Bitcoin ASICs can also be used to mine other cryptocurrencies that use the same mining algorithm as Bitcoin. Our profit-switching service provided for the different SHAd coins that we support can maximize your mining revenue by automatically switching . Feb 21, · Breakeven for Amateur Mining at $10, per Bitcoin. When calculating the mining of one BTC, the prediction takes into account possible price fluctuations in various breakeven scenarios. If BTC climbs up to $50,, breakeven would not be a problem. But any price fluctuation can lead to immediate losses. The next step to mining bitcoins is to set up a Bitcoin wallet or use your existing Bitcoin wallet to receive the Bitcoins you mine. Copay is a great Bitcoin wallet and functions on many different operating systems. Bitcoin hardware wallets are also available.
What can i use to mine bitcoinHow Does Bitcoin Mining Work?
Set a username. This will be required for configuration. Now add your Bitcoin wallet address created in Step 1 and add enter it in your Payout Settings. You can set a payout threshold and check hashrate changes and your rewards once you start contributing mining power.
You can add or change your payout address in your Payout Settings. Now that you have a wallet and an f2pool username, you can proceed to configure your mining device.
No mining software is required to be run on your computer. All you need is the proper electricity set-up to meet the power consumption requirements and a reliable internet connection. Use any modern browser that accesses the IP address of your machine, then connect to an f2pool server. Username : miningAccountUsername. The list of f2pool mining pool servers is available here , as well as in the table below.
Please use the server closest to your mining operation for a better connection and lower latency. Your miningAccountUsername is provided in your Account Settings. Ports , , and 25 can be used as alternative ports for each server. A miner with the mining account username oceanminer and a worker named bigfish1 who wants to connect to the NA server would configure his device as follows:.
ASICs take just a few steps to configure. You are not locked into f2pool and can enter and exit the pool freely at any time. However, you will only earn mining rewards from f2pool while connected to an f2pool server.
Input your wallet and transaction details to find on-chain information, such as payouts from f2pool. The number of coins you can earn is primarily based on how much hashrate you have. At a given bitcoin price, the biggest factor influencing your profits is your costs , which are highly dependent on your mining machines. In turn, electricity and the overall cost of your hardware are the main factors that influence your costs.
Mining difficulty , payout schemes , and fees can also affect your profits. You can use our calculator tool to easily estimate your potential revenue from popular mining machines.
Once your device has started mining and submitting data to the pool, you can access real-time reward records from f2pool. As long as your miner is submitting your hashrate successfully, you will receive payouts from f2pool.
To view your real-time Bitcoin mining payout records, visit the f2pool website and sign in to view your records. The f2pool app is also a convenient option for checking your rewards. When the coins in your account reach the minimum threshold of 0. Details about our payout method and fees can be found here.
When you mine Bitcoin with f2pool, you can receive payouts from several different merge mining coins. Note: VCASH payouts can only be made when your balance is above the threshold and can only be claimed manually. Payouts for other merge mined coins will be made automatically. Now imagine that I pose the "guess what number I'm thinking of" question, but I'm not asking just three friends, and I'm not thinking of a number between 1 and Rather, I'm asking millions of would-be miners and I'm thinking of a digit hexadecimal number.
Now you see that it's going to be extremely hard to guess the right answer. In Bitcoin terms, simultaneous answers occur frequently, but at the end of the day, there can only be one winning answer. Typically, it is the miner who has done the most work or, in other words, the one that verifies the most transactions.
The losing block then becomes an " orphan block. Miners who successfully solve the hash problem but who haven't verified the most transactions are not rewarded with bitcoin. Well, here is an example of such a number:. The number above has 64 digits. Easy enough to understand so far. As you probably noticed, that number consists not just of numbers, but also letters of the alphabet.
Why is that? To understand what these letters are doing in the middle of numbers, let's unpack the word "hexadecimal. As you know, we use the "decimal" system, which means it is base This, in turn, means that every digit of a multi-digit number has 10 possibilities, zero through nine. In a hexadecimal system, each digit has 16 possibilities. But our numeric system only offers 10 ways of representing numbers zero through nine.
That's why you have to stick letters in, specifically letters a, b, c, d, e, and f. If you are mining bitcoin, you do not need to calculate the total value of that digit number the hash. I repeat: You do not need to calculate the total value of a hash. Remember that ELI5 analogy, where I wrote the number 19 on a piece of paper and put it in a sealed envelope? In bitcoin mining terms, that metaphorical undisclosed number in the envelope is called the target hash.
What miners are doing with those huge computers and dozens of cooling fans is guessing at the target hash. A nonce is short for "number only used once," and the nonce is the key to generating these bit hexadecimal numbers I keep talking about.
In Bitcoin mining, a nonce is 32 bits in size—much smaller than the hash, which is bits. In theory, you could achieve the same goal by rolling a sided die 64 times to arrive at random numbers, but why on earth would you want to do that? The screenshot below, taken from the site Blockchain. You are looking at a summary of everything that happened when block was mined. The nonce that generated the "winning" hash was The target hash is shown on top. The term "Relayed by Antpool" refers to the fact that this particular block was completed by AntPool, one of the more successful mining pools more about mining pools below.
As you see here, their contribution to the Bitcoin community is that they confirmed transactions for this block. If you really want to see all of those transactions for this block, go to this page and scroll down to the heading "Transactions.
All target hashes begin with zeros—at least eight zeros and up to 63 zeros. There is no minimum target, but there is a maximum target set by the Bitcoin Protocol. No target can be greater than this number:. Here are some examples of randomized hashes and the criteria for whether they will lead to success for the miner:. Note: These are made-up hashes. You'd have to get a fast mining rig, or, more realistically, join a mining pool—a group of coin miners who combine their computing power and split the mined bitcoin.
Mining pools are comparable to those Powerball clubs whose members buy lottery tickets en masse and agree to share any winnings. A disproportionately large number of blocks are mined by pools rather than by individual miners.
In other words, it's literally just a numbers game. You cannot guess the pattern or make a prediction based on previous target hashes. Not great odds if you're working on your own, even with a tremendously powerful mining rig. Not only do miners have to factor in the costs associated with expensive equipment necessary to stand a chance of solving a hash problem.
They must also consider the significant amount of electrical power mining rigs utilize in generating vast quantities of nonces in search of the solution. All told, bitcoin mining is largely unprofitable for most individual miners as of this writing. Source: Cryptocompare. Mining rewards are paid to the miner who discovers a solution to the puzzle first, and the probability that a participant will be the one to discover the solution is equal to the portion of the total mining power on the network.
Participants with a small percentage of the mining power stand a very small chance of discovering the next block on their own. For instance, a mining card that one could purchase for a couple of thousand dollars would represent less than 0.
With such a small chance at finding the next block, it could be a long time before that miner finds a block, and the difficulty going up makes things even worse. The miner may never recoup their investment. The answer to this problem is mining pools. By working together in a pool and sharing the payouts among all participants, miners can get a steady flow of bitcoin starting the day they activate their miner. As mentioned above, the easiest way to acquire bitcoin is to simply buy it on one of the many exchanges.
Alternately, you can always leverage the "pickaxe strategy. Or, to put it in modern terms, invest in the companies that manufacture those pickaxes. In a cryptocurrency context, the pickaxe equivalent would be a company that manufactures equipment used for Bitcoin mining. For larger contracts, it may take you several years. Tip: You can access your router and your ASIC miner from any computer or electronic device on the same network as your miner — even your smartphone.
Make sure your network is protected by a firewall and a strong password. To mine Bitcoins, start by downloading a Bitcoin wallet on your computer or mobile device, which you'll need to store your mined Bitcoins in. Once you have a digital wallet, look for a cloud mining service provider online and sign up for one of their packages to receive processing power to mine Bitcoin remotely.
Then, join a mining pool through the provider, which will increase your chances of earning Bitcoins. To learn what equipment you'd need to mine Bitcoin yourself at home, scroll down! Did this summary help you? Yes No. Please help us continue to provide you with our trusted how-to guides and videos for free by whitelisting wikiHow on your ad blocker. Log in Facebook. No account yet? Create an account.
Software and mobile wallets are reasonably secure, can be downloaded for free, and are suitable for smaller amounts of Bitcoin. Some wallets are hybrid, meaning that you can access them through software on your computer and through an app on your mobile phone. Invest in a hardware wallet if you're serious about Bitcoin. Hardware wallets may set you back a couple of hundred dollars but are considered more secure. Since they aren't connected to the internet, they aren't vulnerable to hackers.
If you intend to keep your Bitcoin long-term, a hardware wallet is likely a worthwhile investment. You can buy them online or at brick-and-mortar stores that sell computer supplies and accessories.
Enable all security features on your wallet. Once you've chosen a Bitcoin wallet, set it up for maximum security to protect your Bitcoin. Use two-factor authentication to secure your account.
When you log in, a code will be sent to you in a text message or email. You have to enter the code to access your account. This makes your account less vulnerable to hacking. If you have a password manager on your computer or smartphone, you can use that to create a secure, encrypted password. Method 2 of Decide which cloud-mining service provider to use. There are a number of different cloud-mining service providers available, some of which are better established than others. Each service charges different fees and has different contract packages available.
However, the most popular services with the best reputations also are frequently sold out of contracts. Research services carefully. There have been numerous cloud-mining scams. Make sure the company is legitimate and has a good reputation. You can search the name of the service and see what people are saying online about it.
Websites such as CryptoCompare can also help you analyze company reputations. Be careful of a cloud-mining service that makes guarantees or claims that sound too good to be true. It is likely a scam. No cloud-mining service can guarantee you a particular rate of return, or guarantee that you'll break even or start turning a profit in a short amount of time.
Pick a cloud mining contract package. With cloud-mining, you essentially lease mining power from a miner farm for a period of time. While your contract is active, you get all the Bitcoin that is mined using that amount of mining power, minus fees paid to the cloud-mining service for maintenance of the mining hardware.
While shorter contracts may carry a lower price tag, it's unlikely that you'll make any money in a shorter period of time. You usually need at least 2 years to break even.
This sounds like a lot, but it's unlikely that you'd do much more than break even in 2 years on such a small plan. Withdraw your earnings to your secure wallet. When you purchase your contract, your mining power goes to work for you immediately. As you earn Bitcoin, it will show up on your account at the cloud-mining service. When you've accumulated enough, you can send it to your wallet.
Others may allow you to withdraw your earnings any time you want, as long as you have a minimum amount. The minimum can range anywhere from 0. Method 3 of Use an online mining calculator to calculate mining profitability. Mining rigs can be relatively expensive and consume a lot of power. Playing with different setups on an online mining calculator can help you determine whether it's worth it to you to start mining.
If you're just getting started, you may not have all the information available, such as mining pool fees or power cost. However, the more information you provide, the more accurate the profitability estimate will be. Buy ASIC miners and a power supply for your mining rig. Essentially, it's a computer chip that needs a power supply to run it.
ASIC miners vary in price depending on their hashing power and their efficiency. You can monitor the price of Bitcoin to calculate changes in the time it will take to turn a profit. Profit may also vary based on the price of electricity. Connect your miner and boot it up. Connect your power supply to your ASIC miner, then connect your miner to your router.
Use an ethernet cable to connect your miner — a wireless connection is not stable enough.