Bitcoin is in the news quite a bit lately, and that’s because it has been performing quite well in recent months. In December, the value of a single Bitcoin went all the way up to more than $19,500. It is still worth more than $14,000, and that’s a substantial jump seeing as the value was only around $5,000 in October of 2017. Many people have become interested in getting started in Bitcoin mining, but they do not know where to start.
When they head to the web to try to learn more about getting stated in Bitcoin mining, they are confronted with article after article aimed at advanced users who already have an idea of how to work in the field. It can be hard to find articles specifically geared toward the newbies and that take the time to explain how to really get started.
There is quite a bit to learn when it comes to Bitcoin mining, but this article will provide you with the basics of what you need to know, and then you can build on your knowledge from there.
You Need to Have a Mining Rig for Bitcoin
In order to mine Bitcoin, you need to have the right gear to get started. You have to realize that the niche is extremely competitive, and with more and more people getting started in the field, the competition is only going to get fiercer. This means that you need to make sure you are working with only the latest and the best hardware. You need to check into the various Bitcoin mining rigs on the market today, and choose from among a list of the best options.
Before you actually buy a rig though, you will want to run the numbers through a Bitcoin mining calculator to see what type of profit you might be able to make. Take the specifications of the mining device you are considering and plug those into the mining calculator to see how long it is going to take you to break even and start making a profit at the current value of Bitcoins.
A great Bitcoin miner is likely to set you back a couple thousand dollars. You do not want to skimp out on the miner, as this is the most important aspect of a mining plan that will make you an actual profit. Once you have a list of options, you can then choose the one that will work best for your needs and budget. It is a good idea to check some reviews of the Bitcoin miners on your list to make sure you are choosing the best option.
Keeping Your Bitcoins
Once you have a Bitcoin miner, you will need to make sure you also have a place to keep the Bitcoins that you mine. Even though this is a digital cryptocurrency, you will still need to have a Bitcoin wallet. This is not a physical wallet, naturally. Rather, it is an address online where you keep the coins. You will need to have your wallet address, which is a sequence of letters and numbers.
It tends to be a good idea to have an online wallet, but if you are determined to have a Bitcoin wallet that you keep on your computer, you will want to make sure that you have a copy of the file on a portable drive, along with a printed copy. Keep both of these safe. If something were to happen to your computer, and you did not have a backup, you would not be able to access your Bitcoins. They would disappear into the ether.
You Need to Choose a Mining Pool
With the Miner and the wallet ready, you are now capable of moving on to the next step. You will need to find and join a mining pool. This is simply a group of other miners that are using their nodes (their computing power) to mine the Bitcoins. Some people might want to mine without joining a pool, but the Bitcoins are awarded in blocks, and it makes it easier to earn the coins when you are a part of a pool. The pool allows the computing power to work together, often making it easier to perform the calculations needed to earn Bitcoins. Those coins are then spread amongst those who are in the pool. This can be a consistent way to earn Bitcoins.
Choosing a mining pool is not as simple as choosing the first one that you find. There are many different reward types with the various pools, and there are pros and cons to each. When you are looking for a mining pool to join, it is in your best interest to spend some time exploring the features and reward types for the pool to see it if might be worth it for you.
Work With Mining Software
You can get some mining software for your computer, as well. This mining client will run through your computer and allow you to control and monitor the mining rig. Make sure that you choose software that will work with the mining rig you have chosen. In addition, you will find that there are some mining pools that have software of their own that you can use.
Almost Ready to Go
Once you have all of the basic elements in place, you can then get started with mining and you can start to earn Bitcoins. The amount of time it will take to start really earning and making a profit can vary based on a range of factors, including the type of equipment you are using.
Keep in mind that mining for Bitcoins is only one of the ways to get Bitcoins. In addition, it is possible to buy Bitcoins and invest in them. If you are worried about the viability of mining the coins on your own, you may find that it is a better option for you to simply buy the coins. Just be aware of the price of the coins currently and make sure it makes financial sense for you.