6 Basic Steps to Get Started Mining Bitcoin and Make Money
Nicholas Otieno — May 13, 2020 
Time has tremendously changed. The traditional methods of making money are being replaced by other means. People nowadays look for ways to make money online. Bitcoin mining is one proven approach you can do to make a remarkable profit in your investment. You can make money mining Bitcoin, but it is not a guaranteed return on investment. Factors like mining hardware, electricity rate, Bitcoin’s price, and mining difficulty can determine profitability.
Although mining Bitcoins can be complicated and tedious, particularly for beginners, the end result will not disappoint you. The process of mining Bitcoins involves the use of sophisticated machines. Such machines consume a lot of electricity to enable it to solve mathematical algorithms in exchange for Bitcoins. Mining Bitcoins, as an individual, may be expensive. It is, therefore, recommended that you join a mining pool. In this way, working with other miners is a good idea because you will be able to pool together your resources. You share rewards together with other miners based on individual contribution of Bitcoins generated.
Step 1: Get the Best Bitcoin Mining Hardware
It was once possible to mine Bitcoin with your personal computer’s CPU or high-speed graphics cards, but that nowadays is no longer the case. With the rise of increasingly sophisticated mining hardware, particularly application-specific integrated circuit (ASIC) chips designed for the sole purpose of Bitcoin mining, digging for digital gold through your desktop PC is gone and no longer existing.
You will need to buy mining hardware specifically designed for Bitcoin mining. You can easily buy most Bitcoin mining hardware on Amazon. Bitcoin mining hardware such as graphic processing units (GPUs), field-programmable gate aray (FPGAs), and application-specific integrated circus (ASICs) are significantly essential. The use of FPGAs and GPUs helps to increase mining power by as much as 100x, with less power usage hence saving on huge electricity bills. The ASICs provide 100x more hashing power, specifically designed for the purpose of enhancing mining output. Mining Bitcoin with anything less will consume more electricity than you are likely to earn.
Step 2: Join A Mining Pool
Once you are ready to mine the digital gold, it recommended that you think of joining one of the best Bitcoin mining pools. This would enable you to have a better chance of turning a profit and pool your resources with other miners in a mining pool.
Bitcoin mining pools involve a way in which groups of Bitcoin miners work together, pool their resources, share their hashing power, and split their rewards based on the amount of shares they contributed towards solving a block. Without joining a Bitcoin mining pool, you might find yourself mining Bitcoins for over a year and never earn any Bitcoin. It is much better to share the work and divide the reward with a group of Bitcoin miners.
Step 3: Download Free Bitcoin Mining Software
Once you have acquired your Bitcoin mining hardware, you will need to download a special program used for mining Bitcoin. There are several programs out there, which can be used for mining Bitcoin. The two most popular programs are BFGminer and CGminer that are command-line programs. But other programs provide a GUI (graphical user interface) for increased ease of use. It is also important noting that some mining pools will provide their own software.
Step 4: Create A Bitcoin Wallet
The next step is to use an existing Bitcoin wallet or create a Bitcoin wallet to obtain the Bitcoins you mine. Blockchain.com is a good Bitcoin wallet that functions on several different operating systems. You can obtain a Bitcoin wallet just by downloading it on your computer.
Bitcoins are sent to your Bitcoin wallet by using a unique address, which only belongs to you. It would be helpful if you secure your Bitcoin wallet from potential threats by enabling two-factor authentication or keeping it on an offline that does not have access to the internet.
Step 5: Start Mining
Once you’ve set up your Bitcoin wallet, link it to your mining rig. You can now begin mining Bitcoin and make money. Bitcoin mining is achieved by running a double SHA256 hash function verification processes so that to validate Bitcoin transactions and provide the required security of the entire Bitcoin network. To mine Bitcoin successfully, you should have a high hash rate that is measured in terms of the speed at hashes per second.
The Bitcoin network rewards miners for their effort by issueing Bitcoins to individuals who contribute to the required computational power. This comes in terms of both newly released Bitcoins and from the transaction fees that included in the transactions verified when mining Bitcoins. The more computing power you contribute, the greater your share of the reward.
Step 6: Stay Up-to-Date with Bitcoin News
Make sure to stay up to date with mining difficulty adjustments and Bitcoin price development to ensure that your Bitcoin mining setup remains profitable.
Conclusion
If you want to dig for this digital gold and make money, then beware that Bitcoin mining is a costly and complicated process, and it is not possible for individual miners to compete with large mining firms and pools. But with the right approach and setup, either by joining a mining pool as discussed above or using a cloud mining service, it is still possible to make a profit.
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