Since its launch in 2009, Bitcoin has only been growing bigger and almost every crypto investor is trying to obtain at least some number of these coins to their crypto portfolio. The easiest way to do this is to simply buy it on the exchange, but there are also other various ways of getting your hands on the most stable cryptocurrency in the world.
One of the most popular ways to obtain the coin “for free” is to try to mine it. Considering how tempting the mining experience is, you will soon find out that there are many prospective miners who hunt for digital wealth.
As you can probably guess, this method of getting Bitcoin is not absolutely free. You need to keep in mind that you will need to invest in mining equipment and pay for electricity. This is where cloud mining further decreases your expenses. Therefore, if you’re interested in starting your own mining business, this article will help you with some essentials to get you going.
Originally, Bitcoin was designed to allow anyone with a computer to participate in the mining process. However, joining the mining community today is close to impossible if you don’t have cheap electricity and thousands of dollars already. The business is very competitive, and you stand no chances of obtaining BTC if you have less computing power than your competitors.
The specialized hardware for mining is commonly referred to as ASIC (application-specific integrated circuits). You will need this piece of hardware to make your mining activities profitable. Consider its operational characteristics before you finally decide which ASIC model you will go with.
Now, this is where cloud mining will come in handy. If you lack equipment, electricity, or the space required, you have a chance to buy a Bitcoin cloud mining contract and start your business from there. The main idea of this model is to utilize a remote data center and use its processing power. In other words, you don’t need high technical knowledge and expensive equipment to do this. You are simply renting processing power from somewhere in the world instead of paying for the electricity and buying the hardware on your own.
The advantage of this model is more than obvious – your costs are reduced by a lot. However, at the same time, you will be taking higher risks and will probably be making less profit. Still, this can be a huge advantage in a number of ways.
Setting up cloud mining can be tricky sometimes. It is recommended to deal with reputable platforms in order to avoid fraud. Some cloud services will offer you better conditions, but it is generally better to try to avoid those. Genesis Mining, EasyMiner, and ECOS are some of the best cloud services available at the moment.
Software you need
Mining is impossible without the special software coded for it. Of course, you need to set a matter with your location, power, and equipment before choosing software. The good thing is that there are tons of free programs that can run on most operating systems and that are compatible with most mining hardware.
The crypto community has a few favorites when it comes to mining software. Therefore, if you’re completely new, platforms that could be the best options for you are EasyMiner, ECOS, BFGMiner, CGMiner.
As with most things in life, mining is also done more efficiently and quickly if done in a group. This is exactly what a mining pool is. Miners will group to join their hashing power to mine the cryptocurrency at a faster rate. If you try to do it alone, it is almost impossible to obtain almost anything in BTC. Mine in a group – and you will have a good chance for reward. The pre-established formula will automatically share any mined Bitcoin, so you don’t have to worry about getting your part.
In addition, most mining pools won’t take any money from you in advance. Instead, you will probably pay your way in through Bitcoin mining, and it is usually a small fraction of what you get. F2Pool, Via BTC, and BTC.com are just a few examples of well-established mining pools with plenty of successful miners.
Still, you can always remain an individual miner if you don’t want a company. In the community, this approach is usually referred to as “solo mining”. Still, as already mentioned, the chances are that you probably won’t get any reward at all.
To transfer BTC from your mining account, you will have to make a Bitcoin wallet. Almost all popular wallets support the currency since BTC is the most popular token. This means that you won’t run into any problems while creating a good and safe solution for your mined tokens. Generally speaking, there are two main types of wallets: cold and hot ones.
Cold wallets are usually considered a more reliable choice. But, since they are physical electronic devices, they can be rather expensive. Hot wallets, on the other hand, are software wallets that can be downloaded, but they have way less security as they are hackable. It is generally recommended to do your own research on this topic to get a better understanding and make your choice depending on your investment in mining.
End of the Line
The maximum supply of Bitcoin is limited. There are 21 million of it, and almost every miner strives to get a piece of the pie until everything is already obtained. This is why cloud services and Bitcoin mining are always very popular topics in the crypto community. Finding your way in the mining business can be frustrating at first, but once you’re in, you’re up to something big.
Never neglect information that can possibly influence your mining. Stay in touch with other miners and read as much as you can about the newest trends. This way, you will have the most chances to get out of the business with profit. Things changes constantly, so the one with most info will gain the most.