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Getting Started Mining Bitcoin For Beginners


If you are only vaguely familiar with Bitcoin or other digital currencies (Altcoins), and you are interested in getting your hands on some, a great way to do so is through mining. Bitcoin mining is done by using computers to solve complex algorithms, and the reward is a fraction of a Bitcoin.

There are a few things to consider when getting started mining Bitcoin:

  1. Bitcoin Wallets
  2. Cloud Mining 
  3. Cashing Out

Bitcoin Wallets

There are 2 main types of Bitcoin wallets.

  1. Software you install on your computer.

    - Bitcoin Core is a wallet available for Windows, Mac, or Linux. After you download it and install the software, it will need to synchronize to the Bitcoin network by downloading every Bitcoin transaction that has ever happened. This can take days to completely synchronize, but you can still create a Bitcoin address to receive Bitcoin before the network is completely synchronized. If you don't want to wait to use your Bitcoin, consider using a third party wallet like below.

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  2. Third party wallets through currency exchanges.

    - Many digital currency exchanges provide you with a deposit wallet address for Bitcoin and other coins. Some exchanges that you can use this way include: LakeBTC, EXMO, Coinbase.

Cloud Mining

Cloud mining is a great solution for Bitcoin mining, because it is usually based in countries that have far lower electricity costs than North America. This makes it far more affordable than having Bitcoin mining machines at your residence, with higher priced electricity.

One of the largest and longest running cloud mining companies is Genesis Mining. Their mining data center is set up in Iceland, where electricity is cheap, and the climate is cooler, reducing the need for expensive air conditioning.

With Genesis Mining, you can purchase cloud mining contracts by credit card, wire transfer, or with Bitcoin. Once you get started with cloud mining, you can reinvest some or all of your Bitcoin to upgrade your miners to be more powerful.

After you purchase a Bitcoin cloud mining contract, make sure you put your Bitcoin wallet receiving address in under the settings to make sure you receive the Bitcoin you earn.

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Cashing Out

When you want to turn your Bitcoin back into cold hard cash, there is no better way than through an ATM. BitPlastic is an Bitcoin debit card that allows you to transfer Bitcoin from your Bitcoin wallet to your BitPlastic debit card. Then you can withdraw cash in your local currency from any ATM.

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