If you want to know how to mine Bitcoin, you can take two different steps: go through a cloud mining company or buy and use your own hardware. We will look at both options and why, although both are not cheap, cloud mining is the safest investment for your money.
Remember that research is important! As with buying Bitcoin or altcoins, you must be aware that nothing in the world of cryptocurrencies is guaranteed. Every investment can be lost, so make sure you do your reading before you take out your credit card and have a secured Bitcoin wallet ready.
Mining vs investment
When Bitcoin was first introduced in 2009, it had minen & # 39 ; the world's first and most important cryptocurrency requires little more than a home PC – and not even a fast PC. Nowadays the entry threshold is much higher if you want to make a profit with it. That doesn't mean it's impossible, but it's not the homebrew industry it once was.
Before discussing how to mine Bitcoins yourself, it is important to note that although there is uncertainty in everything related to cryptocurrency, mining is probably the most volatile. Hardware price fluctuations, changes in the difficulty of Bitcoin mining and even the lack of a guarantee for a payout at the end of all your hard work, make it a riskier investment than even buying Bitcoins directly.
Because of this and general market volatility, it can be difficult to know how much profit you will make from mining. In 2018, the mining market fell in terms of profit and jumps up when it comes to entry barriers. Unless there is a significant technical change from Bitcoin, this is likely to remain the same. A single Bitcoin is estimated to be around $ 9,100 at the time of writing, but mining can't cost much less.
Ultimately, if you buy Bitcoin directly, you get at least something for your money immediately. It is certainly worth considering before you take the mine route.
Step 1: Choose your mining company
Cloud mining is the practice of renting mining hardware (or part of their hashing power) and letting someone else mining to do. You are usually paid & # 39; & # 39; for your investment with Bitcoin. Even if the hardware is not used for mining Bitcoin. As with general investing, it is important to do your research because there are many companies that claim to be the best and even the largest have their opponents.
A number of cloud mining companies have come and gone over the years, including those we have discussed and directly validated, such as HashFlare, who told Digital Trends in an interview that each of his customers has made a profit with his service. At the end of 2019, you can collaborate much better with a company such as Bitcoin Pool, the cloud mining branch of Bitcoin.com, an established and respected cloud mining entity. Getting started is expensive, but one of the best options there is.
For a wider range of options, CryptoCompare maintains a list of mining companies with user reviews and reviews, but keep in mind that there are many reviewers who want to shill their referral codes in the comments section.
Step 2: Select a mining package
After you have chosen a cloud mining provider and you have registered, you must choose a mining package. That usually means that you have to choose a certain amount of hashing power and that you have to refer by how much you can afford to pay. Paying more often will give you a better return or you will make a profit faster, but that is not always the case.
Most cloud mining companies will help you decide by giving you a calculation based on the current market value of Bitcoin, the difficulty of Bitcoin mining, and referring to that with the hashing power that you hire. However, it's important to note that those numbers can and will change, so it's important to look at market trends and estimate where Bitcoin is going before you choose your contract. What can be profitable now may not be if the value of Bitcoin crashes.
Although companies like Bitcoin Pool also offer their own calculators, we recommend using a third-party alternative to reduce the potential for bias creeping into the calculation.
Some cloud mining companies sell you a "pre-sale" contract. That actually requires you to pay in advance for a contract that only starts for weeks or months when new hardware becomes available. In most cases this is not advisable because there is no way to guarantee that those contracts will be profitable when they start and not even a concrete indication when that will happen.
Step 3: Choose a mining pool
After choosing your contract, most cloud mining companies will ask you to choose a mining pool. You choose a global mining team to participate.
It is a method to earn the chance of Bitcoin through mining and it is a standard practice in the cloud and personal mining. There are advantages and disadvantages of different pools that fall outside the scope of this article, but joining an established and proven low-cost pool is probably your best choice.
One of the most popular and reliable pools for new miners is Slush Pool, but you must always do your own research. Just like companies, many pools are not reliable.
Step 4: Select a wallet
Once you have completed that step, you can start cloud mining and within a few days or weeks you should see that your cloud mining account starts filling with Bitcoin. It is a good plan to retire it and put it in a secure wallet as soon as you have a small business, although some cloud miners allow you to reinvest your income for more hashing power. Whatever you do, you have to decide what you will do with your bitcoins in the long term. Although there are many products and services that you can buy with bitcoins, prices can fluctuate and you may need to do more research to see if you get a good deal. We can also help you trade in your bitcoin for another cryptocurrency or sell it directly for cash.
"Hodling", that is, saving your Bitcoin for the future, is also a viable strategy. Many people believe that its value will increase over time. Although we are not financial advisers and would not suggest doing anything in particular with your Bitcoin, if you plan to keep it, you want to consider a safe, possibly even hardware, wallet to store it in.
What if I want to mine with my own hardware?
Because of the high costs, exploiting Bitcoin yourself is only recommended if you have direct access to abundant and more importantly, cheap electricity and a powerful network connection. Before you invest in hardware or mining settings, it is necessary that you use a Bitcoin mine calculator to see if you can actually make a profit with all the costs in consideration.
If you can, you must choose the right ASIC miner to do it with. The best method is to consult the profitability of mining machines to see which miners are currently making a profit. The Asicminervalue.com site is particularly useful here and shows a constantly updated list of miners and how profitable they are. Note that the most profitable machines make between $ 10 and $ 30 a day and cost thousands of dollars to set up. The recovery of your costs is far from guaranteed, so proceed with caution.