Mining Bitcoin is the phrase used to explain the miners who successfully validate transactions that are made by bitcoin users across the globe. And for the “mining” service, they will get rewards in the form of a fraction of a Bitcoin. Many people have chosen to be miners because it is a good opportunity for passive income. If you have the same reason, you are also right. In fact, you’ve been on the right track.
There are some preparations that you need to do before you are ready to mine Bitcoin from your PC. Without further ado, here are the things you need to do in advance.
1. Purchase a mining rig
Whether you are mining Bitcoin or other cryptocurrencies, you will need a mining rig. Well, it is the start of everything. Back then, miners would use their PCs and graphics cards. Today, the mining rig is in demand.
The special hardware for mining is called ASIC-Application-Specific Integrated Circuit chips. This hardware does not come cheap. But this is the most relevant vehicle now for mining bitcoin. It consumes less energy and mines Bitcoin more effectively.
To choose the right ASIC, you will want to take a look at certain variables, like consumption of electricity, hash rate, as well as pricing.
The Hash Rate is the way to indicate the number of attempts to solve a block that the machine can make per second.
Your best chance is to consult the options available with the crypto experts. There are also various miners’ reviews who share their insights about the performance of their ASIC with you.
But in the end, it will come down to your available budget. You must set the range of the budget first, then you can narrow down the selection of your mining rig.
Calculate or estimate the profitability of a particular device using a popular online calculator like Coinwarz or Nice Hash.
Keep in mind that the ASIC hardware that you use to mine Bitcoins can also mine other cryptocurrencies with the same algorithm, such as Bitshare, Bitcoin Cash, etc. However, some cryptocurrencies have different algorithms, so you will want to consider choosing the right ASIC for them.
2. Register a wallet
The next thing to do is to create a Bitcoin wallet. This wallet is where you will receive your Bitcoin. There are many wallet solutions that you could choose.
But for now, it is much better to start with the simpler ones, the software wallet. Consider looking for a guide to creating a wallet from Electrum.
3. Participate in Mining Pool
It is not possible to attain Bitcoin today. The competition is getting higher and higher. There are large mining farms all around the world. Therefore, you don’t have to walk down this path alone. You can work together with the other miners in the mining pools. Here the mining will be much easier. But the bitcoin will be shared among the members of the pool.
4. Install mining software
Install the software to control the mining on your device. This software will also connect your Blockchain and Bitcoin networks. Some mining pools already have their own software along with complete guides on how to use it. So, you don’t need to worry if it is the first time for you.
5. Start profiting!
So, what next? Of course, you can start mining. Connect the miner to the power outlet and link it with the PC software. Fill in the information about your wallet and mining pool. Choose the device. Then the mining will start.