How To Get Started With Mining Bitcoin
How Bitcoin Mining Works:
Due to the popularity of bitcoins, there is no wonder why there are many people who became fascinated with bitcoin mining. But, what is it and what makes it so profitable?
Bitcoin mining is known as processing of transactions in the world of digital currency system. At present, the current record of the bitcoin transactions is called as blocks and they are added to the previous record of the past transactions, which is called block chain.
Bitcoin mining was originally conducted on the CPUs of the computers that have more cores as well as greater speed that results to more profitability. Then, the system was dominated by various graphics card and FPGAs or field-programmable gate arrays. Also, ASICs were used in the attempt to look for more hassles with reduced electrical power usage.
For starters, bitcoin mining is difficult. However, whether you are a starter or an experienced miner, mining with bitcoins is simple especially if you are aware of the best methods to use for you to experience ease and convenience during transactions.
So, how bitcoin mining works?
For you to keep a record of the important things, block chain, bitcoin’s ledger and a shared database of all the successful transactions. Each transaction that happens should be broadcast to the network of bitcoin and everyone who is connected to the network has a copy of block chain.
The aim of bitcoin miners is to verify such transactions. Then, add groups to the transactions, which are called blocks. This process happens roughly each ten minutes.
For each block added, the miner who is successful will receive a particular amount of bitcoins for his troubles plus transaction fees.
Technically, anyone can be a miner.
The needed software is ready for download. That is the reason why you can easily get started and get what you aim. However, always keep in mind that though you are mining digitally, this does not mean that you won’t pay any extra effort.
You must still make some effort for you to become a successful miner. Plus, being updated with the latest bitcoin trends can also give you an edge.
Therefore, always open your mind for new ideas and try the methods that would best suit to your journey in the bitcoin mining because it is also a challenge to be a miner.
Some Tips Before You Consider Bitcoin Mining!
Although bitcoin mining is a lucrative option, people should still take note that bitcoin still remains as an experiment of the future’s trade and currency.
Also, when dealing with bitcoins, you must prioritize security.
For this reason, it is wise to use all the available methods to protect your accounts and wallets.
Therefore, before you decide bitcoin mining, make sure to know some of its facts in order for you to avoid any issues in the long run.
There are other things you need to know about bitcoin mining.
But, overall, it can be a good option for you to make money.
How Bitcoin Mining Works
Before you delve into the steps on how to become a bitcoin miner, it’s useful to understand first what bitcoin mining is all about. Concisely, bitcoin mining is the procedure of releasing new bitcoins and adding them in the Bitcoin network. The process involves a computer and a user, though all the mining work only involves a computer system that would solve all algorithms called hashes. So, the more computing power your computer contributes, the greater your share of the reward is.
Miners are compensated in the form of newly issued bitcoins and from the transaction fees incorporated in validating a transaction when mining.
Getting started with Bitcoin mining
1) Buy a Hardware
The first step on how to become a bitcoin miner involves buying a computer hardware. During the early days of bitcoins, using the CPU of the computer or any high-speed processor is used in mining. Yet, as the algorithms became more complex and many people are already drawn to bitcoin mining, the ordinary CPU is not feasible. Today, many hardware are already available that promise faster processing. A miner can use the custom ASIC chips that assure 100x the capability of the good old CPU. Utilizing the best hardware to mine is essential, as using slower hardware would use up more electricity that you’re likely to make. Apart from custom ASICs and FPGA system, more companies are already offering excellent systems that are specifically built for bitcoin mining.
2) Download a bitcoin mining software
Once you have your hardware, then it’s time that you choose a software program that is specially created for bitcoin mining. Bitcoin miners play important roles in the mining process. They are responsible in connecting the users to the bitcoin network and commanding the hardware on what to do. There are numerous software that can be used today, but the three most popular are CGMinger, BFGminer, and Bitminter.
3) Set up a bitcoin wallet
The 3rd step on how to become a bitcoin miner is setting up your bitcoin wallet. Bitcoin wallets are where bitcoins can be stored. Before, there were only two ways to store your coins: through offline bitcoin wallets and online wallets. Nowadays, hardware wallets are already available and even a cell phone can be used in storing bitcoins. Although there are many ways to store your bitcoins, using an offline wallet is still most recommended as it cannot be hacked.
4) Join Mining Pools
It is okay to mine bitcoins alone. However, as the hashes are more complicated and longer, it might take longer for you to solve an algorithm all by yourself. That is why joining a mining pool is advisable. In joining pools, you are secured that you have earnings every day because as all the work is distributed to all members of the pool so as the rewards. Yes, you have a share of the rewards that the mining pool will acquire.
After joining a mining pool, it’s up to you if you’d want to sign up in a bitcoin exchange site to monitor the rate of bitcoins. However, these four steps are the basic steps on how to become a bitcoin miner.
If you are done with all the steps, you can now start mining bitcoins.
BITCOIN MINING WITH GRAPHIC CARD
Bitcoin basically a payment system which is introduced as open source software for peoples in the year of 2009.
Bitcoin is a modern concept and was first introduced in a paper in the year of 2008 which is named Satoshi Nakamoto the first bitcoin was released in early 2009
and first bitcoins were issued in starting Bitcoin Qt software was used but later on, it was removed by special mining software as these were regarded as more efficient then bitcoin.
Bitcoin faces a lot of appreciation and depreciation as well from the day it starts due to rapid development,
it was marked in mid of 2011 that bit coin is gaining more peoples interest but on the other side it was also a fact, as it was gaining its momentum but peoples are getting more concerned as well.
ATM facility was introduced for bit coin users in October 2013 and was introduced in Vancouver, British, Canada and also Columbia.
Year 2014 does not prove to be so good as the largest available bit coin exchange recognized as MT.GOX suspended withdrawal facility reasoning that some technical issues had occurred which is related to “transaction malleability” and in result the bit coin face a great depression as its prices falls down from $800 to 400$ in just a period of 24 days ranging between 1st feb2014 -24th February 2014.
MT.GOX was taken offline and all trading was suspended result shows a loss of bitcoins worth $350 million as these were stolen and a law case is brought forward but the most recent updates at March 1st2014 indicates that the loss actually amounts to about $500 million it is the worst depression ever faced by bit coin.
Bitcoins can be bought and sold easily in exchange of many different countries these purchase and sales of bit coins can be made either with peoples individually or with companies like local bit coins facilitate it.
The fastest and easiest of all the methods to buy a bitcoin s to make a purchase at a bitcoin ATM machine for certain amount of cash.
GPU Bitcoin Mining
Bitcoin mining is a very competitive challenging business it will suit you if you are ready to take risk with your money whether a profit can occur as well as loss.
You can either do mining yourself or outsource it a choice is yours.
While you are mining your computer runs a cryptographic hashing function on what is identified as block header each time your mining software will be using a different number which is known as nonce.
The number is displayed after your computer make a hash a hash is like a really long digital number basically a Hexa- decimal number.
Best bitcoin mining hardware: these hardwares are enlisted below choose the best one for you
CPU: in starting it was the only possible way for mining bitcoins
GPUS: soon GPUS a high end graphic cards were introduced these facilitate and provides50X to a 100X increase in a bit coin mining power and similarity using less power per unit of work.
Any modern GPU can help you in bit coin mining
ASIC Bitcoin Mining
The word ASIC is basically initials of word application specific integrated circuit these integrated circuits are made specifically for certain specific use.
Not for general use, the chips which are used promptly by you in different phones,high efficiency cameras or a Bitcoin miner these all contain an Asic chip.
Its history dates back to about 20-30 years back so relatively it is a modern concept in early times gate array technology was being used for it. Ferranti was the founder of this gate array technology.
TESLA HARDWARE BITCOIN MINNING introduces an affiliate program basically the affiliate programs made using this. ASIC enables the user to become a free member and earn online by just placing a link or links on their website advertising this ASIC and enabling to be clicked by the user whenever he wants to have an access any sales made to customers who had just clicked is going to earn you a commission which is regarded as the affiliate commission this commission rate varies but currently it is 5% so making a website which will display affiliate login zone so to be user friendly and the person have to provide with an email and have to set a password
An affiliate has to follow rules and regulations as provided.
You can buy asic miner online.
Buy asic miner online by making pre- orders so that you are getting it promptly there are websites offering you pre order facility so make best use of it.
ASIC MINER SOFTWARE: If you are in search of a asic miner software it can be easily found out but you have to buy it online although you can enjoy a7days free trial version is available on website so to get properly satisfied
This software will going to best suite you with its bit coin mining technology your computer will run for 100GH/S actually this Asic software uses some special kind of CPU and GPU to boost up your computer speed as well as mining speed
Best feature which make it distinctive are enlisted below
- IT IS WINDOW FRIENDLY= just work with all windows style vista, xp etc
- Its whole customized
- SET Up your mining speed i.e. the percentage by which your computer running now and the speed which it is going to enhance
- Works on silent mode
- Starts with start up = when you start your computer it is there waiting for you ready
- Enable proxy support
- It easily works in all types of mining pools available so just start mining your net with this high quality, best featured Asic miner software
- 1 How Bitcoin Mining Works:
- 2 Getting started with Bitcoin mining
- 3 BITCOIN MINING WITH GRAPHIC CARD
- 4 ASIC Bitcoin Mining