Last updated: December 26, 2022
Are you interested in the Bitcoin mining but you don't know where to start? In this article, I give you the steps to follow to easily mine bitcoin and other cryptocurrencies, then follow the guide!
First of all, what is mining?
Le minage is an operation which consists of validate a transaction made in bitcoin or any other cryptocurrency on a secure network called blockchain. The objective of mining is to secure the blockchain network.
To sum up, mining a cryptocurrency is exchange the computing power of your PC for a monetary reward. The computing power provided allows the network of this cryptocurrency to function.
How does Bitcoin mining work?
Bitcoin mining it is nothing other than to make available to the network Bitcoin the computing power of your computer to validate transactions. These are based on the famous BlockChain.
The essential steps of this process are: the creation of the new block on this Blockchain and the validity of the block in question.
In very simple terms, it works like this:
- First of all, the miner checks the pending operations (the accounts are sufficiently funded, etc.), not yet present in the blockchain network.
- Then these pending transactions on the network are collected and grouped into a block of transactions by the miner's machine.
- Once each miner has created their own block of transactions, they will need to find a valid signature for this block. In other words, the miner's computer or server will calculate the result of a cryptographic function called a hash, consisting of a series of random numbers and digits.
- The first minor who solves the puzzle adds the block and is rewarded with Bitcoins.
- Finally, when a block is generated, all miners must start the process by forming a new block of transactions.
Some figures on bitcoin mining
- Bitcoin block discoverer wins 6.25 BTC, the other miners sharing a tiny reward for the work as well as feedback on future transactions.
- The maximum number of bitcoins that can never be exceeded is 21 million. So there are less than two million to mine but it will be more and more difficult to obtain them.
- The discovery of the latest Bitcoin is scheduled for 2140.
- La blockchain size of bitcoin is currently Go 115, it is growing rapidly.
- We estimate at 1 million the number of minors in the world and this number is constantly increasing.
- A new block of 6.25 bitcoin is discovered by miners every 10 minutes. These are so 900 bitcoins which are added to 19 million bitcoins already in circulation.
The 5 best methods to mine cryptocurrency
Miner Bitcoin alone in your area is unprofitable unless you do not pay for your electricity, live in a cool region and have a whole arsenal of ASICs, and a good noise-canceling headset (each device can reach 80 db, i.e. the noise of a vacuum cleaner).
Fortunately, there areother ways to mine Bitcoin without turning your home into a mining farm. Among these we find 5 methods:
Method # 1 - Cloud Mining
If you are looking for crypto mining methods, cloud mining is probably the most popular way to mine cryptocurrencies without having to lift a finger.
Here, there is no material to host at -soi. We just rent one or more mining units for a defined period.
Cloud mining is a process where you pay someone (The more often it's a big company ) a specific amount of money and "rent" its mining machine called "rig", and the mining process itself.
This rent lasts for a agreed period , during which all revenues generated by the platform (less electricity and maintenance costs) are transferred to your cryptocurrency wallet .
The people (companies) who offer these cloud mining services generally have at their disposal huge mining facilities with many farms (dozens or hundreds of platforms stacked and working together) and know full well how to mine cryptocurrency.
Method # 2 - CPU exploitation
CPU mining uses processors to mine cryptocurrencies. It was a viable option at the time, but currently fewer and fewer people are choosing this method to mine cryptocurrency on a daily basis.
In the early days of bitcoin in 2009, mining was pretty easy and fast. The computers of Mr. Everyone were enough to collect several dozen Bitoins in a few days.
Except that at the time, cryptocurrency was unknown and was virtually worthless. Today, mining alone in his corner with a classic PC is proving to be a non-profit activity.
There are several reasons for this. First of all, mining per processor is EXTREMELY slow You could use it for months without noticing any income.
Method # 3 - GPU mining
GPU mining is probably the most effective method most popular and more known to mine cryptocurrencies. If you google " bitcoin mining ”, GPU platforms will be among the first things you see.
GPU platforms use graphics cards to mine cryptocurrencies. A standard platform is made up of a processor, motherboard, cooling system, platform frame, and - of course - a few (2-8) graphics cards.
A typical price for a Powerful and well-built GPU mining platform aims to locate around the $ 3 price range . It is a heavy investment, but it will pay off much faster.
And if you want to build a GPU mining rig, watch this tutorial: how to build your own GPU mining platform.
Method # 4 - Mining with ASICs
ASICs ( Application-Specific Integrated Circuits ) are very powerful computers without video outputs and whose only task is mining. ASIC only focuses on a hash algorithm.
ASICs are very well known and valuable because they produce insane amounts of cryptocurrency compared to the GPU and CPU of its competitors. According to the models proposed by the leaders Innosilicon et Bitmain, these machines display a computing power between 70 and 95 TH / s and count on a price range between 3000 euro and 25 euro.
Method # 5 - Pool mining
Everyone's computing power is made available to the team to mine. But the gains are also shared and subject to a commission from the Pool mining service.
Which cryptocurrency to mine?
Your choice of equipment should also depend on the type of cryptocurrency mining that you have decided to do.
Some of the obvious favorites would be Bitcoin, Ethereum ou dogcoin . Keep in mind, however, that mining Bitcoin the probably the most difficult of all. A victim of its popularity, it could cause you to wait countless hours until the first drops of Bitcoin start arriving.
With this in mind, your best bet would probably stick to Ethereum or another less popular cryptocurrency.
As you have probably noticed, there are many ways de mine cryptocurrency.
If you are looking for an "easy" to mine crypto, you can choose an unknown, less used crypto with a lower hash rate and hope that its price increases over time.
It certainly takes more work and research to earn a respectable income from mining these days than in the past, but it is still possible to make money. You just have to be patient and smart.
Are you interested in crypto mining? Let me know in the comment section.