Once in a while, new bitcoins are released into the market after a rigorous process referred to as bitcoin mining. It is normally compensation to those miners who dedicate their crucial computational power to validate transactions. To get an idea of how this process works, the following article is a crucial read.
Acquiring mining hardware
Custom bitcoin ASIC chips that are 100X faster than the average computer CPU or even regular video processor cards are the best option I the market. They have been specially built adapted for such purposes and hence advisable to use. They can be categorized majorly based on the price per hash and the electrical efficiency that each can be attributed to having. Currently, the best miners in the market can generate up to 0.3 bitcoins per month. Also, there are other options such as buying a bitcoin cloud mining contract. Although this method includes a simpler process, the risk taken in the long run is greater since there is reduced control of the physical hardware to be used.
Get a mining software
Hardware alone is not enough without the appropriate software to go with it. They are mainly free to download into your computer, and several programs exist on the internet of which you have to choose which is best for you.
Go it alone or join a pool
It is recommended that you join a pool for maximized mining. Pools usually are groups of individuals who work to deliver block solutions. After being rewarded, they share the bitcoins that they get.
Set up your bitcoin wallet
This enables you to receive and store the bitcoins that you mine. It is essential to get a software that you can easily buy and sell bitcoins from. The most critical thing when creating your bitcoin wallet is ensuring that ultimate security has been ensured from bitcoin thieves. One great way of doing this is storing your bitcoins in an offline computer. Also, the authentication method determines how secure your wallet is.
Run and maximize the operations and profitability
Mining is a very complicated process that most often pushes mining hardware to their limits. Hence constant checks of temperatures should be done. Keep checking the bitcoin price and bitcoin value to check how your earnings compare to the expenses accrued. Also, keep an eye on current bitcoin news.