10 Tips to Start Mining Bitcoin

In 2017, Bitcoin prices are skyrocketing, and people want to know how to start mining bitcoins, so they can get in on this action and make some money! There are many ways to mine bitcoins, but one of the most common ways is to join an online mining pool. If you’re new to this scene and you want to learn how to start mining bitcoins, here are 10 tips that will help you get started.

1) Learn about Bitcoin and cryptocurrency

Bitcoin, the first cryptocurrency ever created has indeed become the most widely used digital currency on earth. Ever since the existence of Bitcoin in 2009, it has witnessed unprecedented growth across the world. The reason for its worldwide acceptance is no other than its ability to changed the way transactions are conducted in many electronic platforms. Conventionally, electronic card transactions take approximately three business days to get confirmation. On the other hand, Bitcoin transactions take few minutes or may be within an hour.

2) Get a cryptocurrency wallet

Getting a cryptocurrency wallet is the first step in starting your mining operation. The wallet will hold your digital currency until you need to spend it or exchange it for another cryptocurrency. There are many types of wallets, each with its own benefits and drawbacks; it is up to the individual to choose which one is right for them.

3) Choose your mining software

There are several different types of mining software, but the two most popular are CGminer and BFGminer. Which one you pick will depend on your GPU type. You can find a list of the best bitcoin mining programs here.

4) Join a mining pool

Joining a mining pool is an easy way to start mining bitcoin. A mining pool will add up the power of your computer with that of other computers and divide the mined bitcoin among members depending on how much they contributed to solving the puzzle.

5) Set up your mining rig

First, you’ll need a mining rig. If you’re on a budget, this can be as simple as using your computer’s CPU to mine. To do this, download the CPU miner and extract the executable file from the .zip folder. Second, create an account with a bitcoin exchange service like Coinbase or MtGox. Third, use their API key with your miner by appending it onto the command line with the –userpass flag.

6) Start mining!

Bitcoin mining is the process by which transactions are verified and added to the public ledger, known as the block chain, and also the means through which new bitcoin are released. Anyone with access to the internet and suitable hardware can participate in mining. The mining process involves compiling recent transactions into blocks and trying to solve a computationally difficult puzzle. The participant who first solves the puzzle gets to place the next block on the block chain and claim the rewards.

7) Monitor your progress

The best way to monitor your progress is by using a bitcoin mining calculator. This will help you calculate how many bitcoins you can mine with different combinations of hardware, hashrate, and cost.

8) cash out your earnings

Once you’ve mined enough bitcoin, the next step is to cash out. There are a couple different ways you can do this

  • Sell your bitcoin on an exchange
  • Accept bitcoin as payment
  • Trade your bitcoin for other cryptocurrencies (ex: Ethereum, Ripple, Litecoin)
  • Donate your bitcoins to charity
    These are just a few examples of what you can do with your bitcoins once you’ve mined them!

9) Keep up with the latest news

Bitcoin is a digital currency that you can use to buy goods or services. Unlike many currencies, it’s not controlled by a single country, and the supply is limited in order to ensure its value.
There are two ways you can mine bitcoin: solo or pooled mining. If you’re interested in mining for yourself, your computer will make up a small part of the network and your chances of solving an algorithm correctly will be much higher than if you were part of a pool.

10) Have fun!

If you’re interested in starting a bitcoin mining operation, there’s a lot of things to consider before you get started. The first decision is whether or not you want to mine on your own or as part of a group. If you don’t have at least 25-30k USD lying around and the right hardware, then joining an online mining pool is probably your best bet.
Once you’ve decided on a plan, the next step is figuring out which hardware will work best for your needs.

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