Bitcoin mining can be done by yourself which have many advantages.Although most miners prefer to mine in pools, there are still advantages to mine bitcoin by yourself. A few years back, it became such a popular topic of discussion on the internet and TV shows that people started to use Bitcoin more often and its price has significantly risen since that time.
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Learn how to bitcoin mining by yourself
As a result, many users began to think about mining as a profitable deal which could award thousands of dollars. Well, if you’re planning about mining, let’s discuss this million dollar question: How bitcoin mining by yourself?
Choose your hardware for bitcoin mining
At the initial stage of Bitcoin mining, it was possible to mine Bitcoins by using only your desktop’s GPU and CPU. With the passage of time, it became nearly impossible. You’ll be spending more on things like electricity as compared to your earning. As Bitcoin mining difficulty increases, more and more powerful hardware is needed to mine Bitcoin.
If you’re dead set to mine bitcoin by yourself , you need to buy a powerful ASIC miner. Almost all the latest hardware use the same chips, but they all use different power supplies and hence some are more efficient than others.
Best mining hardware options for bitcoin mining by yourself
Butterfly Labs, CoinTerra, Bitcoin Ultra and Bitmain, are the popular Bitcoin-mining hardware brands. However, Bitmain Antminer S9 is the most praised ASIC mining brand. It will cost you around $4,300. However, you’ll have to wait for a few weeks for its delivery.
Another option to mine bitcoin by yourself is buying second-hand mining hardware. But remember, that mining hardware can burn out very quickly. In fact, there is no guarantee that it will be profitable for you. The other options are the GPU or older hardware you have on your gaming rig, but again, there is no guarantee how long your system will last.
Besides, with the increasing difficulty to solve mathematical blocks, your system may no longer be able to work fast enough so that you could mine bitcoin by yourself .
Setting up a digital wallet if you want for bitcoin mining
The next step in bitcoin mining is to obtain a wallet where you can store your earned bitcoins. These digital wallets are encrypted to protect your money. You can either go for an online or local wallet. Online wallets are often considered less secure as compared to the local wallets. Multibit, Armory and BitcoinQT are the popular local wallets.
However, in the case of Multibit, you’re not required to download the entire blockchain. You also have the option of mobile wallets apps bitcoin mining. CoinJar and Blockchain are popular apps. Remember, if you’ll lose your wallet, you’ll lose all of your money.
How to secure your wallet
Use two-factor authentication to make your digital wallet safe and secure. Store it on a computer that doesn’t have access to the internet.
Going alone or joining a pool
Of course, when you want to mine bitcoin by yourself , you’re not going to join a pool. A pool allows you to split the rewards and share the resources, which surely results in quick returns. On the other hand, if you go with the option of mining Bitcoin on your own, earning new Bitcoins is highly competitive, but you get to keep everything you mine.
In 1999, Professor Milton Friedman, a Nobel Prize winner in economics stated:I think the internet is going to be one of the major forces for reducing the role of government. The one thing that’s missing but that will soon be developed, is a reliable e-cash
Remember if you are going to mine Bitcoin by yourself , you’ll have to wait for a year or more to earn even a single Bitcoin. The reason is that the Bitcoin is awarded to the pool that discovers it.
Download the right software
Mining programs are available for free and almost all are open source. Depending upon the type of hardware you are running, you can opt for different mining programs available. To mine bitcoin by yourself related programs run in the command line, and may need a batch file in order to start correctly. BFGminer and CGminer are the most popular mining applications.
When you want to mine bitcoin by yourself , connect your miner up to your PC, start the software and you’re mining. Remember to connect your digital wallet to your mining program, so that anything you earn gets deposited automatically.
Running your miner
After configuring your miner, you are all set to mining bitcoin by yourself . When you’ll start mining, you’ll notice that the rest of your computer starts working slowly as the miner works.
Keep checking the temperature
Miners use lots of energy. As a result, they produce huge amount of heat. You must use a heavy duty cooling fan to keep your system cool. You may also want to figure out a way to vent all the excess heat.
Check the numbers
From here, the most important thing you can do to mine bitcoin by yourself is stay abreast of the numbers involved. How much did you make over the last few days? Is your system profitable? You must keep an eye on all the factors if you want to earn good profit.