Menu Close

IRA Financial Group Blog

Bitcoin Mining – How to Get Involved

Bitcoin Mining
3 Minute Read

Bitcoin has become very popular among the populace, and it is one of the most popular cryptocurrencies on the market today. As a beginner, you may want to know how to get involved in Bitcoin mining.

Key Points
  • Bitcoin Mining allows one to earn the popular crypto
  • Powerful computers are needed
  • Mined cryptos should be kept in a digital wallet

In this article, we are going to share with you some useful tips on how you can mine Bitcoin easily and quickly. There are some important steps that you have to do, so you can avoid any problems that may occur in the future. You also need to learn about the basic principles behind Bitcoin mining and how this mining works.

Get a Mining Rig

If you are planning to start mining in the first place, you may want to have a mining rig. At the beginning era of Bitcoin history, all miners used ordinary, domestic computers and also graphic cards for acquiring Bitcoin. Nowadays, when you want to mine Bitcoin, you may want to have special hardware that is specially designated for mining Bitcoin and any other cryptocurrencies based on a similar algorithm. This algorithm is called ASIC (Application-Specific Integrated Circuit Chips).

It will use less energy, so you can mine quickly. This device is available at a very expensive price. Its manufacturing process is very time-consuming. The best thing about it is its astonishing speed. This powerful machine can solve up to 14 terahashes every second. It will do 1012 attempts for solving every block per second. The development will go ahead in the future constantly.

If you are planning to start the mining process, you need to concentrate on some parameters when selecting the best machine. Some parameters include consumption of electric power, price, and also performance or Hash Rate. The hash rate will indicate how many attempts you are going to make for solving the block.

Get a Bitcoin Wallet

This is another step that you have to do, especially if you want to get involved in the Bitcoin mining process. A Bitcoin wallet is a place where you are going to receive your Bitcoin. They will allow you to manage your Bitcoin addresses easily. Every address is in a form of a public key, and also a matching private key.

The public key will work like a bank account number. For example, if you want to get Bitcoin from someone, you are going to tell him or her the public key. In contrast, the private key will be a secret. It can be used for sending off transactions. If you accidentally lose your private key, you will lose all coins placed on the address forever! So keep it secure!

The best option for starting out is using the software wallet. This wallet is secure, but it is very easy for you to manage and manipulate the mined currency easily. You can download the wallet to your computer. Your coins will be stored there and no one can get access to them.

Join a Mining Pool

Even though you have the best ASIC mining machine, it will be impossible for you to gain Bitcoin now. A single machine will never be able to compete with large mining farms that are coming from all around the world. However, you should never have to worry about this situation. There is a powerful solution!

You can cooperate with all miners by using mining pools. When Bitcoin are mined, the gain will be divided among all members according to the given power. Some examples of the Bitcoin mining pools are Solo CKPool, BTCTop, SlushPool and Bitcoin.com.

Software

After you have the hardware, Bitcoin wallet, and mining pool, you may want to get a mining client that is running on your computer. This program will be used to connect you to the Bitcoin and Blockchain network. Mining software will deliver work to all miners. It will collect any complete results of their work and also add the information back to the Blockchain.

Bitcoin mining software will monitor the miner’s activities by showing some basic statistics, such as hash rate, cooling, temperature, and average mining speed. Fill in your basic information about the mining pool and wallet in your mining software. Choose the device and let the mining process begin!

Conclusion

Although much of the 21 million hard cap is nearing, all the Bitcoin will not be mined for approximately two more decades. As the price continues to rise, it might be worth looking into getting started for yourself! Do your research before deciding if Bitcoin mining will be a profitable venture.

Related Articles