How to mine bitcoin is not an easy thing, especially for beginners because it requires qualified equipment and devices. If you are interested, check out the following guide!
What is Bitcoin Mining?
Before discussing further on Bitcoin mining, you need to know first what Bitcoin really is.
As previously mentioned, Bitcoin is part of cryptocurrencies or digital currencies.
Furthermore, according to Investopedia , Bitcoin is a digital program or phenomenon in which the entire transaction process is carried out digitally.
Bitcoin itself is part of the cryptocurrency that was created for the first time.
This currency was created in 2009 by Satoshi Nakamoto, whose true identity is still a mystery.
The advantage of Bitcoin that makes it popular with the public is its security. By using blockchain technology , various Bitcoin transactions will be recorded securely and difficult to manipulate.
Blockchain technology makes Bitcoin complexly encrypted , requiring people with special skills and equipment to record every transaction.
This is necessary so that every Bitcoin transaction can be recorded properly and securely.
Uniquely, everyone can be a “registrar”, or known as “ nodes ”, to authenticate various transactions made.
This is what is then called mining Bitcoin.
Mining or Mining Bitcoin
The main thing that makes Bitcoin transactions difficult to manipulate is because each Bitcoin transaction will be recorded with a certain code.
Retell of Bitdegree , network Bitcoin secured by units of special computer called a miner or miners scattered throughout the world.
When you make a transaction, these miners need to check that you have the necessary Bitcoins to send it and also check that the various rules have been followed.
Transactions that take place are grouped together in a block containing a string of characters.
The characters in this block, are referred to as “ hashes ”. Miners need to check the hash sequence in the block.
This is so that there are no double transactions of one type of Bitcoin. Since this process is quite complex and requires sophisticated equipment, each miner who manages to do so will be rewarded.
Because the price of Bitcoin is increasing day by day, the rewards obtained by a miner by mining they do are also getting higher.
Mining bitcoin or mining bitcoin is like mining gold. Mining can be done with computers and software on a bitcoin mining server .
For mining bitcoin, miners need very powerful computers, large electricity, and super fast internet.
This is because bitcoin mining activities require large computing power.
There are at least four ways, namely:
- Mining in the mining pool
- Cloud mining
- Solo mining
- Bitcoin trading platform
4 Ways to Mine Bitcoin (Mining Bitcoin)
1. Mining in Pool Mining
One way to mine bitcoin is to mine in a mining pool .
This method is simply that you join forces with other miners in a pool for mining bitcoin.
Later, you share the rewards for the results obtained from mining the bitcoins.
Through this car, first you have to register to a pool or pool .
Furthermore, all miners who are in the same pool agree to share any bitcoin rewards with the other pool members.
2. Cloud Mining
Quoted from cryptocurrency.id , cloud mining is a bitcoin mining method that does not need to have sophisticated computing tools.
You can use a cloud mining provider service .
For example using genesis mining, hashflare, hashing24, and so on.
The advantage of this approach is that it is not necessary to have in-depth knowledge of mining hardware .
In addition, there is no need to buy expensive and unaffordable equipment.
It’s just that, how to mine bitcoin with cloud mining has a high risk.
3. Solo Mining
Quoted from the same site, solo mining can be an alternative to mining bitcoin.
This way, you don’t have to share your income with anyone else.
However, you must provide advanced equipment.
For example PC, motherboard, graphics card, hard drive, RAM, and so on.
You will also have to provide a large amount of electricity and solve complex mathematical algorithms to generate bitcoins.
Solo mining is usually done by experts so it is not easy for beginners to do.
You can use ASIC ( Application Specific Circuit Chips ) hardware for mining activities.
You also need to use bitcoin mining software, including Bitcoin miner, BTC miner, easy miner, CG miner, and BFG miner
4. Bitcoin Trading Platform
Another way to mine bitcoin is to use a bitcoin trading platform .
This option can be an alternative because you can simply download the application on your cellphone.
A number of bitcoin mining applications include:
- Crypto Miner
- AA Miner
- NeonNeon Miner
- Droid Miner
Things to Prepare
When you finally choose to mine Bitcoin by way of a pool or on your own, there are at least a few things you need to prepare for.
1. The right computer
It’s no surprise that computers are needed in Bitcoin mining .
Your computer must of course have a fast processor, spacious RAM, large storage, and a capable graphics processor.
Don’t forget about the need for a power supply to run your computer, OK!
2. Mining app
There are various applications that you can use, such as Bitcoin Miner, BTC Miner, Easy Miner, and various other applications .
3. Other supporting equipment
To run complex computing, of course the computer will experience heat. So, you need a suitable air conditioner.
The resulting noise also needs to be muffled by setting up a silencer.