Bitcoin mining is the act of verifying the transactions that take place in each and every one of the Blockchains. This gives validity to all transactions and then shares the transaction publicly on the peer-2-peer network for everyone to see. Bitcoin miners are responsible for verifying and validating each transaction before it is added to a blog to create a blockchain. When a miner places the next block in the blockchain, he can claim a reward that is usually in the form of bitcoins. The more you solve the mathematical calculations, the more reward you will get.
You do not need to be a professional software developer or programmer to participate in Bitcoin mining. Below is an easy-to-follow step-by-step guide for a Bitcoin mining beginner.
Get Bitcoin mining hardware
Bitcoin mining hardware
The world of mining is becoming increasingly complex as greater 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 high. Bitcoin mining is very competitive and proper research needs to be done before investing in hardware. Before, it was possible to use your personal CPU to extract bitcoins, but with the complexity of mining, this method is no longer viable. You need to buy a specially built computer that has bitcoin mining as your main goal.
Purchase a Bitcoin wallet
You need to have a local or online wallet to store your digital currency. A wallet includes a public wallet address and a private key or password, which are the most important details to consider. If your portfolio is automatically hosted, you need a copy of the wallat.dat file to prevent you from losing your investment. It acts as a security wallet if something unfortunate happens to your machine. You can even get wallets for your mobile devices. The highly recommended portfolio is the portfolio made locally or hosted by yourself.
Find a pool to join
It is recommended to join a mining group or choose the miner alone. A mining group is a group of miners who come together to share resources and share profits. A set guarantees you faster performance as you combine your computing power for better results. Each group has its own rules, method of reward and the fee charged by the mining. You need to find one that best suits your needs. Mining alone is complex and you may never get any return on investment.
Get mining software for your computer
There are several free mining programs depending on the hardware you use. The mining program helps to control and control the hardware. Some common mining programs are CGminer, BFGminer and EasyMiner. If you are in a pool, it is recommended that you consult them while connecting your pool to your program. Programs run on a command line and may require a batch file to start properly.
After all this, you are ready. Run the mining program and start by entering your pool username and password. You will notice that your machine slows down while the miner is working.
It is very important to monitor temperatures closely as the software heats up the hardware. Some programs like SpeedFan can control the temperature. You don’t want to risk literally exploiting your investment even before you start working. After a while, you should check how much you’re earning to see if it’s worth investing.