Bitcoin mining is the act of verifying transactions that occur on each blockchain. This makes every transaction valid, and then shares the transaction publicly on a peer-to-peer network for everyone to see. Bitcoin miners are the people responsible for verifying and appraising each transaction before adding it to the block to create the blockchain. Once the miner puts the next block on the blockchain, he/she can apply for a reward, which usually comes in the form of Bitcoin. The more mathematical calculations you solve, the more rewards you will 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 beginners in Bitcoin mining.
Get Bitcoin mining hardware
Bitcoin mining hardware
With the use of higher computing power in mining, the mining world has become more and more complex. The higher the mining level, the harder it is to make a profit due to the high investment in hardware. Bitcoin mining competition is very fierce, and you need to conduct sufficient research before investing in hardware. It used to be possible to use your personal CPU to mine Bitcoin, but due to the complexity of mining, this method is no longer feasible. You need to buy a special computer that is mainly used for Bitcoin mining.
Get a Bitcoin wallet
You need to have a local or online-based 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 pay attention to. If your wallet is self-hosted, you need a copy of the wallat.dat file to prevent you from losing your investment. If anything unfortunate happens to your machine, it will act as a backup wallet. You can even get a wallet for their mobile device. The highly recommended wallets are self-hosted or locally manufactured wallets.
Find a swimming pool to join
It is recommended that you join a mining pool or choose to mine alone. A mining pool is a group of miners who share resources and share rewards. When you combine computing power to get better results, the pool guarantees you faster returns. Each pool has its own rules, reward methods and mining fees. You need to find the best fit for your needs. Mining alone is complicated, and you may never get any return on investment.
Get mining software for your computer
There are many free mining programs, depending on the hardware you use. Mining programs can help monitor and control your hardware. Some common mining programs are CGminer, BFGminer and EasyMiner. If you are in the pool, it is recommended to consult them when connecting the pool to the program. The program runs on the command line and may require a batch file to start normally.
After all, you are ready. Run your mining program and start by entering the username and password of the pool. You will notice that as the miners work, your machine slows down.
When the software heats up your hardware, it is important to pay close attention to the temperature. Certain programs such as SpeedFan can control the temperature. You don’t even want to risk blowing up your investment before you start work. After a period of time, you should check how much money you have made to see if it is worth continuing to invest.