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How to mine bitcoin?
How to mine bitcoin?

How to mine bitcoin?

How the heck do I mine bitcoin? Can I make money from mining bitcoin? What are the requirements? Relax, keep reading you will find the answer to these questions and more insight concerning bitcoin mining.

The functionality of the bitcoin network rests on the shoulders of bitcoin miners. Bitcoin mining is carried out by the help of high-end “super” computers with the ability to solve complex mathematical computational problems that avail them access to chain blocks of transactions together – How to mine bitcoin?

Why exactly should I do it?

This is the question on the lips of almost everybody that has come across the term, “bitcoin mining”. The primary catch for many people who mine is the fact that  mining has the prospect of rewarding them with bitcoin tokens. Apart from this, other benefits are security and confirmation of transactions. Miners are rewarded with new bitcoins every ten minutes. This issuance rate is set; therefore, miners cannot play a fast one on the system or manufacture bitcoins from nowhere.

Truth be told, it is stressful, capital-intensive (too expensive to say the truth) and only gives irregular profits (or return on investment). It is thus not advisable for everybody to mine. If you still want to go ahead to go into it as a business or for fun, you can follow the steps below to get started.
Find out if it is legal in your country.

In most countries, bitcoin mining should not be an issue. You can seek counsel from legal practitioners in your country to determine if it is legal or not and the tax implications associated with bitcoin mining. Also, check if bitcoin mining is profitable for you. You can make use of bitcoin mining calculators on the internet to get a rough estimate.

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Acquire your Bitcoin Mining Hardware

There is no mining that can take place without ASIC (Application Specific Integrated Circuit) miner. Do not even think about mining on your laptop or desktop computer! You will not only waste a large portion of your resources on electricity but will also not make a dime as profit in a year.
ASIC miners are specialized bitcoin miners or machines. The sole aim of building these computers is for the mining of bitcoins.

Choose a Mining Pool

After getting your mining hardware, the next step of action is for you to choose a mining pool from the available ones. Think of a mining pool as a group of people coming together to crowdfund a business and they share the profits they make from the business. If you do not have a mining pool, you would only be rewarded when you create a block of your own. This is also known as solo mining. This is strongly not recommended because the hash rate of the hardware you purchase is most likely not sufficient to find a block of your own.

Obtain Bitcoin Mining Software

What makes you connect your hardware into a mining pool of your choice is the bitcoin mining software. This is where you also specify the bitcoin address your payouts should be sent to.

Bitcoin

Each Bitcoin is basically a computer file which is stored in a ‘digital wallet’ app on a smartphone or computer. People can send Bitcoins (or part of one) to your digital wallet, and you can send it to other people. Every single transaction is recorded in a public list called the blohttps://fintechzoom.com/blockchainnewsckchain.

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Bitcoin wallets

Presently, there are several types of wallets and some of them possess certain features that distinguishes them from others. With a wide range of available wallets, it can really be daunting deciding the particular wallet to use.

Below are some types of wallets and some of their features. These wallets include:

More Information

 

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Aneta Larkins

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1 comment

  • I invested late last year with digital currency and my experience with them was nothing but awesome. It all began when I saw a lot of reveal how he had helped them made profit on bitcoin with the aid of his mining program, I had to reach out to him to help me too on his email (digitalcurrency14 @gmailcom) he explained the whole process to me and assure me he will help me after we both got a deal, long story cut short I started making 1.5btc every 10 days since we have started and this is the 6th time I’ve made a profit of 9btc. I cleared all debt on my credit report, get an apartment of my own and have the rest money save in bank as i’m currently waiting for my next profit to set up a business and get myself a car. This has been the greatest thing to ever happen to me in my life. I am highly indebted Digital currency!