How to mine Bitcoin – Beginners Guide
Bitcoin value has exploded recently with the intervention of Federal Reserve Chairman, Ben Bernanke where he commented that “they may hold long-term promise” during last week’s U.S. Senate hearing on the Potential Risks, Threats and Promises of Virtual Currencies.
It is introduced in 2009 as a peer-to-peer payment network which broadcasts digitally signed payment messages all over the world to be verified by the decentralized network of computers.The operators are known as miners and will be rewarded for the work done, hence the word Bitcoin mining. This is the basic concept of Bitcoin but i guess you would have known about Bitcoin to be reading this. So let’s get started on how to mine Bitcoin.
Beginners guide to Bitcoin mining
I came across a lot of information that is too technical when i was getting started. I’m sure there is a way for normal users to start mining without much knowledge on the coding itself. So this tutorial will be an easier way to get started on mining Bitcoins.
Step 1 : Create a wallet
You need a wallet to store your coins since it is a digital currency and you can get the wallet from the official Bitcoin site. Choose and download the Bitcoin client for your operating system then proceed to install it. The client requires you to download a fairly large blockchain file of more than 6GB of data.
Remember that losing your Bitcoin wallet is akin to losing your physical wallet. You can learn more on how to create a secure offline wallet for your savings and just enough coins in your online wallet for day-to-day trading here.
Step 2 : Join a pool
Join a mining pool where multiple users work together to mine Bitcoin and share the rewards fairly. Bitcoins are awarded in blocks that consists of 25 coins, and unless you are extremely lucky, you will not be getting any blocks mining individually. The most popular mining pool is BitcoinCZ Mining also known as Slush’s pool. Sign-up for an account and add as many workers as you need. For each computer that you wish to use for mining, create a worker ID for it so the pool can keep track of your contributions.
Step 3 : Install a mining software
There are a number of different mining software for different platforms.
- GUIMiner is a great software for Windows user and allows you to create miners with almost any standard graphics cards.
- 50Miner is another popular choice with easy to use user interface and easy setup.
- MacMiner is an OS X mining client, if you are uncomfortable with the command line/terminal setup.
You will need to enter your BTC account for reward, worker info and pool and they will start mining.
Step 4 : Watch the Bitcoin coming in
You can watch the progress by logging in to your mining pool account and watch from the My Account tab. And you will be able to set the Send Threshold to send Bitcoins to your wallet when it reaches the limit specified.
Good luck and have fun mining.