Cryptocurrency investors and traders usually refer to bitcoin as digital gold. It is because Bitcoin, just like actual gold, is extracted from a process named mining, which is why people draw an analogy between gold and bitcoin. Platforms like bitcoinsprint.io are offering supreme features to traders like superior embracement in terms of technology, better use of AI and analytical updates as well. Bitcoin is virtual gold because it does not have a finite supply, similar to actual gold. However, digital gold mining is highly different from gold mining. Here are essential steps to mine digital gold.
Basics of bitcoin mining!
A lot of people are seeking to make a profit from mining bitcoins. Bitcoin mining can be profitable, but it is also costly and risky. It is important to note that anyone who wants to mine bitcoin needs to have access to cheap electricity since bitcoin mining uses highly intensive computer hardware that consumes a lot of power. Then there is the cost of upgrading hardware, the cost of internet connection, and the cost of keeping your hardware cool.
Secondly, you need a sound cooling system for your computer hardware because if left exposed, any computer hardware will overheat, leading to a loss of bitcoin value and your investment in them.
Step 1: Get a Good Internet Connection
To mine bitcoin, you will need to have a good internet connection. For example, a 2MB connection is advisable if you intend to mine using your desktop computer, which may cost you about $30 monthly. However, if you plan to mine using your home computer, then better go for a secured router or wireless internet service, which is faster and may cost up to $100 per month.
Step 2: Get a Bitcoin Wallet
You will also need to download the Bitcoin client, your digital wallet that stores all the information required to send and receive bitcoins on their network.
The client enables you to convert bitcoins into ether coins digitally. Many people use the Online Bitcoin wallet, which is straightforward. You must create a strong password, download the client, and start mining bitcoin immediately.
Step 3: Getting Your Hardware
The next step is to get your hardware for mining bitcoin in the most efficient way possible. The obvious choice would be to purchase expensive graphics processing units (GPUs), but GPUs are not that easy to acquire compared to other precious metals like gold or silver.
If you intend to purchase some GPUs, it will cost you around $1,000 for every graphics processing unit (GPU) you want. However, if you plan to build your mining rig, the total cost could be as high as $4,000.
So it is better to go for some pre-built mining rigs, which can cost around $300-500 and do much better in mining bitcoins than home-built ones. The price of such hardware can also vary depending on their brand and how well they perform their work.
Step 4: Upgrading the Hardware
After acquiring your hardware, you must have software for mining bitcoins effectively. The best software for mining is the CGMiner and BFGMiner. Most people use this software to mine bitcoins. However, if you intend to use your CPU or GPU, you can use the GUIMiner or CGWatcher, as these will require a bit more knowledge than CGMiner or BFGMiner.
Step 5: Optimizing the Hardware
One of the most crucial things you need to do before mining bitcoins is to optimize your hardware performance. This step entails getting a good overclocking tool like MSI Afterburner and tweaking it to get the maximum performance out of your hardware, making you earn more bitcoins.
Step 6: Get the Mining Pool
The next step is to get a mining pool where you can easily mine bitcoins. If you use a GPU or CPU, your mining pool choice should be Eligius and Slush. However, if you are using an FPGA or ASIC, then the only option is BTCGuild.
Specialized mining hardware is also known as ASICs Application Specific Integrated Circuits. This hardware is especially for bitcoin mining. One can purchase this hardware from Bitmaintech Co., Ltd and Butterfly Labs Inc, which have been making bitcoin mining hardware for several years.
Cryptocurrency mining is profitable because of the virtual currency market, a global computer network that is paid in digital coins to solve complex math problems. When someone cracks a trial, their computer sends it to the web, and new coins are added to the circulation.
