How to start mining bitcoins and other cryptocurrencies

The topic of mining is currently particularly covered on the network. People are interested in the incredible growth of bitcoin and the mining process of the super popular . To become a miner, you need to thoroughly approach the issue and carefully prepare. This material from Threshbox is just aimed at this. In the latest article, you will learn what mining is, how to start mining bitcoins and other cryptocurrencies, whether to mine collectively or alone, and what kind of hardware is best for this business.

What is mining

Mining (from the English "mining" - mining) is a decentralized computing process that serves two main purposes:

  • Confirms transactions in a trusted way, using the computing power of the miner to process data.
  • Creates (releases) new bitcoins in each block.
The principle of mining consists of several sequential processes: checking the validity of transactions → a set of operations in a block → choosing a hash header for a new block → proof of work performed → adding a new block to the local blockchain → distributing cryptocurrency in the network.

Notable Information: what is the proof of work (proof of work). In the bitcoin system, there is a piece of data that requires certain resources (computing power). Proof of work is one of the consensus algorithms (general agreement) that provides confirmation of the complex and lengthy work described above. In most cases, it occurs randomly and does not require any action on the part of the user.

Software and Wallets

The whole point of bitcoin mining is to earn them. But what software should be used for this? Moreover, as soon as a certain amount of bitcoins is earned - where to store them safe and sound? The answers to these questions are provided by the Threshbox editorial with recommendations for the best and safest mining software.

Among the mining software, there are several good and feature rich options. Most of the presented programs are available for the leading desktop operating systems: Windows, macOS and Linux.

  • MinePeon. A simple open source miner that may require an additional WinDisk32Imager utility to burn disk images to USB SD/CF cards.
  • EasyMiner. Cross-platform (available on Windows, Linux and Android) miner with a convenient graphical shell. Automatically configures work for bitcoin and provides activity schedules for its production.
  • BFGMiner. Modular miner. Supports operation on gate arrays (FPGA), application-specific integrated circuits (ASIC), graphic graphics cards (GPU) and central processing units (CPU). Available for Windows, macOS and Linux.
  • CGMiner. Powerful miner with support for multi-threaded multi-pool GPU, FPGA and ASIC. In addition, it offers monitoring of ATI (AMD) video cards, overclocking and computer fan speed settings for bitcoin and cryptocurrency derivatives.
  • NiceHash Miner. A multi-user miner based on CGMiner. It supports more than 20 algorithms and uses cloud mining technology, thanks to which you do not need to look for pools.

And now about wallet programs. For bitcoin, we strongly recommend that you only use wallets where you can store and use your own (private) keys. For example, the most suitable, simple and safe options are, first of all, official Blockchain wallet, as well as third-party solutions Breadwallet, Copay And Armory. We do not recommend using various hosted (server) wallets (for example, Coinbase or Circle), since they store the entire database on the provider's servers. The provider in this case can have full control not only over public, but also over private keys.

All mined bitcoins become a real currency that can be bought, used for transactions, or even put up for auction on the Bitcoin trading platform.

Which pool to choose

Mining pools are cooperative groups of miners who agree to distribute rewards for closing new blocks in proportion to the hash power provided. Simply put, pools are made for collaborative mining. The miner can use any pool where it is convenient for him.

If you do not plan to mine solo (alone), then mining pools are recommended for use. The list below shows the largest mining pools for bitcoin and more.

  • AntPool. Chinese mining pool supported by BitMain. Production relative to all new blocks is 15%.
  • DiscusFish/F2Pool. A mining pool called DiscusFish, also known as F2Pool, is also based in China. Over the past six months, the production of this pool has become equal to 12%.
  • Bit Fury Pool. BitFury is one of the largest manufacturers of Bitcoin hardware and chips. Currently, this private mining pool mines about 12% of all bitcoins in three processing centers across Georgia.
  • BTCC. The third largest Bitcoin mining pool in China. Today he owns about 7% of all bitcoins.
  • ViaBTC. This mining pool was created in 2014 and is also based in China. ViaBTC mining is 8% of all new blocks.
  • BTC Top. One of the newest mining pools. It doesn't have its own website, so it may be a private pool.
  • Slush Pool. Slush is officially the first bitcoin mining pool. Based in the Czech Republic. At the moment, it mines about 6% of all bitcoins. Considered one of the best and most popular mining pools in the world.
  • Bitclub.Network. A huge mining pool for mining various cryptocurrencies.
  • GBminers. Competitive mining pool from India with a share of 5%.
If you do not want to mine in pools and share mining with other miners, then for solo you can try the official BitcoinCore (BitCore) client. It is easy to use and functional enough for solo mining.

The best hardware for mining

As you know, the earnings of bitcoin and other crypto-currencies are directly proportional to the computing power that the miner provides for the network. The more powerful your computer, the faster and more you can earn. Therefore, we have also compiled a review of the best hardware available on the market today.

At first, miners used central processing units (CPUs), but as the cryptocurrency network strengthened, they stopped mining and became insufficiently productive. Then there was a rapid transition to graphics processing units (GPUs) in the form of computer graphics cards, as they were able to speed up the hashing process by 50-100 times and consume much less power. Shortly thereafter, field-programmable gate arrays (FPGAs) and application-specific integrated circuits (ASICs) began to be used for mining. To this day, most of the listed equipment is suitable for mining.


AntMiner S9


Best ASIC miners:
  • AntMiner S7, price: $480.
  • AntMiner S9, price: $2,280.
  • Avalon6, price: $500.
  • CoinTerra TerraMiner IV, price: $1,500.


ASIC Miner BE Tube


Best Bitcoin ASIC Miners:
  • AntMiner S5, price: from $150.
  • AntMiner U3, price: $90.
  • ASIC Miner BE Tube, price: $320.
  • ASIC Miner BE Prisma, price: from $600.
  • Avalon 2/3, price: $3,075.
  • BTC Garden AM-V1, price: $350.
  • VMC Platinum 6 Module, price: $9040.


BPMC Red Fury USB


There are also USB bitcoin miners. Thanks to USB miners, you can save a lot of money. Among them, the most popular offers are:
  • AntMiner U2, price: $50.
  • BPMC Red Fury USB, price: $45.
  • GekkoScience, price: $50.
  • Avalon Nano 3, price: $55.


MSI GeForce GTX 1080


The best video cards for mining various cryptocurrencies:
  • Gigabyte Radeon RX 560 (4 GB), price: 23,500 rubles.
  • ASUS Radeon RX 580 (4/8 GB), price: from 35,000 rubles.
  • Gigabyte Radeon RX 570 (4 GB), price: 38,000 rubles.
  • ASUS Radeon RX 570 (4 GB), price: 41,990 rubles.
  • Gigabyte GeForce GTX 1070 (8 GB), price: from 49,500 rubles.
  • ASUS GeForce GTX 1070 (8 GB), price: 54 990 rubles.
  • Gigabyte GeForce GTX 1080 (8 GB), price: from 56,280 rubles.
  • MSI GeForce GTX 1080 (8 GB), price: 67,190 rubles.
  • GeForce GTX 1080 Ti (8GB to 11GB)- not available for sale.
The only problem with buying video cards is that they may not be available. For example, quite recently in Russia there was already a shortage of video cards throughout the country. All the major media and computer store vendors immediately announced the “obvious” - mining is to blame. The growing demand for components was associated with the interest of Russians in the mining of cryptocurrencies.

Outcome

In conclusion of this article, I will answer the main question as clearly as possible, which is probably of interest to all miners - which is better: to mine or buy bitcoins?

If you look at mining as a long-term investment, then in the future you can actually earn a certain amount of bitcoins or other cryptocurrencies. However, this has its share of risk. First of all, miners can simply break down - accidents happen. Also, you cannot know for sure how much virtual money you will earn - regardless of mining activity. The numbers can change significantly. A more profitable and promising choice in this case would be the purchase of bitcoins. Especially considering that now its price is at the level of $3 thousand and, with minor changes, basically continues to grow.

You can find out how profitable it is to mine a particular cryptocurrency at the moment on the What to Mine website. This service analyzes the dynamics of exchange rates and, based on the data obtained, predicts the profitability of mining.

Write in the comments which pool you want to use and which iron you prefer to take for mining. Of course, if you still decide for yourself that you will definitely do it.