The popularity of cryptocurrencies is growing by the hour. The appearance of this virtual circulation of money dates back to 2009 and was created by the Japanese programmer Satoshi Nakamoto with a group of like-minded people. Among all the options, one of the popular ways to make money out of thin air is bitcoin mining. To master this art, you need to understand what it is, how to use it, and whether it is profitable to get involved in the world of cryptocurrencies.
What is bitcoin mining
Blockchain is a chain of transactions, where each subsequent link contains information about all the previous ones. It was these chains that were called bitkins (bitcoin). The process of creating and mining such virtual "connections" was called mining, which requires good computer equipment and special programs.
At the same time, bitcoin mining is the support of an entire infrastructure designed to ensure the performance of the entire network. The essence of such a process is in solving complex mathematical problems with the help of special software installed on users' PCs. The process of receiving bitcoins is not controlled by the center, but is distributed to everyone. Mining performs a number of important tasks:
- support for transactions (deals);
- protecting the network from adding invalid information;
- safety of bitcoins from various attacks;
- support for decentralization.
Important! In terms of profit, it is no longer profitable to mine bitcoins at home, as the power of standard computer equipment is not enough.
How to start mining bitcoins
Having understood the main essence and task of the miners, you can proceed to the process itself, for the implementation of which you will need to choose:
- purchase local storage for accumulating funds on a PC;
- open an online wallet in any system.
Truly successful manners choose the first option. It will require the purchase of more powerful equipment or a separate server storage, but it has greater performance and only the owner is responsible for personal funds.
And the first thing a beginner should do after creating a place to store virtual money is to visit the official Bitcoin website, from where the official software for storing cryptocurrency is downloaded and installed.
When you first start the program, the process of downloading Bitcoin blocks starts. This takes some time, but the process cannot be suspended. Wait for full synchronization and move on.
Fork selection
Forking is the use of the code base of a software project as a start for another. Each branch can develop and exist independently of the other. The main criterion for choosing a fork is profitability. It is also worth paying attention to liquidity - the ability to transfer virtual money to all possible “live” ones.
Bitcoin itself is based on SHA-256, and the owners of large and expensive farms receive high profits. For example, Scrypt uses a lot of RAM, which makes it problematic to create ASIC processors and makes it possible to use ordinary PCs for mining.
You can calculate the profitability on any online mining calculator. This indicator depends on the video card and the speed of your PC, as well as the exchange rate. If the computer is not equipped with "hardy" components, then the average earnings per day will be only 100-200 rubles.
Pool selection
Pool (mining pool) - a server that distributes tasks by subscriptions among all connected participants. The contribution of each pool is estimated as Share, the higher it is, the more likely it is to get an expensive signature. As soon as such a “Ball” hits the target, the pool says that the block is ready and distributes a reward.
They choose a pool by commission - a percentage of the block amount that will be divided between the miners. And also look at the features of withdrawing funds to your wallet. Some pools provide additional options for viewing worker statistics and monitoring them.
For your information: Worker is a program that runs from your computer. How many pieces of equipment you have, so many “robots” can be launched. Each of them must be registered on the selected pool.
Miner's choice
Miner ("miner" in English) is a program for mining. It solves complex mathematical problems and counts rewards in the form of accruing several units of cryptocurrency to the account.
Usually, the selected pool indicates which miner is best suited to perform all functions, and detailed instructions for setting it up. Look for the "Get started" section.
Start mining
The launch instructions are also attached to the documentation for the pool. Usually the process happens through the command line. For example, when using cgmoner on Linux without a graphical interface, you will need to enter the command:
./cgminer --scrypt -o stratum+tcp://pool_host:port -u Weblogin.Worker -p Worker_passwor
Where Weblogin.Worker is the name of the worker and its password is Worker_passwor. To mine ether with the Ethminer miner, use the following command:
ethminer.exe -G -S eth-eu.coinmine.pl:4000 -FS eth-us.coinmine.pl:4000 -O VIPepol.1:1
All options are written in the documents in the pool, including those for starting the earning process in the absence of a video card.
Withdrawal to your wallet
From the official website of the fork, follow the links provided and create your wallet. You need to make an address in it so that you can receive the earned funds. Then, transfer the received line to the section of your account - "Payments".
You can put the withdrawal immediately on the cryptocurrency exchange. Also, do not forget that you will pay commissions for each transaction, so you should not set payouts of small amounts.
Tip: if you haven’t figured out how to set up the miner at all, there are special programs that do all the steps step by step for you. But you have to share with them. So, you give 1-1.5% to the pool, and 30-40% to software developers.
Bitcoin mining software
To mine bitcoins, you need to install a cryptocurrency farm or software on a PC. Among the software, there are several most suitable and proven options:
- CGminer is a popular GPU / FPGA / ASIC microprocessor Open source graphics type suitable for Windows, Linux, OS X. The software itself includes overclocking, monitoring, fan control and remote interface capability.
- BFGminer - Created specifically for FPGAs and ASICs, but does not provide a central focus on graphics processes. There are functions of dynamic clocking, monitoring and remote screen viewing.
- BitMinter is the best software when it comes to connecting with users and potential customers. A simple and intuitive interface with a simple installation of the program itself.
You should also pay attention to BTCMiner, Poclbm, DiabloMiner.
Bitcoin mining wallets
On the technical side, the wallets themselves (BTC) are not stored anywhere - this is a digital code recorded in the database using Blockchain technology. There are 4 groups of such cryptocurrency storages:
- for computers;
- smartphone application;
- web wallets;
- in the form of gadgets.
Among the options for PC, Bitcoin Knots, Bitcoin Core, GreenAddress, ArcBit are considered the most reliable. Mobile versions are selected depending on the software of the gadget, there are options for Android, IOS, Windows. If you choose among virtual ones, then pay attention to Blockchain, Xapo, Coinapult.
The best bitcoin mining hardware
For the extraction of cryptocurrency, which is not influenced by financial markets or regulatory centers, it is necessary to assemble the optimal set of computer hardware. It includes a processor, video cards and additional hardware.
Video cards
The video card must be with enough memory and GPU frequency for the mining process to proceed without any complications. Suitable models include:
- Radeon RX 470 and 480;
- Geforce GTX 1060, 1070,1080;
- AMD latest models.
The average payback of such equipment varies from 200 to 360 days.
Processors
GPUs are the most important hardware when working with a cryptographic system. Only powerful modern computers with enough RAM and a good video card are suitable for mining. The best options include:
- CyberPowerPC Gamer Ultra 2235 - 8 GB RAM, 1 TB hard drive, AMD RX 480 graphics card;
- Acer Aspire T AT3-715A-UR11 - AMD RX 480 graphics card, Intel Core i7-6700 processor;
- CybertronPC RHODIUM - 8 GB RAM, AMD RX 580 graphics card, good for Ethereum.
You can separately purchase an Intek G4400 class processor, which is suitable for mining, but will be cheaper than a whole computer.
Other equipment
Instead of processors and video cards, you can purchase application-specific integrated circuits (ASICs) or gate arrays (FPGAs), as well as separate USB devices.
Among ASIC miners, ANTMiner S7, S9, Avalon6, CoinTerra TerraMiner IV are considered the best. If you choose from USB bitcoin miners, you should take a closer look at AntMiner U2, BPMC Red Fury USB, Avalon Nano 3.
Pools
Pools differ in interfaces, information content, power, types of currency, reward distribution system and commissions. There is a "Chinese Four" of the most popular and reliable pools:
- F2Pool or "aquarium fish". About 20% of the hashrate is held on the network. Withdrawal commission is only 4%. This system is the most widespread.
- BTC China with 10-12% retention on the network. They take 4th place in the overall ranking of pools.
- BW pool - 7-9% capacity, there is a partial translation into Russian. The PPLNS accrual system works without commission.
- AntPool - about 18% mining capacity, works on PPLNS without commission, there is a PPS option with a 2.5% retention. Suitable for solo players.
Choose a pool according to the most favorable conditions and simplicity of interfaces. For beginners, it is better to choose an easier option for mastering the basics of bitcoin mining.
System Requirements
On a medium-sized home PC, only little-known and new cryptocurrencies can be mined. Bitcoin requires a minimum of 4 GB of RAM and 2 GB of video memory.
OS
There are no requirements for the operating system, you can choose the appropriate version of the mining program for Windows from 7, Lunix (it is most often chosen for cryptocurrencies).
The main thing is to purchase powerful video cards and not even one or install separate USB devices or ASIC miners.
Internet ping
Mining traffic depends on the number of connected devices, their performance and the complexity of solving mathematical problems. With the right equipment settings and pool selection, 10 kb / s Internet speed is enough with a standard Dial-Up connection. It must be wired, without failures and breaks. Therefore, choose a traffic provider carefully.
If it is not possible to ensure connection stability, you can buy 3G modems with unlimited traffic and use them in a good coverage area.
Cloud mining of bitcoins
Cloud mining uses special servers that you can work on without purchasing your own equipment for cryptocurrency mining. At the same time, a small commission will be charged for using the resource, which is cheaper than buying professional bitcoin mining hardware.
Among the most reliable servers are:
- Coinmix.biz is a new option with a $1 minimum deposit. The average return on investment is from 50 to 100 days.
- Cloudmy - for registration they provide a bonus of $ 2 (20 GH / s). There is a system of profitability levels from 0 to 9. Payback from 25 to 100 days.
- Apextop - $1 Bonus, 10 Yield Levels. You can return the funds in 25-50 days.
You can find better options depending on your investment.
Nuances and possible difficulties
To start mining bitcoins, you need to choose a mining method:
- solo - on personal equipment, where it is possible to spend more money on electricity and buying hardware than make a profit;
- pool - using a remote server: the biggest difficulty is to choose the right one with the most convenient interface and the minimum commission for withdrawal;
- cloud servers - the whole process lies in the amount of investment you make and the payback period.
The best option with a lot of nuances, but with a high probability of earning is a pool. To choose the right one, look at 3 main characteristics:
- commission size from 1 to 10%;