How to Mine Bitcoin in 2023 – Complete Guide to BTC Mining

DIY Bitcoin Mining – How to Get Started

This section will cover how one can get started with Bitcoin mining. It will explore the kind of software required and where you can purchase it. It will also cover the kind of costs you are likely to encounter in this endeavour and how to set up everything and get started.

Best Mining hardware for Bitcoin

Individual Bitcoin mining isn’t as profitable as it was back when cryptocurrencies were starting out. Still, it’s possible to profitably undertake this activity, but you will have to invest in some super mining hardware, which doesn’t come cheaply. The superior your mining hardware, the greater your chance to mine more Bitcoins. Below let’s touch on a few machines you can consider when starting out and on a budget.

The first is Antminer T9+, a device that isn’t only cheap compared to the rest but ideal when you don’t have a big space to set up your operation. It boasts a compact design allowing one to cram many units into a rig farm. And thanks to built-in temperature reducing features, you will be able to save a lot on extraction equipment. It costs around $550 – $600 and can be bought on Amazon or Bitmain’s official website.

If you are starting your journey as a Bitcoin miner, you can consider Avalon6, which is relatively easy to use. It’s not the most profitable compared to the rest since it manages to produce only 3.5 TH/s for the 1050W it consumes. This one should set you back around $650 and can be found on Amazon or Canaan website.

If money isn’t a problem, you can consider Antminer R4, which, just like Avalon6, is excellent for small applications. The fan of this machine has been redesigned to produce less than half the noise other machines produce while running, and it’s quite efficient. This one will cost you around $1,700.  

Currently, to access the best machines in the market, you have to spend large sums of money. These machines are absolute beasts and in high demand, which means you have to join a waiting list to access them. One such machine is DragonMint T1, created by Halong Mining. 

It uses state of the art chip design (DM8575), which has helped it become the first ASIC to achieve a hash rate of 16 TH/s while consuming just 0.075J/GH. This one should set you back around $2,729. It rivals Bitmain’s Antminer S9, which consumes a little bit more power but is equally as good. The Antminer S9 will cost around $2,767.

By visiting Bitmain’s shop online, you will realise they have even superior machines coming which have already been sold out. These include Antminer T19, which can produce a hashrate of 84 TH/s but will cost you $2,118, Antminer S19 with a hashrate of 95 TH/s priced at $2,767, and Antminer S19 Pro with a hashrate of 110 TH/s and costing around $3,769.

Software

Just like hardware, Bitcoin mining software is specially created to use the computing power to solve complex mathematical problems for mining BTC tokens and other cryptocurrencies. These apps deliver detailed and insightful reports that tell you about how much you have earned. Such software applications are often automated so you don’t need to code awareness or any other technical skill to use them.

What this software usually does is use the processing power of individuals using the applications or visiting the website. Some of them commit their server resources to mining pools while some generate Bitcoin of their own. A cryptocurrency mining software:

• Allocates computing power or resources to mine Bitcoin
• Utilizes CPU or GPU processing power for mining
• Connects the mining resources to the mining pool or the blockchain

The software or applications are available for both desktop as well as mobile users so they can mine on the go. However, you have to keep in mind that this way the amount of BTC tokens generated is very low unless you are relying on an ASIC.

Which software people use to mine Bitcoin

1. Kryptex

It is a Windows app that allows you to mine Bitcoin and you can make payments using BTC or dollars. The app also works even if your computer is idle. It is easy to set up and offers an intuitive and user-friendly interface. The app starts working automatically when your PC is turned on while using both your CPU and GPU for mining. Support for multiple languages is available including English and Spanish.

2. Awesome Miner

Another reliable Bitcoin mining management software that allows you to monitor bitcoin trading. You can minimize your downtime while maximizing your profitability using this app while the tool shows you GPU stats including temperature, fan speed, clock speed, and more so you can optimize the whole mining process. You can use the software with ASIC devices as well and it offers support for over 50 mining software applications. Available on Windows, Linux, and Mac.

3. Minergate

You can use Minergate to mine BTC using your CPU or GPU power. You can also use it to trade a number of cryptocurrencies including BTC, BCH, LTC, ETH, and more. Featuring a user-friendly interface and exceptional customer support, Minergate allows you to mine without hardware investment. You can directly deposit your mined coins into your wallet.

4. Hashflare

This is a cloud-based mining software that allows you to trade for Bitcoin, Litecoin, Ethereum, and other cryptocurrencies. It enables you to start mining right away while giving you access to all the mining-related data in real-time. Quick withdrawals combined with the ability to identify the most profitable cryptocurrency make Hashflare a compelling mining software. 

Other Costs to be Considered

With these machines, you have to realise the power supply and other necessary components for setting up are sold separately. Therefore, this means additional costs must be considered. For example, the power supply for Antminer S9 will set you back an additional $150. 

Then there is the energy cost depending on where you are based. For the most profit, you should mine in pools based in areas with cheap electricity, like China.

Mining Solution/Services

If you find hardware investment and having to oversee the mining operation too much to handle, there is another way you can participate in Bitcoin mining and still get rewarded. You can opt for cloud mining services where you buy contracts, and someone else takes care of the mining for you. 

CCG is one of the most popular cloud mining contract providers. It provides the highest hashrate and offers a choice of contracts to suit different aims and budgets.

Other popular platforms include Bitcoin Pool, Hashnest, Hashflare, Hashing24, and Eobot.

If you do decide to splash out on some hardware of your own, mining pools combine the hashing power of all the machines on the network to increase their chances of winning rewards. Mining pools or services present the only viable way to mine Bitcoin today profitably for individuals. 

You can opt to join a mining pool where you have to invest in mining hardware and get a share of the rewards, or you can opt for cloud mining services where you rent mining power and get rewarded.

Various mining pools will pay differently. Some will pay per share, which is the most straightforward payout scheme available. The good thing about this payout scheme is that it guarantees the miner gets paid whether the pool wins rewards or not. The pay here will depend on the number of shares you hold, which is determined by your hashing power.

There is the full pay per share, which is almost similar to pay per share, except that transaction fees will also be added on top of the block rewards.

Another payment scheme is pay per last N shares, which is a bit complicated and shifts the risk to the pool members but offers more rewards. Here members are only paid once the block is found and doesn’t include transaction fees.

The process of joining a mining pool is simple. For example, if you wanted to join Antpool, you have to acquire mining hardware, download mining software, and then visit the pool’s official website and sign up.

Can I Use my Personal Computer to Mine Bitcoin?

Technically, yes. However, Bitcoin mining using a personal computer will yield less than a dollar worth of BTC tokens in an entire year! There are multiple reasons for this. Above all, Bitcoin, being the very first cryptocurrency, has gotten all the attention and resources which means out of 21 million BTC tokens, more than 90% have already been mined. The last couple of million bitcoins are the hardest to mine requiring an immense amount of computing power that personal computers simply don’t have.

Currently, Bitcoins are being mined in large cloud-computing farms lined with powerful ASICs. It is just not possible for a personal computer to compete with hardware that costs tens and even hundreds of thousands of dollars. Your initial investment along with the power consumption cost will never amount to any returns. In fact, you will lose money. That’s why it is not recommended to mine Bitcoin using a personal computer. 

Start Mining!

To start mining, you will need a Bitcoin wallet, mining software, and hardware. The wallet will be used to store your rewards, while the mining software is what you will use to communicate between the hardware you use and the Bitcoin network. The software will also communicate with the mining pool if you are part of one. 

Then you can join a mining pool or buy a cloud mining service such as

CCG Mining
.

Some of the best mining software available include CGMiner, which offers remote interface capabilities, self-detection of new blocks, multi-GPU support, fan speed control, and CPU mining software.

Another popular choice is BTCMiner, which comes supported with FPGA boards for programming and communication and a USB interface. Its open-source, meaning it doesn’t require a license, offers the user the ability to choose the frequency with the highest rate of valid hashes.

Other popular options include EasyMiner, which can run on Windows, Android, and Linux systems; MultiMiner, Bitminer, and RPC Miner, which is compatible with Mac OS.

When joining a mining pool, your decision will be based on several factors. You will have to consider the size of the pool. The bigger the pool, the higher the chance of winning rewards, but it also means you will have lower payouts. You can also opt for pools that focus on a single coin or multiple coins based on the network’s hashrate and what coin seems profitable at a given period. Some popular mining pools based on strength and market share include F2Pool, Poolin, BTC.com, Huobi.pool, AntPool, ViaBTC, and Slush.