People who invest in mining Bitcoins use specific hardware to help validate Bitcoin transactions while they also provide security for the blockchain of the Bitcoin network. They measure the speed of the process in hashes per second. By releasing Bitcoins to the contributers the network rewards the miners. The reward comes in the form of new Bitcoins and the fees from transactions when validated through mining Bitcoins. The more computing power you contribute the bigger the reward is. For a review of the best mining hardware, please visit this article.
Get a Bitcoin Mining Rig
Keep in mind that to invest in mining Bitcoins is very competative. As the number of people who mine Bitcoins grows, the mining difficulty grows and it’s harder to make your investment back and make proffit. It is for the best you make your own research Which equipment can be even profitable for you. There are quite a few Bitcoin mining calculators in the web. Then just enter the data from the one that you plan to buy. Now you can see how long it will take you to be on breakeven or on a proffit. After calculating the profit you can take your mining rig. You can easily buy one(or several) on Amazon.com. Today the most powerful Btcoin miner is Antminer S9. In the past it was possible to mine Bitcoins with your computer. But as stated above with increased competition you will need special equipment to do so.
Get a Bitcoin Wallet
When you invest in mining Bitcoins you have to set up a Bitcoin wallet. It is equivalent of a bank account and allows you to store, also send and receive bitcoins. There are several types of wallets available, such as moblie, desktop ans hybrid. With the software one you have full controll over your bitcoins, but it is trickier to install and maintain. You can
also store the wallet on a removable device if other people have easy acces to your computer. The web wallet is much easier to use,but it is hosted by a third party. If you use one you should trust that it has high level of security so it can protect your coins.
Find a Bitcoin Mining Pool
Bitcoin mining pools are groups of miners that work together and share the reward. The reason to join a pool is that miners are given easier algorithms to solve and it’s more likely to solve the bigger one and earn the coins that are rewarded to miners upon solving the algorithm. The chance is that you will make more consistent income , since it’s much harder to solve the algorithms alone.
Things to consider when joining a Bitcoin Mining Pool:
The reward methods are several types – proportional/ score based/ PPLNS/ Pay Per Share
The fees they charge you for mining and withdrawing funds, how easy it is to withdraw funds
How frequently are you rewarded(how often they find a block)
How stable the pool is, what kind of stats do they provide
Fin more information on Bitcoin talk. Complete comparison of bitcoin mining pools can be found at Bitcoin Wiki.
Get a Mining Software
A lot of the mining pools have their own software, but some don’t. The software is basically a mining client to run on your computer to help you controll your rig. Depending on your rig you will have to find the right software. You can compare the different software here.
Ready to Start Mining?
Now you just have to connect your miner to your computert(tipically with USB) and to a power outlet and your’re ready to go. Open your software and enter the mining pool. Now you can start mining. You will basically be collecting shares which will represent your part of the work of finding the next Bitcoin block. Make sure you add your bitcoin adress where it is required so you can be paid accordingly.
Bitcoin Cloud Mining Services
Please note that WE ARE NOT encouraging people to invest in mining Bitcoins through cloud mining services, we just though to post quick reviews of couple of them. Investing in such services is quite risky, since there is a huge number of scams through the Internet.
Genesis Mining is the one of the largest Bitcoin and scrypt cloud mining providers. They offer three Bitcoin cloud mining plans, with reasonable prices. They also have Zcash mining contracts available.
Hashflare offers SHA-256 mining contracts and more profitable SHA-256 coins can be mined while the payouts are automatic and are still in BTC. Their ustomers must purchase at least 10 GH/s.