earn bitcoin

Bitcoins can be accumulated by “btc cloud mining “, that is, using computers to generate them, as if it were a “gold mine”.Unlike traditional monetary systems, where governments print currency when they need it, bitcoins work in a different way. Not being a currency, there is no way to print it as such.

What is the purpose of mining bitcoins?

The bitcoin network takes care of this by collecting all transactions made during a certain period in a list, better known as a block.What a miner does, would be to confirm those transactions and write them as if it were an account book, this is known as Blockchain or block chain.

A blockchain is a small file, similar in size to a text message on your mobile. This account book is a very long list of blocks, in which any transaction made anywhere in the chain can be explored.When a new transaction block is created it is added to the block chain, creating a very long list of all the transactions that have been made in the bitcoin network.

Each blockchain consists of 3 parts, two of which are very simple:

Identify the address
The history of who has bought and sold.
The third part is the Private Key Header Log, is the most complicated and we will comment later.

To create hash

The miners take the information from a block, apply a mathematical formula and transform it into something different.Create a new, much shorter sequence of apparently random numbers and letters. This sequence is known as hash. The hash is stored inside the block, where it is the end of the chain at that moment.

This allows the system to sort the information more quickly and to be found easily but it is a slow and cumbersome process and that is why the miners are needed to do it.

But, the miners not only use the transactions of a block to generate a hash, they also use another type of data and one of them is the last part of the last block added to the chain, the header.

The upper part of the bitcoin blocks is where a complicated digital name is marked to verify each and every one of the dealings in that bitcoins file.Here a hash is created using the hash of the previous block as an aid.

These digital signatures are the security system that bitcoins use: each and every one of the transactions in a chain of blocks are registered and publicly displayed and with the signature of the digital participant attached to it as a confirmation. Therefore, the blockchain mining is always protected by design.

For example, if you tried to forge a transaction by changing a block that was just added to the blockchain, the hash of that block would also change.So as soon as someone looked at the authenticity, he would easily realize that he is facing a forgery, since the hash would not be the same as the previous block in the blockchain and that block would be cataloged at once as false.

How much is earned by mining bitcoins?

Each time a person successfully creates a new hash, he receives 25 bitcoins as a reward, the block chain is updated and everyone in the network finds out about it.That is the incentive that is given for people to continue mining and for transactions to continue to be recorded.

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But the main problem with this is that it is extremely easy to create hash from the collected data.So the bitcoin network needs to make it more difficult so that all bitcoins are not mined in a matter of minutes and the currency is devalued. For that a protocol known as “Work Test” is created that makes it more expensive and difficult.

That protocol does not accept any old hash.

Ask that the hash of each block be in a certain way; for example, it has to have a certain number of zeros at the beginning. There is no way to say what a hash will be until you create it, and as soon as you include a new piece of data in the mix, the hash will be completely different.

Miners in principle do not interact with the data of the block transactions, but they must change the data they use to create a different hash. This is achieved by using another piece of data known as NONCE. This is used with the transaction data to create a hash.If the hash does not fit the required format, the NONCE changes and becomes “hasher”.

It can take many tries to find a NONCE that works and all the miners in the network are trying to do it at the same time. And that's how miners earn their bitcoins.

Bitcoin “mining”

The following steps will help you build the bitcoin mining process and get Bitcoins!

First, you need a good video card or a set of very good video cards all set up and working well. ATi / AMD are currently recommended as they appear to have higher Hash rates. Check out a list of recommended video cards

Then download and install the software you will use for Bit coinage mine.

You will need to enter your Username and Password. For this guide, we are using Mud Pool. Register your account

As soon as I registered, login and go down to workers (“Workers”) in my account. If you do not have workers in the list, click Register New Worker.

Once the new worker has been registered, use the username and password of the worker in GUI Miner. Now you can start mining.

Then you need a “wallet” address. The accumulated Bitcoins will be sent to your Bitcoin portfolio. A Bitcoin wallet may reside on a computer running the software, or you can obtain an online wallet.

What is Bitcoin?

If you're here, you've heard of Bitcoin. it's been one among the most important frequent news headlines over the last year approximately – as a get rich quick scheme, the top of finance, the birth of truly international currency, because the end of the planet , or as a technology that has improved the planet .But what's Bitcoin?

We all know, generally, what 'money' is and what it's used for. The foremost significant issue that witnessed in money use before Bitcoin relates thereto being centralised and controlled by one entity – the centralised banking industry.

Bitcoin was invented in 2008/2009 by an unknown creator who goes by the pseudonym 'Satoshi Nakamoto' to bring decentralisation to money on a worldwide scale. The thought is that the currency are often traded across international lines with no difficulty or fees, the checks and balances would be distributed across the whole globe (rather than simply on the ledgers of personal corporations or governments), and money would become more democratic and equally accessible to all or any.

How did Bitcoin start?

The concept of Bitcoin, and cryptocurrency generally, was started in 2009 by Satoshi, an unknown researcher. The rationale for its invention was to unravel the difficulty of centralisation within the use of cash which relied on banks and computers, a problem that a lot of computer scientists weren't proud of.

Achieving decentralisation has been attempted since the late 90s without success, so when Satoshi published a paper in 2008 providing an answer, it had been overwhelmingly welcomed. Today, Bitcoin has become a well-known currency for internet users and has given rise to thousands of 'altcoins' (non-Bitcoin cryptocurrencies).

How is Bitcoin made?

Bitcoin is formed through a process called mining. A bit like folding money is formed through printing, and gold is mined from the bottom, Bitcoin is made by 'mining'. Mining involves solving of complex mathematical problems regarding blocks using computers and adding them to a public ledger.When it began, an easy CPU (like that in your home computer) was all one needed to mine, however, the extent of difficulty has increased significantly and now you'll need specialised hardware, including high end Graphics Processing Unit (GPUs), to extract Bitcoin.

How do I invest?

First, you've got to open an account with a trading platform and make a wallet; you'll find some examples by searching Google for 'Bitcoin trading platform' – they typically have names involving 'coin', or 'market'.

After joining one among these platforms, you click on the assets, and then click on crypto to settle on your required currencies. There are tons of indicators on every platform that are quite important, and you ought to make certain to watch them before investing.

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Simply buy and hold

While mining is that the surest and, in a way, easiest method to earn Bitcoin, there's an excessive amount of hustle involved, and therefore the cost of electricity and specialised hardware makes it inaccessible to most folks .To avoid all this, make it easy for yourself, directly input the quantity you would like from your bank and click on “buy', then sit back and watch as your investment increases consistent with the worth change. this is often called exchanging and takes place on many exchanges platforms available today, with the power to trade between many various fiat currencies (USD, AUD, GBP, etc) and different crypto coins (Bitcoin, Ethereum, Litecoin, etc).

Trading Bitcoin

If you're conversant in stocks, bonds, or Forex exchanges, then you'll understand crypto-trading easily. There are Bitcoin brokers like e-social trading, FXTM markets.com, and lots of others that you simply can choose between. The platforms provide you with Bitcoin-fiat or fiat-Bitcoin currency pairs, example BTC-USD means trading Bitcoins for U.S. Dollars. Keep your eyes on the worth changes to seek out the right pair consistent with price changes; the platforms provide price among other indicators to offer you proper trading tips.

Bitcoin as Shares

There also are organisations found out to permit you to shop for shares in companies that invest in Bitcoin – these companies do the rear and forth trading, and you only invest in them, and await your monthly benefits. These companies simply pool digital money from different investors and invest on their behalf.

Why do you have to invest in Bitcoin?

As you'll see, investing in Bitcoin demands that you simply have some basic knowledge of the currency, as explained above. Like all investments, it involves risk! The question of whether or to not invest depends entirely on the individual. However, if I were to offer advice, I might advise in favour of investing in Bitcoin with a reason that, Bitcoin keeps growing – although there has been one significant boom and bust period, it's highly likely that Cryptocurrencies as an entire will still increase in value over subsequent 10 years. Bitcoin is that the biggest, and most documented, of all the present cryptocurrencies, so may be a good place to start out, and therefore the safest bet, currently. Although volatile within the short term, i think you'll find that Bitcoin trading is more profitable than most other ventures.

How do You Mine Bitcoins?

Think The Bitcoin Way Before Investing