How to extract bitcoins: Mining for dummies

If you decide to do bitcoins mining for investment and profit, you are likely to face one serious problem: most sites on this topic are created for advanced users. If you are not a professional programmer, you have no experience working with Ubuntu and Linux, and there is only a little experience of using a Mac or PC, this text will help you start with the basics.

1. Buy equipment for bitcoins mining

Mining Bitcoins ( the Bitcoin ) – this is a very competitive activity. With each passing day, users with the latest equipment for mining are becoming more and more, and it is becoming increasingly difficult to beat the bitcoins. Therefore, before you start this, you need to prepare well.

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It is necessary to make calculations and understand, whether it will turn out at you to take profit from this employment. For this purpose, it is best to use a calculator for mining Bitcoins. Just enter the data of the bitcoin miner you are going to buy into it, and see how soon you will repay the costs and go into the plus. Keep in mind that the initial investment is likely to be at least $ 2000.

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Finished with the calculations, it’s time to start buying a computer-miner. First, study the various reviews about the equipment for mining bitcoins to understand which miner is best for you. For today, the most advanced and new is the Antminer S9 miner .

In the past, it was possible to run the bitcoins mining on an ordinary computer or using a video card (this was called GPU-mining). However, today this activity has become so competitive that you will need ASIC-miners – special computers designed exclusively for the mining of bitcoins.

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2. Start a bitcoin-wallet

The first thing you will need to choose a Bitcoin wallet . Since bitcoins are crypto currency, you will need to store your money somewhere. Having got the purse , make sure you have the address of the Wallet. It is a long sequence of letters and numbers. Different methods of obtaining public (open) bitcoin-addresses differ from each purse, but, as a rule, all this is very simple. Note that you will need a public bitcoin address, not a private key, which is the password to your wallet.

3. Select the pool for mining

Now that you have a purse, you probably can not wait to start mining, but if you really want to earn some bitcoins, you’d better join a pool. The pool for mining is a group of bitcoin-miners who have combined their computing resources to produce more bitcoins. The meaning of teamwork is that the reward is given for blocks – as a rule, the block created costs 12.5 bitcoins, and a single user should be very lucky to get this money.

In the pool you will need to perform small and less difficult algorithms, and thanks to collective efforts you will have more chances to execute a large algorithm and earn bitcoins that will be distributed among the pool members in proportion to their contribution to the common cause. As a result, you will be able to earn more bitcoins, and your investments will start to make a profit.

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When choosing a pool for mining, ask yourself the following questions:

  • By what principle is the remuneration calculated?
  • What is the commission for mining and withdrawal of bitcoins?
  • How often do they find the blocks (that is, how often will you receive a reward)?
  • Is it easy to output bitcoins? What statistics do they provide?
  • How much is the pool reliable?

The answers to most of these questions are contained in the excellent text on the BitcoinTalk website. Furthermore, a detailed comparison of pools for mining has a Bitcoin-wikipedia . For example, you can consider the pool of Slush’s Pool . After registration, you will receive a user name and password, which you later need to enter to work in this pool.

Click on the link to the site, click on “Sign up here” at the top of the screen and follow the step-by-step instructions. After you create your account, you will need to add an “employee” (Worker). Actually, for each computer-miner you will need to register a separate ID so that the pool can track your contribution to the common cause.

4. Install programs for mining on your computer.

Now that the preparations are over, you are almost ready to start producing bitcoins. It remains only to install a client program on the computer to manage its equipment for mining. Different computers require different software. Many pools have their own software, for example, Bitminer , but some do not. List of programs for mining bitcoins can be found here . If you work on a Mac, you can use the MacMiner program . The most popular programs for PC are BFGMiner and 50Miner .

5. Start mining bitcoins

Now you are ready to proceed to the mining. Turn on your miner. Make sure that it is connected to your computer (usually via USB), and open the program for mining. First of all, enter your pool, enter your user name and password. All, the process of mining bitcoins went. You start generating balls that show your participation in the creation of the next block. Depending on the chosen pool, your participation will be rewarded with this or that number of bitcoins. It is important only to make sure that you have correctly entered the address of your wallet at the time of registration.

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