For Beginners, Here's Understanding and How to Mining Bitcoin

With the rapid advancement of technology, nowadays there are various ways to make money. One of them is mining bitcoin.

In the crypto world, there is an activity called mining or bitcoin mining that is carried out by miners or miners. However, the role of miners and the function of mining is still not widely known.

Understanding Bitcoin Mining and Miners

Indodax CEO Oscar Darmawan and bitcoin practitioner said miners play a role in running bitcoin servers, and while doing so they get bitcoin and other cryptocurrencies or commonly called alternative coins (altcoins), such as ethereum, litecoin, bitcoin cash, and so on.

Miners who run bitcoin servers play a role in verifying bitcoin transactions. When someone owns bitcoin, then that person must have a digital wallet or wallet. If you already have a wallet, the bitcoin system will provide the identity of that person's wallet, namely a private code and a public code.

Every bitcoin transaction, such as selling bitcoin or shopping with bitcoin, the private code will be sent to the buyer (if selling bitcoin) or sent to the seller (if shopping with bitcoin).

Well, when the private code is sent, there must be a verification process from bitcoin mining. That's when miners work, and are rewarded with bitcoins and altcoins.

"Bitcoin mining or mining is the process of verifying bitcoin transactions and creating new bitcoins. So, miners are people who mine bitcoins and altcoins get a supply of bitcoins and transfer fees when bitcoins are sent," said Oscar

Therefore, miners have an important role in bitcoin. Oscar said, miners cannot be called bitcoin thieves. "Miners run bitcoin servers, hackers are thieves," he said.

However, to become a bitcoin miner requires a high-tech computer, a strong internet network, and also a large amount of electricity. To fulfill it all, the capital is not small, it can even be said to be fantastic.

"It's just that for mining, a miner needs expensive computer equipment. A miner needs a computer with VGA hardware or a miners machine, it can reach hundreds of millions at least to get a comparable profit," he explained.

How to Mining Bitcoin

To be able to mine bitcoin, there are several things that need to be considered. Because, mining digital money requires a series of software and solving computer algorithms, essentially requiring super-sophisticated computer equipment.

there are several principles that must be met by beginners who want bitcoin by mining.

1. Get a bitcoin mining rig

This cryptocurrency is mined by a special device based on the same algorithm, this is usually called an application specific integrated circuit (ASIC) chip.

This particular device is priced quite expensive but the mining process can be done quickly. Keep in mind that it is very difficult to get this particular device because the demand is very high.

At this stage, beginners who want to have bitcoin mining must also ensure the availability of electricity so that the mining process is not disrupted, and must have large data storage devices.

2. Have a bitcoin wallet

This digital wallet will store bitcoins that have been successfully obtained by mining. This digital wallet will also manage the source of the bitcoin from where. Because, every bitcoin has a secret code that comes from a unique combination of characters.

This digital wallet is also like an account card, which can later receive bitcoins from someone by mentioning the secret code.

3. Cooperation with other miners

There are many big miners around the world and mining bitcoin yourself is not always profitable. Therefore, the solution for beginners who want to own bitcoins is to work with other miners in many mining pools.

After successfully getting bitcoin, it will usually be divided among members according to the power given. On this principle, members have to pay a fee of around 0% to 2% to the mining operator for every Bitcoin earned.

4. Have a mining program on the computer

Once you have a dedicated device, a digital wallet, and have joined or collaborated with other miners, it's time to mine a mining program on your computer.

This program will later connect you to the Blockchain and bitcoin network. In general, there are many free programs that are used to mine bitcoins. This program can be run on almost any operational system and each has its advantages and disadvantages.

After having the previous four principles, then you can start mining or mining Bitcoin. Good luck!