Tips on how you can earn money by mining bitcoins

at 2016.11.15
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If you already know what a bitcoin is and how technology and infrastructure of btc (the blockchain) works, you’re probably ready to start mining for bitcoins and earn money with the modern way of gold digging. This article explains what Bitcoin mining is and how you can earn money by mining Bitcoins.

What is Bitcoin Mining?

Mining for Bitcoins is comparable with how gold mining worked in 19th century. The Bitcoin mining process is not a phsyical activity though. Bitcoin mining is the digital procedure by which new Bitcoins are produced. Whenever you go on to perform any mining related activity or task, new Bitcoin transactions are added to the blockchain by your computer. Bitcoin nodes utilize the block chain to recognize Bitcoin exchanges or transactions that are legitimate from endeavors to re-spend coins which have as of now been spent somewhere else.

Bitcoin mining is the process whereby transactions are added to Bitcoin’s public record of blockchain or past exchanges. This record of past exchanges is known as the blockchain as it consists of a chain of blocks. The block chain serves to affirm transactions to whatever remains of the system as having occurred.

Bitcoin mining is a decentralized computational process which serves two purposes; Affirms exchange or transaction in a trustful manner when enough computational exertion is dedicated to blocking, and makes new bitcoins in every block.

Bitcoin mining is purposefully intended to be resource-intensive and troublesome so that the amount of blocks found every day by mineworkers/miners stay steady. Singular blocks must contain a proof of work to be viewed as legitimate. This verification of work is confirmed by other Bitcoin nodes every time they get a block. Bitcoin utilizes the hashcash evidence of work function.

The main role of mining is to permit Bitcoin nodes to achieve a protected, alter safe accord. Mining is likewise the component used to bring Bitcoins into the system: Miners are paid any exchange charges or transaction fee and also a “subsidy” of recently made coins.

The video below explains the process of mining bitcoins in a visual way:

When you start mining Bitcoins, take into account this is a competitive level playing field. The capacity needed to mine for btc is increasing at a lightspeed. If you invest in your own bitcoin mining hardware this can be expensive. As more miners go ahead board with the most recent mining hardware equipment and innovations, the difficulty to mine expands every day.

Before you go on to venture into Bitcoin mining, you have to see whether btc mining is even profitable enough for you. An ideal approach to do this is using a Bitcoin mining calculator. Simply enter the information of the Bitcoin miner you are anticipating purchasing and perceive to what extent it takes you to break even or make a profit. The BTC mining calculator below can provide you with the right insights for your Bitcoin ROI:

Difficulty factor
Hash rate
BTC/Block reward
USD/BTC exchange rate
Pool Fees %
Power (Watts)
Power Cost (USD/kWh)
Hardware Costs (USD)

It’s easy to buy your own Bitcoin mining hardware via Amazon:

Tips on mining Bitcoins

If you don’t want to invest in your own Bitcoin mining farm full of BTC rigs it’s good to understand you have the possibility to choose for other solutions like cloud mining for Bitcoins. Here are several tips to get you started right away with mining Bitcoins.

  • Create a Bitcoin Wallet
    A Bitcoin wallet is equivalent to a bank account. It allows you to receive bitcoins, store your btc and send them to others. You can either choose for a software based Bitcoin wallet that you install on your laptop or mobile device. This gives you complete control over the security of your BTC but it can be tricky to install and maintain. More easy is a hosted online Bitcoin Wallet (Web wallet for Bitcoin). A third party maintaining high levels of security to project your coins. These are the best Bitcoin wallets to start with:

    Ledger Wallet protects your bitcoins

  • Find a bitcoin mining pool
    If you like to join forces it’s handy to join a mining pool. Bitcoin mining pools are a gathering of Bitcoin miners that join their computing effort or energy to make more Bitcoins. In a btc mining pool, you are given littler and less demanding calculations to solve and the greater part of your consolidated work will make you more inclined to tackle the greater calculation and gain Bitcoins that are spread out all through the pool with respect to your commitment, effort, and contribution. If you are interested in joining a bitcoin mining pool consider one of the following: Cryptonit or MinerGate.

 

  • Get a btc mining program
    The next thing you need to do is get a bitcoin mining program for your computer and begin mining. The most used btc mining programs are BitMiner, MineGate and MacMiner.

 

BitMiner - free and simple next generation Bitcoin mining software

 

  • Earning bitcoins the easy way
    If you’re not interested in the activities needed with mining Bitcoins you can do the following to earn money and bitcoins.

    • Accepting Bitcoins as a means of payment;
    • Completing simple tasks on various sites such as Bitfortip or CoinWorker.

 

Image source: Coindesk

 

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