How to Mine Bitcoin – Bitcoin Mining The Complete Guide


Miner Bitcoin or “Bitcoin Mining” is one way to get this currency. For Bitcoins, the miners use the computing power of machines that must now have specialized software and hardware and are able to make millions of mathematical calculations per second. Read our complete guide to learn how to mine Bitcoins.

Bitcoin mining involves putting computers to run a program and get paid for it. A very simple explanation: the Bitcoin network thinks of a number. And each computer says a number. The computer that finds the right number wins. With this example, we can explain the characteristics of mining.

An important concept that we will explain is the power of calculation, which is equivalent to the amount of numbers that are said per second. For example: if we have 5 computers and each one says 2 numbers per second, we have a computing power of 10 numbers per second. Normally, in more technical terms, computing power is measured in “hash”. A hash would be the equivalent of a calculation or in our example to say a number. For this reason, in most sites, the computing power will be measured in H / s, that is, in hash per second. But the power has increased so much that it is now measured in TH / s, that is 1 000 000 000 000 H / s.

The Bitcoin network pays whoever touches the correct number. And we can deduce that to earn more money than others as a reward, just say more numbers per second than them. In other words, have more computing power than them. For example: if we have 2 people who mine, one with 4 in computing power and the other with 2. The person who has 4 computing power is twice as likely to get the reward for the proposed calculation.

Bitcoin has established that his reward is distributed every 10 minutes. For that, what he does is to increase the range of numbers. That is, it is more complicated to find a number from 1 to 100 than from 1 to 10, although in the specific case of Bitcoin they are hexadecimal numbers. So, if the bitcoin network observes that the distribution of rewards is too fast, it itself increases the difficulty. Also, if the distribution is too slow, it decreases the difficulty. In this way, the network is adjusted so that when the computing power of the miners increases, the blocks will not be extracted faster.

As you can see, it is not easy to get the reward, so many choose wisely to join a group, known as the Mining Pool, so the number of possibilities is greater than earning the reward in Bitcoin Blockchain. If one of the pool participants hits the correct number and gets a reward, he shares with the group that has proposed a series of numbers.

How to mine Bitcoin

Miner of Bitcoin for connoisseurs is to allocate the processing power of a computer to perform calculations that verify cryptocurrency transactions. In return, we receive financial compensation in the same cryptocurrency, exchangeable against other currencies such as the euro or the dollar. </ P

But mining is not just about money, it’s also a fundamental part of any cryptocurrency operation. Miners make the Bitcoin network stable and secure, supporting the release of new Bitcoins and verifying the transactions made by any user, which will eventually be added to the Blockchain or blockchain.

Miner Bitcoin with PC

If what you want is to mine bitcoin with your PC, it is certainly possible, but with little profit then, you can do it with your GPU (graphics card), it is today is quite possible to with nVidia graphics cards, but rather complicated, and only the latest generation, such as the GTX 970 and GTX 750ti and the new AMD R9 300 series is capable of bitcoin mining. This guide will not give much explanation on this option, as it is the least profitable option to mine Bitcoin.

Programs to mine Bitcoin

There are many programs to mine Bitcoin, we provide here the most popular and the best, many of them work for Windows, Linux and even for Apple computers, but as we will specify later in this guide, the equipment ASCI is the best for mining.

✅ CGMiner

One could say that CGMiner is the most famous and most used among Bitcoin miners of the moment. CGMiner is based on the original CPU Miner code. This software has many features, but the main ones are:

Fan speed control, remote interface capability, autodetection of new blocks with a mini database, support for multiple GPUs, support for mining with CPU.

✅ BFGMiner

BFGMiner is more or less the same as CGMiner. The only important difference is that it does not focus on GPUs like CGMiner, but rather is designed specifically for ASICs. The unique features of BFGMiner are: free OpenCL / LLVM table extraction, ADL device reassignment by PCI bus ID, built-in overclocking, and ventilation control.

✅ Bitcoin Miner

You can use Bitcoin Miner on Windows 10 and Windows 8.1, with an easy-to-use interface, a power-saving mode, support with a mineral exploration pool, and fast delivery of parts. A useful feature is the Profit Record feature, as this feature will help you know if your farm is profitable or not. The latest version of this software is Bitcoin Miner 1.27.0.

✅ BTCMiner

BTCMiner is an open source Bitcoin miner for ZTEX USB-FPGA 1.5 modules. The BTCMiner team has the following features: Dynamic frequency scale with which BTCMiner automatically chooses the frequency with the highest valid hashes rate, Bitstream ready-to-use, ie no software or Xilinx license is not required. It integrates FPGA boards that contain a USB interface used for communication and programming.

✅ EasyMiner

EasyMiner is based on the graphical interface and serves as a convenient connection for CGMiner and BFGMiner software. This software supports the getwork mining protocol, as well as the stratum mining protocol. It can also be used for both independent and pooled mining. Among its main functions is the configuration of your miner, and provides performance graphs for easy viewing of your mining activity.

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✅ RPC minor

RPC Miner can be used on Mac OS 10.6 or later and offers integration with APIs and Mac OS systems.

How to win Bitcoins by undermining them

Minors get bitcoins as a reward for solving a mathematical problem or thousands of nodes in the network compete every 10 minutes. This is the most powerful computer network that exists today. Thousands of computers around the world are “mining” bitcoins competing with each other. This mathematical challenge is always the same in its process but the variables are different and can only be solved by trying random numbers without stopping until finding the desired result at this time. The first who gets it wins the reward. This generates competition and the search for efficiency by improving the computers for this purpose, which we call minors.

The distribution of fees or commissions

For many transactions with Bitcoins, fees or commissions must be paid, which will then be returned to the minors. The commissions per transaction play an important role in the speed with which a minor checks these transactions, so the higher the price, the more it will be interesting for a minor to add it to the block and the sooner it will be confirmed, to finally add it to the Blockchain or a chain of blocks.

All commissions for transactions that are included in a block, will be a supplement that adds to the reward for extracting or resolving that entire block. There are transactions for which the 0 BTC is paid, so some minors will have to check them without receiving a reward.

The average commission per transaction is about 0.0001 ฿, but it is somewhat variable.

The costs of Bitcoin mining

The costs of Bitcoin mining

Mining bitcoins at home is no longer profitable or viable a few years ago. At the end of the last decade, mining began at a private level, with home computers. Soon, many began to invest in the purchase of more and more graphic cards, until they have multiple plates and GPUs for this activity, increasing the difficulty of mining.

This difficulty is given by the hash rate: the amount of hash that we can calculate per second. A hash is a number obtained from another initial number performing calculations. The first who gets a hash that meets certain requirements gets the reward. If the time required to meet is less than the set time, the difficulty increases automatically. And vice versa, if it takes longer than expected, the difficulty decreases.

Is it easy to mine Bitcoins?

At first, it was very easy and anyone with a personal computer could do it. But currently the difficulty in mathematical calculations is such that the power required to perform them has exceeded the limits of what can be done with a personal computer.

One of the most common practices among miners who do not have large physical facilities is to join “mining pools” or groups of miners to join forces. The profits generated by the decryption of the blocks are divided according to the power (hashes and shares) that each contributed.

Bitcoin extraction is compared to gold extraction. The idea is that any miner can start looking for gold, invest in more advanced machinery to help him find more, collaborate with other miners and distribute profits, or launch to invest and create a big gold mine with trucks, bulldozers and workers mining for it.

How to choose a machine to mine Bitcoin

Determining the best equipment to achieve Bitcoin extraction is not easy, it’s a mix of many important factors to consider when you want to determine which ASIC minor bitcoin to buy, here are some points to consider.

Consider the price – How much does bitcoin mining cost? Cheap mining equipment will exploit fewer bitcoins, which is why the efficiency and use of electricity is important. For obvious reasons, the fastest and most efficient mining equipment will cost more.

Determining the hash rate – How many hashes per second can the computer do to exploit Bitcoin? More hash costs more, which is why efficiency is crucial

Give a lot of value to efficiency – No doubt you want to buy the most efficient bitcoin mining equipment possible. Since mining equipment uses a lot of electricity, you have to buy one that converts the most electricity into bitcoins. Do not forget to consider that Bitcoin is the most difficult cryptocurrency to exploit, and that the equipment needed to succeed is the most expensive on the market.

The best bitcoin mining machines

The bitcoin mining job needs to keep the computer running at full capacity, with an excessively high temperature – though it can be controlled – and consuming almost as much energy.

If you want to start extracting your own Bitcoin (BTC), you will need an ASIC device specifically designed for this purpose. In this guide, we will try to help you become a profitable minor of Bitcoin by highlighting five of the major ASIC mining devices on the market today.

A successful brand to start buying specialized equipment is BITMAIN, a company in the retail or ASIC mining sector, producing reliable, high-performance equipment that is priced at the needs of retailers around the world. When buying a Bitmain, make sure your device is an S7 or better.

1.- Bitmain Antminer S9

This team has an average cost of $ 2,320 USD with 1.375W power consumption, a 13.5 Hp 13.5 Hp power output and an estimated daily profit of 0.00179041 BTC is the most powerful machine so far on the market.

This model is the most expensive ASIC miner on the market. However, this did not prevent the S9 from having a very strong demand because of its commendable efficiency. Indeed the availability of S9 units is very limited on the Bitmain site. You can buy Amazon units and auction sites like eBay, although prices are much higher and units are not covered by the Bitmain warranty.

2.-Bitmain Antminer T9

The AntMiner T9 has a chip that is synchronized with a higher operating frequency. Costs around $ 2175 USD, the new T9 is a bit cheaper than the S9, but not as efficient considering the first official specifications based on the T9 knowledge that consumes about 1450W and offers 11.5 TH / s while the lot 22 of S9 arrived with 11 TH / s for only 1078 W and lot 23 with 14 TH / s for a consumption of 1372 W.

The two cooling fans of the new device are identical to those of S9, which makes it possible to obtain a similar level of noise. Stability problems have been encountered in some S9 units, the T9 has been redesigned to provide better stability and efficiency, with a lower cost of production.

So, in summary, the AntMiner T9 does not seem so attractive at first glance, but with the shortage of new S9 miners on the market and its low cost, it’s possible we’re not getting a better option available.

3.- AvalonMiner 821

The cost of this equipment is $ 2,540 USD maintains a power consumption of 1,200W with a power chopping of 11 TH / s and generates a daily profit of 0.00143233 BTC

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The AvalonMiner 821 is a big improvement over its predecessor, built by the Canaan A3210 company with 104 chips of 16nm, which gives a reliable hash rate of more than 20% better than the AvalonMiner 761. Its price on the market it’s $ 2,499

The Avalon Miner 821 also has an energy efficiency of 0.109 Joules per Gigahash, about 10% less than the S9 Antminer (below 0.098). Since the hash rate is also lower than that of S9, your decision to choose AvalonMiner 821 will probably be based on price considerations.

4.- WhatsMiner M3

This ASCI has a cost of US $ 1,899, with a consumption of 2,000 W and a hash power of 12.5 TH / s. The daily advantage on average of 0.00162765 BTC

While the hash rate is slightly lower than the Antminer S9, this unit is much cheaper, which means you can see a return on investment in less time with previous teams. While the device consumes a lot of power, according to a detailed review in the Bitcointalk forum, the M3’s built-in fans dissipate heat quickly and are no more noisy than other miners when compared to the S9. The included power supply is also extremely efficient (over 90%).

5.- Bitmain Antminer S7

The cost of this equipment is approximately $ 1,500, has a power consumption: 1,293W with a power chopping: 4,73 TH / s and a daily allowance of 0,00061590 BTC

Although the S7 hash power is only about a third of that of S9, because of the lower cost and because many second-hand units come with a pre-packaged power supply, you can get back faster on investment than with the S9. S7 can also generate less heat and noise than S9.

The best pages to mine Bitcoin

There are many sites that offer Bitcoin mining for you, but you should search well because there are some not very recommendable websites while others, shown below, offer Bitcoin mining and other cryptocurrencies in the cloud easily and safely. For some of them, you can start getting bitcoins for free, but if you want to get a good performance, you have to buy mining energy and make Bitcoin payment:

  1. IQ Mining : a fairly complete cloud extraction solution, which allows most crypto-currencies, including Bitcoin.
  2. Hashflare, it is 100% recommended and reliable.
  3. Cryptominingfarm, offers you 50GHS of free power to exploit Bitcoins.
  4. Genesis Mining, is 100% recommended for the extraction of Bitcoin and Ethereum.
  5. CCG Mining, allows you to have Bitcoin Mining, Ethereum and other cryptocurrencies.
  6. Hashing24, has excellent contracts to exploit Bitcoins

You can also use the services of IQMining.

Is it profitable to mine Bitcoin?

Yes, it’s profitable. It is very likely that after several months you will be able to recover initial investment in euros or dollars, and to earn money FIAT, but during the history of the valuation of Bitcoin, it has been shown that is much more profitable to buy bitcoins directly than to mine them. In other words, if you buy directly or invest in Bitcoins, as I will show you later, by keeping them, it is very likely that after several months, their value has been preserved and you will have gained something through to their valuation. On the other hand, if you are now spending these euros or dollars to buy ASIC equipment, your ASIC is likely to stop being profitable before you can mine enough bitcoins that you can buy today with this money.

Even without taking into account the profitability of mining (compared to buying Bitcoins directly), the investment in ASICs is a delicate subject, in mid-2014 appeared a new generation of ASICS (20nm and 28nm) of several companies. The power and popularization of these new generations increases the difficulty of mining at a much faster pace and we can begin to see the ASICs of the previous generation become obsolete. This reduces the profitability of new generations at a rate that could exceed the threshold of amortization of the costs of the device, electricity and spare parts (power supplies have a tendency to be damaged).

What are the mining pools?

What are the mining pools

Mining is one of the most complex functions involving digital currencies. Think of miners as gold miners. They are the ones who control the supply. All cryptocurrencies have a controlled and managed offer. Every ten minutes, the mining teams collect a few hundred transactions (a “block”) and turn them into a mathematical puzzle. The first miner to find the solution communicates it to the other members of the network.

In the mining of cryptocurrencies one can act of individual form, but today, there is a strong competition, because of the increasing difficulty to discover the next block Crypto, it is necessary to increase the power of treatment or hashrate. As a result, some miners decide to group together to combine their capacity or computing power and thus have more chances of success. The mining pool is also known as a mining equipment farm.

How are the profits distributed on farms?

The profits in the mining pool are distributed in proportion to the hashrate, or computing power that your machine contributes to a given moment. This means that each miner will get rewards depending on whether he has contributed with more or less computing power. It should be noted that the factors that determine the production and value of cryptocurrencies vary permanently, so that the individual contribution in the hashes will be crucial to obtaining profits. We must always consider the working capacity and the time invested, which reminds us that we also have the possibility to automate our mining equipment.

The best bitcoin farms

Here is a list of some of the larger farms and their market share position:

✅ AntPool, based in China, holds about 15% of the market.

✅ DiscusFish, based in China, with a market share of 12%.

✅ BitFure Pool, its base of operations is Georgia, with about 12% of mining.

✅ BTCC, its operations center is in China, with 7% of the total market

✅ BW Pool, China, which holds 6% of Bitcoin’s mining activity

As you will understand, the largest cryptocurrency farms operate in low-cost energy production countries. However, most farms have servers in all countries and can be connected to a server in any country.

To give you an idea of what miners use on a large scale , here’s a 360º video of a Chinese mine, one of the largest in the world and worth seeing. In this type of installation as well as in the most traditional installations, it is necessary to take into account the necessary space , the price of the equipment, the maintenance of it and the electrical energy that it consumes. In addition to thinking about the continuing evolution of hardware, the growing difficulty in exploiting Bitcoins and a price that is still volatile.

Any investment should always be very well thought out.

Halving, or halving

This process of reward reduction is somewhat programmed, which happens every time 210,000 blocks are extracted, which happens every four years or so.

The reward earned by solving a full block being 50 Bitcoins started in 2009, in 2012 it went to 25, and in 2017, every time a block is solved 12.5 Bitcoins are released as a reward for them. minors. Generally, after each reduction to half the price of Bitcoin increases, so that the system ends up compensating.

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How to invest in Bitcoin without undermining

How to invest in Bitcoin without undermining

Many are wondering how to invest in bitcoin and what is the best way to do it, and it’s not very complicated. The main purpose of this guide is to show you how to mine Bitcoin, but you can also invest in Bitcoins by buying them through an exchange (you will then be a BCT holder), investing in Bitcoins in the form of CFDs, placing a futures on Bitcoin or investing bitcoins through mining. While the bitcoin market is very volatile, bitcoin has become the most lucrative form of investment in recent years.

We have already explained the benefits of mining, but also its costs, some have preferred other investment paths that we will explain briefly.

Buy bitcoin to keep them

Many investors prefer to buy Bitcoin and keep it, investors start investing in Bitcoins and keep it for a long time, waiting for the price to go up. They usually do this for a period of several years, so they do not worry about the rise and the short-term market downturn. There are rumors that the price of Bitcoin in a few years could reach a value above $ 100,000 USD for a BTC.

Coinbase is a secure platform for buying very bitcoin that is visual and intuitive, allowing you to invest with Bitcoins easily, as well as other interesting cryptocurrencies such as Ethereum or Litecoin. I invite you to see our complete account of Coinbase .

To buy cryptocurrency you must first deposit money in the platform, which can be done instantly, with a credit / debit card or by bank transfer (takes 1-2 days). This is not a platform to buy and sell several times a day, because there is a 1.5% tax per transaction, but you can use it if you plan to invest in Bitcoins and place long-term positions.

Invest in Bitcoin with CFD

Investing in the speculative CFD market in Bitcoin. Trading Bitcoins to enjoy a moment of low prices, buy cheap and wait for a rise to sell more expensive. You can even enter the Bitcoin sales market and make a profit. It is a form of negotiation that requires extensive knowledge and much more dedication to make a profit in the short term.

There are a lot of brokers to give you this option, but we recommend two, eToro and 24option which have proven to be reliable and secure platforms for operators, I put below a video explaining one of these platforms. forms.

The eToro broker meanwhile, allows you to participate in social trading, where you can copy the investment portfolios of other successful users, you just have to look for someone with a good investment record and the platform will support the movements automatically. But beware, any investment carries its risks, so follow the recommendations that will be given to you for better results, when the price of Bitcoin goes up, but you can also earn money when the price drops (short). to consult our guide: How to buy Bitcoin.

How to store your Bitcoins

A Bitcoin wallet is nothing more than a digital or physical place to store private keys. However, when talking about software that is installed on your computer or mobile phone, you usually use an installable program or application, which handles both the storage function that protects the private and interface keys to run on the computer. Bitcoin network: to send bitcoins, visually reflecting the state of the addresses associated with the private keys it manages, among other data. Usually, all this software is called a wallet . For that, I recommend you to consult our guide of the best portfolios 2018.

I will mention the most common ones in physical storage

Trezor Wallet, is excellent for storing large amounts of cryptocurrencies.

  • Ledger Nano S wallet, This is a very compact device, similar to a USB key.
  • KeepKey wallet, has the highest security levels.

How to mine Bitcoin in other countries

In all countries where you can do Bitcoin extraction, all you have to do is buy your ASCI equipment and build your farm to start exploiting bitcoin. We give you the details of some countries

How to extract Bitcoin in France

In France, an average value of $ 0.208 per KW / h, or $ 17,827.59 per BTC. We must therefore you should evaluate the energy costs to start mining, except that you can extract your ASCI team preference. If what you prefer is to buy Bitcoin directly, you must first acquire Bitcoin in an exchange of your preference. You can use eToro, avatrade, pepperstone.

How to extract Bitcoin in Canada

In Canada, an average value of 0. $ 146 per KW / h, so you have to evaluate the energy costs to start mining, except that you can do the extraction with your ASCI team preferably. If what you prefer is to buy Bitcoin directly, in Canadian dollars, you can acquire bitcoins at Coinbase, coinmama or Canadian bitcoins.

Frequently asked questions about Bitcoin Mining

  • Is it possible to mine Bitcoin with my PC?
  • Can I mine Bitcoin from my country?
  • What should be done better: undermine or invest?
  • How much does extracting bitcoins make?
  • Can you mine Bitcoin for free?
  • Can you mine Bitcoin with Android?
  • What is the best, to mine Bitcoin alone or in a group?
  • Will the mining costs of Bitcoin decrease with time?
  • Final conclusions on Bitcoin mining

The extraction of bitcoins for an individual is currently one of the most expensive forms on the market. Most pools have servers in all countries, although the mining pool is based in China, Venezuela or other countries with low energy costs.

Mining by individuals who face Chinese farms is less likely to get Bitcoin rewards. The logic says that it is better to buy with this money a good that will be revalued, like a stock listed on the stock exchange, as can be the same cryptocurrency that you want to extract. So much that what we want is to make money.

Bitcoin miners are crucial for Bitcoin and its security. Without the minors, Bitcoin would be vulnerable and easy to attack.

The majority of Bitcoin users do not undermine, since they prefer to buy it and speculate with its market price. However, the miners are responsible for creating all the new bitcoins and a fascinating part of the Bitcoin ecosystem. Mining was once carried out on an average desktop computer, now it’s mostly done in large specialized warehouses with massive amounts of mining equipment, as you saw in the video we showed you. These stores usually direct their hash power to the mine basins.

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