To get started with Bitcoin Mining you need to understand that this is both an investment of your time and money.
As hardware is getting more expensive with the demand of Bitcoin and interest in commercial Mining rigs, it is going to be a factor of high demand for low supplies of the newest and greatest technology in Bitcoin Mining.
The first thing you need to do is:
1. Are you going to buy Mining equipment or try to build your own machine
2. How much money do you have
3. Are you familiar with computer hardware terminology and/or have someone that can help you
4. Where are you going to put it?
Depending on the size of your set-up, these machines have been known to produce a lot of excessive heat, noise, and vibration. Not to mention the power and internet connection needed to keep it running, these are issues that alot of people run into.
Based on how much money you have, how much time you can allocate to bitcoin mining everyday, and the location that you’re able to set-up your mining rig – you can then start looking at equipment:
5. Evaluating Mining equipment:
ASIC Miners like KNC and Avalon are quite popular and dependable for their ability to generate Bitcoins consistently with minimal hardware breakdown.
6. Compare the equipment systems based on how many hashes it can process per second
If you’re not familiar with hash rates or what this means, I will write a future post explaining this and hopefully that will help
7. Your Best Choice for Mining equipment should be based on Hash Rates, current Difficulty levels, and the cost of the Mining equipment
– Don’t forget about the power and internet bill
– The best system is one that has the most powerful hash rate, with lowest power consumption, and low cost for equipment
Best to keep your system in a cool environment with minimal ground disturbances, it’s a computer afterall and any shaking will damage the internal moving mechanisms
8. Set-up your equipment gradually, if you’re using USB Block Eruptors I recommend testing each of the USB’s first rather than just plugging them all at once and figuring out where the faulty one is later
9. Install Bitcoin Mining software
Hardware without software is like a hotdog without a bun. You’re going to need something like CGMiner to talk to your equipment and send it data to process into Bitcoin
10. Set-up Bitcoin Wallet
A place to put your Bitcoins – there’s quite a few options available, I use blockchain.info and bitcointerra
11. Join a Mining Pool to increase your ROI
Once your Mining Equipment is all set-up and plugged in, tested and working – it’s quite common to join a Bitcoin Mining Pool where other Miners like you are all contributing their hashing power to breaking up blocks of Bitcoin data faster.