How do you mine bitcoin? Maybe you are one of those people who want to start bitcoin mining but do not know anything about it. In this article, we will teach you all the prerequisites of Bitcoin Mining step by step.
How do you mine bitcoin?
You must first set up a mining rig. Bitcoin mining is generally a mathematical process and requires powerful hardware. You can set up a mining rig by buying and launching powerful graphics cards, a suitable power device, a few fans, and a processor and mainboard. Of course, building a mining rig is not that simple, and you should seek professional help to do so. The hardware you buy may not be compatible, and some parts may not work, so you need to read the instructions for setting up a bitcoin mining rig before each purchase.
Of course, you can also buy bitcoin mining devices. These devices, also known as ASIC Miners, consume less power and are more efficient. Although they cost much more than mining rigs, the profit you get from bitcoin mining will also increase. A good miner should have a power of about 14 to 30 terahashes per second to get more bitcoins out of it. Get it.
What type of ASIC Miner device should we choose?
There are some things to consider when choosing an ASIC Miner. A good miner is characterized by energy efficiency, hash rate, and price. A hash rate is an entity that indicates how many hashes a machine can generate to detect a bitcoin block and receive a bitcoin reward in return.
You can choose a good ASIC Miner by considering three general characteristics. In general, the lower the energy efficiency of the miner and the higher the hash rate production, and at the same time, the lower the price for the device, the better this device is.
Of course, your purchase also depends on the cost of your electricity consumption. Suppose your electricity cost is $ 0.2 per kilowatt. If you buy an ASIC Miner with consumption of 800KWH, you have to pay about 800 * 0.2 = 160 dollars per hour. On the other hand, if your device has a hash rate to earn more than $ 160 per hour, this is suitable for you. So the first thing to look at is the cost of electricity consumed.
There is also another point about ASIC Miner devices. After several months of continuous operation, each device consumes more power, and its hash rate decreases. So you need to set a profit margin for yourself to see if the device you buy will give you a good profit in the future.
ASIC Miners also have two significant problems. The first is that they consume a lot of electricity, and the second is that they sound like vacuum cleaners. This sound is approximately between 70 and 85 decibels based on the amount of hash rate produced. So if you buy a device, try to have a workshop or area where the sound does not bother you by placing the device in it.
Bitcoin extraction method
Each digital currency is developed based on different standards. In this case, you have to buy a separate device for each type of digital currency you want to mine. ASIC Miners generally mine bitcoins and other digital currencies that comply with Bitcoin standards, such as Bitcoin Cash. But for other currencies, you have to buy different miners. Recently, however, companies are developing devices that use to mine other coins. These devices also cost more.
If you do not want to face the challenges of miners, you can also use powerful rendering graphics cards to mine bitcoins or extract other digital currencies. If you set up a rig with multiple graphics cards, power consumption reduces, and you will no longer have the annoying noise that an ASIC Miner device produces. Currently, the demand for powerful graphics cards is so high that this type of hardware is rarely found in the market.
The next step in bitcoin mining is choosing a bitcoin wallet. To be able to store mined bitcoins, you need to create a digital currency wallet. Each wallet has a hash address that uses to send and receive bitcoins. A public key provides for your wallet and a private key. You can give the public keys to others to receive bitcoins. If you lose your private key, your bitcoins will be stolen.
There are different bitcoin wallets. Hardware and software wallets are the two main categories. But which wallet you should choose?
What is the best wallet for Bitcoin?
If you are new to bitcoin mining, you can use software wallets. These wallets are easier to manage, and you can easily synchronize them with the Bitcoin blockchain. Of course, there are two types of software wallets. The first type is full, and you have to copy all the bitcoin blockchain information on it. This wallet is more secure. But the second type is the lightweight version, which copies only part of the bitcoin blockchain. Whatever wallet you choose, you should choose a strong password for it and keep it in a safe place. The best digital currency wallet right now is Exodus.
Bitcoin mining system is a competitive process. There are vast farms of bitcoins worldwide that may have connected thousands of active ASIC Miners to extract bitcoins. With such farms, how can bitcoin are easily mined? In this case, mining pools can solve the problem.
Most miners can gather in a mining pool and share hardware resources in the pool. In this case, each pool has a very high extraction power, but you have to pay 0 to 2% of the total bitcoin you have extracted to the extraction pool.
The lower the percentage of bitcoin you charge for mining, the better the pool. If you are new, use the Slush pool, one of the first bitcoin mining pools.
The procedure is simple. You must first log in to the Mining Pool website and then register and create an account. After that, a worker ID will be provided to you, which you can enter your extraction program, which we will introduce below.
Download Mining Program
You should use programs to connect your miners to the mining and blockchain pools and do the extraction. Each extraction program provides essential information from your miner devices, such as temperature, hash rate, and average extraction speed. There are generally free bitcoin mining programs that you can use. But the best app for this is Nice Hash Miner. This program lets you extract several different currencies simultaneously and specify extraction algorithms and resources for each currency.
It is time to start mining bitcoins. Connect your device to a system, open the Miner app, make settings, and start bitcoin mining. Keep in mind that you can do better and more profitable extraction by buying a better machine or lower electricity costs.