Bitcoin mining is highly competitive and won't help you to become a rich guy. The easiest way is to trade bitcoins online and offline. Right now the price is pretty steady for about a year or so, but if you have enough capital you can make some profit every week. Join Coinbase or find another bitcoin trading platform to buy and sell coins. Aug 23, · Nowadays, Bitcoin mining can only be done by ASIC miners, so whatever software you choose it has to support ASICs. However, if you have other miners on your rig and you wish to manage all of them through the same interface, you’ll need the proper software to support it. If you want to earn any Bitcoin at all with a computer these days, you’ll have to use additional laptop Bitcoin mining software. In the beginning, when the first Bitcoin miners evolved, BTC mining on a laptop or CPU mining as they call it was the only way you could mine for bitcoins at the time.
Alternative ways to mine bitcoinHow to mine bitcoin and other cryptocurrencies | TechRadar
These devices are usually designed specifically to mine Bitcoin and will not function well if you try to use them to mine other cryptocurrencies if, say, Bitcoin should happen to fall drastically in value.
Alternatively you can build your own Bitcoin mining rig. While these aren't as efficient in terms of power and hash rate, they require less upfront expense and can mine other currencies besides BTC. In the simplest terms these are computers with multiple powerful graphics cards installed. These GPUs might be primarily designed to render complex graphics when playing games, but they also lend themselves well to coping with the complex calculations involved in Bitcoin mining.
To get started, you'll need to purchase a case for the machine. Most of these are a simple metal frame to allow heat to dissipate easily. If you need some more advice, see our guides on choosing the best mining GPU and best mining motherboards. You'll need to assemble the machine and install the OS and mining software yourself, so you should only go down this route if you are tech-savvy and familiar with computers.
If neither of these options appeals, you can rent hash power from cloud mining companies. These firms have dedicated data centers devoted to mining Bitcoins. As they are centralized they can buy machines in bulk and use efficient methods to generate electricity. The advantage of this approach is that you don't need to buy any expensive hardware.
The fees for cloud mining will vary, however, and another point to be wary of is scammers posing as cloud mining outfits. See the Bitcoin Wiki for a list of reputable cloud mining companies. Once you've made the decision that mining is right for you, you'll also need to set up a Bitcoin wallet to store your profits. If you're mining as an investment and don't plan on spending any of your coins soon, consider using a website like Bitcoin Paper Wallet Generator to create a 'paper' wallet.
Make a note of the 'public' address which you can use to receive payments. You can check the balance of your Bitcoin wallet safely at any time by visiting Blockchain. Don't let anyone see your private keys as anyone with access to your paper wallet can control your virtual cash. If you plan to regularly cash out your BTC or make payments, consider using a software wallet instead. The lightweight Electrum wallet is available for all major desktop operating systems and Android.
When you create your wallet, Electrum will generate a 'seed' of a dozen random words to use as a private key. This means you can restore your Bitcoin wallet if anything happens to your computer. If you use a software wallet like Electrum, try to do it on a machine that isn't connected to the internet so your BTC can't be hacked.
This is known as 'cold storage'. The Electrum website has instructions for setting up a 'watching' wallet for day-to-day use which can show your balance but cannot make payments itself.
Or for full instructions on setting up secure offline storage, see our article on how to create a secure cold storage Bitcoin wallet using Bitkey.
The next stage is to sign up to a pool; you can solo mine, but you need some serious hardware to make it worthwhile. You can find a list of pools on the Bitcoin wiki. We'll walk you through the process of signing up for Slush's Pool because it's one we've used a lot, but the same procedure can be used for any of the major pools. Head over to the Slush Pool website and click on 'Sign up here' at the top-right.
On the registration page choose a username, then enter your email address and password. The Slush Pool website will send you a confirmation email.
Click the link to validate your email address. You'll see that a 'worker' has been created for you, so you can begin mining. Although it's not compulsory, you should ideally have one worker per device. Visit Slush Pool workers at any time to view and create workers. You need to tell your mining pool where and when to send the funds from your mining exploits. On the Slush Pool website you can do this by clicking 'Settings' at the top-right, then click 'Bitcoin' on the left.
Choose 'Payouts' then click the 'New Wallet' button. Paste in your public address for Bitcoin payouts here. If you're using a paper wallet this should be clearly marked. In Electrum you can view your current receiving address by clicking on the 'Receive' tab.
Click 'Submit' when you're done. Some miners also allow you to choose the payout threshold — in other words how many BTC you need to have mined before the Pool sends funds to your wallet.
This is important as while it's risky to leave large amounts of BTC in an online wallet, transaction fees for sending BTC across the network are currently very high, so you could end up paying a lot for multiple smaller payments. Choose freely and wisely.
Mining pools are a popular target for hackers for obvious reasons. To make sure no one can potentially pilfer your Bitcoins, first check that your pool uses SSL. This means your connection is secure — in most web browsers you'll see a padlock icon in the address bar if this is the case. Certain mining pools such as Slush Pool also allow you to secure access to your account by using two-factor authentication. Rewards are distributed by the blockchain, similar to how miners are paid by Bitcoin, and occur roughly 24 hours after content and votes have been submitted.
Steem is a form of esteem, which means to prize or value. Litecoin is a peer-to-peer Internet currency that enables instant, near-zero cost payments to anyone in the world. Litecoin is an open source, global payment network that is fully decentralized without any central authorities.
Mathematics secures the network and empowers individuals to control their own finances. Litecoin features faster transaction confirmation times and improved storage efficiency than the leading math-based currency. With substantial industry support, trade volume and liquidity, Litecoin is a proven medium of commerce complementary to Bitcoin.
Peercoin is one of the truly unique alternative coins. Although its code is based on Bitcoin, Peercoin is the first coin to introduce Proof of Stake to secure the network. Proof of Work is also used in Peercoin, to promote fair coin distribution, but is not necessary for the security of the network.
Namecoin is an experimental open-source technology which improves decentralization, security, censorship resistance, privacy, and speed of certain components of the Internet infrastructure such as DNS and identities. It was first to implement merged mining and a decentralized DNS. What can Namecoin be used for? Primecoin is an innovative cryptocurrency, a form of digital currency secured by cryptography and issued through a decentralized mining market.
An Internet currency free from any central bank or institution. Payments are borderless and can be processed by anyone with affordable computer hardware using free software. This work is rewarded with new feathercoins which are issued by the network. Feathercoin is based on NeoScrypt and implements many features not seen in the majority of crypto coins. There really are too many things to list but here are some of the technical aspects which differentiate Feathercoin from most.
Emergence of Ethereum Classic created a huge opportunity for miners. ETC is presently one of the most profitable tokens to mine and is attracting substantial hash power with zero switching cost. Ethereum Classic will continue employing robust and time-tested PoW security model, rewarding miners for ensuring the future of the original chain. Do it for profit and principles; mine Ethereum Classic today!
Novacoin is the coin of the feature. We can say definitely, that:. Would I be able to get good profits out of them by next 1 — 5 years? Currently I work with Ethereum and Gnosis, good profit over the last month but no guarantees of course.
The best one for doing your self is Kraken I feel. However for a more automated service you should check out some trading plan or algo traders. Ethereum seems to be one of the safer bets now to rise as it has become the second largest coin, it is getting interesting for old currency investors to come on board.
Nice article. Electroneum is a great alternative and is at ICO at the moment. The founders are known people in internet buisiness. But beware. Every invest has its risks and only invest what you can effort. Just like BitCoin vs BitCoin Cash, just a fork that promised to be a better version than the previous one.
Even Steam stopped accepting BitCoin for digital downloadable games. BitCoin is just an investment assest, more like a huge bubble. Remember oil and gold? Both rallied to a new all time high and collapsed. At least Gold and Oil have utilities value to it, BitCoin on the other hand… is backed by nothing, just like fiat currency. Good post. I am thinking about long term investment now.
In your opinion, are all those coins good for holding or maybe something to buy for a several months or a year. Do you know how much energy it takes to support these currencies.
Please find out about the true environmental cost of crypto-currencies and act responsibly. You put your hard earned money and hope that the value of your investments go up not down or disappear all together. This is as close to risk free as you will get in any investment as long as your not the type to count chicks before they are hatched. If a coin goes bust you have only lost potential profit and if you pay attention to your investments and switch from coin to coin as soon as you find instability in the current investment you can always make some profit.
There is more profi in trading coins and a lot more time consuming to get going as a miner but as I said, about as safe as you will get. As for which coin to mine pick the ones that have the best profit to cost ratio then keep a second option open till you figure you no longer need to mine. You can participate in the survey or see the statistics. Most of these in the article are old and reached ATHs 4 or 5 years ago.
If you want good returns buy Ethereum mother of alt coins. Also masternode coins will do well this year. Interesting article. I am a newbie in this cryptocurrency business and have no knowledge of how it works.