Step by step guide for how to mine Bitcoins

Step by step guide for how to mine Bitcoins

Step by step guide for how to mine Bitcoins

This is your step by step guide for how to mine Bitcoins. It will take you from complete Bitcoin newbie to cloud mining Bitcoins of your very own. It will also describe the process a bit further: Bitcoin mining explained. Step 1: Get a Bitcoin wallet CoinBase is a web-based free Bitcoin wallet which also allows you to purchase some Bitcoin by linking to your regular bank account. This allows you to bypass the whole process of having to get on an exchange. It is easy to register an account with CoinBase. This is the first step for how to cloud mine Bitcoin. Step 2: Buy some Bitcoin You will need some Bitcoin to start cloud mining Bitcoins, and you can purchase some directly through CoinBase. First click on the Buy/Sell tab in the left hand margin. Next, click on payment methods in the top bar. From there you can link your bank checking account. Once your bank account is verified you will be able to make your first Bitcoin purchase. You can theoretically start off as small as youd like, but it is recommended you purchase at least 0.1 BTC. At current prices this comes out to an initial investment of less than $150. As far as Bitcoin investments go, this is a nice low entry point. It may take a few days for your bank account to be deducted and the Bitcoins to get deposited into your wallet. Step 3: Register to mine Bitcoins in the cloud Point your browser to http://cex.io and register your account. You will need a valid email address, a user name and password. Please choose a user name and password combination that you do not use anywhere else for maximum account security. CEX.IO is the service for how to mine Bitcoins quickly and easily. It provides Bitcoin mining for beginners at its finest. Step 4: Deposit your Bitcoins into your cloud mining account Once your Bitcoins arrive in your CoinBase wallet, you need to send them to your CEX.IO account. Click on the balance tab in the top navigation area. At the top of the page you will see your CEX.IOBitcoin address. It will look like a medium length string of random letters and numbers. Highlight and copy this address. Then in your CoinBase account click on the send/request tab in the left margin, then select the send money button in the top right corner. Paste your CEX.IO address in the address field and enter the amount of Bitcoin you want to send in the amount field. Be sure to double check that you have copied and pasted the entire string of numbers and letters of your CEX.IO address. It is very important that nothing gets left out. Then hit send and your funds are on their way. It will take up to a half hour for your funds to become available in your CEX account. Step 5: Buy your Bitcoin cloud mining power

Step by step guide for how to mine Bitcoins

Head on over to the trade section by clicking on the trade button in the top navigation bar. It will take you to the place where you buy cloud mining power with your Bitcoins. Hashing power is denominated in GH/s (Gigahash per second), and at this writing the cost for one GH/s is 0.072 BTC. If you transferred 0.1 BTC into your cloud mining account you will be able to purchase about 1.25 GH/s. There are a couple of approaches you can take to buying your hashing power. The trading section is set up like a regular online trading floor. If you think the price per GH/s is too high, you can place a buy order at a lower price and wait for it to fill. But you are probably anxious to just get started with mining Bitcoins. Right underneath the GHS buy and sell windows is a little button that says instant buy/sell. Click on that and it will bring up a set of very similar buy and sell windows. The buy window is on the left hand side. Enter the amount of Bitcoin you want to spend into the BTC to spend box. The estimated GHS amount box will calculate automatically. Click the buy now button, and confirm when the dialog box pops up. Congratulations! You are now cloud mining Bitcoins. Step 6: Relax Once you buy hashing power on CEX.IO, it instantly goes to work mining Bitcoin for you. You do not have to do anything else. You could stare at the screen waiting for something to happen, and within a half hour (on average) you will earn some Bitcoin from the hashing power you purchased. Even better, log out of CEX.IO, go do something else for a few hours, and then come back to check on your progress. Those results will be much more impressive. With cloud mining you can earn Bitcoin even when you are sleeping or relaxing. Step 7: Buy more GHS, make Bitcoin again At first you might want to reinvest your earnings into more hashing power, using them to make Bitcoin again. You will notice that besides Bitcoin your hashing power is also mining Devcoin, Namecoin and Ixcoin. Those are three alternative cryptocoins which are able to be merge mined with Bitcoin. You can purchase more GHS directly with your Namecoins. Ixcoins and Devcoins will soon be able to be traded for Bitcoins right on CEX.IO. Since CEX.IO only recently added merge mining, you can think of all those other mined coin as free Bitcoin. You will eventually want to do something else with the Bitcoin you mine, just like you would with all other Bitcoin investments. When you get to that point, on the Balance page, you will see a withdrawal button next to your Bitcoin balance. Click on it, then copy/paste your wallet address in the address field and fill in the amount field. CEX.IO subtracts a commission of 0.001 BTC from your withdrawal amount so take that into account. Add 0.001 BTC to the amount that you would like sent to your wallet. To find your CoinBase address, click on Account settings in the left margin, then Bitcoin addresses in the top navigation. You will be taken to a page with a list of one or

Step by step guide for how to mine Bitcoins

more addresses. Any one of them will work, or you can even generate a new one. As before, make sure that you copy and paste the entire string of numbers and letters. Bitcoin mining explained Now that you have begun your Bitcoin cloud mining adventure, you may be wondering what is going on behind the scenes. If you were to purchase your own mining hardware, you would need to integrate it with your computer, install mining software, join a mining pool, and then youd be ready to go. Then you would have to let your mining equipment run day and night. You would also have to keep it cool with some good fans. You would have to pay for increased electricity costs. You would have to deal with anything that goes wrong. In short, youd better be pretty tech savvy to mine using your own equipment. Although your computer equipment would be doing the actual mining work, it would take a lot more effort on your part to make Bitcoin. Or you can skip all that and follow the above steps for how to cloud mine Bitcoin. When your GHS on CEX.IO gets a mining reward, a small amount is deducted to cover the costs of maintaining and running the hardware. Those costs are much smaller than what you would pay doing the same thing at home because at CEX.IO, the operation takes advantage of the economies of scale. Once you have purchased some hashing power, it works for you 24/7 no matter what you are doing. You could be sleeping, on vacation or working on something else. You could even have your computer turned off for days and still your cloud mining power will earn Bitcoin for you. Dealing with mining difficulty increases One of the not so fun facts about Bitcoin m ining, and a huge reason why its tough to do at home, is that the more hashing power thats dedicated to Bitcoin mining, the more hashing power it takes to get the job done. The Bitcoin mining algorithm adjust difficulty levels every couple weeks so that no matter what, one new block is mined every ten minutes on average. This means you cant buy a set amount of hashing power and then let it go indefinitely. You will need to reinvest some of your earnings into buying more GHS. You can experiment with the amounts and percentages, but you will have to frequently buy more hashing power. You can reinvest your merge mined altcoins back into hashing power as well. Trading hashing power like a commodity Once you have been cloud mining for a while you will start to become aware of the way in which GHS prices fluctuate. If you have a knack for trading, then you could treat hashing power just like any other commodity you might trade in. You can try to buy low and sell high. Some people have reported doing far better on the trading than on the actual mining. Please be advised that trading GHS, just like with other Bitcoin

Step by step guide for how to mine Bitcoins

investments, comes with risks so take your time to learn the ropes and only invest what you can afford to lose. Bitcoin cloud mining is best for beginners There is no doubt about it. Bitcoin mining for beginners is best done in the cloud. When you mine Bitcoins in the cloud, all you have to do is buy your hashing power and it starts mining Bitcoins instantly. You dont have to deal with hardware setup o r maintenance or increased electricity costs, and all you have to do to deal with mining difficulty increases is buy more hashing power.CEX.IO gives you the ability to benefit from their highly specialized mining factory without having to worry about your own hardware. And if you ever get to the point where you do want to be a do it yourselfer, CEX.IO allows you to redeem your hashing power into hardware that gets shipped right to your door. This is Bitcoin mining explained for the complete beginner. Even for non beginners cloud mining cant be beat for ease and convenience, not to mention the ability to get going with less than a couple hundred dollars. Using the mining calculator at http://www.alloscomp.com/bitcoin/calculator it is possible to calculate that a 7.2 BTC investment (100 GH/s), at CEX.IO will earn approximately $2000 USD passive income per month, at current mining difficulty (7.2 BTC is approx 100 GH/s of mining power at CEX.IO). Trading tip: when the Bitcoin USD value rises GH/s tend to (but not always) go down in value. As with all BTC investment opportunities do not invest more than you can afford to lose, and please conduct your own due diligence before deciding to invest with CEX.IO CEX.IO appear to be conducting business as a legitimate company: CEX.IO LTD SUITE 319-3, 32 THREADNEEDLE STREET LONDON, EC2R 8AY UNITED KINGDOM Company No. 08757996

Step by step guide for how to mine Bitcoins

FAQ
What are Bitcoins? Bitcoins, or BTC for short, are a digital currency. There are all sorts of fascinating things about it, and all sorts of articles available to read about them. Long story short, there is a limited supply based on a computer solving a cipher equation - aka 'mining'. Demand is determined by how many people are using them, supply is determined by - guess what - people mining them!

What is GHS? GHS is processing gigahertz/second that CEX hosts directly for you. I got 4 to start myself and they're making about .15 BTC/month (that's about $100/month at the time this was written). I have them set up to dump into a secure wallet that I am using as savings, but you can also just keep buying more GHS with your spoils. Any time you want your cash simply send BTC back to Coinbase (or any other BTC trading site) and sell them. You can even sell back your GHS to get your initial investment back. It's pretty crazy!

Why CoinBase? I spent a lot of time looking at different sites that offer BTC trading services. A lot of them are just as safe and secure, but I really liked CoinBase's ease of use, their site layout, security policies, etc. The only downside is they don't necessarily offer the best prices for BTC, but I feel it is well worth the trade off for peace of mind. If you don't like CoinBase for whatever reason, there are plenty of other sites that offer the same service.

What do you mean "mine" BitCoins? BitCoins are "mined" by solving a complex equation. In order to mine BitCoins you need a rather powerful computer, but instead of that I can help you mine them over the cloud with no hardware required at all!

Where Can I Buy & sell Bitcoins Quickly? You can buy and sell bitcoins from localbitcoins

What is the Cloud? That just means over the internet without needing a computer or anything at home.