Bitcoin for Beginners: How to Mine Bitcoins Part 2 – Action Plan

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Bitcoin for Beginners

After discussing the important FAQ regarding Bitcoin mining in our previous tutorial, we now present the action plan that should be observed to efficiently start and implement Bitcoin mining. Here you will find a brief description of the steps.

1. Subscribe to Mining Pools
Assuming you will not only mine Bitcoins single handedly (it is not recommended to do if you have a smaller hash output 10,000 MHash/s, equivalent to about 25 generation graphics cards), you’ll need to subscribe to at least two mining pools.

2. Think of a good location for your Rigs (or mining)
You need to find a suitable place for your rigs. This is a space where they can run for a long time without being interrupted. Make sure that they are not accessible to children or pets. Also, keep in mind rigs emit much heat (almost like a stove), and ventilation systems of some graphics cards are very noisy. Make sure to choose a location that won’t give and excuse to your neighbors to call 911.

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3. Sure of the quality of the location and available resources in the same
Whatever place you choose to deploy your mining rigs, you must have: an internet connection, a good electrical connection and proper temperature control and / or enough airflow.

4. Evaluate your budget
Determine how much money you want or you can invest in your miners. Evaluate the likely profits, costs and risks.

5. Decide which hardware to purchase
You need to do a price-to-performance analysis before purchasing the hardware, based on your budget. Also important is considering how to follow business strategy, especially the time horizon (whether a plan is either short or long term). Focus more on future deliveries.

6. Configure and test your miners
If you purchase your items separately to form rigs, you must contrive to assemble the components correctly. You can ask someone to do it for you (a technician or a friend), or buy items in a home computer where you deliver the computer and equipment. There are also people who sell rig equipment, loaded with the necessary software to start mining. But it will be very useful to understand at least what components are required to make up your rig, as well as the functionality of each.

7. Installs and configures the software
There are many options available. Will you use Windows or Linux? What mining program you use? Will you decide to automate your miners? These and many other questions will arise before installing and configuring the software.

8. Sets a proxy for Bitcoin
Now that you have all Bitcoin mining equipment set in their rightest places, you can operate several mining accounts centrally by using a proxy for Bitcoin. This lets you use the same information to log, and simplify control of your accounts in different mining pools.

9. Deploy your Equipment and Start Mining
Finally, you can already start your mining rigs and start producing Bitcoins!

In the next installment we’ll explain each of these steps in detail.

To contact the writer of the tutorial: Yashu Gola at yashu@forexminute.com

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