BitCoin Mining: A Complete Guide on Bitcoin Mining.
Invented by Japanese nationality, Santoshi Nakamoto, Bitcoin is a cryptocurrency accepted as a universal payment system. It is a decentralized digital currency which operates without the assistance of Central Bank nor any Commercial Bank.
The transactions of BitCoin take place without the intervention of intermediaries and are verified by network nodes, while the transactions of BitCoin are recorded in a public distributed ledger called Block Chain. The cryptocurrency can be exchanged for any goods, services, and products all over the world.
HOW DOES BITCOIN MINING WORK?
Bitcoin is accomplished by running SHA256 double and round hash verification process. The major indulgence in the double and round process is to validate the transaction and to provide requisite security in Block Chain (a public ledger verified by network node).
When mining Bitcoin for the first time the Bitcoin network releases Bitcoin for the computational power inclusive of all transaction fees and newly issued Bitcoins.
Higher the computing power greater will be the shared reward. The speed of mining Bitcoin is measured in hashes per second.
STEPS INVOLVED IN BITCOIN MINING:
STEP 1: Bitcoin Mining Hardware
- You need to purchase a mining hardware with Bitcoins (Ant Miner S7, Avalon6).
- Purchase Bitcoin mining cloud contracts (Hashflare, Genesis Mining, Hashing 24, Minex, Hashnest and many more).
STEP 2: Download Free Mining Software
- After purchasing Bitcoin Mining hardware or cloud you need to download a special kind of software program used for Bitcoin mining.
- The most preferred software’s are CG miner and BFG miner suitable for windows/android/Linux.
STEP 3: Be A Part of Bitcoin Mining Team
- Joining a Bitcoin mining group can be quite beneficial for one can jointly solve a block and share rewards.
- If you are planning to get involved on solo basis than you might never earn a bitcoin over a year despite mining for years.
- So, it’s wiser to be a part of the mining group and split the generated reward.
STEP 4: Set a Bitcoin Wallet
- You need to set Bitcoin Wallet to receive and purchase Bitcoins.
- There is software like Spectro Coin, Coin base, Local Bitcoins offering Bitcoin storage with several other operating facilities.
- A unique address is given for your personal access.
- One needs to protect your wallet by enabling two-factor authentication or by keeping it offline.
STEP 5: Stay Tuned for Bitcoin Updates
- Always make a note to check the Bitcoin chart and with the Bitcoin news to check your profitability.