Before starting Bitcoin mining, it would be helpful to understand what Bitcoin mining really means. Bitcoin mining is a legal practice and is accomplished by performing SHA256 hash verification processes to approve transactions and offer maximum security to the blockchain. The speed with which Bitcoin is mined is measured in hashes per second.

Bitcoin Mining in a nutshell
Bitcoin Mining Guide - The Best Guide to Mining Bitcoin 2020 - 1

The Bitcoin network compensates miners for their efforts by releasing Bitcoin to those who contribute to it by computational power. This reward is offered as a new Bitcoin, in addition, commissions are included for transactions that are approved during the extraction of Bitcoin.

The higher the computing power provided by the miner, the greater his reward.

What miners actually do

The miner is paid to carry out the audit work. This is to verify previous Bitcoin transactions. This process is carried out to keep users' honesty high and was conceived by the creator of Bitcoin, Satoshi Nakamoto. By verifying a transaction, the miner helps prevent the "double spend problem".

Double spending is a scenario in which the owner of a Bitcoin illegally spends the same Bitcoin twice. With paper or coin currency this is not possible: once you have handed someone a 20 euro banknote to buy a good, that banknote is gone, so there is no danger that you can use the same 20 euro banknote to buy another good from the shop next door.

However, there is a risk that the Bitcoin holder may make a copy of the token's digital currency and send it to another user, keeping the original one. Let's say you have a real 20 euro banknote and a counterfeit one. If I had to spend them in the same shop and the merchant took the trouble to check the serial numbers, he would realize that they are the same and therefore one of the two banknotes must necessarily be fake. This is what a miner does, checking transactions to make sure users haven't tried illegally to spend the same cryptocurrency twice.

Step 1 - How to start Bitcoin mining

How to mine Bitcoin? First of all, you need to buy the hardware to mine Bitcoin. When Bitcoin was launched, it was possible to extract it through the CPU of your computer or with the high-speed graphics card. Today it is no longer possible to do so. Or rather, custom Bitcoin ASIC chips offer up to 100 times better performance than older systems and have dominated the Bitcoin mining industry in recent years.

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Mining Bitcoins for free with less powerful hardware will consume more electricity than you can earn. It is essential to mine bitcoins with the best Bitcoin mining hardware, designed specifically for that purpose. Several companies like Avalon offer excellent systems built specifically for online Bitcoin mining.

Step 2 - Download a Bitcoin mining software

Once you have purchased the hardware to mine Bitcoin for free, you will need to download a particular program to mine Bitcoin. There are many Bitcoin mining software that can be used to mine Bitcoin, but among the most popular are CGminer and BFGminer.

Those who prefer simpler software to use, however, can try EasyMiner, which is a Bitcoin mining program with Android, Windows or Linux, with a simple click. The software offers work to miners and is able to receive completed work, then forward the information to the blockchain and miner's mining pool. The best Bitcoin mining software can be run on almost all operating systems, such as OSX, Windows and Linux. Furthermore, it is possible to mine Bitcoin with iOS with some software made specifically for this purpose.

Bitcoin mining software not only forwards the input and output of Bitcoin miners to the blockchain, but is also useful for monitoring and viewing general hardware statistics such as temperature, hashrate, fan speed and average miner speed Bitcoin

There are different types of Bitcoin mining software online and each has its own advantages and disadvantages, so before relying on any software, be sure to take a look at all that the internet has to offer.

Step 3 - Join a Bitcoin mining pool

As soon as the user is ready to mine Bitcoin, he must join a Bitcoin mining. These pools are nothing more than groups of miners who work together to solve a block and share its rewards. Without a pool to mine Bitcoin or Ethereum (another very popular cryptocurrency among miners), you can extract a digital currency for over a year and never earn Bitcoin or ETH.

For this reason, it is much more convenient to share the work and share the reward with a much larger group than to do it all yourself and never get anything done. Here are some options available online:

For a completely decentralized pool, we recommend p2pool.

The following pools are believed to be currently validating blocks with Bitcoin Core 0.9.5 or later:

  • bitmint is
  • CK Pool
  • Eligius
  • Slush pool

Step 4 - Set up a Bitcoin wallet

The next step to undermine Bitcoin is to set up an electronic wallet for cryptocurrencies that will allow you to receive the Bitcoins that are mined. Copay is an excellent portfolio and works on many different operating systems. In addition, hardware wallets are also available.

Bitcoins are sent to your wallet, using a unique address that belongs only to one user. To configure the Bitcoin wallet, the most important step to do is to protect it from any threats, keeping it on a PC that has no online access and enabling two-factor authentication. Portfolios can be obtained by downloading a client software on your computer.

To also be able to buy and sell cryptocurrencies, here are the best sites to mine Bitcoins:

  • SpectroCoin - European Exchange with SEPA debit-credit on the same day of request and purchase by credit card
  • Kraken - The largest European exchange with SEPA debit-credit on the same day
  • Buying Bitcoin Guide - Assistance in finding a Bitcoin exchange in your country
  • Local Bitcoins - This service allows you to search for people in your community who are willing to sell Bitcoin directly
  • Coinbase - This is a good starting point for buying Bitcoin. We strongly advise not to leave any Bitcoins at their service.

Is Bitcoin Mining Still Profitable?

Due to recent technological changes and the creation of professional mining centers (which have enormous computing power), as well as the volatility of the price of Bitcoin itself, many individual miners wonder if Bitcoin mining is still profitable. And some miners even want to use their cell phone to start the mobile Bitcoin mining.

Several factors determine whether bitcoin mining is still a profitable venture. These predict the cost of electricity, the availability and the price of the computer system to mine. Difficulty is measured in hashes per second.

The hash rate measures the speed of solving the problem; however, the difficulty changes when more miners come into play because the network is designed to produce a certain level of Bitcoin every ten minutes. When multiple miners enter the market, the difficulty increases to ensure that the level is static. The last factor in determining profitability is the price of Bitcoin against standard currencies.

To answer the question of whether bitcoin mining is still profitable, you need to use a web-based profitability calculator to perform a cost-benefit analysis. In these calculators you can enter different factors and find out your score.

In addition, you can determine if you have the initial capital to purchase the hardware, estimate the future value of Bitcoins and the level of difficulty. When Bitcoin prices and mining difficulties decrease, it usually indicates fewer miners and greater ease in receiving Bitcoins. When Bitcoin prices and mining difficulties increase, one must expect the opposite: more miners for fewer Bitcoins.

One of the positives of bitcoin mining is that you have companies like stormgain that can generate mining power and allow their users to mine their first coins in 4 hours.

What is Bitcoin cloud mining?

Bitcoin cloud mining, sometimes called cloud hashing, allows users to purchase the output of Bitcoin mining hardware located in remote data centers around the world. Genesis Mining and BTC Miner, have been offering cloud mining contracts for several years.

This means that Bitcoin mining is done remotely in the cloud. This allows users to not face any of the hassles normally encountered during Bitcoin mining such as electricity costs, hosting problems, heat, installation or maintenance problems.

With this practice, sometimes, a more volatile altcoin like MWC could be extracted, which is superior in terms of scalability, privacy, anonymity and usability at a basic level. With the launch of MainNet in November 2019, its value has increased from $ 0,22 to over $ 8,00 in its first two months.

What are the advantages of Bitcoin cloud mining?

  • There is no need to deal with any problems due to hardware overheating
  • It is silent, because there are no cooling fans that run constantly
  • There is no need to face any electricity costs
  • You no longer have the problem of mining equipment to sell when bitcoin mining is no longer profitable
  • No pre-ordered mining hardware that may not be delivered on time by mining equipment suppliers

Who is Genesis Mining

If you are looking for a smart solution for your investments, you cannot fail to consider the cloud mining offered by Genesis Mining. This cloud mining provider was founded in 2013 and enjoys an excellent online reputation.

Currently, when referring to cloud mining platforms, Genesis Mining is just the first name to spring to mind. However, it is not only the most important hashpower provider in the world, it is also one of the best in terms of benefits and alternatives.

Supports Bitcoin and Altcoin mining. This means that it is possible to earn Bitcoin and many other cryptocurrencies, including the following:

  • Ethereum
  • Dash
  • Litecoin
  • Monero
  • Zcash

It is essential to remember that this mining service allows you to simultaneously extract several cryptocurrencies. So if you don't know which one to mine, you can benefit from several mining options at the same time! You're already intrigued, aren't you?

Unlike other online mining sites, Genesis Mining boasts a lifetime mining period. Therefore, it is not necessary to renew the contract year after year as it does with other competitors. As with other cloud mining platforms, however, it is likely that you have to pay a special fee to keep your coins in the cloud.

How to start making money through Genesis Mining

Getting started with Genesis Mining is as easy as counting to 3:

  1. Create a free account and choose which cryptocurrency you want to earn
  2. Purchase the required Hash power
  3. Receive your first payment the next day

In addition, the service continues to improve and be constantly expanded.

In conclusion

Genesis Mining is a smart choice for those looking for the largest hashpower provider for Bitcoin and Altcoin.

Who is BTC Miner

BTC Miner is a reliable and safe mining platform, capable of generating on average $ 2 a day! The trading technology used by this platform is now consolidated and in use for many years in large pools of cryptocurrencies.

Its online reputation is excellent and confirmed by the testimony of many users. Most of the people who tested this platform managed to make constant profits.

Furthermore, the same testimonials state that the platform offers excellent customer service, which responds both by phone and via live chat in a professional, friendly and timely manner.

In addition, it is worth mentioning that Bitcoin Miner takes great care of the safety of its users, protecting their data with 128-bit SSL encryption. This is essential for any platform that wants to appear reliable in the eyes of new users.

How to make money with BTC Miner

Earn money with Bitcoin Miner it's very simple. Just follow the steps listed below:

  1. Open an account on the official BTC Miner website and verify your information
  2. Make a deposit. The minimum deposit allowed is $ 250 but you can deposit even more
  3. Install the platform using the link provided and open the application to start mining cryptocurrencies
  4. Let the app take care of the mining and everything else, while you take care of your personal chores.

In conclusion

This cryptocurrency mining software is based on well-established technology and appears to be reliable and easy to use. All you have to do is install the application on your computer and start it.

Bitcoin Miner is believed to be reliable because: transparent, secure and customer-friendly. An initial deposit of $ 250 is required to use the software. However, this seems like a more than reasonable amount to spend for everyone who wants to get started and given the benefits offered.

How many bitcoins can I undermine: Mining bitcoin is an increasingly widespread practice among enthusiasts, since it seems to represent a faster way to get a greater number of these cryptocurrencies, however what a novice miner often asks is,

How many bitcoins can I mine?

Well, the answer is first: it depends on the method used. If you use hardware, knowing how many Giga / Hash the device you are using can produce, you can also get an idea of ​​how many bitcoins you can undermine. From this site for mining hardware comparison you can take the data you need.

With this formula instead you can estimate how many bitcoins you can undermine based on the difficulty:

Bitcoin / day = (Hash / sec * 3600 * 24 * 25) / (2 ^ 32 * difficulty) ~ = GigaHash / sec / (difficulty in millions * 2)

The difficulty indicates a specific parameter with regard to bitcoin mining, but it is rather volatile, since it undergoes changes at least every two weeks, which means that to get a clear idea about your possibilities you will have to review the formula given rather often.

Table how many Bitcoins to mine

  • Bitcoin Mining Guide - The Best Guide to Mining Bitcoin 2020 - Bitcoin
  • Bitcoin Mining Guide - The Best Guide to Mining Bitcoin 2020 - ethereum
  • Bitcoin mining guide - The best guide to Mining Bitcoin 2020 - litecoin
  • Bitcoin mining guide - The best guide to Mining Bitcoin 2020 - dash
  • Bitcoin Mining Guide - The Best Guide to Mining Bitcoin 2020 - monero
  • Bitcoin Mining Guide - The Best Guide to Mining Bitcoin 2020 - Bitcoingold
  • Bitcoin Mining Guide - The Best Guide to Mining Bitcoin 2020 - ethereumclassic
  • Bitcoin Mining Guide - The Best Guide to Mining Bitcoin 2020 - siacoin
  • Bitcoin Mining Guide - The Best Guide to Mining Bitcoin 2020 - bytecoin
  • Bitcoin Mining Guide - The Best Guide to Mining Bitcoin 2020 - zcash
  • Bitcoin Mining Guide - The Best Guide to Mining Bitcoin 2020 - doge
  • Bitcoin mining guide - The best guide to Mining Bitcoin 2020 - komodo
  • Bitcoin Mining Guide - The Best Guide to Mining Bitcoin 2020 - pascal

However, this formula does not take into account external factors such as pool tax, share prices, invalid blocks, pool uptime, PC uptime.

The formula that instead takes into consideration the factors just mentioned and which can therefore be a little more precise is this:

BitcoinReal / day = GigaHash / sec / (difficulty in millions * 2) * (1 - PoolFees%) * (1 - StaleShares%) * (1 - InvalidBlock%) * (1 - HWError%) * PoolUptime% * PCUptime%

Is mining bitcoin 2019 / 2020 worthwhile?

Not exactly. To undermine bitcoin you need a fairly powerful computer and a stable and strong Internet connection. Both things involve considerable costs, just take a look at the prices of processors on Amazon.

What is convenient, although in a very broad sense of the term, is mining with sites like Free Bitcoin, which practically allow earn bitcoins looking at advertisements or playing games. Note: these are really minimal gains.

We would like to say that using companies like Stormgain is a better, more profitable and easier way to mine bitcoins in 2020. It's easy and their claims are that people can mine their first cryptocurrency in 4 hours.

FAQ

  1. Q) How long does it take to mine a Bitcoin?
  2. A) If we talk about costs, according to a rather recent study, the current price of Bitcoin easily allows most miners to make interesting profits from Bitcoin mining, given that the cost to mine a Bitcoin is around 5 thousand euros . Considering that today a Bitcoin is worth almost double ...
  3. Q) How long does it take to mine a Bitcoin?
  4. A) In reality there is no real answer to this question. It is calculated that with all the computational power in the world, it is possible to generate a new Bitcoin every 10 minutes, however, the possibility that the individual miner takes possession of this Bitcoin depends on his own computational power and also on a little luck. For this reason, it is more profitable to share the results in a pool of miners.
  5. D) What does it mean to mine Bitcoin
  6. A) Mining means verifying every transaction that is added into the public register known as blockchain, but not only, because it is also the process that makes it possible to issue new crypto currencies, up to the maximum cap set at 21 million.