How to mine Bitcoin
Bitcoin is the prime source of all related to crypto and to this day, it remains the most discussed and sought-after coin in existence. You would definitely want to start mining BTC, as it offers the highest sustainability with the best potential for investment. In this article we’ll discuss the Bitcoin mining process in detail, plus how you can make the most from it and the basics on getting started. What you can expect to find in the upcoming paragraphs: …more
- Which is the best hardware for BTC mining
- How to choose the best Bitcoin mining pool
- Installing and configuring of hardware and software
If you don’t want to bother with hardware, cloud mining might be the easiest option for you. Read the rest of the article to find out how to mine Bitcoin in the most profitable way.
Why should you mine Bitcoin?
You can view Bitcoin mining as a way for making a profit or an alternative to traditional investments. Either way, mining BTC offers many different possibilities for success. Based on our own research and public opinion, it is destined to be the currency of the future, with many real-life applications being developed on its platform. Furthermore, Bitcoin’s blockchain principles are used as a platform for further innovation, as it also provides high levels of transparency and security. These factors are key points on which the price of BTC is based. Mining Bitcoin offers a way of earning money that has been around for years, meaning it has a solid foundation and a bright future. As with any other crypto, Bitcoin mining profitability and ROI (Return of Investment) depend on the value of the mined BTC, which has the potential to reach all-time highs based on expert predictions.
Best way to mine Bitcoin
Now that we’ve covered the reasons for why to start mining Bitcoin, we’ve reached the point where you need to equip yourself with some hardware for the job. The only profitable way of mining Bitcoin is with specialized BTC mining hardware called ASIC (Application-Specific Integrated Circuit) – machines with extraordinary computational power and efficiency. In the section Bitcoin Mining Hardware, you will find recommendations for good mining equipment specific to BTC.
To increase your success rate and earn more, we recommend joining a mining pool, which provides miners with a steady income, instead of solo mining for months with no end in sight. In our Step by Step Guide we will provide you with good and reliable Bitcoin mining pools.
If you’re not tech savvy but do want to engage in mining, another option would be cloud mining – the equipment is owned and maintained by a third-party. Power cost and maintenance covered by the company providing the service.
What do you need to start mining Bitcoins?
So, Bitcoin mining sounds like something you’d be willing to do. To jump on the bandwagon, you need to follow our thorough mining guide and take into consideration some basic requirements – namely, your choice of mining hardware (best option for BTC is ASICs) and internet provider as you’ll need to be connected to the network 24/7. Another thing you will need to do, is create a Bitcoin wallet (here you can download the official Bitcoin Core wallet) with which you will be able to manage your Bitcoins. The remaining steps depend on choice of hardware.
Here is a short summary of what you need:
- Proper hardware for the job – ASIC miner
- Internet connection with at least 1MB/s up and down stream
- Preferably unlimited traffic or at least 500MB/month per machine
- A Bitcoin wallet operate to receive the mined coins
What else you need to consider?
ASIC devices are efficient, yet loud and generate a lot of heat. They also consume large amounts of electricity so before buying this kind of device, you also need to think about:
- Power consumption and capacity of your power distribution
- Proper cooling and air flow
- High noise level of the fans/cooling system
- Regular maintenance of the equipment
For detailed information related to ventilation and maintenance visit our setup guide for mining at home.
Which Bitcoin Mining Hardware to buy?
We’ve reached the point where you’re about to start mining. To do so, you would need to make a choice – which hardware to buy. We’ve gone over your different options and provided you with the best one.
Currently, the best way to mine for Bitcoin is through dedicated hardware which uses Application Specific Integrated Circuit (ASIC) chips. They are designed with one purpose – to work with a specific algorithm. In the case of Bitcoin, we’re talking about SHA-256. ASIC miners offer the highest performance on the market, along with the best power efficiency. To get started, all you will need is the miner and a power supply for it (you may need to order the PSU separately).
To make the best selection when picking an ASIC, take into consideration the following important parameters – hash rate, power consumption and price of the device. You’ll be looking to strike a balance between price and performance. Have a look at the most popular ones in the table below but have in mind that their availability will depend on the current market situation, and where you’re located around the world.
recommended bitcoin mining hardware
Bitmain – Antminer S9i
- 14.5 TH/s, 1320W
- 350mm(L) x 135mm(W) x 158mm(H)
Bitmain – Antminer T9
- 10.5 TH/s; 1400W
- 350mm(L) x 135mm(W) x 158mm(H)
Once you know the price and performance of each ASIC miner, you can compare them with the help of our calculator.
As you probably know, it is quite difficult to calculate your profitability as you need to consider various factors such as difficulty, block reward, current coin price etc. We created a Bitcoin Mining Calculator for you, which will automatically consider the above stated parameters and will help you decide whether it’s worth for you to mine Bitcoin or not.
Setup hardware and software / Configuration
Configuring your miner properly may seem like a daunting task but don’t worry. We will outline the most important steps of connecting your hardware, configuring the devices and achieving your goal of efficient mining in this step by step Bitcoin mining setup guide.
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01. Connect Your Hardware
The ASIC Miners are very easy to run. All you need to do is connect the cables coming from your PSU (Power Supply Unit) to the hashing boards and the control board of the unit. The next step is to plug an internet cable coming from your router into the LAN port of your miner. Then connect the power supply to the power outlet and you are ready to continue.
Plug an internet cable into your RJ45’s designated standard port on your miner. -
02. Choose a Bitcoin Mining Pool
You’ve reached the point where we recommend you choose a mining pool. Some of the highly regarded Bitcoin mining pools are:
Antpool
Server locations:
.Reward system: PPLNSAverage fee: 0.0%Our choiceBTC Pool
Server locations:
. .Reward system: FPPSAverage fee: 1.5%Slush Pool
Server locations:
. . .Reward system: PPS, FPPSAverage fee: 1.5%Choose a mining pool and register your account in their website if its required.
You can find more information about mining pools, payouts, reward systems and most important criteria for choosing the best one in our overview page of all mining pools.
Here is a short guide how to register your account and setup workers for Antpool:
Pool’s registrations steps
.Go to Antpool’s webpage and choose [Register] from the drop-down menu that you will find under the user icon.
.- Provide your email address and choose a password.
- Agree that you have read all the terms and conditions.
- Confirm your account via email verification.
- To finish the account creation you will be asked to verify your phone number too.
- On the dashboard, click the Worker tab and create a worker account for your device.
.After configuring the worker account, you need to access the Settings tab and configure the Bitcoin wallet address where your payments should be sent and select the PPLNS (Pay Per Last N of Shares) reward system. This kind of reward system is used to prevent pool hopping and to be fair with long term miners. If you want to know more about reward systems, please visit our dedicated page. -
03. Find out the IP-Address of your Mining Hardware
To access the configuration of your mining hardware you need its IP address. Your Antminer device is configured by default to get an IP address from the DHCP device of your network which is usually the internet/WLAN router. Your next mission is to discover this IP address of the miner. Therefore, you need to access the DHCP server on your router or scan the network to verify the IP address that a device named Antminer got. Other option is to download IP Address reporting software from the manufacturer’s website.
In our example, the Antminer device got the IP address 192.168.6.15.
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04. Login the Web Interface of the Miner
Open your browser and enter the IP address of the Antminer device to access the administrative Web interface.
On the Login page, enter the default user ID: root and default password: root.
Login Page 
The login credentials can be different from Hardware to Hardware so check the manual of your miner to find the right username and password. After successfully logging in click on the Miner Configuration page where you can enter the pool information.
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05. Enter Mining Pool Information
Its highly recommended to enter different pool URLs in all three fields, so you can use the failover function – it automatically points your miner to another pool if one is down or not responding. You can also use just one URL if you think the pool is stable and has no downtime.
Below is the sample configuration of an Antpool:
pool url: stratum+tcp://stratum.antpool.com:3333
worker: yourusername.worker
password: Enter Password if needed, otherwise leave blank or enter 123
Settings window 
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06. Click Save & Apply
The miner software will restart, and you can monitor its activity from the status page.
Checking configuration 
Leave it for a minute or two and if you see accepted shares and actual hashrate, then you are mining, and everything should be working properly.
Bitcoin Cloud Mining
Cloud mining is the best alternative for people who don’t want to mess with hardware management, electricity bills or ventilation systems. The only requirement is a wallet, where you can store, send or receive the mined coins and enough money to pay for the cloud mining contract.
You should go over the information below before you start cloud mining Bitcoins.
First you will need to choose a mining provider to sign a contract with.
These are the basic steps for choosing the best solution that suits your needs:
- 01. Choose reputable cloud mining provider
- 02. Choose desired mining algorithm
- 03. Choose the amount of mining hash power
- 04. Choose the length of the contract
Here you can see a list with some of the most popular cloud mining providers:
Genezis Mining
Hashflare
Hashing24
Keep in mind that there could be some hidden service and maintenance fees which should be included in your calculation before you sign the contract.
If you want to know more about cloud mining, check our cloud mining page where you will get a detailed overview of how it works.
Bitcoin Calculator
To help you decide whether this is the best way for you to mine Bitcoin, our calculator can help you find out your Bitcoin mining setup’s potential for profit. You just need to fill the fields and you will receive detailed information about how many BTCs will be minted for a certain period and respectively how much money they’re worth based on the current Bitcoin price.
- For hardware mining: enter your hash rate, power consumption, electricity cost and if you use a mining pool – enter the pool fee
- For cloud mining: enter your hash rate and pool fee (if applicable)
FAQ
Which algorithm is used in Bitcoin mining?
SHA-256 is the cryptographic algorithm used by the BTC network.
How long does it take to mine 1 Bitcoin?
To put it short, it depends. If the difficulty remains the same, a single Antminer S9 with hash power of 14TH/s, it will take approximately 3 years to mine one Bitcoin. If your hashrate is higher you will mine it faster.
How much you can mine at one day?
Depends on your hash rate and the current mining difficulty. You can easily check with the help of our calculator.
When the last coin will be mined?
The limit of 21 million Bitcoins will be reached around the year 2140. Afterwards you can continue mining, however, no new coins will be issued. You will receive payments for verifying transactions.
Is Bitcoin mining profitable?
You can calculate the BTC mining profitability with the help of our calculator. Just enter your hash rate, power consumption, electricity costs and the money spent for hardware or cloud mining.
Is it worth to mine Bitcoin?
If your earnings cover the electricity bill and you’re able to make a profit towards return of investment, it’s worth mining. You can get a better idea by using our Calculator.
Is it legal to mine Bitcoin?
Mining BTC is legal worldwide. Despite the effort of some National Banks to ban trading with Bitcoin and other cryptocurrencies, it remains legal to mine and hold that kind of virtual money.
Is it safe to mine Bitcoin?
If you do your homework and carry out extensive research on how to choose the hardware equipment or cloud mining provider, you will reduce the risk to the minimum.
Best countries to mine Bitcoin?
Mining digital currencies like Bitcoin consumes a large amount of electricity. To minimize costs, which could amount to more than 50% of miners’ earnings, people started operating in countries with lower electricity prices like Venezuela, Ukraine, Kuwait while the most expensive are South Korea, Germany and most of the Islands.
Is it possible to mine at Raspberry Pi?
It’s possible to mine with Raspberry Pi, but it is counterproductive – you will need years of mining just to cover the cost of the Pi itself.
Is free mining possible?
The only possible way of free mining is to find free hardware and free electricity. Otherwise, you need to pay for the hardware and consumed power.
Is it possible to mine Bitcoin on Iphone (or other mobile devices)?
Technically, it is possible but it’s not reasonable, nor profitable. Also, your phone will suffer due to the high battery usage and you will need to live with lower standby time and shortened life time of your device.
How to setup your own mining pool?
Setting up your own mining pool requires some system administration experience, basic Linux OS technical skills and advanced knowledge on how cryptocurrencies work. Hardware requirements are VPS server with at least 2 Cores, 4GB Ram and at least 250GB of storage. The rest is open source software which you need to configure and modify to suit your needs. You can learn more about the process in the following article.
About Bitcoin
The era of Bitcoin started with the registration of the domain bitcoin.org on the 18th of August 2008. After a short period of time, a paper with the name “A Peer-to-Peer Electronic Cash System”, written by Satoshi Nakamoto appeared. In this paper, methods for generating a system for electronic transaction without relying on trust were described. That is how Bitcoin was born, the first digital currency, which is independent from a centralized banking system. BTC was traded for 0,003 USD in March 2010 and reached its peak, with a worth of almost 20 000 USD in December 2017.
Bitcoin Team
Initially Bitcoin’s software was published by Satoshi Nakamoto and currently, years later, hundreds of contributors all over the world are participating in its testing and development.
Bitcoin algorithm and hash function
The cryptographic function SHA-256, used as the block hashing algorithm, serves two functions on the BTC network:
- Mining – for validating unconfirmed transactions and preventing fake blocks from being added to the blockchain.
- Generation of Bitcoin addresses (wallets) – to insure better cryptographic security and longer (256bit) addresses.
Proof-of-work consensus
Proof-of-Work is the consensus algorithm behind the validation of blockchain transactions and the work done by miners. The more miners enter the network, the higher the complexity of creating and validating blocks becomes. Furthermore, the energy consumption for this task increases as well.
This type of consensus is not environmentally friendly, as the increasing electricity costs of running Bitcoin mining hardware, will slow down the progress of reducing global carbon emissions.
The biggest challenge for the future is to find a consensus algorithm which would be efficient enough, while also being more environmentally friendly.
What is a Bitcoin fork?
A fork is an alteration of the current Bitcoin code (or protocol). It means, that someone is changing the rules.
When a fork happens, you’ll have an “original Bitcoin” and a “new BTC.” For example, Bitcoin Cash changed its block size from 1 MB to 8 MB. This equals more processed transactions per block. Respectively, there were two sides of the coin:
- Devotees to this change switched to a new coin called Bitcoin Cash (Bcash)
- Those that decided to stay with the original rules kept using the original Bitcoin
Of course, this is a very simplified explanation of forks. Keep in mind that not all forks are created equal. There are soft forks, which allow the new rules to play well with the old ones, and there are hard forks, which create a completely different coin.
Bitcoin regulations
If 2017 was the year of the ICO, it seems like 2018 is destined to become the year of regulatory reckoning. Things have already begun to heat up as countries around the world grapple with cryptocurrencies, trying to determine how they are going to treat them. Some are welcoming, others are cautious. And some countries are downright antagonistic.
Bitcoin regulation’s mapResources:
https://en.wikipedia.org/wiki/Satoshi_Nakamoto