Bitcoin mining is not only a way of earning money. What most people don’t realise, is that Bitcoin miners play a pivotal role in fueling the whole Bitcoin currency, keeping it secure and operating. The calculations are so intense that miners use specialized computers that run hot enough to keep homes or even office buildings warm through the winter.
When Bitcoin was first invented it was easy for users to merely operate from their home computers to mine a few Bitcoins daily. Now that it has grown in popularity, it’s become a means to profit, especially if you live in South Africa
Let’s break down how to set up to mine Bitcoins into a few steps
STEP 1: CALCULATE IF BITCOIN MINING WILL BE PROFITABLE
You need to buy some ASIC’s or GPU’s here. Realistically, you only start making a real profit after you have broken even. You still need to calculate whether you’re making a profit every month, however.
It is not possible to accurately calculate your profit upfront. You can still get a rough idea if the GPU you’ve chosen is correct or not/ The first 6 months for most miners run smoothly and their profits look fantastic.
Most computer hardware comes with a short warranty. It’s important to factor in the additional expenses for maintenance and spare parts. However, there’s another issue to fix:-
Bitcoin Difficulty Level
You calculate the time you need to mine coins via your hashrate. However, after some time, bitcoin difficulty increases. Thus more Hash is needed to solve the problem. So, in essence, the ‘Bitcoin Difficulty’ factor is constantly being adjusted to make it harder to mine bitcoins, which in turn decreases your profitability rate.
STEP 2: GET A BITCOIN WALLET
Once you’ve worked out that you can afford the hardware start-up costs and monthly expenses, you want to get mining already. Before you do, you need to have a safe place to store the bitcoins you collect. This is a Bitcoin Wallet.
There are 2 types of wallets:
You can choose to download a wallet for your computer or one for your phone. This option allows you to control your bitcoins completely.
A third-party hosted web wallet. For this option, you need to trust over your bitcoins to someone else.
STEP 3: FIND A BITCOIN MINING POOL
A mining pool is a great idea for beginners to join because they get to work with professional, established miners. This will help them learn the skills of the trade.
STEP 4: GET THE HARDWARE: A MINING MACHINE FOR YOUR COMPUTER
Now that you’ve decided what to buy and what to get, you need to get a good GPU and computer. Luckily, you can get some on this site itself
STEP 5: READY, SET, MINE!
Start Bitcoin mining, and be on your way to making a profit!