Bitcoin Mining For beginners

What is bitcoin? 

Asicminer Block Erupter Usb Asic Bitcoin Miner

Bitcoin (BTC) is a cryptocurrency where the creation and transfer of bitcoins is based on an open-source cryptographic protocol that is independent of any central authority. Bitcoins can be transferred via a computer or smartphone without an intermediate financial institution. The concept was introduced in a 2008 paper by pseudonymous developer Satoshi Nakamoto, who called it a "peer-to-peer, electronic cash system."

The processing of Bitcoin transactions is secured by servers called bitcoin miners. These servers communicate over an internet-based network and confirm transactions by adding them to a ledger which is updated and archived periodically using peer-to-peer filesharing technology. In addition to archiving transactions, each new ledger update creates some newly minted bitcoins. The number of new bitcoins created in each update is halved every 4 years until the year 2140 when this number will round down to zero. At that time no more bitcoins will be added into circulation and the total number of bitcoins will have reached a maximum of 21 million bitcoins. To accommodate this limit, each bitcoin is subdivided down to eight decimal places; forming 100 million smaller units called satoshis per bitcoin.

Bitcoin is accepted in trade by merchants and individuals in many parts of the world. Like other currencies, illicit drug and gambling transactions constitute some of its commercial usage. Although the bitcoin is promoted as a digital currency, many commentators have criticized the bitcoin's volatile exchange rate, relatively inflexible supply, high risk of loss, and minimal use in trade.

How to Mine Bitcoin?

First you need bitcoin mining software. My favorite is bitminter. What you want to do is use your graphic card to mine. Radeons are supposedly better. CPU mining is way to slow I wouldn't bother at all. You can buy usb dongle asicminers from ebay. They mine at 300 megahashes. The butterfly labs hardware the cheapest one you can get 5gigahashes thats about 6 dollars a day. Bitminter is mining pool where everyone shares their gpu power to mine for bitcoins so it's easier. So far I tested many different miners and this one is the best so far. 

Step 1 Sign up for bitminter account
Step 2 Download the java software and make sure you install java runtime
Step 3 Create a log in for your miner

Step 4 Type in your login info in account drop down

step 5 start your engines

Now your mining for bitcoins.

Where do you store you bitcoins?

https://blockchain.info/wallet/

There are youtube tutorials explaining how to do this.

Anyways happy mining and if you found this information useful. Please click on my advertisement on my left and top of the screen. Please turn off adblocker to click. Thank you. That is least you can do. Thanks.

How to sell bitcoins?

Get a coinbase account and give them all the proper info to transfer btc to usd to bank account. They charge a very low fee of 1%.

To generate a bitcoin address:
Account Settings > Bitcoin Addresses > + Create New address

Then a random string is generate like this:
1Nf5bv7HBkmqqf2d8ix2D9sAcYi62BkCRe

If you found this tutorial helpful please sign up with coinbase and click on my ads. Thank you.