In the last few years, Bitcoins have become one of the most lucrative online investments, with many investors making a huge profits from their initial investment.
Unlike most other currencies which are regulated by the government authorities, it is possible to mine bitcoins using suitable hardware and software. The media is often carrying news of teenagers and other people who are making money at home mining bitcoins, so many people interested in making some additional money would like to know how to mine bitcoin, the kind of hardware and software required, and how much money they will make.
A person who wishes to start bitcoin mining should be willing to invest some money initially in hardware. The first step in mining for bitcoins is opening a bitcoin wallet for storing the bitcoins which are being mined, There are a large number of bitcoin wallets which are available, and it is recommended that the buyer check the features of the wallets , charges for depositing and withdrawing money from the wallet , whether the bitcoins can be withdrawn into the local bank account.
In some countries, the government has regulated bitcoin transfers to bank accounts, so the wallet should be selected accordingly. Many of those who are new to coin mining ask the question how do you mine for Bitcoins? They should understand that bitcoin mining involves solving a complex algorithm using the processing power of the computer and being rewarded for the activity in bitcoins. Earlier it was possible to mine some bitcoins using conventional computers and laptops, however as the algorithms have become more complex, specialized coin mining rigs with powerful processors are required.
These processors are available for sale on Ebay, and consume a lot of electricity, so it is important to check the Return on Investment before purchasing a rig. Since Bitcoins are awarded in blocks of 12.5 Bitcoins each, it is usually difficult for a miner to individually make these coins, as the miner has limited resources. So the miners are usually joining a minining pool, where each miner will solve a smaller part of the algorithm and the results of the all the algorithms solved by miners in the pool will be combined to earn bitcoins.
There are a large number of mining pools available for bitcoin miners, so it is important to check the terms and conditions, how much a pool will pay its members, and the track record of the mining pool in paying its members on time as promised. The miner should also find the most suitable software program for mining, The program varies depending on the operating system of the computer, the software is different for Mac and Windows based computers. BFGMiner, 50 Miner, and Macminer are some of the popular software for mining bitcoins.
After this the mining rig should be connected to a power source, and the rig should also be connected to the computer usually with a USB port. The user will then start the mining software, specify the mining pool, enter the user name, password to start mining. The cost of bitcoins is fluctuating, so it is important to consider all expenses before starting bitcoin mining.