Central banks of their respective countries create traditional currencies but digital currency is produced through a process called mining. It is a decentralized currency which is not controlled by any of the central banks or regulatory bodies. A Step by Step Guide to Mine Your Own Bitcoins.
Bitcoin minors create them by computing difficult mathematical problems and they are the only authority to control and regulate them by a set of defined protocols.
To make it more understandable, mining of Bitcoin can be related to Mining of gold or coal. This process is not limited to just producing new coins but it also has to verify the Bitcoin transactions which are rewarded to the users.
So keeping in view the growing hype of Bitcoins, Informationistan is come up with A Step by Step Guide to Mine Your Own Bitcoins. Here are easy steps for mining Bitcoins:
A Step by Step Guide to Mine Your Own Bitcoins
Purchase a Mining Hardware
Initially computers were used for mining bitcoins but the process required huge amount of time and electricity which makes it impractical. However it is still possible to mine them using laptops and desktops CPUs and GPUs but it is not cost effective.
The modern method involves a custom hardware device which gives better processing efficiency. So, we only have to purchase it and install it to our computers just like Graphic or any other card.
The prices are variable (ranging from 100 dollars to thousands of dollars) depending on their processing capacity.
Obtain a Wallet
After mining the bitcoin you need to store them just as you store your fiat currency after drawing it from the ATM machines. To save our digital coins we need to obtain a Bitcoin wallet.There are Online and Offline wallets. Online wallets are less secure because of their vulnerability to hackers. There are hundreds of wallet apps that can be downloaded to your smartphones. Offline wallets are more secure since no outside source can approach your store.
Secure Your Wallet with Two Factor Authentication
Securing your wallet is the most critical thing to do because losing your wallet address means losing all of your money. As we know that transaction are irreversible and there is no system to verify the identity of ownership. Therefore, whoever accesses your wallet can do whatever he wants to your currency.
The recommended way to store them is to enable a two factor authentication to your wallet and store them offline.
You have Two Choices of Mining
You have two choices of mining; you can mine them independently or you can join an established pool which offers a platform to mine your own Bitcoins.
To make the choice easier for you, mining independently is a difficult process. It is probable that you might not mine a single coin after a yearlong effort. While mining on the pools is easier because you get more resources to mine the coins.
Mining independently gives you a privilege to own 100% of your coins without giving any commission fee to the third party while mining on a pool costs you approximately 2% share to the pool.
Download Mining Software
If you opt for a mining pool, you need to download mining software which could be downloaded for free. The popular mining software are BFGminer and CGminer. Before choosing the right software, you need to follow the instruction of your pool.
But if you are mining independently, you should connect your mining software to your wallet so that the earned coins could directly deposited to your wallet.
To get started you need to configure your mining program and simply run it to start the mining process. During the mining process your computer will act slowly. You just have to keep a watch to see when your mining process gets started after your mining program connects.