How To Start Bitcoin Mining

On April 14, 2021, Bitcoin hit its highest price point of $64,863. From the humble beginning of $0.0008 when it was released back in 2009, Bitcoin sits today at a price of $45,550.
When the pandemic hit in late 2019, many people lost their jobs, and the stock market crashed. With uncertainty in the future, many people turned to cryptocurrency for investment.
Although you can buy Bitcoin with money, more people are turning into mining. If you are looking to mine Bitcoin for profit, read along as we reveal to you how to start Bitcoin mining.

What Is Bitcoin Mining?

Bitcoin mining is the process through which the blockchain algorithm verifies bitcoin transactions. When Bitcoin transactions happen, the algorithm creates a block.
The Bitcoin network “solves the block” to verify the authenticity of transactions. To solve the block, the network requires computing power, and this is where miners come in.
Miners hook their computers to the Bitcoin network and receive unsolved block codes. The mining software installed on the computer solves the block and returns an answer to the network.
As payment for the work done by your computer, the Bitcoin network rewards you with Bitcoins. Starting May 2021 each solved block rewards 6.25 Bitcoins down from the 12.5 it used to give.
The process of solving a single block is complicated and requires thousands of computers. The network distributes the reward among the miners based on their provided computing power.

How To Mine Bitcoin

Now that you know how mining works, let’s take a look at what you need to do to start mining.

Step 1: Create a Bitcoin Wallet

Bitcoin wallets are like bank accounts where you can store and exchange your Bitcoins. Wallets are provided by several software companies and are usually free to create.
You will need a Bitcoin wallet address ready before you start mining. The network will require this address to send you the rewarded Bitcoins.

Step 2: Choose Your Mining Pool

As mentioned before, mining requires massive amounts of computing power. Mining pools are networks that combine the computing powers of various miners to solve blocks.
The more powerful the pool is, the more blocks it can solve in a day, and the more it rewards the miners. The power and the speed of a mining pool are referred to as the hash rate.
You don’t always go for the most powerful mining pool. There are several factors that you need to consider when choosing a mining pool:


All mining pools take a percentage of the rewarded Bitcoins as fees. Bigger pools generate more rewards, but they also usually take more fees.

Payment Structure

Pools pay you after achieving a specific threshold, and after a specific number of days. Make sure to check the frequency of payments and if there is an upper limit for each transaction.

Hardware Compatibility

We’ll talk about mining hardware in a minute here, but keep in mind that some pools have minimum hardware requirements. If your device doesn’t meet the limits, you can’t join.

Stability and Reputation

Some pools have a bad reputation. They might drop off the network, delay payments, or change the payment structure without notice. Make sure to check several reviews.

Step 3: Choose Your Mining Rig

Mining is all about hardware power. Here, we will explore the two options available for mining rigs.

Mining With ASICs - Direct Mining

Application-Specific Integrated Circuits (ASICs) are powerful computers designed for mining cryptocurrency. Each ASIC is designed to mine one type of currency to maximize efficiency.
ASIC rigs are made with advanced users in mind. You need a background in programming and hardware configuration to be able to run a profitable ASIC Bitcoin rig.
To directly mine Bitcoin, you have to use an ASIC device. It’s not possible to join any Bitcoin mining pool without the computing power provided by these electronic monsters.
Pros of Mining With ASICs
  • More power means more share of the rewarded Bitcoin.
  • They are dedicated devices. You don’t have to overload your personal computer.
Cons of Mining With ASICs
  • They are expensive to buy, ranging from $2,000 to $15,000.
  • They are noisy, use a lot of electric power, and generate heat.

Mining With GPUs - Indirect Mining

If you are not willing to invest a lot of money in an ASIC, then your next option is to use a gaming computer with a strong Graphics Processing Unit (GPU).
GPUs have the capability to solve the complicated code in a cryptocurrency block, although at slower rates than ASICs. This is why Bitcoin pools don’t support most GPU miners.
Several cryptocurrencies other than Bitcoin have smaller blocks. They still allow GPU miners to join their pools. Some of them ban the use of ASICs to promote mining fairness.
So, you can use your GPU miner to mine other currencies. But you still can gain Bitcoins using your GPU miner. For this to work, a broker comes in between you and the pool.
A broker is a network optimized for small miners. They give you access to several smaller pools for various cryptocurrencies where you can use your computing power for mining.
The broker then pays you for your computing power in Bitcoin. Brokers pay less than what direct mining offers as rewards, but as a GPU miner, you can’t make Bitcoin any other way.
Pros of Mining With GPUs
  • Less expensive than ASICs.
  • Use less electric power than ASICs.
  • Can be used as gaming computers when not mining.
Cons of Mining With GPUs
  • Pays less than direct mining.
  • Broker payments can fluctuate.


We trust that at this point you’ve learned all the basics of how to start Bitcoin mining. Whether you choose to go with direct ASIC mining or indirect GPU mining, it’s up to you.
Before committing to investing in a Bitcoin mining rig, you should calculate your expected profit.
Now, you are ready to create a wallet, choose a rig and a pool, and delve into the world of Bitcoin mining.