How Do You Make Bitcoin?

Written by on January 6, 2017 in Make Bitcoin

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bitcoin mining

Bitcoin is much different from regular currency. It isn’t printed or manufactured, but “mined” using algorithms on a computer or dedicated Bitcoin miner. There is no other way to “make Bitcoin”, and mining on your own computer has been not as profitable as cloud mining with dedicated miners.

There are 2 options for mining, either buying your own equipment and mining with a Bitcoin mining pool, or investing in cloud mining. Bitcoin’s mining difficulty itself has reached over 317 billion and will only get higher over the years, which makes it nearly impossible for you to mine on your own unless you either join a pool, or own an entire Bitcoin mining farm.

We are not responsible for your losses and scams you encounter and are only suggesting these services. We are also not responsible for damage caused to you or your property when mining at home.

Cloud mining:

To solve this lack of power problem, there are cloud mining options which are available from several companies. All you need to do is pay for the monthly fees and the companies will sell mining power to you depending on how much power you buy. However, some do require you to pay a maintenance fee every month to cover miner costs and electricity.

Between mining with your own equipment and using a mining company, cloud mining is better in terms of cost and does not directly damage your hardware. If you are mining with your own miner or computer, you will have to pay for your own electricity, sometimes high rates, and since Bitcoin mining forces your computer to be at peak performance 24/7, it will result in hardware damage and decrease its lifespan.

Choosing a company:

Like choosing your next computer, choosing a mining company will certainly change your profit. Some mining companies are scams so be careful where you buy and remember to check reviews and news about them before signing up. Most will charge per Mega Hash and make sure support and fees are what you are willing to pay for.

Here is a table of some cloud mining companies and some details:

 

Name:Price (Starting from):Fees:Payout:Currencies mined:
Coinomia$100-10,000 Th/s0.00079 USD per 1 Gh/sAutomaticBTC,  ETH
HashFlare$1.2 – 10 Gh/s$0.004 per 10 GH/sAutomaticBTC, Dash, Zcash, ETH

 

There are more than this certainly. Here are 2 that we trust and have good status in the cloud mining industry. Just make sure you check their reviews, ratings, and support reliability before ordering to protect you from scams.

Hosted Mining:

 

What is the difference between hosted and cloud mining you might ask? Well, cloud mining means that you are not owning a share of the physical machine itself, you are merely paying for the hashing power. Hosted mining allows you to buy the actual miner but a company helps you run and maintain it. These options are more expensive but you own the mining power you buy.

One great example is Bitcoin Club which requires you to spend a minimum of $500 worth of Bitcoin to buy mining equipment which Bitcoin Club will run and maintain over the course of 1000 days. The good thing is that you own the physical Bitcoin miner so you can actually retrieve it from Bitcoin Club after. All you have to pay are maintenance fees, other than that, there are no real fees unless the hosted mining company requires you to pay a pool fee.

Mining at home:

Please remember that with the current Bitcoin difficulty, mining at home is not profitable and will damage your computer equipment. Profitability while mining at home can vary.

Before you mine in a pool, you should probably buy some equipment first. This option requires a desktop computer with a high-end dedicated graphics card(s) or a Bitcoin miner, electricity, and a mining pool of your choice. It is highly recommended not to run the Bitcoin miner software on your regular computer because of it pushes your computer to the limits and could damage your hardware.

First off, check how much you pay per hour for electricity. This will be a big factor in profitability and costs. The lower the rate, the more likely you will profit. Next, you have to choose hardware. Will you be using a graphics card (GPU) to mine? Or will you be using a dedicated Bitcoin miner? Please consider adding the computer or Bitcoin miner price into the total costs and make sure to build a separate computer with good cooling if you are GPU mining.

Bitcoin miners are recommended because they are truly dedicated to mining, so you only need to pay for the part that mines Bitcoin, not the other parts that make a computer work. Also, they have a longer life expectancy since GPUs are only designed to be running at high performances for a small amount of time. Running a GPU miner for 24/7 at peak performance will mean hardware damage.

We still don’t recommend mining at home and still recommend cloud or hosted mining for their simplicity and less risk.

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