Bitcoin mining is the act of verifying the transactions that take place on each Blockchain. This gives validity to each transaction and then publicly shares the transaction over a peer-2-peer network so everyone can see. Bitcoin miners are the people responsible for verifying and validating each transaction before it is added to a blockchain to create a blockchain. When a miner places the next block on the blockchain, he / she can claim a reward which is usually in the form of bitcoin. The more math calculations you solve, the greater the reward.
You don’t have to be a professional software developer or coder to participate in Bitcoin mining. Below is a simple step-by-step guide for beginners in Bitcoin mining.
Get Bitcoin mining hardware
Bitcoin mining hardware
The world of mining is becoming more complex as more computing power is used in mining. The higher the level of mining, the harder it is to make a profit because the investment in hardware is so great. Bitcoin mining is very competitive and you need to do proper research before investing in hardware. It used to be possible to use your personal CPU for Bitcoin mining, but with the complexity of mining, this method is no longer viable. You need to buy a specially designed computer whose main purpose is bitcoin mining.
Get a Bitcoin wallet
You must have a wallet that is local or online based 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 standalone, you need a copy of the wallat.dat file to prevent losing your investment. Serves as a spare wallet if something unfortunate happens to your machine. You can even get wallets for your mobile devices. A warmly recommended wallet is a wallet that is hosted independently or locally made.
Find a pool to join
It is recommended that you join a mining pool or opt for solo mining. A mining pool is a group of miners who come together to share resources and share rewards. The group guarantees you a faster return because you combine your computing power for better results. Each pool has its own rules, method of rewarding and mining fee. You need to find the one that best suits your needs. Mining itself is complex and you may never get a return on investment.
Get mining software for your computer
There are various free mining programs depending on the hardware you use. The mining program helps monitor and control your hardware. Some common mining programs are CGminer, BFGminer and EasyMiner. If you are in the pool, it is advisable to consult them while connecting your pool with your program. Programs run at the command line and may require a batch file to run properly.
After all, you are ready to go. Start your mining program and start by entering your username and password for your pool. You will notice how your machine slows down while the miner is running.
It is very important to monitor temperatures carefully as the software heats up your hardware. Some programs like SpeedFan can keep the temperature under control. You don’t want to risk literally blowing up your investment before you start working. After a while, you should check how much you earn to see if your investment is worth it.