the ASIC miner in the list of devices connected to the router, you should find its IP address among other information. Copy the address and paste it into your browser's address bar. This will open the ASIC miner administration page. Write down the IP address of your miner to find it easily in the future.

Step 13. Log in to the ASIC miner

Check the user manual for the default connection settings. Usually the username is root and the password is root.

Step 14. Click Miner Configuration

Once the miner starts, it will start mining immediately. However, it is not going to undermine for you. He's going to mine for the company that made him. In order for it to start working for you, you must enter your mining pool information. Click on Miner configuration to configure it.

Step 15. Type the mining pool information

When you log into your mining pool, you will need the URL, your username and password (if needed) and type all this information into the ASIC miner configuration page. Typically, you can add up to three mining pools to your miner.

Step 16. Click Save

This will save the information in your miner. Now your device will work for you and your mining pool.

Step 17. Monitor the temperature

Mining programs consume a tremendous amount of electricity. Most ASIC miners come with powerful fans that you need to replace every now and then. You should also think about a way to remove excess heat.

Step 18. Check your return on investment

After you've been mining for a little while, check the numbers to make sure it's worth it. How much have you earned in the last few days? Compare that to how much you have to spend to keep your equipment running (a Bitmain Antminer S9 power supply generates about 1200 watts at 110-120 volts or about 1600 watts at 220-240 volts). It is also recommended that you use a Bitcoin mining calculator to get an idea of ​​the return on your investment before investing in mining equipment, but also every now and then while you are mining.

Advice

Familiarize yourself with the different ways to sell bitcoin so you can do it quickly when you want to

Warnings

  • Bitcoin and other cryptocurrencies are a volatile market. The value of bitcoin can and does change frequently. You can never be sure that the value of the bitcoin you mine or buy is going to be the same several weeks from now. It is recommended that you never invest more money than you are prepared to lose.
  • Beware of contracts for unavailable services. Some cloud mining companies will offer to pay you for services that won't be available for weeks or months. This is not recommended, as there is no guarantee as to the value of bitcoin when the service is activated.
  • Avoid buying used ASIC miners. Its devices often suffer from burnt materials or components. You can never be sure that the used miner you buy will last long enough for you to make a profit. It also might not have the hash power to mine enough bitcoin and help you make money.
  • Beware of pending orders. The value of bitcoin could collapse the moment you receive your miner.
  • Do not try to mine Bitcoin with your CPU or GPU. Although it was possible in the past, it is not possible now. You are going to spend more money on electricity than you are going to earn and you could burn out your computer.

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