How to mine Bitcoin and other cryptocurrencies

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The process by which new cryptocurrency coins are generated is called mining. However, it has nothing to do with real mining. Digital currency miners use computers to solve complicated mathematical problems. They get a small stack of tokens as a reward for their work. 

Learning to build a mining rig takes time and money. However, once everything is up and running, you can leave it to do its thing and wait for the money to pour in. 

Study about the process

You can not mine every digital currency. Besides, the process for one mining operation can be significantly different from another.

First, you’ll need to learn about various cryptocurrencies available to be mined and then decide what you would like to mine. 

Mining uncovers some of the biggest cryptocurrencies in the world, including Bitcoin. Still, Bitcoin mining operations may not be as profitable as they were several years ago. It is due to the dramatic increase in the number of miners. Also, over time, mining process difficulty has increased. 

Beyond the things already mentioned, you will need a particular type of hardware and software, electricity and the Internet, and a cooling system according to the kind of mining hardware you have and the place where it is located.

The essential thing is to have electricity and internet services that are stable to mine. Otherwise, your teams’ work will be constantly interrupted, and you will not be able to get the benefit you expect from mining.

Hardware

You need the equipment necessary to mine the cryptocurrency of your interest. It can be generic hardware such as processors and graphics cards and dedicated equipment specifically for mining. The choice of one or the other depends mainly on the mining algorithm with which the cryptocurrency you are interested in is programmed.

If you want to mine bitcoin (BTC), you would need to purchase a specialized ASIC device to mine the SHA-256 algorithm. If you want to mine ether (ETH), or Zcash (ZEC), then you will need at least a GPU and a computer with a certified power supply. On the other hand, if you want to mine Monero (XMR) or Bytecoin (BCN), the processor (CPU) of your computer may be enough.

The software

There are different software or computer programs that you will need to mine cryptocurrencies, such as Bitcoin. 

Among the most recognized are CGMiner and Claymore. The former is popular with bitcoin and bitcoin cash miners, while the latter is often used to mine cryptocurrencies such as ether, ethereum classic, Zcash, Decred, and Siacoin.

You will also need a program to monitor your hardware’s behavior and configure it according to your preferences. Like Bitmain’s AntMiner, ASIC devices usually include their software to configure them and monitor their performance. In comparison, GPU miners may need to download programs like MSI Afterburner or GPU-Z for this purpose.

As for monitoring your mining rig performance, you can do it through the mining pool website where you are mining or using the TeamViewer program, which allows you to access your rig remotely from another device.

The wallet or purse

Another important element is the wallet or purse that you will use to receive your payments for mining. This can be hardware(Trezor, Ledger, KeepKey, OpenDime, etc.), software or application type (Coinomi, Wasabi, Exodus, Jaxx, etc.), or online (MyCrypto, Blockchain, Bitgo, etc.).

Online wallets are not highly recommended by many experts; since they are very prone to attacks or hacks. 

Refrigeration and conditioning

Mining requires a high level of processing. As a consequence, mining hardware tends to rise in temperature and runs the risk of overheating. It can even reach the point of stopping working completely.

To avoid this, you must investigate the temperature your hardware can withstand, evaluate the temperature that your equipment reaches while mining, and find a sweet spot.

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