A Quick Guide to Bitcoin Mining
In November 2021, the cryptocurrency Bitcoin reached a record high value of $68,790. The high value of this currency’s got the whole world’s attention, so you might be familiar with buying and trading Bitcoin.
But for Bitcoin to be available to the market, they have to be mined first.
Are you interested in Bitcoin mining as another way to branch out in profits? Then here’s a quick guide on how to mine Bitcoin so you can see if it’s something right for you!
Have the Right Equipment
In the beginning, a decent home computer could mine Bitcoin well. But as time’s gone on, mining’s only become more difficult, which means you need more computing power. It can be worth it to make some upgrades to yours if you’ll mine on a regular basis.
Some higher-end graphics processing units (GPUs) can handle Bitcoin mining. But for the optimal experience, you’ll need an application-specific integrated circuit (ASIC), which can cost anywhere between $500 to tens of thousands of dollars!
No matter what you use, be prepared for your electricity bill to go up.
Get Mining Software
In addition to having a powerful computer, you’ll need Bitcoin mining software. Some popular ones include Cgminer, BFGMiner, EasyMiner, and Awesome Miner.
Take a look at your options and see which suits your setup the best. Keep in mind that some will be free while others charge a few dollars per month. Some will also charge you 1-2% of your hashing power (this is what creates an algorithm to mine Bitcoin).
Going Solo vs Mining Pools
You can also choose to mine Bitcoin on your own, but it probably won’t be very efficient or successful. You can give solo mining a try, but in the end, you’ll probably want to join a mining pool.
These are where miners pool together their computer resources to mine blocks together. If they’re successful, then everyone gets a cut of the reward, based on how much computing power they added.
Since there’s power in numbers, it’s recommended that you find a pool to mine with right from the start.
Speaking of rewards, what do you get when you solve a block? Well, Bitcoin, of course!
The amount varies, and periodically, the rewards are halved (this happens approximately once every 4 years). For reference, in May 2020, rewards were around 6 Bitcoin.
Once you receive your rewards, you can always use your Bitcoin to make purchases or sell them for a profit. You can easily do this at Bitcoin ATMs like the ones Byte Federal has.
Try Bitcoin Mining
Now you know how Bitcoin mining works.
If you’ve got the equipment for it, it can be worth getting into Bitcoin mining since you can make a little passive income. With a little effort, you’ll have some extra cash!
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