Bitcoin mining

Content:

"Mining", "bitcoin", "cryptocurrency" - definitions that hit the top searches on the Internet over the past year. You've probably heard that a huge pile of money is earned on this, but you do not understand at all what is here and what? In this article, you will find out where it all came from, how to start "mining" and what the future holds for cryptocurrency.

Bitcoin mining algorithmBitcoin mining algorithm

SHA256 - it is on this algorithm that the classic bitcoin is built, for working with it video cards are not enough for a long time, since our Chinese brothers invented special equipment for it - ASICs (from the English abbreviation ASIC (application specific integrated circuit). A lot of bitcoin copying cryptocurrencies are based on the same algorithm, for example, the recently appeared BitcoinCash.

How to store and withdraw Bitcoin

It is not enough to buy cryptocurrency or mine it, it is important to properly store your assets.

There are a huge number of ways to store digital money on completely different media.

  • Network wallets are the best option for those who are just getting acquainted with the world of cryptocurrencies. Online wallets allow you to access your assets from anywhere in the world and from any device.
  • Standalone software wallets are very popular, easy to use and independent. Even if all online services stop working, you will have access to your money.
  • Hardware wallets are for those who want to store cryptocurrency as securely as possible. They work without an internet connection, which prevents hackers from stealing.
  • Paper wallet is an inconspicuous storage medium for digital money. It allows you to store electronic currencies in physical form.

How to mine bitcoin on a computer

There are no special tricks in the mining system. The simplest farm may already be your home computer, if it has a sufficiently powerful GPU.
“In the world of cryptocurrencies, of which there are more than 5,000 coins at the end of 2019, only a small percentage is mined, that is, mined on ASICs or video cards.
  • Motherboard. You need to choose according to the number of video cards: some boards support only 4 video cards, and some are designed for 8 or even 12 accelerators at once
  • Risers. Physically plugging at least 4 video cards into the motherboard will not work, so you have to buy risers - special cables with additional power supply that allow you to place the video card separately.
  • CPU. As a rule, the most inexpensive model available is chosen; you just need to take a more or less modern version, very ancient dinosaurs will greatly slow down the system.
  • RAM. It is enough to install the cheapest 8 GB bracket - the main thing is that your motherboard supports it.
  • Power Supply. The power of the unit is calculated with a margin of 20-30% so that it does not work 24/7 at maximum load.
  • Frame. Such systems are mounted on an open frame. You can make it yourself from wood or aluminum, or you can buy it.

How to mine bitcoin on a computer

Programs for mining on a computer

In order to mine on video cards , the most profitable strategy is to combine into large groups, or pools. Each such pool can unite thousands of individual miners and, when a block is found, divides the reward in proportion to the invested power among all participants.

The choice of a client-miner may depend on the choice of the pool - some give their recommendations, and also provide ready-made assemblies for downloading with the prescribed settings, so you just have to download the archive. Different programs are used for video cards from Nvidia and ATI. For the green ones, for example, GMiner, T-Rex, Ethminer are among the best statistically miners for Ethereum. They have shown themselves to be somewhat more profitable than others in terms of the number of balls per unit of time, although the difference is only a few percent.

CPU mining

Mining on the processor is carried out in a similar way to the process of mining cryptocurrency using the proof-of-work (PoW) algorithm. There are cryptocurrencies, mining of which is specially optimized for processors, which is done to achieve the highest degree of network decentralization and to provide the widest possible access to cryptocurrencies.CPU mining

The most popular cryptocurrencies that are mined on processors use the CryptoNote algorithm or its modifications

Due to the relatively low computing power of processors, mining cryptocurrencies with large networks (for example, ETH, ZCash, BTC) on them is not profitable. You can get a small income from mining on the processor when mining cryptocurrencies specially optimized for this, for example, Monero.

Mining bitcoin on a video card

Using your graphics card, you can mine any coins. But to make a profit, you must only find and mine coins that offer ASIC resistance (ASIC resilient coins). But the problem with GPU mining in the current scenario is that it is difficult to get a ROI, meaning the payback of a mining farm will be quite long.

Mining in the browser

This is the only method where you can mine any type of cryptocurrency without investing in hardware. This allows the user to mine Bitcoins or any altcoins without the need to purchase and maintain special equipment. Basically, a cloud mining company owns all kinds of mining hardware in their warehouses. These companies are usually large mining enterprises with several farms that host thousands of mining rigs (video cards, ASICs, processors).

All you have to do is pay the company and lease some of its mining equipment. It's not that you physically lease the equipment, you just pay for hashpower. Depending on the rented hashrate, you will receive a payment share of the revenue generated from the hashrate you purchased.

Mining on the phone

Mobile mining is not a thing and will never be as efficient as other methods. But still, there are some coins that are trying to implement this method in order to attract a new user to mining.

There are already several mobile applications with which you can mine digital money. If you want to start mining, then doing it on your smartphone is not the best idea. It is unlikely that this will bring at least some profit, but the device can quickly fail due to constant overloads - in this case, the losses will amount to thousands or tens of thousands of rubles.

Mining pools

When mining in a pool, your income will be more stable, because you will receive a certain part of the rewards of the entire pool.
There are many pools and if you are new to mining it can be quite difficult to make a choice.
  • On the F2POOL pool: BTC, BCH, ETH, ETC, LTC and so on. In total, the pool supports over 40 cryptocurrencies.
  • ViaBTC. Here you can mine BTC, BCH, BSV, ETH, ETC, LTC, and so on.
  • SpiderPool supports the following coins: ETH, BTC, BSV and BCH.

Cloud mining without investment

Mining pools

Of course, it is impossible to earn a lot without investing in cloud mining. However, enterprises to advertise their own projects are engaged in issuing bonuses to visitors. Further, the same bonuses allow you to invest in the acquisition of capacities. The main goal is to make money with 0 investments. Remote collaboration has the following benefits:

  •  The organization of mining lies on the side of the equipment lessor
  •  In some cases, the minimum available deposit reaches only $ 10
  •  Nobody requires real tenant details

Bitcoin faucets

A crypto faucet is a mobile application or a site that appropriates modest quantities of digital money as a compensation for finishing simple assignments. They're given the name "faucets' in light of the fact that the prizes are little, very much like little drops of water trickling from a flawed fixture. In any case, on account of crypto fixtures, little measures of free or procured cryptocurrencies are shipped off to a client's wallet. To get free crypto, clients need to watch advertisements, project videos, finishing tests, clicking links (be cautious!) or doing manual tests.