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You can generate a steady passive income from Bitcoin mining. However, Bitcoin mining is costly, often requiring expensive computational hardware and high electricity consumption.
If you can afford the tools needed, bitcoin mining could become a long-lasting and profitable business.
To start mining Bitcoin, it is essential to possess a Bitcoin wallet and a mining rig, set up the Bitcoin mining software, and join a mining pool.
What You Need To Start Mining Bitcoin
Bitcoin mining may not be as profitable as it used to be, especially with the series of Bitcoin halvings we have experienced.
However, Bitcoin mining is still one of the best ways to make money with crypto, but it requires several tools:
Mining rig
The first thing you need to do to mine Bitcoin is to build or buy a mining rig, a computer made for mining cryptocurrencies.
It typically consists of multiple GPUs capable of rapidly performing complex mathematical computations. Mining rigs are pretty expensive, with a typical ASIC mining rig costing between $500 and $5,000.
Bitcoin wallet
Next, you need a Bitcoin wallet to store the Bitcoin after mining. You have several options, including cold wallets, hot wallets, software wallets, hardware wallets, and exchange wallets.
You can connect your wallet once your mining rig is up and running. Download a Bitcoin mining software once your wallets and rigs are in sync. Most mining software is accessible to download without cost and use and is also available for various operating systems.
While many choices will be effective, slight differences could impact your mining operation. Several options include CGMiner, Kyryptex Miner, BFGMiner, and EasyMiner.
Mining Pool
Once you have set up the mining software, you must become a member of a mining pool. A mining pool is a group of miners who put their computing power together to increase their chances of finding a block, mining it, and earning a reward. Binance Pool, Antpool, F2Pool, and BTC.com are some of the best crypto mining pools.
After joining a mining pool, you can start mining Bitcoin. The amount of Bitcoin you can mine depends on several factors, like the power of your mining rig, the electricity expenses, and competition from other miners. So, how hard is Bitcoin mining?
How much electricity it costs to mine Bitcoin
One downside to Bitcoin mining is the excessive amount of energy it consumes. The electricity expenses to mine Bitcoin can vary depending on several factors, like the mining capacity of your rig and the cost of electricity in your region.
On average, the Bitcoin network consumes around 112.5 terawatt-hours per year, which is equal to the energy consumed by the entire country of Chile within a year.
However, the cost of electricity can be much higher in some areas. For example, in the United States, home to many Bitcoin mining farms, electricity prices can rise to $12.5 per kilowatt-hour. At the same time, in countries such as Germany or Denmark, they soar to $37.5 per kWh, resulting in significantly higher costs for Bitcoin mining.
Moreover, the price of electricity can also vary based on the efficiency of the mining tools. Certain devices consume less energy than others, significantly affecting the total electricity expenses. It is crucial to consider your equipment’s efficiency while calculating the electricity cost for mining Bitcoin.
How to mine Bitcoin on a PC in 5 steps
- Get a Bitcoin wallet: This is where you store the Bitcoin you mine. You can choose between a software wallet that can be downloaded to your computer or a cold wallet that allows you to keep your BTC offline.
- Download mining software: you must download mining software that works with your computer’s OS.
- Participating in a mining pool: This will improve your chances of earning more BTC, as resources will be combined for more efficient mining. The rewards are distributed among members based on their mining power contributions.
- Set up your mining software: Input your Bitcoin wallet address and the mining pool address you are part of. You will also need to set the number of threads and mining intensity.
- Start mining: You can begin mining after setting up the mining software. The software will utilize the computer’s processing power to solve intricate math problems, validate Bitcoin transactions, and earn new BTC.
Can I mine Bitcoin on my smarphone ?
Mining Bitcoin on a smartphone is impractical because smartphones need more processing power to compete with specialized mining tools.
Additionally, the excessive energy consumption involved in mining can lead to overheating and potentially damage your smartphone.
Also, mobile mining apps for Bitcoin are typically not genuine mining. Instead, they offer opportunities to earn small amounts of BTC or other cryptocurrencies through completing simple tasks or viewing ads. Still, the rewards are minimal and may be less than the resources spent. This is called Bitcoin faucets.
