How to mine Bitcoin: what is needed to start mining at home?

First, Bitcoin is a decentralized currency. In other words, unlike other traditional currencies such as the dollar, euro or real, it is not regulated by any government. Not even by the Central Bank or any other government agency. Thus, monitoring and validation is done by the process of mining this block of cryptocurrency, such as Bitcoin, by so-called miners.

However, mining is not only about validating the cryptocurrencies but also adding these new units of these cryptoactives to the market. Thus, with the great financial success of cryptocurrencies, many people became interested in the mining activity. But, despite the positive points, there are other issues to assess, such as energy consumption, the type of climate, the machines you use, etc.

What is Bitcoin mining?

How to mine Bitcoin: what is needed to start mining at home?

According to experts, it would be the resolution of a mathematical problem. So a computer network works to solve an equation. Once the problem is resolved, the miner earns a reward for the work.

Thus, mining is responsible for maintaining the entire blockchain , which would be the network of blocks responsible for the entire transaction history of the cryptocurrency. Thus, when confirming the next block in this chain, the miner plays the role of a bank . That is, it checks if there are enough Bitcoins to transfer to another account.

However, to be able to find a block it takes trillions of trials and errors to finally validate a block. In other words, mining allows new Bitcoins to enter the market .

How to mine Bitcoin: what is needed to start mining at home?

The Cap

First, because it’s a competition to solve the problem first, computers with a lot of processing speed are the first need. So cheap energy helps too, as these machines are usually on all day for satisfactory cryptocurrency mining. Thus, in Brazil , for example, Bitcoin earnings may not cover energy costs.

Also, cold climates are more advantageous as this prevents the equipment from overheating. So, the risk of burning the equipment is lower and you also don’t need to waste the energy of coolers. Thus, the largest cryptocurrency mining poles then in countries such as Russia and the United States .

1. Suitable equipment for mining cryptocurrencies

As stated before, to do this mining activity you will need the proper equipment for this. Although, in the beginning of Bitcoin, this was done by home computers with common equipment, nowadays this is no longer possible. In fact, it might even be possible, but you won’t get any expressive results.

Thus, the mining process today is done by hardware that is specially assembled for the cryptocurrency mining activity. That equipment is the ASIC, application- specific integrated circuit chips . Thus, the equipment uses less energy and extracts more cryptocurrencies in a shorter period of time. However, it is still a very expensive and time-consuming device.

2. How to mine Bitcoin – Cryptocurrency wallet

So to mine Bitcoin you need a wallet to make these transactions and receive your rewards from cryptocurrency mining. That way you can manage your Bitcoin addresses, which are a corresponding public and private key .

That is, the public key is a combination of characters and works like a bank account number. So, to receive a transfer to that wallet, for example, you need to present this public key.

This means that all addresses are public, as are the transactions that went through it. However, the private key is secret and made to send your transactions. That way, without the private key you don’t have access to your Bitcoins entered in that address.

Finally, there are several types of cryptocurrency mining wallets, some are simple online wallets and others can be more secure hardware and paper. So, it is up to you to decide which is the best fit for you.

3. How to mine Bitcoin with mining pools

Currently, mining Bitcoin alone is practically impossible, even with the best equipment on the market . After all, a single machine can’t compete with the big cryptocurrency mining farms around the world.

Thus, the solution for this is the cooperation between the miners that form the so-called mining pools. In this way, these miners provide their apparatus for the mining and when a block is extracted their gain is then divided among the participating miners.

Furthermore, the remuneration is proportional to the help that this machine provides. And a part of these gains remain with the operator, that is, the mining pool platform.

4. Install Bitcoin mining program

It’s time to install the software on your machine. It will serve as the bridge to connect the blockchain network and Bitcoin, or any other cryptocurrency. Thus, this software will also monitor activities and show statistics such as temperature, cooling and average speed.

So you can find many free Bitcoin mining programs, even some pools provide their own software. Generally, they run on any operating system and each has its advantages and disadvantages.

4. Learn how to mine Bitcoin and get started

Finally, with a compatible machine and mining software, just run the program and start mining your Bitcoins. Also, on the internet, even some mining pool sites have calculators so you can have an idea of ​​how much Bitcoin you will earn. So you can include data such as your hardware, how much you will pay for light, and what the final profit result is .

Learning how to mine Bitcoins pays off?

Some experts say it is not beneficial to start mining Bitcoin at home. Mainly due to the high electricity bill. Thus, counting the cost of importing machines and energy, profitability does not generate satisfactory profits.

Thus, some people even rent generators to avoid high energy consumption. Thus, electricity is generated by fuel and this will be your expenditure on light.

Also, the probability of a miner solving the problem and discovering the Bitcoin block is accurate mining power relative to the entire network. That is, the hashrate level or mining rate needs to be high. That’s why solo mining becomes so difficult. So, validating transactions doesn’t mean winning cryptocurrencies, you need a little luck and a lot of speed.

How to mine another cryptocurrency?

As stated earlier, the Bitcoin mining market has taken extremely high proportions. This way, it is no longer cost-effective to mine this cryptocurrency at home. However, there are some popular options that can prove profitable.

Also known by the acronym ETH , it is the second largest cryptocurrency by market capitalization. Furthermore, it is still possible to mine at home. So, just by investing in a powerful machine and joining a pool, you can maximize your profits.

Market cap: $257 billion;
Average daily volume: $12 billion.
When you finish mining the cryptocurrency , Ether can be traded on Binance , BitMEX, Bitfinex and BTSE.

Dogecoin

Bitcoin Guide

Also called DOGE , it is a cryptocurrency derived from a meme, made popular by Elon Musk. Thus, the currency is programmed to increase its amount every year. In this way it is different from Bitcoin which is finite.

Market cap: $35 billion;
Average Daily Volume: $2 billion;
The best software to mine this cryptocurrency is the CPU miner. Thus, it is possible to do mining. On the auto side the rate is slow, so you can use video cards to increase speed. For example, Nvidia and AMS, and for GPU the best software is cgminer or cudaminer.

As above, mining pools are also a good option. Finally, after mining DOGE you can trade it on Binance or OKEx.

Ethereum Classic

Its main objective is to ensure the survival of the original Ethereum blockchain . In this way, they present an alternative for those who disagree with the DAO’s financial bailout and the direction taken by the Ethereum Foundation.

Market cap: $7 billion;
Average Daily Volume: $2 billion;
Although this cryptocurrency is mined with machines that have ASIC chips, it is possible to do this on the desktop. Finally, after mining the cryptocurrency it can be traded on HitBTC, Hupbi Blobal and Binance.

We Live Security

Also called XMR is the cryptocurrency that stands out for its privacy features. So, this network was created to be resistant to the Monero cryptocurrency-specific ASICs. Thus, it is suitable for mining on a personal computer.

Market cap: $4 billion;
Average daily volume: $185 billion;
Thus, Monero itself makes the MultiMiner software available to mine the cryptocurrency. Then later you can trade XMR on Bitfinex and Binance.

Forex Club

It also has its main focus on privacy. So, for those who want to mine at home, the most important thing in the Zcash architecture is the use of the Equidash algorithm in the consensus mechanism.

Market cap: $1.5 billion;
Average Daily Volume: $373M;
Thus, you need a hardware, download the Zcash blockchain and configure the wallet . So the process can be time consuming as the blockchain download needs to be completed on one node and will need synchronization. Finally, it is also necessary to install some drivers.

ZEC can be traded on Bitfinex, Huobi Global and Binance.

ravencoin

crypt universe

It is a blockchain network focused on optimizing the migration of assets from one person to another, such as tokens . Also, it is a fork, or fork, of the Bitcoin code.

Thus, the cryptocurrency has among the improvements a one-minute interval between blocks and announces a change in the number of coins issued. However, not in the weighted distribution schedule, and it also had the inclusion of resources for the development and transfer of cryptoactives.

Market cap: $529m;
Average Daily Volume: $34M;
RVN is open source and its algorithm can be mined by GPUs. In the end, trades can be made by OKEx, Binance and Huobi Global.

Bytecoin

Invest Today

Also called BCN, it has anonymity features and is easy to mine on a home PC. Thus, this mining is a simple process for Bytecoin users. So, all that is needed is to download the Bytecoin wallet, run the program, configure it and start mining the cryptocurrency.

Market cap: $224m;
Average daily volume: US$114 thousand;
Despite the ease of mining, the process is usually slow and generates little profit . Thus, to improve this it is possible to enter CPU mining support pools. For example, Bytecoin Pool or xmrig software. Furthermore, it is possible to mine the cryptocurrency using GPUs with compatible software. Can be traded on HitBTC and BCN.

Beam is a minable cryptocurrency

Cryptoninja

Another cryptocurrency suitable for mining at home. Thus, it supports GPU mining and uses the Hashii algorithm. When downloading the antivirus software may flag it as a harmful program, so give the program permission. And the rest of the processes are similar to the previous ones, like opening the wallet, making the settings, etc.

Market cap: $41m;
Average Daily Volume: $3M;
Because of its concern for privacy, the Beam network uses addresses that self-destruct after a while. However, the user will have a permanent recovery address. Finally, it is traded on Binance and Bitforex.

vertcoin

Coin Qhora

Also called VTC is a great option for domestic miners. His blockchain is a response to the influence of ASICs applied to Bitcoin and the mining ecosystem in general.

C market apitalização: $ 37 ml;
Average daily volume: $49,000;
In addition, Vertcoin’s proof-of-work consensus algorithm, Lyra2RE, is resistant to ASICs. In addition, it offers simultaneous cryptocurrency mining in both CPU and CPU. It is traded on Bittrex and UpBit.

Grin

crypto-wikipedia

GRIN focuses on privacy and scalability. Furthermore, it uses the Mimblewimble algorithm that offers security in transaction privacy. But, for those who mine at home, the most recommended algorithm is the proof-of-stake, resistant to ASICs.

Market cap: $18m;
Average Daily Volume: $4M;
Then every six months there is a drastic bifurcation or hard fork, to minimize the effects of ASICs. Cryptocurrency mining is also supported by CPU and GPU.

So, download the blockchain from the official website to configure a node, make the synchronization between the node and your wallet. After that, it configures the graphics cards and Cuckaroo POW software that supports GPU mining. It is traded on Bittrex and HitBTC.

aeon

Coin Bureau

This is a fork of Monero and is based on the CryptoNote protocol. For transactions not to be tracked, CryptoNight-Lite and ring signatures algorithms are used.

Market cap: $10m;
Average daily volume: $11,000;
After mining AEON you can trade it on HitBTC and Bittrex.

Garlicoin cryptocurrency

RedBubble

This is another cryptocurrency that grew out of a joke in the year 2018. The CRLC cryptocurrency is a proof-of-work token that is resistant to ASICs. Thus, it can be mined both by the CPU and with graphics cards from AMD and Nvidia.

Market cap: $4m;
Average daily volume: US$3,000;
The algorithm used is Allium, the scientific name for garlic! Despite being unknown, the price soared from US$0.01 to US$0.32, an increase of 3,100%.

Finally, after being mined, Garlicoin can be traded on FreiExchange, Rxbit, PancakeSwap, Tradeogre and CREx24.

How to mine Bitcoin: what is needed to start mining at home?

Leave a Reply

Your email address will not be published.