New To Bitcoin Mining? Follow These Three Steps

Are you interested in Bitcoin mining but do not have much idea about cryptocurrencies? Are you completely new to BTC mining? Well, Bitcoin is no less than a revolution and it assures super-fast, inexpensive, international money transfer facility. Bitcoins are generated through a process called “mining” where one has to solve complex math problems to get rewarded with BTC coins.  If you want to learn about the principles of mining and what are the ways in which Bitcoin mining works, then you should go through the following post. Mining Bitcoin needs to be understood thoroughly.

  • Owning a Mining Rig: If you are thinking of starting mining, then you should own a mining rig. Initially the miners used ordinary domestic computers and later graphics cards. Now-a-day you would not be able to obtain any Bitcoin with such machines. Even if you do gain something, that would be a very small amount after a long period of time.These days, Bitcoins are mined with the help of specialized hardware designed only for mining Bitcoins or any other currencies that are based on same algorithm. It is also known as ASIC or Application Specific Integrated Circuit Chips. It uses less energy and mines Bitcoins in a much faster pace. The device might be very expensive and the manufacturing procedure is very time consuming. However, its speed is the silver lining that one can get.
  • Bitcoin Wallet: The next important step would be to set up a Bitcoin Wallet. This is where you would receive your Bitcoins and would be able to operate them. These wallets enable you to operate your Bitcoin addresses as well. Bitcoins are technically stored in the Blockchain.Every Bitcoin wallet carries public key and matching private key. Public key comprises of a particular combination of characters which would be unique as well. It acts a bank account number. Therefore, if you want to receive any Bitcoin from anyone then you have to give him your public key.
  • Mining Pool: Despite having the best ASIC miner, it could become very difficult to gain Bitcoin today. One single machine might not come to any comparison with large mining farms which have grown up all around the world- and thus, mining on your own is not always profitable. However, the good thing is we have mining pools today. In case of pools, you will be able to mine with a large group of miners which makes the whole process really cost-effective.The miners provide their computing ability to a group and when the Bitcoins are mined, the gain is divided among its members according to a given power. Although the income is lower, but it would be regular. The members of a pool have to pay a fee to an operator of the pool. The fee is usually around 0 and 2% of the obtained reward.

Mined Bitcoins are traded to attain excellent returns that cryptocoins are famous for. If you too are interested in trading, you can check out the Bitcoin Revolution trading app. The Bitcoin Revolution algorithm is used by highly intelligent robots to analyse market signals. As a result, it can assure predictive income for the member traders. You can start off with a free demo account here.

Janice
News Reporter
Janice Morgan is the head writer at Gonzagala. She loves writing as much as she loves her seventeen cats! Her articles on nature are well appreciated.