Bitcoin Mining: A Complete Guide

Bitcoin and Bitcoin mining has become a hot topic recently. In October 2020, the payments giant PayPal made major waves with a new announcement. It plans to launch a service that allows their customers to buy and sell Bitcoin via their platform, as well as spending Bitcoin with their merchants. 

This feels like a turning point for cryptocurrencies in general. Bitcoin has been growing in popularity, year after year, since its inception. The Bitcoin market currently has a capitalisation of almost US$300 billion, as of November 2020. 

How does one get into Bitcoin if they are new to the market? Is it too late to get into this phenomenon today? 

The answer is simple. It is not too late to make a start in the industry. Bitcoin mining is one way for you to acquire some Bitcoin if you are new to cryptocurrencies. 

What is Bitcoin mining, though? We are going to show you in this article!

YOUR GUIDE TO BITCOIN MINING

When cryptocurrencies were first emerging, mining was one of the most common ways for people to get their hands on some Bitcoin. This is no longer the case, as the barrier to investing in Bitcoin has lowered while the resources needed for mining has increased exponentially. Bitcoin mining in Australia is legal like many other major cryptocurrencies.

You must also remember that Bitcoin mining is a business. Like any other businesses, nothing is static or set in stone. The costs, supply, and demand around Bitcoin mining are always going to fluctuate. Fluctuating costs of equipment, difficulty in mining, and lack of guaranteed payout mean you might be better off investing in Bitcoin if you are looking for a sure thing.

These fluctuations also make it difficult to calculate how much you could theoretically make from BTC mining. 

With all of that being said, there are still an ample amount of opportunities to make money mining Bitcoin. Here are some steps you can follow to increase your chances of having a profitable venture. 

PICK A BTC MINING COMPANY

Bitcoin mining can be quite resource-intensive. The easiest and quickest way to begin is to find an existing mining company and rent some of their processing power. Investors are generally paid in Bitcoin even if they are mining for different cryptocurrencies. 

Mining companies have continued to proliferate as Bitcoin becomes an established industry in its own right. Make sure to do your homework to find a company you can trust and, of course, one that’s likely to turn a profit. 

PICK A BTC MINING PACKAGE

Once you’ve settled on a mining company you can stand behind, the next step is to pick a package that will best serve your interest and needs. This usually means cross-referencing what capacities you are looking for versus how much you’re willing to spend. 

As a general rule, the more you spend on investing the quicker and more likely you are to turn a profit. 

Many Bitcoin mining operations, including cloud mining companies, will have some sort of Bitcoin mining calculator to help you determine how much you can comfortably spend. These calculators will use the current price of Bitcoin which is cross-referenced against the hashing power of the equipment you are looking to rent. 

While many companies are trustworthy, it’s often a good idea to try a third-party calculator as well. This will help eliminate any biases one cryptocurrency calculator has. 

SELECT A BITCOIN MINING POOL

Once you have determined how much you can comfortably spend on Bitcoin mining, the next step is to decide where you are going to mine. Mining pools are the geographic area where you mine for cryptocurrency. This helps narrow down where you are spending your resources, which increases the probability of you turning a profit with bitcoin. 

Not all mining pools are equal, so do your homework to find a pool that will be worth your time, money and energy. 

CHOOSE A BITCOIN WALLET FOR MINING

After you have chosen a mining pool, you are ready to start mining for cryptocurrencies. This means in short order you are going to start accruing Bitcoin. You will need to have a Bitcoin wallet that you can deposit your proceeds into. 

Some Bitcoin mining companies allow you to re-invest your earnings for more hashing power. Others allow you to convert Bitcoin into other forms of cryptocurrency.

Still, at some point, you are going to want to convert your digital currency into hard cash. At some point, you are going to need a Bitcoin wallet. 

Security should be your first concern when choosing a Bitcoin wallet. If you know others who do Bitcoin mining or crypto trading, check in with them and see if there’s any that they recommend. Do your online research as well. A Bitcoin wallet is not something you want to get wrong! 

You will also want to pay attention to the crypto market before making any financial decisions. Bitcoin prices fluctuate, same as any other asset. You will want to ensure that bitcoin prices are up before converting your cryptocurrencies to cash. 

That’s about it! Now you’re ready to mine, invest in, and trade Bitcoin! It’s very easy once you get used to the procedure. It is very rewarding, as well, as you are investing in an industry that is considered to revolutionise the current financial system. It is like being around when the stock market was first invented! 

LOOKING TO INVEST IN BITCOIN AUSTRALIA?

Good call! There are so many exciting opportunities in the cryptocurrencies market, from Bitcoin mining to investing in new tokens that become available. 

If you are ready to find out how to get started with the cryptocurrency markets in Australia, visit Coinstash for more information on how to make educated decisions and start Bitcoin mining in Australia.