Bitcoin mining is the act of checking the transactions that take place on each blockchain. This authenticates each transaction and then shares the transaction publicly on a peer-2 network for all to see. Bitcoin miners are the people who are responsible for checking and validating each transaction before it is added to the block to create a blockchain. Once Miner places the next block on the blockchain, he / she can qualify for a reward, which is usually in the form of bitcoins. The more mathematical calculations you solve, the greater the reward.
You don’t need to be a professional software developer or coder to get involved in bitcoin mining. Below is a simple step-by-step guide for a beginner on Bitcoin mining.
Get Bitcoin mining equipment
Bitcoin mining equipment
The world of mining is becoming more and more complex as mining uses higher computing power. The higher the level of mining, the harder it is to make a profit, as investment in equipment is very large. Bitcoin mining is very competitive and you need to do adequate research before investing in equipment. Previously, you could use your personal processor to mine bitcoins, but due to the complexity of mining, this method is more unviable. You need to buy a specially built computer, the main purpose of which – the extraction of bitcoins.
Buy a Bitcoin wallet
You should have a wallet that is a local or online resource for storing your digital currency. The wallet comes with a public wallet address and private key or password, which are the most important details to note. If your wallet is self-contained, you will need a copy of the wallat.dat file so that you do not lose your investment. It acts as a backup wallet if something unfortunate happens to your car. You can even get wallets for your mobile devices. A highly recommended wallet is a wallet with your own host or a locally made wallet.
Find a pool to join
It is recommended to join the mining pool or choose single mining. The Mining Pool is a group of miners who come together to share resources and share rewards. The pool guarantees you a faster return if you combine computing power to achieve greater results. Each pool has its own rules, method of rewarding and mining fees. You need to find the one that best suits your needs. Mining itself is challenging and you will never get a return on investment.
Get mining software for your computer
There are different free mining programs depending on the equipment you use. The mining program helps to monitor and control your equipment. Some common mining programs are CGminer, BFGminer and EasyMiner. If you are in a pool, it is advisable to consult with them when connecting your pool to your program. Programs run on the command line and may require a batch file to run properly.
After all this you are ready to go. Run the mining program and start by entering the username and password of your pool. You will notice that your machine slows down when the miner is running.
It is important to monitor the temperature closely as the software causes your equipment to heat up. Some programs, such as SpeedFan, can keep the temperature under control. You don’t want to risk literally undermining your investment even before you start working. After a while you should check how much you earn to see if your investment is worth it.