Bitcoin Mining is the act of checking the transactions that take place on each Blockchain. This gives validity to each transaction, and then shares it publicly on the peer-to-peer network in plain sight. Bitcoin miners are the people responsible for verifying and validating each transaction before adding it to a block to create a blockchain. Once a minor places the next block on the blockchain, he can claim a reward that is usually in the form of bitcoins. The more mathematical calculations you solve, the greater the reward.
You do not need to be a software developer or a professional coder to participate in the extraction of bitcoins. Below you'll find a step-by-step, easy-to-follow guide for beginners in Bitcoin mining.
Get a Bitcoin operating equipment
Bitcoin mining equipment
The mining world is becoming more and more complex as computing power is used in the mining sector. The higher the level of exploitation, the more difficult it is to obtain profits because the investment in the equipment is very high. The exploitation of Bitcoin is very competitive and you have to carry out adequate research before investing in a hardware. Previously, it was possible to use your personal CPU to extract Bitcoins, but with the complexity of operating, this method is no longer viable. You have to buy a specially designed computer whose main purpose is Bitcoin mining.
Acquire a Bitcoin wallet
You must have a local or online wallet to store your digital currency. A portfolio is provided with a public wallet address and a private key or password, which is the most important information to note. If your wallet is self-hosted, you need a copy of the wallat.dat file to prevent you from losing your investment. It acts as a backup portfolio if something bad happens to your machine. One can even get portfolios for their mobile devices. The highly recommended portfolio is the self-hosted or locally manufactured portfolio.
Find a pool to join
It is recommended to join a mining pool or to choose to operate solo. A mining pool is a group of miners who come together to share resources and share rewards. A pool guarantees faster returns because you combine your computing power for better results. Each pool has its own rules, reward method and fees charged for mining. You must find one that best suits your needs. Mining alone is complex and you will never get a return on your investment.
Obtain operating software for your computer
There are various free extraction programs depending on the hardware you use. The exploration program allows you to monitor and control your equipment. CGminer, BFGminer and EasyMiner are common mining programs. If you are in a pool, it is advisable to consult them when connecting your pool to your program. Programs run on the command line and may require a batch file to start properly.
After all you are ready to leave. Run your fetch program and first enter the username and password for your pool. You will notice that your machine is slowing down while the miner is working.
It is very important to keep a close watch on temperatures as the software warms up your equipment. Some programs like SpeedFan can control the temperature. You do not want to risk exploding your investment before you even start working. After a while, you should check how much you earn to see if your investment is worth it.