Are you excited about Bitcoin and Mining? Want to Earn some $$$ from Mining? Want to know how mining works?
Before I can explain anything about Mining, you need to know the awesome technology behind all these cryptocurrencies, that is – Blockchain.
The blockchain is a chain of blocks that contain information. This concept was originally described in 1991 by a group of researchers and was intended to timestamp digital documents so that it’s not possible to backdate them or tamper with them. Almost like a notary.
However, this went unused until it was adopted by Satoshi Nakamoto in 2009 to create a cryptocurrency called Bitcoin.
How transactions work in the blockchain
The blockchain is a distributed ledger that is completely open to anyone. All the transactions in the network will be verified by different individuals across the network instead of one centralized server. So, As these individuals are helping the system without holding any stake in the technology, will be rewarded with new coins and mining fees.
Mining in simple terms – is providing your computer power (that is GPU) to the network for verifying transactions and keep the network stable.
Bitcoin miners perform complex calculations (based on some consensus algorithms such as PoW and PoS) known as hashes. Each hash has a chance of yielding some bitcoins. The more hashes performed, the more chances of earning bitcoins. Anyone with internet access and appropriate computer hardware can participate in the mining.
What are some Minable Coins
There are over 800+ coins are there in the market which serves a different purpose. Minable coins are which are not yet released and will be assigned to the miners by default. Whenever the miners add a new block (a group of transactions) to the blockchain they will be rewarded with new coins i.e. like Bitcoin. That’s how the new coins will come into circulation.
There are many coins which you can mine. Some of them are Bitcoin, Ethereum, Zcash, Dash coin, Monero, UBIQ and other altcoins. You can find the full list here.
How to Mine CryptoCurrency (Coins)
Mining Crypto Currency is not that hard. But, to mine different cryptocurrencies we need high configuration (mostly GPU) pc hardware and electricity. Once we get them, mining is just like running simple software (24×7) on your computer.
Bitcoin Mining Hardware
Estimated Cost: ~$900
Coins you can mine with this set up:
Bitcoin, Ethereum, ZCash, Monero, Dash Coin etc.
How to build a mining rig on a budget
We can mine different coins with just one graphics card. You can always upgrade your mining rig with more GPUs once you are getting some profits.
How to set up a Mining Rig
Mining rig set up should not be a big a problem if you have some prior experience assembling your pc. If you want a clear guide on how to set up mining rigs, watch this video below
After assembling your mining rig, It’s time for us to Install the Operating system. Here, you can choose between Windows and Linux. Choose your preferred OS and install it on the Rig.
The step-by-step guide to mining
Once you have mining rig set up, you have two options to kick-start your mining activity. Either you can go as a solo miner or you can join in some mining pools. Below I have explained various mining types. Please check out.
Different Types of Mining
There are few different ways you can mine cryptocurrency. You can mine as a solo miner, join Mining pools and cloud mining.
The problem with solo mining is that the difficulty of finding a new block is very high nowadays as the competition is huge. It takes a lot of hash power and a bit of luck to mine new bitcoins. It’s like a lottery.
It is almost impossible to get profits when you go as a solo miner. You can mine some less popular coins and HOLD them, though. However, if you want to mine popular coins like Bitcoin it will be a tough job.
The best solution this problem is to join some bitcoin mining pools. They combine total hashes of the members of the pool and compete for new blocks. Once a new block is found, the rewards will be shared among all the members of the pool in proportion to hashes provided by the individuals. It’s a win-win game.
Fair enough. Isn’t it?
Now you might be thinking, which mining pool is best to join? There we go:
Top 5 Bitcoin Mining Pools
There are over 100 of Bitcoin mining pools. However, below are the top in the list based on the network share, reward type, and ease of doing mining.
BTC.com is a mining pool run by Bitmain, creators of Antpool and Antminer ASICs. You can mine bitcoin and Bitcoin Cash with this pool. The servers are located in Asia and USA. The process to join this mining pool is very simple.
Rewards Type/ Fees
BTC.com charges 1.5% fees and pays the users through FPPS (Full pay-per-share) system. It settles all the earnings of last day at UTC 00:00 and sends the payment in 2 hours.
- Offers full-featured BTC.com pool App
- Provides new standards for mining services
- Daily payments
- Doesn’t support merged mining
Antpool is an efficient digital currency and opens for all users around the world. It supports mining of Bitcoin, BCH, Litecoin, Ethereum, and Siacoin.
Reward Type/ Fees
Antpool supports different payment method of PPS, PPLNS, and SOLO. The fees vary with different payment methods. Check the image below.
- Mining servers are deployed worldwide
- Android and iOS App is available
- Daily settlements and quick payment
- Small payouts despite having a big community
Slushpool is one of the well known and the oldest bitcoin mining pool over there. I will recommend beginners to go with this pool.it is easy to mine with slush pool. It maintains around 11% of the network hash rate.
You can mine Bitcoin and Zcash as well.
Reward type/ Fees
slushpool has a scoring method which ensures that everybody gets their share of what they have contributed. The users will get stable income with this method.
- Neat UI with Dashboard and worker monitor
- Supports merged mining (Bitcoin and Zcash)
- Advanced security with 2FA and payout address locking
- Servers in Europe, North America, and Asia
- Free withdrawals above 0.01BTC
- Charges up 2% on earnings
ViaBTC is 4th on the list based on the network hash rate. It currently holds 10% of the total hash rate for Bitcoin mining.
ViaBTC is one of few which offers mining pools for different cryptocurrencies such as BTC, BCH, LTC, ETH, ZEC, ETC, and DASH.
It supports various payment methods such as PPS+, PPLNS, and SOLO. The actual fee vary depends on these payment methods.
- Very simple set up. Literally, you can be up and be mining in 5 minutes
- Supports merged mining (NMC, DOGE)
- Supports vardiff server
- Huge fees i.e 4% for PPS payment system. And 2% for the PPLNS
F2Pool is one of the leading bitcoin mining pool all over the world with a network share of 6.3% hash rate.
Reward type / Fee
It supports PPS payment method. Users can get daily payments.
- Zero fees for BTC PPS+ mining
- Real-time hash rate monitoring
- Advanced technology efficiency and anti-DDoS ability
- Unless you are comfortable in Chinese, it won’t be a good option for you.
This order changes every time. So, if you want to check who’s on the top right now Follow this link https://blockchain.info/pools
The process of buying/leasing hash power (usually measured in GH/s) from dedicated data centers who use their mining equipment to mine digital currency on our behalf.
The main advantage of this approach is that you don’t need to buy expensive hardware, you don’t need to have the knowledge about building your own mining rig and there is no need to deal with electricity and etc.
These mining companies source their mining hardware or build it cheaply and operate from countries like Iceland and China where electricity is cheap.
Top Cloud Mining Companies
You can invest some money in cloud mining and get regular income.Many of them allow us to mine different coins like Bitcoin, Ethereum, Dash, Zcash, Litecoin, Monero and many others.
Below I have featured some of the reputable cloud mining companies that you can trust. Let’s explore them to earn your cryptocurrency!
Hashflare is operating for 3 years. It is one of the best cloud mining companies where you can lease hashes for various coins based on SHA-256 and Scrypt.
Hashflare is open about maintainance fee for Litecoin (0.005 $ / 1 MH/s / 24h) and Bitcoin (0.0035 $ / 10 GH/s / 24h).
Hashflare currently offering 1-year contract for any of the coins (Bitcoin, Ethereum, Zcash, Litecoin, and Dash) mentioned above.
The best thing is you can choose your own mining pool.
You can see the complete details about the data centers including pictures.
Prices vary based on the coin. You can check them in the pricing section.
Genesis is the oldest and well-established mining company operating since 2013. It has simple UI and offers mining contracts for various coins.
Often the contracts are sold out due to its huge popularity.
Once the mining contracts are available, you can start mining in 5 minutes. You can visit your dashboard and reallocate hashes among different coins for example, 60% for BTC and 40% LTC. You can receive the payments daily provided you have some minimum earnings.
Plans start at $179 for 1000 GH/s(for Bitcoin). Check their pricing on the website. You can have this contract for as many as 2 years.
Crypto Mining farm
Crypto mining farm is one of the promising cloud mining firms with stable earnings and long duration of contracts.
- Free 50 GHS(Lifetime)
- Investment bonus
- No difficulty increase
- No maintenance fees
- 15% affiliate bonus
Hashing24 was made by professionals for the individuals who want to take part in bitcoin mining. They source mining power from the most reliable and reputable partner like BitFury etc.
The service fee includes the cost of one-time allocation of ordered power plus a daily maintenance charge for the equipment and electricity.
The plan starts at 0.349USD per 1 GH/s. The contract period can be extended up to 36 months.
- Official reseller of industry-leading companies
- The newest ASIC chips (maximum efficiency)
- Data centers in Iceland Georgia. 100% uptime guarantee
Hashnest is also a good option if you want to go with cloud mining. You can withdraw the mined blocks on the same day. It offers three payment methods Bitcoin, AdvCash, and OKPay.
You can mine BTC, LTC, ETH, and ZEC and many others with Hashnest.
They have an innovative contract method i.e, PACMiC (Payout Accelerated Cloud Mining Contract) along with some standard plans.
The features of PACMiC include :
- No electricity fee
- Rolling profit payouts
- The payout for each block found
- PPLNS payouts
- Global deployment
PS: start with small amount and test the cloud company for profits. If you are getting some steady income, scale it up.
Hardware Mining vs Cloud Mining
Cloud mining indeed has its advantages compared to hardware mining. However, they are very little compared to real hardware mining. Below are some advantages and disadvantages of cloud mining.
- The advantage is that you don’t need to own any hardware, set up mining rig, don’t have to think about the electricity cost, and no need to worry about the heat and noise issues.
- The downside is that you don’t own any real hardware once the contract period is over.
- You don’t have any control over the mining activity. In case of real hardware mining, you can stop a month once you feel that is not profitable. But when it comes to cloud mining you need to continue irrespective of the situation.
- More importantly, most of the cloud mining companies can’t be trusted except a few I mentioned above. We don’t know they will really last for our contract period.
- Real hardware mining is very exciting as you are experiencing the technology by yourself.
- If bitcoin is not profitable, you can easily reallocate that mining resources to mine other least profitable coins and hold them until the price hits all-time high.
- If everything fails, you can sell your rig online and cover some investment. That doesn’t happen unless you are not reading until the end.
What is My advice?
I would definitely suggest you go with hardware mining as we can earn in $$$ (three figures) if you go with my approach. I have revealed below.
Mining software is equally as important as mining hardware. If you are a solo miner, the software will connect your Bitcoin miner to the blockchain.
If you are mining using a pool, it will connect you to the mining pool. For those who are in cloud mining, don’t need any software.
Importance of Mining Software
The mining software will assign mining hardware’s work to the Bitcoin network while also receive the completed work from miners from the other miners.
Mining software also displays stats such as Speed of the miner, Hash rate, fan speed, temperature and other core details.
One of the most important things you need to have before you can start mining is the Bitcoin Wallet.
This is because the mining software will ask you for bitcoin wallet address before setting up the software. Whatever the coins you are mining will go into it. Pool payments also credited into it.
Once you download or create a wallet, you will be able to get a Bitcoin address from the wallet.
There are many Bitcoin wallets are available to use. But, for now these will be comfortable.
Ledger Nano s
It is a hardware wallet is the most secure one which works on all platforms. You can use this wallet to store other Alt coins as well.
Electrum is a simple Bitcoin Wallet that works on Windows, Linux and MAC OS.
Mycelium: is popular Bitcoin Wallet for Android devices.
ArcBit: works on All iOS devices.
If you want store them securely, I will suggest you to use a hardware wallet.
Bitcoin Mining Software List
|Bitcoin Miner||CG Miner||RPC Miner|
|Easy Miner||BFG Miner|
|CG Miner||Easy Miner|
Mining Software for Windows
Bitcoin Miner works on Windows 10 or Windows 8.1. Free to use Bitcoin mining software with little Ads. It has simple to use interface.
- Power saving mode
- Supports different mining pools
- GPU & CPU Mining
- SHA-256d & Script support
- Fast sharing submission
App Size: 13.2 MB
BTC Miner is an open source Bitcoin Miner for ZTEX USB-FPGA Modules 1.5. This software runs on Linux and Windows.
- Dynamic frequency scaling on error measurement, i.e. BTC Miner automatically chooses the frequency with the higher rate of valid hash rates
- Ready to use Bitstream
A CPU/GPU miner for Bitcoin, Litecoin, and other cryptocurrencies. A simple and easy to use UI for miners.
It Works on Windows and Linux.
- Multiple crypto Miner
- Supported Algorithms SHA-256 and script(1024, 1, 1)
- Supports the getwork and stratum mining protocol
Bitcoin Mining Software for Linux
This is a multi-threaded and multi-pool FPGA and ASIC miner for bitcoin. It is completely free to use.
BFG Miner is a modular ASIC/FPGA Miner written in C, featuring dynamic clocking, monitoring, and remote interface capabilities.
Bitcoin Mining Software for Mac
The above mining software for Windows and Linux will work also work for Mac. However, below is another bitcoin mining software that works on Mac.
is Mining profitable?
Well, it depends on the approach. If you mine popular coins like Bitcoin, Ethereum we won’t get much profit. There are mining farms, big companies trying to mine those coins. It needs a lot of Hash power and a bit of luck to mine coins like those. So, competing with those companies is a tough task.
What we do is:
We will select coins that are less popular and have a solid concept. We will mine thousands of those coins per day and keep them in our wallets.
Once the value of those coins reaches $1 or so, we will sell them. So, that means we will get $1000 bucks per day with mining.
Take a look at https://whattomine.com/ this is a useful site to calculate mining profitability for various coins and algorithms.
Overall mining can be profitable if you do it the right way. There are many ways you can mine cryptocurrencies like Bitcoin or other coins. Choose a method which is convenient.I hope this guide is clear for you.
However, if you have any doubts shoot them in the comment section below.