If you are new to the world of Bitcoin, you might be pleased to know that mining for Bitcoin does not involve pickaxes and caves, and in fact, doesn’t even need to involve leaving your house as long as you have the right equipment.
Mining is just the term used to describe the process of finding newly released Bitcoin on the block chain. It used to be much simpler and only require a computer and the internet, however as it has become more popular and competitive, you would be better off with an ASIC miner, or a special computer which is intended for mining Bitcoins.
Before you even think about mining for Bitcoin, it is vital that you get yourself a Bitcoin Wallet. Of course, as with most things Bitcoin related, this is entirely online and is simply a place where your Bitcoins are kept. You are given both a private and public address or key to allow money to be moved into and out of your account.
Once you are all set up with your wallet, it is time to join a safe and trusted bitcoin mining site. This is the best way of mining Bitcoin as you work collaboratively with other miners and share your recourses to hopefully make more bitcoins. As tempting as it may be to go it alone, it is very unlikely that you will be awarded a block of Bitcoins (around 12.5 each time) on your own – teamwork is the way!
Being part of a team means solving smaller, more simple algorithms, which together will go towards solving the much bigger, main algorithm. You are awarded based on your contribution, and this is the best way to receive a good return on your investment.
Of course, choosing a mining pool isn’t simple, and there are a few things to consider. For example, how does the pool reward members? Is it proportional, score based, or perhaps pay per share? What is the fee, both for mining and for withdrawing your funds? How often do they find a block? How stable the pool? It is important to do this research to ensure that you are putting your resources into the best possible pool.
Once you have chosen a pool, you will need to download a mining program to monitor the rig. With a lot of mining pools, there will be a specific program that is required, however for others, you are free to choose your own, and again, research will be useful here to find the best ones.
From here you are ready to mine! Fire up your mining software and get to work. Good luck!