You will learn (1) how bitcoin mining works, (2)
how to start mining bitcoins, (3) what the best bitcoin mining software
is, (4) what the best bitcoin mining hardware is, (5) where to
find the best bitcoin mining pools and (6) how to optimize your bitcoin
earnings.
How Bitcoin Mining Works
Before you
start mining Bitcoin, it's useful to understand what Bitcoin mining really
means. Bitcoin mining is legal and is accomplished by running SHA256 double
round hash verification processes in order to validate Bitcoin transactions and
provide the requisite security for the public ledger of the Bitcoin network.
The speed at which you mine Bitcoins is measured in hashes per second.
The Bitcoin
network compensates Bitcoin miners for their effort by releasing bitcoin to
those who contribute the needed computational power. This comes in the form of
both newly issued bitcoins and from the transaction fees included in the
transactions validated when mining bitcoins. The more computing power you contribute
then the greater your share of the reward.
Step 1 - Get The Best Bitcoin Mining Hardware
Purchasing
Bitcoins - Although it's not yet easy to buy bitcoins, it's getting
simpler every day.
How To Start Bitcoin Mining
To begin
mining bitcoins, you'll need to acquire bitcoin mining hardware. In the early
days of bitcoin, it was possible to mine with your computer CPU or high speed
video processor card. Today that's no longer possible. Custom Bitcoin ASIC
chips offer performance up to 100x the capability of older systems have come to
dominate the Bitcoin mining industry.
Bitcoin
mining with anything less will consume more in electricity than you are likely
to earn. It's essential to mine bitcoins with the best bitcoin mining hardware
built specifically for that purpose. Several companies such as Avalon offer
excellent systems built specifically for bitcoin mining.
Bitcoin Mining Hardware Comparison
Currently,
based on (1) price per hash and (2) electrical efficiency the
best Bitcoin miner options are:
 |
 |
 |
|
|
Manufacturer
|
AntMiner S5
Spondoolies
Tech SP20 Jackson
BPMC Red Fury USB
|
Advertised Capacity
|
1,155
Gh/s |
1,500
GH/s |
2.5 GH/s |
|
Power Efficiency
|
0.51 W/Gh |
0.80 W/Gh |
1.00 W/Gh |
|
Weight
|
6 pounds |
20 pounds |
1.6
ounces |
|
Getting Started Guide
|
Yes |
Yes |
Yes |
|
Price
|
$474.97 |
$499.97 |
$33.87 |
|
Appx. BTC Earned Per Month
|
0.35787681 |
0.46477508 |
0.00077463 |
Step 2 -
Download Free Bitcoin Mining Software
Once you've
received your bitcoin mining hardware, you'll need to download a special
program used for Bitcoin mining. There are many programs out there that can be
used for Bitcoin mining, but the two most popular are CGminer and BFGminer
which are command line programs.
If you
prefer the ease of use that comes with a GUI, you might want to try EasyMiner
which is a click and go windows/Linux/Android program.
You may
want to learn more detailed information on the best
bitcoin mining software.
Step 3 -
Join a Bitcoin Mining Pool
Once you're
ready to mine bitcoins then we recommend joining a Bitcoin mining pool. Bitcoin
mining pools are groups of Bitcoin miners working together to solve a block and
share in it's rewards. Without a Bitcoin mining pool, you might mine bitcoins
for over a year and never earn any bitcoins. It's far more convenient to share
the work and split the reward with a much larger group of Bitcoin miners. Here
are some options:
For a fully
decentralized pool, we highly recommend p2pool.
The
following pools are believed to be currently fully validating blocks
with Bitcoin Core 0.9.5 or later (0.10.2 or later recommended due to DoS
vulnerabilities):
·
CK Pool
Step 4 - Set Up A
Bitcoin Wallet
The next
step to mining bitcoins is to set up a Bitcoin wallet or use your existing
Bitcoin wallet to receive the Bitcoins you mine. A Bitcoin wallet is like a
traditional wallet and can be software, mobile or web-based. Bitcoin hardware
wallets are also available.
Bitcoins
are sent to your Bitcoin wallet by using a unique address that only belongs to
you. The most important step in setting up your Bitcoin wallet is securing it
from potential threats by enabling two-factor authentication or keeping it on
an offline computer that doesn't have access to the Internet. Wallets can be
obtained by downloading a software client to your computer.
For help in
choosing a Bitcoin wallet then you can get started here.
You will
also need to be able to buy and sell your Bitcoins. For this we recommend:
·
Kraken
- The largest European exchange with same-day SEPA
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