How to mine bitcoins all information in step by step - Netlinehost

 How to mine bitcoins

The popularity of cryptocurrencies is growing by the hour. The emergence of this virtual money turnover 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 most 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 with 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. Such chains were called bitcoins. The process of creating and extracting such virtual “connections” has been called mining, which requires good computer hardware and special software.


At the same time, Bitcoin mining is the support of an entire infrastructure designed to ensure the operability of the entire network. The essence of such a process is in solving complex mathematical problems using special software installed on the user's PC. The process of obtaining bitcoins is not controlled by the center but is distributed to everyone. Mining performs a number of important tasks:


support for transactions (deals);

protection of the network from adding invalid information;

the safety of bitcoins from various attacks;

support for decentralization.

Important! In terms of profit, it is no longer cost-effective to mine bitcoins at home, since 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.

Really successful manners choose the first option. It will require the cost of purchasing more powerful equipment or separate server storage, but it has higher performance and only the owner is responsible for personal funds.



And the first thing a newbie 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 the program is launched for the first time, the process of downloading Bitcoin blocks starts. This takes some time, but you cannot pause the process. Wait for complete synchronization and move on.


Fork selection

Fork - using 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. And also it is worth paying attention to liquidity - the ability to transfer virtual money to all possible "live" ones.


Bitcoin itself is based on SHA-256, and owners of large and expensive farms receive high profits. For example, Scrypt uses a lot of RAM, which makes it difficult to build ASIC processors and makes it possible to use regular 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

A mining pool is a server that distributes subscription tasks among all connected participants. The contribution of each pool is assessed 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 indicates 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 units of equipment do you have, as many “robots” can be launched. Each of them must be registered in the selected pool.


Miner selection

Miner ("miner" in translation from English) is a program for mining. It solves complex mathematical problems and has been awarded in the form of crediting 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 pool documentation. Usually, the process takes place through the command line. For example, when using cgmoner on Linux without a graphical interface, you will need to enter the command:


Bitcoin mining software

To mine bitcoins, you need to install a cryptocurrency farm or software on your PC. Among the software, there are several of the 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 - Built specifically for FPGAs and ASICs, but lacks a central focus on GPUs. There are dynamic clocking, monitoring, and remote screen viewing functions.

BitMinter is the best software when it comes to connecting with users and potential customers. Simple and intuitive interface with easy installation of the program itself.

You should also pay attention to BTCMiner, Poclbm, DiabloMiner.


Bitcoin mining wallets

On the technical side, the wallets (BTC) themselves are not stored anywhere - they are digital code recorded in a database using Blockchain technology. There are 4 groups of such cryptocurrency storage:

  • for computers;
  • application on a smartphone;
  • web wallets;
  • in the form of gadgets.

Among the options for PC, the most reliable are Bitcoin Knots, Bitcoin Core, GreenAddress, ArcBit. 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 cryptocurrency mining, which is not influenced by financial markets or regulatory centers, it is necessary to assemble an optimal set of computer hardware. It includes a processor, video cards, and additional equipment.


Video cards

The video card must have enough memory and GPU frequency for the mining process to take place without any complications. Suitable models include:

  • Radeon RX 470 and 480;
  • Geforce GTX 1060, 1070,1080;
  • AMD's latest models.

The average payback period for such equipment varies from 200 to 360 days.


Processors

GPUs are the most important piece of 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 - 8GB RAM, 1TB 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 graphics cards, you can purchase Special Purpose Integrated Circuits (ASICs) or Gate Arrays (FPGAs), as well as standalone USB devices.


Among ASIC miners, the best are ANTMiner S7, S9, Avalon6, CoinTerra TerraMiner IV. If you choose from USB miners for bitcoins, you should take a closer look at AntMiner U2, BPMC Red Fury USB, Avalon Nano 3.


Pools

Pools differ in terms of interfaces, information content, capacity, types of currency, reward distribution system, and commissions. There are the "Chinese four" of the most popular and reliable pools:


F2Pool or "aquarium fish". About 20% of the hash rate is retained on the network. Withdrawal commission is only 4%. This system is the most widespread.

BTC China with 10-12% online retention. They take 4th place in the overall ranking of pools.

BW pool - 7-9% of capacity, there is a partial translation into Russian. The PPLNS accrual system works without commission.

AntPool - mining capacity of about 18%, works on PPLNS without commission, there is a PPS option with retention of 2.5%. Suitable for those who like to play solo.

Choose a pool for 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 home PC of average power, only little-known and new cryptocurrencies can be mined. Bitcoins require a minimum of 4GB of RAM and 2GB of video card memory.


OS

There are no requirements for the operating system, you can choose a suitable version of the mining program for Windows from 7, Linux (it is most often chosen for cryptocurrencies).


The main thing is to buy 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. If the equipment is configured correctly and the pool is selected, 10 kb / s Internet speed is sufficient with a standard Dial-Up connection. It must be wired, without failures and breaks. Therefore, choose your traffic provider carefully.


If it is not possible to ensure a stable connection, you can buy 3G modems with unlimited traffic and use them in a good coverage area.



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