Bitcoin Mining is an act of checking the transactions that take place on each blockchain. It authenticates each transaction and then openly summarizes the transaction through a network of peer-to-peer networks for all to see. Bitcoin miners are the people who are responsible for checking and evaluating each transaction before adding it to the block to create a blockchain. Once Miner places the next block on the blockchain, he / she may claim a reward, which usually takes 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 programmer to be involved in bitcoin mining. Below is a simple step-by-step guide for a beginner bitcoin mining.
Get bitcoin mining equipment
Bitcoin mining equipment
The world of mining is becoming more and more complex as more computing power is used in mining. The higher the level of mining, the harder it is to make a profit because the investment in equipment is so high. Bitcoin mining is very competitive and you need to do adequate research before investing in equipment. Previously, you could use your personal processor for bitcoin mining, but given the complexity of mining, this method is no longer viable. You need to buy a specially built computer whose main purpose is bitcoin mining.
Purchase a Bitcoin wallet
To store digital currency you need to have a wallet that is local or online. 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 on your own, you need a copy of the wallat.dat file to avoid losing your investment. It acts as a backup wallet if something unfortunate happens to your car. You can even get wallets for mobile devices. A wallet that is strongly recommended to use is a wallet that is self-made or locally made.
Find a pool to join
It is recommended to join a mining pool or choose a mining solo. A mining pool is a group of miners who come together to share resources and share rewards. The pool guarantees you a faster profit if you combine computing power for a greater result. Each pool has its own rules, method of reward and mining fee. You need to find the one that best suits your needs. Mining alone is tricky and you will never be able to return the 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 the pool to your program. Programs run on the command line and may require a batch file to run properly.
After all, you are ready to go. Start the mining program and start by entering the username and password of your pool. You will notice how your machine slows down when Miner is running.
It is very important to monitor the temperature closely as the software causes your equipment to heat up. Some programs, such as SpeedFan, can control the temperature. You don’t want to risk literally blowing up your investment before you start working. After a while you should check how much you are earning to see if your investment is worth it.