Crypto Mining the Beginner’s Guide: How to Get Started
Crypto Mining of cryptocurrency like Bitcoin.
Our tips for successful BTC mining
Through this article, you will see what mining is, how to mine bitcoins, the advantages and disadvantages of bitcoin mining and, we will also ask the question of whether it is still profitable.
Summary
- How to mine Bitcoin? The 4 best solutions
- How to do Bitcoin Cloud Mining?
- Mining Bitcoin with a mining rig
- Join a mining pool
- What does Bitcoin mining mean?
- How does Bitcoin Mining work?
- The advantages of Bitcoin Mining
- How much money can I make by mining Bitcoin?
- Crypto Mining or buy Bitcoin?
- Conclusion: Is Bitcoin Mining Worth It?
- FAQ: We answer your questions about Bitcoin mining
How to mine Bitcoin? The 4 best solutions
Crypto mining cryptocurrency like Bitcoins can be done in several ways, individually from home, or by joining a pole of miners.
Investing in a platform to generate passive income
Copium Protocol is a decentralized finance (DeFi) platform that allows users to earn passive income by investing in cash pools and mining pools of crypto mining. Using this platform, users can also participate in the creation of new cryptocurrencies, such as Bitcoin.
Regarding crypto mining like Bitcoin, Copium Protocol offers the opportunity to participate in Bitcoin mining pools. Mining pools are groups of miners who combine their computing power to solve the complex mathematical problems needed to create new blocks of Bitcoin transactions. By participating in a mining pool, users have a greater chance of solving these problems and earning rewards in Bitcoin.
By investing in crypto mining like Bitcoin mining pool via Copium Protocol, users can earn passive income by receiving a share of the Bitcoin rewards generated by the pool. The platform allows users to choose from different Bitcoin mining pools, depending on their level of computing power and participation fees.
To start mining Bitcoin via Copium Protocol, users must first connect their cryptocurrency wallet to the platform and invest in a Bitcoin mining pool of their choice. The platform supports Ethereum, Binance Smart Chain, and Polygon wallets, providing additional flexibility for users to choose the network of their choice.
In summary, Copium Protocol is a DeFi platform that allows users to generate passive income by investing in cash and mining pools, including Bitcoin mining pools. By investing in a Bitcoin mining pool via Copium Protocol, users can increase their earning potential in Bitcoin and become full-fledged Bitcoin miners.
Benefits
Passive income generated through mining
Deflationary token with high demand
Possibility to invest in NFTs at the same time
Clean Energy Mining
Disadvantages
Passive income only
No real BTC mining
Doing Bitcoin Cloud Mining
The simplest and most economical method to crypto mining like Bitcoin is to do bitcoin cloud mining. Bitcoin cloud mining consists of using the computing capacity of a company specializing in Bitcoin mining. In a way, by doing so, you are renting the computing and storage capacity of the company concerned.
With cloud mining, there is no need for technical knowledge or to buy expensive mining equipment to do mining. You won’t have the risk of damaging your computer’s processor either and you’ll avoid the electricity costs that apply in individual mining.
Cloud mining is also faster and allows you to mine bitcoins and your other first cryptocurrencies in just a few hours. Some platforms also allow you to buy Bitcoin.
However, some platforms have a dependency on an intermediary that decreases your gain when you mine and, many cloud mining platforms are recent on the market, so make sure you choose a reputable platform (I can cite for example Genesis mining).
Benefits
Easy access
Allows you to mine multiple cryptos
Avoids noise and heat problems
No need to buy or manage hardware
Disadvantages
Fraud risks
No control over mining hardware
ECOS: the most reliable Cloud Mining application
ECOS is a Bitcoin mining platform that allows users to rent Bitcoin mining machines and earn passive income by mining Bitcoins. The platform offers a set of services including the rental of mining machines, the hosting of machines, the maintenance of machines, as well as the monitoring and security of mining facilities.
The ECOS application is easy to use and allows users to track their crypto mining revenues, computing power, as well as mining pool statistics in real time. The platform also offers responsive customer support to help users resolve any issues encountered during the mining process.
The rate of return on investment depends on several factors such as computing power, rental costs and electricity costs. According to ECOS, the rate of return on investment ranges from 15% to 35% depending on these factors. However, it is important to note that the cryptocurrency market is volatile and mining revenues can vary depending on fluctuations in cryptocurrency prices.
In summary,
ECOS is a Bitcoin mining platform that offers a turnkey mining solution for users who want to earn passive income by mining Bitcoins. The platform is easy to use, offers comprehensive services and responsive customer support. The rate of return on investment varies depending on several factors, but ECOS claims to offer returns of up to 35%.
Benefits
Free trial period
Fluid and modern mobile app
Creation of a suitable mining contract
Minimum contract value is $150
Disadvantages
Extraction fees per contract
Only Bitcoin is supported
GMINERS: the most innovative mining application
GMINERS is an innovative Bitcoin mining platform that offers optimized mining solutions for cryptocurrency miners. The platform stands out for its innovative approach to optimizing Bitcoin mining processes.
The platform uses state-of-the-art technology to optimize Bitcoin’s energy usage and transaction processing speed. It also uses sophisticated algorithms to maximize the mining yield of Bitcoin miners.
GMINERS also offers an exceptional user experience thanks to its intuitive and easy-to-use interface. Users can easily set up their mining machines, track their mining performance in real time, and receive notifications if something goes wrong.
In addition, GMINERS is also engaged in the research and development of advanced technologies to improve the efficiency and profitability of crypto mining like Bitcoin. The platform is constantly evolving to offer innovative and state-of-the-art mining solutions.
Benefits
Free trial period
R&D of advanced technologies
Speed of transaction processing
Exceptional user experience
Disadvantages
Extraction fees
Reputation to be nurtured
How to do Bitcoin Cloud Mining?
If you want to mine Bitcoin via Cloud Mining, here are the steps to follow:
Open a Bitcoin wallet
To secure your Bitcoins, you will need to open a Bitcoin wallet. There are wallets to install on your computer or mobile device, or physical wallets in the form of USB sticks or physical storage spaces.
Create an account on a Cloud Mining platform
To start mining Bitcoins, you must open an account on a Cloud Mining platform by entering your email address, password and phone number.
Go to the “Mine” tab and start mining Bitcoin
Once your account is created, go to the “Mine” tab of the Cloud Mining platform to start mining Bitcoin for free. If the platform offers a mobile app, you can also mine from your mobile phone.
Repeat every 4 hours
Normally, it is the broker who takes care of all operations. Simply return to the app or site every 4 hours to mine Bitcoins. Simply click on the green “4h” button on the broker’s website to start the operation.
Receive benefits every 30 to 40 minutes
Crypto Mining profits are normally paid every 30 to 40 minutes, directly into your account. You can then use these profits to trade assets on the platform.
Mining Bitcoin with a mining rig
If you want to mine bitcoins alone, you will first need to equip yourself with an ASIC. The increasing difficulty of mining over time makes the use of these machines almost indispensable.
Before buying an ASIC, we advise you to stay focused on the following parameters:
The price:
It will depend on two variables. Entry-level machines can be found for a low price while more powerful equipment will quickly reach a price of $ 3,000.
The Hash rate:
a higher rate makes it very simple to be able to mine more Bitcoin because you will be able to solve the mathematical problem presented much faster.
Electricity consumption:
this is an important parameter. If your machine can mine 2 times faster but consumes 3 times more electricity, this may not be the best solution. On this point, it is a question of finding an optimal relationship between mining speed and power consumption to mine Bitcoin at best.
To start mining Bitcoin at home, you will need to install the Bitcoin software and configure it for JSON-RPC. CGminer or BFGminer software is particularly popular with Bitcoin miners.
The Best Bitcoin Mining Rigs
To mine Bitcoins, you can count on the following rigs:
- Bitmain Antminer S9i
- Halong Mining DragonMint T1
- Bitmain Antminer T9
- Pangolin Whatsminer M3X
Join a mining pool
It is a solution to pool expenses and maximize the chances of mining Bitcoin. A mining pool is mostly also for beginner miners. So there is mutualization between all the members of this crypto mining network or Bitcoin network.
This solution will generate and ensure profits more regularly since the profit generated by one of the members of the crypto mining pool will be redistributed among all miners.
One of the advantages of Bitcoin mining pools is the faster processing they provide. Having multiple nodes on the same network, the discovery process will be faster and you will be able to mine faster than if you were alone.
Another advantage of using a mining pool is that the revenue you generate will be more stable because blocks will be accepted faster and more often.
However, keep in mind that the profits will be distributed among all members of the Bitcoin network.
3 Best Bitcoin Mining Pools (Mining Software)
Here are 3 examples of mining software you can trust for successful bitcoin mining.
- F2pool: one of the oldest mining pools
- Poolin: mining software exploits about 18% of all blocks
- BTC.com: mining software that exploits 15% of the entire block of the Bitcoin network
What does Bitcoin mining mean?
Mining Bitcoin has nothing to do with owning Bitcoin. Indeed, mining Bitcoins is putting computing power at the service of the Bitcoin network.
Computing power can be provided in different ways:
. Via a PC
. Via machines dedicated to bitcoin mining such as RIG or ASIC
The computing power acquired will be able to be used for several things, the most important of which is the security and verification of transactions between Bitcoin users.
This computing power will also make it possible to ensure the functioning of the blockchain by verifying that the blocks are articulated one after the other.
Bitcoin works according to the principle that a block must be mined every 10 minutes. Unlike fiat currencies like the euro or the dollar, Bitcoin is therefore produced by users.
Mining is an operation carried out by very powerful computers and which put their computing capacities at the service of what is called the blockchain.
Some key figures on Bitcoin
- 2009: Year of launch of Bitcoin.
- 2141: In the year 2141, we will reach the maximum number of Bitcoin in circulation.
- Over 18 million: Number of Bitcoin currently in circulation today,
- 21 million: This is the maximum number of Bitcoin that will be in circulation in 2141.
If the launch since 2009 has already allowed the creation of more than 18 million tokens out of the 21 million, the pace of Bitcoin mining is decreasing. Indeed, the rate of creation of Bitcoin is divided by 2 every 210,000 blocks solved.
This is called the Bitcoin halving. If in 2009, 50 Bitcoins were created every 10 minutes, the current rate is only 6.25 Bitcoins every 10 minutes today. All this is filled in the source code of Bitcoin.
How does Bitcoin Mining work?
The principle of Bitcoin mining is based on “Proof of Work”. It is this principle that ensures a strong security of Bitcoin.
Proof of Work is a concept whose origins date back to the mid-1990s. At the time, there was talk of creating and implementing anti-spam against malicious emails.
It is the miners who make the principle of Proof of Work work.
Concretely, this method works in three steps:
- Miners verify incoming data on the ledger and validate the authenticity of transactions.
- After verification, they create the new block of the chain
- Miners are rewarded in Bitcoin. The Proof of Work will determine by a number of rules (the consensus), which miner will be able to generate the next block and how the Bitcoin fragments will be distributed among the different miners involved in this bitcoin network.
One of the strengths of the system is that it is precisely visible to all. This way everyone can act and detect possible fraud. The system is based on a very high degree of transparency.
The stages of construction of a new block
- A transaction is integrated within a block
- All miners can check the validity of the transaction and confirm it if necessary
- Miners select the header of the last (most recent) block to integrate it into the new block as a “hash”. To make the process even faster, a graphics card can help a lot here.
- Miners must solve the mathematical problem, for which only extremely powerful computers can operate. Bitcoin is designed to make mining. The calculations are therefore more and more complex.
- When the solution is found, the block is added to the chain and will be broadcast throughout the network.
Here is a schematic overview of how mining works
The advantages of Bitcoin Mining
- Receive rewards in Bitcoin, which could increase in value in the future
- Participate in the collective security of the decentralized Bitcoin transaction system
- Making money solving math problems from home
- Be part of a decentralized concept, away from traditional payment systems
- Group mining, via a mining pool or through cloud mining, offers more chances to obtain Bitcoins.
The disadvantages of Bitcoin mining
- High cost of electricity
- Requires high-tech hardware: Bitcoin mining requires technological hardware that can be very expensive, which reduces the profitability of mining.
- High electricity consumption: Bitcoin mining is very energy-intensive on a global scale, consuming more electricity than some countries such as Israel, Switzerland or Greece.
- Increased mining difficulty: The difficulty of mining is increased every 2016 blocks, which can make mining hardware obsolete faster.
- Little chance of creating a new block by mining individually: If you mine individually, you will have little chance of being considered the creator of a new block, which decreases your profitability.
How much money can I make by mining Bitcoin?
The amount of money you can earn by mining Bitcoin depends on several factors, such as the hash rate of your mining equipment, the price of electricity, the cost of your mining equipment, the block reward rate, and the current mining difficulty.
Bitcoin’s block reward is currently 6.25 BTC per block, and the mining difficulty is adjusted every 2016 blocks to maintain a block production rate of about 10 minutes. In terms of profitability, the cost of electricity is often the biggest hurdle for miners, and this can vary greatly depending on your geographic location.
In general, individual miners have higher electricity costs than large mining operations that can benefit from preferential rates from power companies. Miners must also consider the initial cost of their mining equipment, which can be very high.
In the end, it is difficult to give an exact estimate of how much you can earn by mining Bitcoin, as it depends on many factors.
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Crypto Mining: Bitcoin Transaction fees
Miners must validate transactions. Each time a Bitcoin transaction takes place, the network adds additional fees. This additional fee covers the verification of the transaction by minors. This is how miners are remunerated.
Determining how much money you will be able to make by mining Bitcoin requires knowing where you stand. If you are located in a country where the price of electricity is very low, it may be more interesting to start mining, as long as you have a sufficiently powerful computer.
The increasing difficulty of mining forces miners to invest in machines that are increasingly efficient but also more expensive. This is precisely why the mining trend is towards a miners’ conglomerate. Nevertheless, some people accept for the moment to lose money by mining Bitcoin by betting on a rise in the price of Bitcoin in the future.
What determines the gains of Bitcoin mining?
As you will have understood, mining Bitcoin depends on several parameters such as:
- Your place of residence
- The capacity of your computer or mining system
In reality, the main problem with Bitcoin mining is that competition is fierce and despite the halving (division by 2 of the reward), miners are still very numerous.
Crypto Mining or buy Bitcoin?
As we explained, the two operations are very different. Mining does not in any way make you the owner of the Bitcoins you mine. Despite the halving, the number of Bitcoin miners continues to increase. If you want to mine rather than buy, then I advise you to do it through a cloud mining solution.
If your profile is more that of an investor, buying Bitcoin will probably be a more suitable solution. For this, platforms exist like Coinbase and allow you to trade cryptocurrencies including Bitcoin. If you have a fairly limited budget, mining by one of the solutions mentioned above is probably the best and simplest solution.
Under certain conditions, cloud mining remains an effective solution to acquire Bitcoin for free. There is therefore no better and more effective answer than the others. It depends first and foremost on the context. If you are in a country where electricity costs are quite low, mining Bitcoin will be more interesting than in other countries.
Conclusion: Is Bitcoin Mining Worth It?
If you want to start mining as an individual, it is a very safe but that it will not be profitable, if we consider the cost of electricity and the investment required for the machines to buy.
The only possibility that might eventually be profitable would be to own your own electricity generator. It is quite clear today that the cost of mining Bitcoin is higher than the benefit it could bring you.
Nevertheless, by going through a cloud crypto mining company, your performance will be improved while remaining a supplementary income. Cloud mining solutions allow you to mine very easily in a few clicks, staying at home and without having to face large electricity expenses and without having to invest in very expensive mining equipment. Alternatively, you can buy Bitcoin rather than mine it.
FAQ: We answer your questions about Bitcoin mining
🤵What is the equipment needed to mine Bitcoin?
To choose the right hardware to mine Bitcoin, the parameter to look at first is that of the hash rate. This must be as high as possible. It is also important to keep an eye on the ratio between the energy consumption of the material in relation to its hash rate.
🤵What are the most effective software to mine Bitcoin?
If you go through an ASIC, CGminer or BFGminer software are good tools to start mining Bitcoin.
🤵Can we make a cryptocurrency other than Bitcoin?
Yes, absolutely. This is even something to seriously consider if you want to mine on your own without being part of a larger group of miners. Some cryptocurrencies have a high potential and a mining difficulty still low compared to Bitcoin.
Disclosure: Some external links in the post are affiliate links.
