Bitcoin mining is the act of verifying transactions that take place in each blockchain. This validates each transaction and then shares the transaction publicly on a peer-2-peer network so everyone can see. Bitcoin miners are the people responsible for verifying and validating each transaction before it is added to a blockchain creation block. After a miner places the next block in the blockchain, he / she can request a reward, which is usually in the form of bitcoins. The more mathematical calculations you solve, the greater the reward.
You do not need to be a professional software developer or encoder to participate in bitcoin mining. Below is an easy-to-follow step-by-step guide for a beginner in bitcoin digging.
Get bitcoin digging hardware
Bitcoin digging hardware
The world of mining is becoming more complex as mining uses higher computing power. The higher the level of digging, the harder it is to make a profit, because the investment in hardware is so high. Bitcoin mining is very competitive and you need to do adequate research before investing in hardware. It used to be possible to use your personal bitcoin digging processor, but due to the complexity of digging, this method is no longer viable. You need to buy a specially built computer whose main purpose is to dig up bitcoins.
Get a bitcoin wallet
You need to have a wallet that is local or online based to store your digital currency. The wallet comes with a public wallet address and a private key or password, which are the most important details to note. If your wallet is hosted on its own, you need a copy of the wallat.dat file to prevent losing your investment. It acts as a backup wallet if something unfortunate happens to your machine. One can even get wallets for their mobile devices. The highly recommended wallet is the self-hosted or locally produced wallet.
Find a pool to join
It is advisable to join a digging pool or choose to dig yourself. The digging pool is a group of miners who come together to share resources and share rewards. The pool guarantees you a faster return while combining your computing power for better results. Each pool has its own rules, method of remuneration and fee charged for digging. You need to find one that best suits your needs. Digging itself is complicated and you may never get a return on investment.
Get digging software for your computer
There are different free digging programs depending on the hardware you use. The digging program helps monitor and control your hardware. Some common digging programs are CGminer, BFGminer and EasyMiner. If you are in a pool, it is recommended that you consult with them while connecting your pool to your program. Programs run on the command line and may require a batch file to run properly.
After all this, you are ready to go. Start your digging program and get started by entering your username and password. You will notice that your machine slows down while the miner is running.
It is very important to monitor temperatures carefully, as the software causes your hardware to heat up. Some programs such as SpeedFan can keep the temperature under control. You don’t want to risk literally blowing up your investment before you even start working. After a while, you need to check how much you are doing to see if your investment is worth working on.