Bitcoin, how to mine: everything you need to know and care for!
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Do you want to mine Bitcoins successfully? Before learning about the mining process, you need to have a good understanding of how Bitcoin mining and the digital economic universe works.
Knowing how to mine Bitcoins safely and efficiently is essential for anyone who wants to succeed in this path, especially with regard to the functioning of the blockchain and the organization of the portfolios already created within the universe of this cryptocurrency.
For those who don't know yet, mining Bitcoins is the process of updating the currency portfolios with each new transaction carried out. Bitcoin mining also involves the correct registration in its entire data structure – blockchain – according to the cryptography rules.
Bitcoin mining is necessary to prevent any serious security breach from happening, as its system is decentralized, that is, it does not depend on any larger body to control this process. However, it is worth remembering that it is not a mandatory activity, in other words, it is possible to invest in Bitcoins only by performing cryptocurrency purchase and sale transactions, as is done with any asset.
We prepared this post for you to understand a little more about how to mine Bitcoin safely and efficiently. Keep reading!
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What is cryptocurrency mining?
Before knowing how to mine Bitcoin on PC, you need to understand more about this activity and its importance for maintaining a successful investment portfolio.
A conventional currency, such as the dollar and the real, is issued by each country's central bank and its circulation volume is controlled by the government in accordance with its monetary policies. In the case of a cryptocurrency such as Bitcoin, national banks do not act in any way in its issuance, which is done through computational work.
Mining, therefore, means “issuing” the cryptocurrency, transmitting it to a blockchain network, where all transactions that use it will be registered. To ensure the secure transmission of these transactions, the Bitcoin system uses an algorithm that creates a kind of “puzzle”, which must be solved to complete the transmission. These puzzles consist of complex calculations that require the use of software to solve them.
Why mine cryptocurrencies?
As cryptocurrencies do not have a centralizing entity that controls and records their movements, the method used to do so is encouraging their own users, through rewards, to assume this role.
Thus, by mining Bitcoin, in addition to contributing to the proper functioning and security of the cryptocurrency, ensuring that its distribution is done fairly and that the blocks are ordered chronologically, the user still earns a "reward" amount. of coins for each “puzzle” solved.
How does the Bitcoin mining process work?
First, you must have specific mining software. Each cryptocurrency has its own, and there is one with the function of performing Bitcoin mining.
All computers that have this software form the Bitcoin network, which is interconnected and works in the P2P (peer-to-peer) model. In this scenario, each computer is considered a minor, and the system allows the formation of groups of miners, called a mining pool.
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Thus, miners work together to validate transaction information and ensure all the security of exchanged data, always using the blockchain feature. This is why there is no need for a larger body to control everything.
Going into more detail, the Bitcoin mining process consists of trying to decipher the encrypted codes issued by the software, which represent the transactions made. For this to be possible, it is necessary to solve very complex mathematical equations that only computers are capable of performing.
The miner who manages to crack the code first wins a number of Bitcoins as a reward for the work. When decrypted, the transaction is recorded in the blockchain, the large Bitcoin database.
The difficulty of the mining process
To get an idea of how Bitcoin mining works, it is necessary to understand that the algorithm for Bitcoin mining is called Proof of Work – translating into Portuguese, we have the expression “Proof of Work”.
Basically, network participants, who are miners, need to validate the blocks that arrive at each transaction performed. Validation is done through this algorithm, which checks if the transaction is consistent if there is no attempted fraud or attempted illegal operation.
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In this scenario, it is necessary to understand that, as the number of miners in the network increases, more Bitcoin blocks are released to be mined and, consequently, the block generation rate increases, also increasing the difficulty of mining.
This is because the speed of resolution of the proof of work is an important factor for success, so whoever manages to solve a block first will be the winner of that block's mining.
Is Bitcoin Worth Mining?
At first, we can say that there are both positive and negative arguments. The fact is that the process can offer a huge gain for the miner: it's like drinking water from the spring! However, in many cases, its cost can be much higher and generate losses.
So, we recommend that, before you start mining Bitcoin, you do an analysis of four important variables for the process.
1. What is the computer's hash rate, which basically represents the grade of the equipment's ability to efficiently mine Bitcoins.
2. Electric consumption costs when leaving the machine on.
3. The investment required to purchase the computer.
4. Maintenance costs for the machine.
Study these four points very carefully to understand whether it is worth investing in Bitcoin mining or not. Often, operating through an expert platform on the subject, through the purchase and sale of Bitcoins, is the best option.
After that, to make it clearer, we prepared a shortlist with some of the advantages of mining Bitcoins. See below for what they are.
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Contribution to the network
To strengthen the Bitcoin network, it is necessary to contribute effectively to it, and working with the mining of your transactions is the main activity that helps to fulfill this objective. After all, more users need to be adept at the activity so that it can grow.
Earn money
Another great advantage for those who are adept at mining is the financial achievement since the reward for the success in solving the algorithm in each transaction is made through credits in Bitcoin.
In other words, the successful miner will be able to accumulate more and more Bitcoins, which can be sold in the future, when deemed appropriate.
Supplement the income
We know that Bitcoin mining is not always the miner's main source of income, and it is not necessary to dedicate only to that, because the computer does most of the work.
Therefore, with the gains that the Bitcoin mining activity can bring, it is possible to have a good income supplement.
How to mine Bitcoins safely and efficiently?
Now that you know more about mining Bitcoins, we're going to provide seven tips for you to do this process safely and efficiently. Check out!
1.Purchase a Bitcoin wallet
The first step to be taken is the acquisition of a Bitcoin wallet – Bitcoin Wallet, in English. The idea of this wallet is the same as that of a physics wallet, that is, it aims to keep your cryptocurrencies safe.
Each wallet provides a passkey or an address so that you can access its content. This helps keep your Bitcoins safe, and even many of them offer a physical backup in case of problems with online storage or a computer.
2.Buy a suitable machine
The Bitcoin mining world has become very competitive, which made the details decisive for success in this process. One of them refers to the computer used to carry out this work.
So, for your decision to be correct, we suggest analyzing the four variables that we discussed in the previous topic. To facilitate the choice, it is recommended to use a calculator to mine Bitcoins. Once this is done, look for the best machine to carry out this process.
3. Be part of a mining pool
The Bitcoin universe is fully collaborative. Therefore, in order to have relevant gains, it is interesting to be part of a Bitcoin mining pool. The idea of this group is that the work is divided among all participating miners.
In this way, the computational power of all members is combined when solving challenges. In this context, each member receives a part of the algorithm to be solved, making the process easier for everyone and generating agility and efficiency.
4. Install a mining program
To mine Bitcoins, it is necessary to have software that has this purpose. The choice must be made taking into account the chosen mining platform and the machine used.
The list of programs is vast. So it's worth doing thorough research before making a decision. In this regard, there are already many clarifications in the Bitcoin community itself, so just consult it.
5. Use the cloud
One of the most efficient strategies to carry out the Bitcoin mining process is to use the cloud. There are two types of cloud mining: one that can be purchased from a company that provides the service and P2P.
In the case of P2P, you buy a certain period of time for a machine from someone who is in a place where electricity is not as expensive as in india. The most important thing is to make sure that buying cloud mining will be more profitable than the conventional one.
6. Perform periodic maintenance
As with all material goods, Bitcoin mining machines must be taken care of, so that they can last longer and do the job much more efficiently, in addition to avoiding losses with extra expenses in the future.
So, always try to be attentive, performing the necessary maintenance on your equipment. In this way, in addition to avoiding greater expenditure on the activity, the risk of incidents that could harm the activity is lower, such as the heating of the machine, for example.
7. Pay attention to HVAC
Speaking of heating the machine, it is necessary to pay attention to the air conditioning of the environment in which the machines are installed. After all, india is a country with temperatures above 27ºC most of the year.
So, keep in mind that investing in climate control is essential so that there is no damage to the machines and the mining activity runs smoothly.
How does mining for other currencies work?
As mentioned before, each cryptocurrency has specific software to perform the mining. Know what it takes to mine the main ones!
ether
Ethereum coin mining can be done at home, with the aid of video plates.
powerful does.
To get started, you first need to download the blockchain from the cryptocurrency's official website. Then just set your wallet to mining mode and change some settings on your node.
ZCash
ZCash's innovation is the use of the Equihash algorithm – resistant to ASICs – in its consensus engine.
First, you need to download the cryptocurrency blockchain and then configure your wallet. The process can take a little while, but then you'll be ready to go.
money
This coin, popular for its privacy features, can be mined through a personal computer.
First, you need to download a wallet for storing your coins, and then a mining software that supports Monero. The simplest to use is MultiMiner, but there are several other options.
Dogecoin
One of the main attractions of this currency for the user is its ability to generate more coins throughout the year, unlike Bitcoin, which has a certain amount, limited to 21 million units of cryptocurrencies.
To mine Doge, in addition to the wallet, it is necessary to install specific software, the most popular option being the CPU miner. To mine faster, you can use video cards to assist.
How to mine Bitcoin by mobile
Powerful CPUs and graphics cards are not always needed to mine cryptocurrencies. When it comes to how to mine Bitcoins for free, a great option is your own cell phone!
There are several mobile apps with an A11 processors, which allow mining to be done from the device itself, wherever you are.
However, despite its practicality, mining Bitcoins is an activity that consumes a lot of battery and can affect the proper functioning of your device. Thus, it is necessary to weigh the pros and cons and see what is worth it to you.
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Important: Read before you start mining cryptocurrencies
Did you realize how mining Bitcoin is relatively simple, but it needs some care to make the right decisions?
It is essential to study the subject before starting to invest in more powerful processors or throwing yourself into a mining process that you do not yet know.
The cryptocurrency market can bring good returns, but you need to know what you are doing to reduce the risks of bad investments.
On our blog, we have several informative contents about what Bitcoin is and how to buy Bitcoin – everything so that you can enter the world of cryptocurrencies with extensive knowledge and know-how to make good use of it.
Remember that when it comes to technology, there is a constant movement of change. That's why it's important to always update yourself so you don't get left behind and start earning Bitcoin today.
