Mining Tutorials

Blockchain Development

Bitcoin Mining Guide – Getting started with Bitcoin mining

by Justin Macon

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How Bitcoin Mining Works

Before you start mining Bitcoin, it’s useful to understand what Bitcoin mining really means. Bitcoin mining is legal and is accomplished by running SHA256 double round hash verification processes in order to validate Bitcoin transactions and provide the requisite security for the public ledger of the Bitcoin network. The speed at which you mine Bitcoins is measured in hashes per second.

The Bitcoin network compensates Bitcoin miners for their effort by releasing bitcoin to those who contribute the needed computational power. This comes in the form of both newly issued bitcoins and from the transaction fees included in the transactions validated when mining bitcoins. The more computing power you contribute then the greater your share of the reward.

Sometimes you may want to mine a more volatile altcoin like MWC which is superior for scalability, privacy, anonymity and fungibility by utilizing MimbleWimble in the base layer.

With mainnet launching in November 2019 it has risen from $0.22 to over $8.00 in its first two months.

MWC Chart


Step 1CREATE BITCOIN WALLET

How To Start Bitcoin Mining

Once you’ve Chosen your bitcoin mining Software, you’ll need to download a special program used for Bitcoin mining. There are three programs out there that can be used for Bitcoin mining, but one person Can  use one Device one program for 7 days .

click and Select windows/Linux/Android program or iOS –

You may want to learn more detailed information on the best bitcoin mining software.


Step 2 – Join a Bitcoin Mining Pool

Once you’re ready to mine bitcoins then we recommend joining a Bitcoin mining pool. Bitcoin mining pools are groups of Bitcoin miners working together to solve a block and share in its rewards. Without a Bitcoin mining pool, you might mine bitcoins for over a year and never earn any bitcoins. It’s far more convenient to share the work and split the reward with a much larger group of Bitcoin miners. Here Our Miner is Inside Connect & Full Node With Your Submit Bitcoin address Automatically .

For a fully decentralized pool, we highly recommend Our Unknown Mining Pool.

Our pools are believed to be currently fully validating blocks with Bitcoin Core 0.9.5 or later (0.10.2 or later recommended due to DoS vulnerabilities):

 


Step 3 – Set Up A Bitcoin Wallet

The next step to mining bitcoins is to set up a Bitcoin wallet or use your existing Bitcoin wallet to receive the Bitcoins you mine. Copay is a great Bitcoin wallet and functions on many different operating systems. Bitcoin hardware wallets are also available.

Bitcoins are sent to your Bitcoin wallet by using a unique address that only belongs to you. The most important step in setting up your Bitcoin wallet is securing it from potential threats by enabling two-factor authentication or keeping it on an offline computer that doesn’t have access to the Internet. Wallets can be obtained by downloading a software client to your computer.

For help in choosing a Bitcoin wallet then you can get started here.

You will also need to be able to buy and sell your Bitcoins. For this we recommend:

  • SpectroCoin – European exchange with same-day SEPA and can buy with credit cards
  • Kraken – The largest European exchange with same-day SEPA
  • Buying Bitcoin  Guide – Get help finding a Bitcoin exchange in your country.
  • Local Bitcoins – This fantastic service allows you to search for people in your community willing to sell bitcoins to you directly. But be careful!
  • Coinbase is a good place to start when buying bitcoins. We strongly recommend you do not keep any bitcoins in their service.

Step 4 – Stay Up To Date With Bitcoin News

  • Staying up to date with Bitcoin news is important for your bitcoin mining profits. If you want general Bitcoin news then we recommend the WeUseCoins news section.

WANT TO LEARN MORE ?

A cryptocurrency enthusiast willing to reap profits through the standard mining process either goes solo using his/her own mining devices, or joins a mining pool where his/her mining resources are clubbed with those of other pool miners to improve the mining output with enhanced processing. This article discusses how mining pools work.


The world’s oldest currency, physical gold, is dug out of the earth through the process of gold mining. It discovers hidden gold that is not yet available. Successful mining allows the individual digger or the mining company to own the gold.

Cryptocurrency mining works similarly, as virtual coins can be discovered digitally using computer programs. The bitcoin system has set a limit of total 21 million bitcoins.

All these bitcoins are lying within the blockchain system. Most are already dug out or “mined,” and owned by different participants, while the rest are in the process of being mined and will eventually become available. (See more: Only 20 Percent Of Total Bitcoins Remain To Be Mined.

 

Bitcoin Mining

Bitcoin is the first open-source, decentralized and currently most popular cryptocurrency. Bitcoin mining is done with specialized ASIC-Hardware utilizing the SHA-256 algorithm. You can mine Bitcoin and Bitcoin Cash natively. You can also receive Litecoin, Dash, Zcash and other cryptocurrencies for your output using the AUTO-Mining Allocation feature in our Dashboard.

 

JUST 3 STEP TO GETTING STARTED

 

  1.  Choose PLAN 
  2. Install Soft
  3. Connect Your BTC Address

Cryptocurrency mining involves two functions – releasing new cryptocurrency into the system (similar to gold discovery), and verifying and adding transactions to the blockchain public ledger. It is performed using an internet-connected computer which is often equipped with special mining hardware devices and software programs to control and manage the mining process.

Crypto mining is a calculation-intensive, puzzle-solving-like computation process that requires high processing power along with high electricity consumption. The miner who first solves the puzzle gets to place the next block on the blockchain and claim the rewards. Rewards include the miner becoming the owner of the newly released bitcoin, or getting fees linked to the transactions performed in the block. (For more, see How Does Bitcoin Mining Work?

The cryptocurrency discovery process is configured in such a way that if more miners are working, the difficulty level goes up, while a decline in the number of miners eases the difficulty level. The rewards make mining a lucrative activity for monetary gains. As more miners attempt to grab a piece of the pie, finding new blocks gets computationally more difficult, requiring more computing power. This is often impractical and too expensive for individual miners.

 

Enter the mining pool, which is a collection/group of miners working together to increase their chances of finding a block at the group level, compared to that at the individual level. Through such pools, miners combine their individual computational resources with those of the other members which enhances their joint processing power, and helps to achieve the desired output faster.

To draw an analogy, a gold digger having a capacity to dig 100 square meters of land in one day will take 100 days to explore one hectare of land for gold. Combining 100 gold diggers can complete the job in just 1 day. The discovered gold can be split among all 100 diggers evenly, assuming all have put in equal effort to explore their assigned portions of land.

 

Similarly, one can combine nine mining devices, each generating mining power of 335 megahashes per second (MH/s), to generate a combined output of around 3 gigahashes. The output is faster and has a better chance to discover bitcoins.

 

However, this pooled work with better output and higher chances, comes at a cost. The reward earned through combined mining is split among the various pool members, as compared to sole ownership on the reward earned through individual mining. 

 

A mining pool essentially works as a coordinator for the pool members. The functions involve managing the pool members’ hashes, looking for rewards through pooled efforts of available processing power, recording work performed by each pool member, and assigning reward shares to each pool member in proportion to the work performed after suitable verification.

The pool may also charge a fee from each member miner.

Work to each pool member can be assigned in two ways. The traditional method involves assigning members a work unit comprised of a particular range of nonce, the number that blockchain miners are computing for. Once the pool member completes the work on the assigned range, he places a request for a new work unit to be assigned.

A second mining method allows pool members the liberty to pick and choose as much work as they like without any assignment coming from the pool. The methodology ensures that no two members take the same range, just like no two gold diggers should explore the same piece of land.

There can also be a pool of pools, to further enhance output.

 

Successful identification of the block hash leads to reward for the pool, which is then shared based on the pool shares mechanism. Shares describe how much work a particular member’s computer is contributing to the mining pool.

There are two kinds of shares – accepted and rejected. Accepted shares indicate that work done by a pool member is contributing substantially towards discovering new cryptocoins, and these get rewarded.

Rejected shares represent work that does not contribute to a blockchain discovery, and hence are not paid for. Even if a member’s computer performs work successfully but submits it late for that particular block, it constitutes rejected work.

A pool member ideally wants that all his shares get accepted. However, rejected shares are inevitable as it is impossible that all the computations on a member’s computer will be useful in coin discovery, and will always be submitted on time.

Pool members are rewarded based on their accepted shares that helped in finding a new coin block. A share has no actual value, and it simply acts as an accounting method to keep the reward distribution fair.

Based on the accepted shares, members get rewarded using different methods, which include the following:

-Pay-per share (PPS): Allows instant payout solely based on accepted shares contributed by the pool member, who are allowed to withdraw their earnings instantly from the pool’s existing balance.
-Proportional (PROP): At the end of a mining round, a reward which is proportional to the number of the member’s shares with respect to total shares in the pool, is offered.
-Shared Maximum Pay Per Share (SMPPS): A method similar to PPS but limits the payout to the maximum that the pool has earned.
-Equalized Shared -Maximum Pay Per Share (ESMPPS): A method similar to SMPPS, but distributes payments equally among all miners in the bitcoin mining pool.
-Other variations include Double Geometric Method (DGM), Recent Shared Maximum Pay Per Share (RSMPPS), Capped Pay Per Share with Recent Backpay (CPPSRB), and Bitcoin Pooled Mining (BPM).

Before deciding to join a particular pool, miners should pay attention to how each pool shares its payments among members and what fees, if any, it charges. Typically, pools may charge between 1% and 3% as pool fees.

Full List of Mining Hardware

MinerCapacityEfficiencyPrice
AntMiner S1180 Gh/s2.0 W/GhN/A
AntMiner S21000 Gh/s1.1 W/GhN/A
AntMiner S3441 Gh/s0.77 W/GhN/A
AntMiner S42000 Gh/s0.7 W/GhN/A
AntMiner S51155 Gh/s0.51 W/GhN/A
AntMiner S5+7722 Gh/s0.44 W/GhN/A
AntMiner S74.73 Th/s0.25 W/GhN/A
AntMiner S913.5 Th/s0.098 W/GhN/A
AntMiner U12 Gh/s1.25 W/GhN/A
AntMiner U22 Gh/s1.0 W/GhN/A
AntMiner U363 Gh/s1.0 W/GhN/A
ASICMiner BE Blade11 Gh/s7.72 W/GhN/A
ASICMiner BE Cube30 Gh/s6.67 W/GhN/A
ASICMiner BE Sapphire0 Gh/s7.59 W/GhN/A
ASICMiner BE Tube800 Gh/s1.13 W/GhN/A
ASICMiner BE Prisma1400 Gh/s0.79 W/GhN/A
Avalon Batch 166 Gh/s9.35 W/GhN/A
Avalon Batch 282 Gh/s8.54 W/GhN/A
Avalon Batch 382 Gh/s8.54 W/GhN/A
Avalon2300 Gh/sN/AN/A
Avalon3800 Gh/sN/AN/A
Avalon63.5 Th/s0.29 W/GhN/A
bi*fury5 Gh/s0.85 W/GhN/A
BFL SC 5Gh/s5 Gh/s6.0 W/GhN/A
BFL SC 10 Gh/s10 Gh/sN/AN/A
BFL SC 25 Gh/s25 Gh/s6.0 W/GhN/A
BFL Little Single30 Gh/sN/AN/A
BFL SC 50 Gh/s50 Gh/s6.0 W/GhN/A
BFL Single ‘SC’60 Gh/s4.0 W/GhN/A
BFL 230 GH/s Rack Mount230 Gh/sN/AN/A
BFL 500 GH/s Mini Rig SC500 Gh/s5.4 W/GhN/A
BFL Monarch 700GH/s700 Gh/s0.7 W/GhN/A
BitFury S.B.N/AN/AN/A
Bitmine.ch Avalon Clone 85GH85 Gh/s7.65 W/GhN/A
Black Arrow Prospero X-1100 Gh/s1.0 W/GhN/A
Black Arrow Prospero X-32000 Gh/s1.0 W/GhN/A
Blue Fury3 Gh/s1.0 W/GhN/A
BTC Garden AM-V1 310 GH/s310 Gh/s1.05 W/GhN/A
BTC Garden AM-V1 616 GH/s616 Gh/s1.05 W/GhN/A
CoinTerra TerraMiner IV1600 Gh/s1.31 W/GhN/A
DrillbitN/AN/AN/A
HashBuster Micro20 Gh/s1.15 W/GhN/A
HashBuster NanoN/AN/AN/A
HashCoins Apollo v31100 Gh/s0.91 W/GhN/A
HashCoins Zeus v34500 Gh/s0.67 W/GhN/A
HashFast Baby Jet400 Gh/s1.1 W/GhN/A
HashFast Sierra1200 Gh/s1.1 W/GhN/A
HashFast Sierra Evo 32000 Gh/s1.1 W/GhN/A
Klondike5 Gh/s6.15 W/GhN/A
KnCMiner Mercury100 Gh/s2.5 W/GhN/A
KnC Saturn250 Gh/s1.2 W/GhN/A
KnC Jupiter500 Gh/s1.2 W/GhN/A
KnC Neptune3000 Gh/s0.7 W/GhN/A
LittleFuryN/AN/AN/A
Metabank120 Gh/s1.42 W/GhN/A
NanoFury / IceFury2 Gh/s1.25 W/GhN/A
NanoFury NF24 Gh/s1.35 W/GhN/A
BPMC Red Fury USB2.5 Gh/s0.96 W/GhN/A
ROCKMINER R3-BOX450 Gh/s1.0 W/GhN/A
ROCKMINER R4-BOX470 Gh/s1.0 W/GhN/A
ROCKMINER Rocket BOX450 Gh/s1.07 W/GhN/A
ROCKMINER R-BOX32 Gh/s1.41 W/GhN/A
ROCKMINER R-BOX 110G110 Gh/s1.09 W/GhN/A
ROCKMINER T1 800G800 Gh/s1.25 W/GhN/A
Spondooliestech SP10 Dawson1400 Gh/s0.89 W/GhN/A
SP20 Jackson1.3-1.7 Th/s0.65 W/GhN/A
Spondooliestech SP30 Yukon4500 Gh/s0.67 W/GhN/A
Spondooliestech SP31 Yukon4900 Gh/s0.61 W/GhN/A
Spondooliestech SP35 Yukon5500 Gh/s0.66 W/GhN/A
TerraHash Klondike 165 Gh/s7.11 W/GhN/A
TerraHash Klondike 6418 Gh/s7.06 W/GhN/A
TerraHash DX Mini (full)90 Gh/s7.11 W/GhN/A
TerraHash DX Large (full)180 Gh/s7.11 W/GhN/A
Twinfury5 Gh/s0.85 W/GhN/A
Avalon USB Nano33.6 Gh/s0.85 W/GhN/A
GekkoScience9.5 Gh/s0.33 W/GhN/A

Justin Macon

All of our instructors are experts in their fields of expertise and great in transferring their knowledge – teaching skills are supported by our teach coach program.

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