Here is everything you should know about mining Bitcoins

by Ryan Williams World Leading Cryptocurrency Exchange

Interested in Bitcoin mining? But the only thing that is stopping you from investing your hundred percent in mining is the lack of knowledge. Mining Bitcoins is gaining momentum as computer hardware is becoming more and more sophisticated. To help you get started with Bitcoin mining, we have compiled this guide where you would know everything from bitcoin mining to mining pools. Ready? Let us get started then.

Bitcoin mining: An overview

Many a times, you may have thought of asking this one question: What is Bitcoin mining? Well, here is its answer. Mining is all about adding fresh transaction records to Bitcoin’s public ledger, which is also known as the Blockchain. The Blockchain is there for confirming every transaction happening on the blockchain network. Each user on the network can seamlessly access the public ledger. By confirming these transactions, the authenticity of the Bitcoin transactions can be guaranteed.

8Besides, the confirmation of these transactions even helps prevent incidences of re-spending Bitcoins. Which is exactly why, miners are integral to running the Bitcoin community ethically. Every time a new block is sealed off by confirming the legitimacy of a Bitcoin transaction, the miner is rewarded. So, you can think of Bitcoin mining as the process of getting free coins for confirming transactions and sealing off blocks on the Blockchain.

Picking the right mining hardware explained

Now that you know what mining is all about, it is time to get the low-down on the kind of hardware you would need if you want to mine some Bitcoins.

Bitcoin mining is a complicated process, and the complexity will only continue to rise as more and more coins get mined. That is exactly why it is important to invest in high-quality powerful hardware so that you are ready to compete with other miners out there. There are multiple characteristics that you have to keep in mind before picking the right mining rig that will fit your needs well.

Determining the hash rate

One of the very first factors that you have to keep in mind is the mining rig’s hash rate.

Hash rate is the total number of calculations that the hardware can execute in one second. Having a mining rig with an exceptional hash rate is very important for seamlessly carrying out mining operations. The fact is that a rig with a high hash rate will definitely improve your chances of solving even the most challenging computational problems before any of your competitors does. Once you solve the mathematical problem before the competition, you seal off the block and get rewards.

As a miner, you should look for the hash function’s specified output. When it comes to these hash functions, it is worth noting that the same input will generate the same output. That means the best way of finding the most specific output is by trying as many random inputs as possible. As mining is super-competitive, the miner will have to power through the process of trying random inputs as fast as possible just to get the specific output. Which is why, picking the best hardware with a high has rate is very important. This way, the whole mining process is made successful.

There are many standards for measuring the hash rate of a mining rig. The hash rate can be measured as terahashes per second or TH/sec, gigahashesh per second or GH/sec, and megahashes per second or MH/sec. The hash rate of the hardware was specially designed for mining Bitcoins – and the hash rate can range from a whopping 14,000,000 MH/s to a paltry 336 MH/s. It all depends on the type of minding hardware you choose.

Factoring in energy consumption

Buying Bitcoin mining hardware is one of the biggest investments because it has only a few associated costs – one of them is electricity. The thing is that the more powerful the mining rig you will take the more electricity it would require. Which is exactly why, it is important to factor in the hardware’s total electricity consumption. By doing that, you will easily figure out how much electricity bill would your mining initiatives generate. Make sure you know the rig’s power consumption in watts. Knowing the final amount of electricity consumed is important. Why? Because you would not want to spend all your money paying electricity bills for mining coins that will not fit well with the cost-to-performance ratio.

By using the energy consumption numbers and hash rate value, you would work out how many watts of electricity were consumed by the rig to produce hashes. For doing this, you would just have to divide the hash count by the final number of watts. For instance, if the rig’s hardware has the hash rate of 4,500 MH/s and the rig needs 32 watts of power, then every watt will deliver 140,625 MH/s. In a few cases, you may have to use your computer for running the mining rig. In all those cases, you have to remember that your computer will even chew up electricity on top of the mining hardware.

Crypto mining has undoubtedly become lucrative where many people managed to earn a small fortune. However, those people had their own mining set up. But, now, owning and maintaining a dedicated mining rig is no walk in the park. Why? Well, if you want to own a dedicated mining rig, then you will have to make sure you have a really good one. Mining hardware has to be quite powerful because the complexity of the mathematical problems involved has increased. For that reason alone, the whole mining business has turned out to be quite uneconomical, to begin with. So, to make the whole mining process easy on the pocket, people have created dedicated mining pools.

What is a mining pool, you may think? Well, it is time to find that out.

Mining pool: A miner’s cost-effective alternative

Bitcoin was born in 2009 – and since its birth, the trend of mining a variety of digital assets was born. The mining of bitcoins and other similar digital assets has always been integral to traders looking to improve their growth prospects. As the mining landscape has matured, the miners have collaborated and pooled their rigs and other resources for improving their mining capabilities.

Likewise, supernodes, community projects, PoS, PoS-variants, and DPoS have also evolved as the easiest and fastest ways of gaining a higher amount of yields. But as there are multiple mining pools out there, picking the best one is often a challenge. That is why we are giving you the low-down on one of the most trusted mining pools in the crypto landscape – a pool that will help you mine Bitcoins in a very stable and secure mining ecosystem.

Enter OKEx.

OKEx Pool mining explored in detail

A worldwide integrated mining pool, OKEx Pool is developed and managed by OKEx – a crypto platform offering reliable mining and trading solutions to users across the world. OKEx Pool is not restricted by mining any one specific crypto coin. Instead, the pool offers a suite of mining services for coins based on Proof-of-Stake (PoS), Proof-of-Work (PoW), and many other PoS-variant crypto coins.

OKEx Pool empowers many cryptocurrency owners to earn massive crypto rewards through mining. This pool integrates not just mining services but even trading solutions. Even better, the pool’s trading solutions allow the users to transfer all their mining rewards quickly and directly to their dedicated mining accounts. Besides offering the mining service for Bitcoins, OKEx Pool brings mining services for 12 PoW crypto coins. These cryptocurrencies include:

 

·         Ether (ETH)

·         Ethereum Classic (ETC)

·         Decred (DCR)

·         Dash (DASH)

·         Bitcoin SV (BSV)

·         Bitcoin Gold (BTG)

·         Bytom (BTM)

·         Bitcoin Cash (BCH)

·         Litecoin (LTC)

·         Monero (XMR)

·         Zcash (ZEC)

 

Best of all, this mining pool enjoys a very high client satisfaction rating. Why? Because OKEx harnesses the trustless power of Blockchain technology. That is why it is strategically positioned to tackle the demands of a variety of fields. All in all, OKEx offers an end-to-end crypto ecosystem that offers trading, mining, learning, and staking products along with a robust risk-control system. On top of that, the 24/7 one-on-one customer service channel of OKEx is its one of the most phenomenal features positioning it as a leading crypto exchange in the world.

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Created on Sep 29th 2020 10:02. Viewed 506 times.

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