Can I mine my own bitcoin?
If you are wondering whether it is possible to mine your own bitcoin, the answer is yes. Bitcoin mining is simply the process of performing complex calculations on blocks of data which maintain the Bitcoin network with your computer. Knowing how to mine bitcoin is profitable, as miners are rewarded for their efforts with a certain amount of Bitcoins.
Now you’re probably curious about how to mine bitcoin, how to mine bitcoins for fee, and how to mine bitcoins for free. You might even be wondering; ‘Is mining bitcoin legal?’ Yes, it is legal and here is how to go about it.
To start mining bitcoins, you will need to get a bitcoin mining hardware. In its early days, bitcoin can be mined directly with your computer CPU or high-speed graphics card. But that’s no longer possible today. Custom Bitcoin ASIC chips which give up to 100 times the capacity of older computers in performance have taken control of the Bitcoin mining industry.
Trying to mine bitcoin with anything less will consume more in electricity than you will earn. It’s crucial to mine bitcoins with the best bitcoin mining hardware specially built for that purpose. Companies like Avalon offer excellent systems constructed explicitly for bitcoin mining.
Another alternative is to buy in Bitcoin cloud mining contracts. This simplifies the process considerably but increases risk because you do not control the actual physical hardware.
Once you’ve gotten your bitcoin mining hardware, you will need to download a special software used for mining Bitcoin. The two most popular bitcoin mining programs are BFGminer and CGminer. You can also use EasyMiner which is a click and go windows/Linux/Android application.
The next step will be for you to join a Bitcoin mining pool. Bitcoin mining pools consist of Bitcoin miners who have agreed to work together to solve a block and share in its rewards. If you don’t join a Bitcoin mining pool, you might keep mining bitcoins for more than a year and never earn a single bitcoin. It’s far more comfortable to share the work and split the reward with a larger group of Bitcoin miners.
After joining a bitcoin mining pool, you need to set up a Bitcoin wallet or use your existing Bitcoin wallet to receive the Bitcoins you mine. One of the best bitcoin wallets out there that functions on many different operating systems is Copay. You can also use Bitcoin hardware wallets.
Bitcoins will be credited directly to your Bitcoin wallet by using a unique address that only belongs to you. The most critical measure in your Bitcoin wallet set up is securing it from possible threats by enabling two-factor authentication or storing it on an offline computer that doesn’t have Internet access. You can get wallets by downloading a software client to your computer.