Although “mining” may sound like it involves a lot of manual labor, when used in the context of Bitcoin it does not even require leaving your house! Mining is simply the name given to the process in which users discover Bitcoins and does not involve any physical tools at all – other than a computer and the internet of course!

 

As Bitcoin has grown in popularity, this process has become less lucrative and a little more difficult, however, once you have mastered the basics it isn’t very complicated and can be understood by anyone, given enough time.

 

To give yourself the best chance of mining Bitcoins, you will want to invest in an ASIC miner – a machine that specialises in mining Bitcoins. Sadly, a graphics card and a PC is no longer enough to break into the competitive area of Bitcoin mining.

 

Before you begin mining, you will need a place to keep your Bitcoins and in a similar way to your real-world money, this is kept in a wallet; however a Bitcoin wallet is very different to the leather one you keep in your jeans full of coins and notes! There are a huge number of Bitcoin Wallet providers and so it is important to read reviews and ensure that the one you are looking at has the right level of security for your needs. If you are a beginner, you will probably need something that is quick and easy to set up, that may not offer the same level of security that someone who is rolling in Bitcoin may need.

 

The next step is to find a mining pool to join, where your collective power will allow you to mine Bitcoins. As the world of mining for Bitcoins has changed, a mining pool is the best way to be able to actually find Bitcoins. Through team-work you are each allocated a small chunk of algorithm to solve which adds up to the big algorithm which is the overall goal. Rewards are then shared out between the team (so it is important to check their stats and how they go about distributing the Bitcoins!) and you can withdraw your coins (there is sometimes a charge or fee for withdrawing so make sure you do your research.

 

The more you mine, the more likely you are to find coins and be given a share from your pool. There might be some software that you have to download before starting, but otherwise it is relatively simple to begin – and quite addictive too! Good luck!