If you’ve read any online article about Bitcoin before, then you’ll likely have come across the term ‘Bitcoins mining.’ Many of these posts make Bitcoin mining out to be something extremely complex, and although it can seem daunting at first, with the right hardware, it is surprisingly easy. Here’s what you’ll need to get started. (Image Credits: Diana.Grytsku/FreePik)
Investing in Bitcoins mining hardware
When Bitcoin first emerged, it was possible to mine using a normal computer, however, nowadays, to compete, you will need to invest in purpose-built mining hardware. There are hundreds of companies selling Bitcoin mining hardware, but if you’re just starting out, then you may want to try this one as they sell refurbished mining hardware at a fraction of the price that you would pay for the same spec. Mining hardware is an investment, but it will make a return on itself over time.
Purchasing a Bitcoin wallet
The next thing you need to make sure that you own is a Bitcoin wallet. Bitcoins cannot be stored in a conventional wallet, and so you will need to buy a purpose-built cryptocurrency wallet to house the Bitcoin that you earn from mining.
There are three main types of Bitcoin wallet, and each has its own benefits and drawbacks;
- Hardware Wallets
Hardware wallets are ideal for storing large amounts of Bitcoin because they are one of the most secure types of Bitcoin wallet; however, losing a Hardware wallet without proper backup could lose ALL of your currency.
- Mobile Wallets
Mobile Wallets are portable and convenient and can scan QR codes for easy transactions; however, as an App, if the provider de-lists the wallet, then this can make it difficult to receive future updates, and your currency could be lost.
- Desktop Wallets
Desktop Wallets are the most versatile kind of Bitcoin wallet and some offer excellent support and can even operate as full nodes. However, like Hardware wallets, Desktop wallets aren’t great for QR transactions, and they’re susceptible to hackers.
Joining a mining pool
With your hardware set up and your wallet ready to hold all of the coins that you make, you’re now ready to start mining. The best way to start mining is to join a mining pool or colony, in which you can learn from fellow more experienced miners and develop a strategy for more efficient Bitcoin harvesting. To start mining, all you need to do is to set up your Bitcoin Mining Hardware and to connect it to your PC with a USB. You can then enter the mining site using your credentials, and before you know it, you will have started mining!
Learning more about the mining process
As you can see, with the right tools and team, Bitcoins mining doesn’t need to be as difficult as many people make out; however, that doesn’t mean that it’s easy. To maximize your chances of success, you should spend some time learning and researching how the mining process works so that you understand precisely what you are doing and your role within the ledger. For more information about Bitcoin mining, click here.