Bitcoin mining has become a popular and profitable way to earn bitcoin. According to the data from BuyBitcoinWorldwide, every day around 1,800 bitcoins are mined. At first, only Satoshi Nakamoto, who developed bitcoin, and a small group of people were mining, with their own computers, using central processing unit or CPU.
During the years, mining evolved, and today, there are three ways to start with it. They are:
- Mining through a mobile phone
- Using specific hardware equipment
In this article we’ll focus on how to start mine with your own hardware. Let’s dive in.
Bitcoin mining with hardware equipment
Before starting to mine this way, there are a couple of things you should know. First, mining this way requires specific equipment, which is quite expensive. And second, the competition is huge. We’re talking about professional bitcoin mining farms that are located around the world.
However, if you’re still willing to do it, read our guide on how to get started. Here is what the kind of equipment bitcoin mining requires, and what you need to do.
Calculate whether bitcoin mining is profitable for you
This is the first thing you should do if you’re serious about mining. You can find various online mining calculators that will help you to determine whether it’s worth it to start mining.
For example, CryptoCompare has a mining calculator you can try out. When calculating, try to provide as much as information as possible.
Get equipment for the mining rig
This means that you’ll have to buy ASIC miners and a power supply. An ASIC miner is a circuit developed specifically to mine bitcoin. However, to start working, the ASIC miner needs a power supply, so don’t forget about it.
After that, you can connect the power supply to the ASIC miner, and then to the router. Just make sure to use a cable for this, since a wireless connection isn’t strong enough for mining.
Download bitcoin mining software
After you’ve finished connecting the necessary devices to a network, it’s time to download software for bitcoin mining. You can choose from variety of softwares available on the crypto market. Some of the most popular are BFGminer, Cgminer, MultiMiner, and BitMinter.
Now is the time to join a mining pool
Bitcoin mining can be a slow process. To make it faster, miners often unite in groups called mining pools. Joining a mining pool is usually free, but the pool will take a percentage, usually between 1 or 2%, of the mined bitcoin. Some of the popular mining pools include Slush Pool, BitMinter, CK Pool, etc.
Transfer mined bitcoins from the mining pool account to your wallet
Once you start to mine bitcoin, it will start to show up on your mining pool account. Payments depend on a mining pool. Some of them have a monthly or quarterly payout, while with others, you’ll have to transfer bitcoin to your wallet by yourself. It’s extremely important to choose a secure and reliable crypto wallet.
Whether your bitcoin mining will be profitable or not depends on a lot of factors. You should keep in mind that you’ll need a big budget for this.
Hardware equipment for mining is expensive, just like the electricity cost. Plus, cryptocurrencies, including bitcoin, are volatile, so don’t invest more than you can afford to lose.