Looking to get hold of bitcoin and other cryptocurrencies without having to hit the trading markets? Bitcoin mining is a practice with perk and caveats in equal measure. While it provides a low-risk route to get a share of the lucrative cryptocurrency market, it’s also increasingly hard to mine bitcoin with your ordinary PC nowadays.
But first things first; what happens in Bitcoin mining? The underlying concept of bitcoin mining is to verify transactions made within the cryptocurrency network and adding them to a ledger. You’re then rewarded with a certain amount of the cryptocurrency. When Bitcoin was introduced to the world back in 2009, a basic home computer could easily run the computations and mine coins. Over time, this process became more and more complex—demanding huge processing power.
Here are some things to remember when contemplating mining bitcoin with your PC:
- To make any profits, you need a computer with a powerful GPU—otherwise, the process will take a toll on your PC.
- You can upgrade your computer’s processing power with the help of an application-specific integrated circuit (ASIC).
- Take note of the operational costs (e.g., always-active electricity and internet connection) of running a Bitcoin miner from home.
- Find a digital wallet to store the cryptocurrency rewards you’ll earn from your mining activities.
- Pick an appropriate mining pool from sources such as Bitcoin Wiki. The idea of a mining pool is to group machines and improve their processing power and improve the odds of making a considerable profit.
- Now that you have the hardware; you have a digital, and you’ve joined forces in a mining pool, the only step remaining is to download a Bitcoin mining software.
- Get to mining!