Do you want to make your own money? This is definitely possible with Bitcoin. We tell you what to look out for when mining bitcoins. Plus: Tips for the right graphics card. A how-to to get started with mining Bitcoins.
 |
| Produce bitcoins yourself: Very fast computers and extremely powerful graphics cards are the prerequisites for this |
Bitcoin is by far the most popular cryptic currency. Not only can you buy bitcoins, but you can also produce them yourself. This process, which runs on the processor of the graphics card, is called mining. More blocks are added to the Bitcoin blockchain and the miners receive a reward in the form of Bitcoins. However, the production of bitcoins is no longer that easy - production takes longer and longer, the more bitcoins are produced.
The right hardware for mining bitcoins
To produce bitcoins, but also other cryptic currencies such as ether, you need a very fast computer with a suitable graphics card. Popular graphics cards include Geforce RTX cards, for example, Geforce RTX 3080. In many cases, graphics cards are also used in parallel Geforce GTX 1080 Ti used. Also, RTX 2080 and other Nvidia RTX cards are widely used. A good source of information about good graphics cards for mining is the mining operating systems that can be used for mining. The supported hardware is a good guide, for example from Minerstat Mining OS.
However, you shouldn't blindly buy graphics cards that are similar in name. The graphics cards were actually designed to provide optimal performance for games and video applications. The use for mining is therefore not welcomed by manufacturers such as Nvidia, as the cards are sold out and normal users who use cards for conventional purposes no longer get them. Hence, cards like Geforce RTX 3060 so delivered that the performance is very high, but the mining slows down. Nvidia integrates special mechanisms into cards for this.
AMD also offers corresponding cards, for example: RX 460, RX 470, RX 480, RX 560, RX 570, RX 580, RX Vega 56, RX Vega 64, Radeon VII, RX 590 Vega Frontier Edition, RX 5600, RX 5600 XT , RX 590 GME, RX 5700 XT and RX 5700.
At the same time, of course, Nvidia wants to serve the market and offer graphics cards that are primarily optimized for mining. Examples are CMP 30HX and CMP 40HX. These are development names. These cards will probably also have an RTX in their name.
However, graphics cards that can be used to produce cryptic currencies are very expensive and prices fluctuate strongly or tend to rise. It is not certain that you will recover the purchase price, especially since there are also electricity costs involved in making Bitcoin.
Before you buy expensive hardware, you should first deal with the calculation of Bitcoins and test the software and access to the individual providers. In general, the software for managing bitcoins (wallet) is free and applications for producing bitcoins are often free. Most of the applications are open source. The first and most important entry page for creating and using Bitcoins is bitcoin.org. Here you will also find the providers of digital wallets.
Bitcoin versus Bitcoin Cash
In addition to the classic version of Bitcoin (BTC), there is the Bitcoin Cash (BTH) version. Bitcoin Cash is a fork from Bitcoin. Because the production of Bitcoin is now very tedious, the developers have split off with Bitcoin Cash. The creation is faster here, but the price is also lower. So before you start creating Bitcoins, you should study both Bitcoins and Bitcoin Cash more intensively.
Ether as an alternative
Ether manufacturing may also be something for you. The Ethereum platform works with the cryptocurrency Ether. As with Bitcoin, efficient graphics cards from AMD and Nvidia are used to calculate the currency when generating ether. Ether is the second most popular cryptocurrency after Bitcoin. The underlying blockchain "Ethereum" is also used a lot by companies, for example for smart contracts in supply chains. Therefore, many experts see an advantage of Ethereum over the Bitcoin blockchain, as it does not support smart contracts and is therefore rarely used in companies.
However, Bitcoin is the top dog in the cryptocurrency market. In addition to bitcoin.org, the bitcoin.de site also plays an important role. Here you can also see the current rate of the currency in euros.
This is how Bitcoin mining works
First of all, you should know that while you can produce bitcoins for free and thus benefit from the cryptocurrency boom, you have to consider other costs. The production of Bitcoins costs (a lot) electricity, because you have to leave your computer running almost continuously. You also need a suitable graphics card, which is expensive. Of course, the rest of the PC has to be able to keep up with the performance of the graphics card, which further increases the price of use. And you have to install a tool that you can use to log into the pool and then calculate the bitcoins.
Sign in to the mining pool
It takes a long time to calculate bitcoins and you need to dig deep into the subject to be successful. To create bitcoins, you can also create an account with a mining pool. In this case, you calculate along with other bitcoins. All participants in a mining pool collectively calculate Bitcoins, which are shared between the participants. However, if there are several computers in the network that calculate bitcoins, it becomes more difficult to create the bitcoins and you will receive fewer bitcoins.
Mining pools, which are used by many applications for the production of bitcoins, are for example IQMining, Sesterce, Genesis Mining, BTC.com, AntPool and Slush Pool. Slush Pool has a special role because it is the first mining pool for bitcoins from 2010. F2Pool and BTCC Pool are also popular pools. But there are also many pools displayed within mining software that you can log into.
You can also mine Bitcoins on your own without a mining pool, but this means that the production takes significantly longer and you incur more costs.
Tools and operating systems for calculating bitcoins
There are tools that work directly with a mining pool provider and are made available by the relevant mining pool. Minergate's Mining Pool can also calculate other cryptocurrencies, such as Ethereum. The manufacturer's software is therefore optimized for cooperation with the pool.
There are also special Linux distributions for mining. A well-known example of this is ethOS Mining OS. The operating system is optimized to mine cryptocurrencies. With ethOS you can mine Ethereum, Zcash and Monero. The operating system costs $ 39. The necessary software is already included.
Another example is MinerOS. The system can be used free of charge for three hours a day. If you want to mine permanently, you naturally have to dig deeper into your pockets.
Minerstat Mining OS is also a popular operating system for mining cryptocurrencies. The system can be supported on computers in which compatible hardware is installed. The supported hardware is on the download page to see. Various miners, i.e. mining tools / mining software, can be installed on the operating system. Mining OS supports most of the popular cryptocurrencies.
Create the digital wallet - the wallet
Bitcoins bought or created are stored in a wallet. You can also store your address in the mining software. You can find providers for wallets on the Internet as well as with mining pools. If you search for "Bitcoin wallet", you will find numerous pages that compare the various wallets with one another.
Important: Never lose the address and the access data to your wallet. Otherwise, you will never get your bitcoins under any circumstances. Write down the data, save the certificates and note the access data. There are estimates that at least 3.7 million bitcoins can no longer be used because the owners no longer have access to their wallets. Some examples :
Crypto Scalping - Gamble on the stock exchange with Bitcoin
The Bitcoin price is extremely volatile, as our reporting shows. The price is constantly rising and falling. Because of this, resourceful Bitcoin experts can make money not only from mining Bitcoins but also from trading. Bitcoin's price rises when more traders buy than sell. That was the case in February 2021, but it can change very quickly. Here it is worth listening to statements from celebrities like Elon Musk or Bill Gates, as they can have a strong influence on the Bitcoin rate with just a few sentences.
If the price rises and goes in the direction of "stock market resistance", you can sell Bitcoin and hope for price gains. Such a "resistance" is a certain course from the past, which Bitcoin could not exceed so far and at which it is to be expected that the course will fall again. Such resistances are calculated in the analysis of charts and require some knowledge about the stock market. The opposite of resistance is downward support. If a price falls to a point of support, it should then rise again. So a "support" rate like this could be a good time to buy.
If you can see where "resistance" and "support" are, you can make money from daily price movements, just as you would with stocks.
Mining in the cloud
Due to the constantly rising electricity costs in Germany, mining on home computers is hardly worthwhile. Many professional miners now rely on the cloud. A prominent example is the Genesis Mining pool mentioned above. Another example in this area is BitDeer. You don't need your own hardware for this mining, you have to pay a fee for it.
In summary - you need that
There are four main things you need to produce Bitcoins:
- Suitable hardware including a powerful graphics card that is optimized for mining. On the Internet, some manufacturers now even offer their own mainboards that are suitable for calculating cryptocurrency. You can optionally use a cloud service such as Genesis Mining or BitDeer.
- A digital wallet
- Optional: Membership in a mining pool
- A software that does the calculations. This is not the wallet (in which your bitcoins are stored).
Once you have the necessary hardware and software set up, you can start mining. You can of course switch providers at any time. You can also transfer the content of your digital wallet to other providers. You can also install apps on smartphones to have mobile access to your bitcoins.
Note: Investing in Bitcoins is also possible without a wallet
If you don't want to mine bitcoins yourself but just want to buy it, you don't necessarily need a wallet. You can also deposit the purchased bitcoins with a "crypto bank" alias bitcoin marketplace alias bitcoin exchange or a bitcoin bank such as Coinbase. Such Bitcoin trading venues can also go bankrupt:
Tip: If you notice that your Bitcoin bank is having problems, you should immediately transfer the Bitcoins you have deposited there to a wallet on your computer!
0 Comments