D-Central's Bitcoin Mining Guide

Before you start mining Bitcoin, it’s helpful to understand what Bitcoin mining really means. Bitcoin mining is legal in most countries and is performed by running SHA256 processes to reach a consensus between network nodes on which transactions to consider legitimate. The speed at which you mine Bitcoins is measured in hashes per second. The Bitcoin network compensates the efforts of Bitcoin miners by awarding bitcoins to those who bring the necessary computing power. This is in the form of newly issued bitcoins and transaction fees included in validated transactions during bitcoin mining. The more you contribute to the computing power, the greater your share of the reward.

Step 1 - Get Bitcoin Mining Hardware

Bitcoin mining is the process of issuing bitcoin, built on the calculation of mathematical problems, is the only way to create bitcoins. To start mining bitcoins today, you will need to acquire Bitcoin hardware. This hardware consists of custom Bitcoin ASIC chips, which offer much better performance than the older methods that dominated the Bitcoin mining industry. It is essential to mine bitcoins with the best bitcoin mining equipment specifically designed for this purpose. If you have access to excess and cheap energy, you can get a better return on investment with older generation equipment because your operational costs are below average.

Step 2 - Find a cryptocurrency mining location

There are several ways to mine Bitcoin. You can do a mine at home, especially to reuse the heat generated by the units to warm you up. This allows you to run one or two machines without worries, because this would have been used anyway to produce heat! You can also start your own mining facility. Then you can also host your miners in a Bitcoin mining hashcenter.

Mine at Home

Start your operation

Mine in a Hashcenter

Step 3 - Join a Bitcoin Mining Pool

Once you’re ready to mine bitcoins then we recommend joining a Bitcoin mining pool. Bitcoin mining pools are groups of Bitcoin miners working together to solve a block and share in its rewards. Without a Bitcoin mining pool, you might mine bitcoins for over a year and never earn any bitcoins. It’s far more convenient to share the work and split the reward with a much larger group of Bitcoin miners.

Step 4 - Set Up A Bitcoin Wallet

The next step in bitcoin mining is to set up a Bitcoin wallet or use your existing Bitcoin wallet to receive the bitcoins you are mining. Bitcoins are sent to your Bitcoin wallet using a unique address that belong to you. The most important step in setting up your Bitcoin wallet is to protect it from potential threats by enabling two-factor authentication or keeping it on an offline computer that does not have access to the Internet. Bitcoin hardware wallets are also available to facilitate secure transactions. The safest way to HODL the bitcoins remains multisig with strategic parties and locations for storage.

Step 5 - Pay your bills and HODL

Bitcoin and Bitcoin mining remains a high-risk, high-reward investment with little consensus about the economic roles they will play in the coming years. Miners will probably want to coordinate the market to maximize their revenues as the 2020 reward halving sets in. Most miners will only sell the bitcoins they need to pay their bills and safely HODL the remaining bitcoins for later. In Québec, miners can also pay their Hydro-Québec bills with Bull Bitcoin. With the expected price appreciation, miners are able to use a part of their stacked coins to compound more mining equipment, resulting in more hashrate and, if well orchestrated and timed, more coins.