How Does Bitcoin Mining Work?

How Does Bitcoin Mining Work? (Updated 2022)

What Is Bitcoin Mining?

Mining bitcoin is the process through the newly created bitcoins are introduced into circulation. It is also how the new transactions are verified by the network. It is an essential element of the development and maintenance of blockchain’s ledger. “Mining” is performed using sophisticated equipment that can solve an extremely complicated mathematical computation. The first computer that finds the solution gets with the following tranche of bitcoins. The process is repeated.

The process of cryptocurrency mining is arduous expensive, time-consuming, and rarely rewarding. However, it has attracted the attention of many investors who are interested in cryptocurrency due to it being a fact that miner get paid for their efforts with cryptocurrency tokens. It could be that people who are entrepreneurial believe that mining is a way to earn the equivalent of heaven’s pennies, as did California gold prospectors of 1849. If you’re technologically adept, why not take a shot at it?

However, prior to investing the time and resources go through this guide to find out if mining is the right choice appropriate for you. We’ll concentrate on Bitcoin (throughout the article, we’ll use “Bitcoin” when referring to the cryptocurrency or network as an idea or concept, and “bitcoin” when we’re referring to the number of tokens).


  • Through mining, you will earn cryptocurrency without needing to invest money in it.
  • Bitcoin miners earn Bitcoin as rewards for the completion of “blocks” of verified transactions that are included in the Blockchain.
  • Mining rewards are awarded to the person who finds an answer to a complicated hashing problem first. the likelihood that a miner is the one to solve the puzzle is related to the percentage of total mining power of the network.
  • You will require either an GPU (graphics processing device) as well as an app-specific integrated circuit (ASIC) in order to setup mining equipment.

A New Gold Rush

The most significant reason to consider mining companies is the possibility of earning Bitcoin. But, you do not need to be a mining entrepreneur to have cryptocurrency tokens. There is also the option to purchase cryptocurrencies with fiat currency or trade it in exchanges such as Bitstamp by using a different cryptocurrency (as as an instance, for instance, using Ethereum and NEO to purchase Bitcoin) and you earn it through buying, writing blog articles on platforms that pay their users in cryptocurrency, or establish an interest-earning cryptocurrency account.

One example of a crypto blogging service is Steemit that is sort like Medium however, users are able to pay bloggers for their work with an exclusive cryptocurrency known as SteEM. It can be then traded in exchange for Bitcoin.

The Bitcoin reward that miners earn is an incentive to encourage individuals to help in the primary goal of mining: to legitimate and oversee Bitcoin transactions, and ensure the validity of transactions. Since these responsibilities are distributed between a variety of users across the globe, Bitcoin is a “decentralized” cryptocurrency, which means one that does not depend upon any authority central to it, such as an institution like a central bank or government to regulate its operations.

Mining to Prevent Double Spend

Miners earn money for their services as auditors. They’re in charge to verify the authenticity and legitimacy of Bitcoin transactions. This is a way to ensure that Bitcoin users honest, and was designed by Bitcoin’s founder, Satoshi Nakamoto. 1 By the process of verifying transactions, miners can help to stop from the ” double-spending problem.”

Double spending can be described as a situation that occurs when an Bitcoin owner is able to spend on the exact same Bitcoin twice. When it comes to the physical money, it shouldn’t be an issue. If you give an individual a $20 bill to purchase a bottle of vodka, you don’t possess it, therefore there’s no risk that you’ll make use of that exact $20 to purchase lottery tickets the next door. While there is a possibility that counterfeit cash is made but it’s not like paying the same amount twice. However, with digital currency it is possible, as the Investopedia dictionary says, “there is a risk that the holder could make a copy of the digital token and send it to a merchant or another party while retaining the original.”

Let’s say you had a genuine $20 bill, and one counterfeit version of that same amount. If you tried to use both the genuine bill as well as the counterfeit anyone who took the time to examine both bills serial numbers would find that they had the same which means that one of them was likely to be fake. What is a Bitcoin mining company does is similar in that they verify transactions to ensure that no one has attempted to use the identical bitcoin twice. It’s not a perfect analogy, but we’ll discuss it in greater detail later.

One megabyte of transaction data could be contained in one bitcoin block. The 1MB limit was established by Satoshi Nakamoto. It is now a source of contention as some miners believe that the block size should be increased in order to accommodate more data. This could make it possible for the bitcoin network can process and verify transactions faster.

“So after all that work spent mining, I might still not get any bitcoin for it?”

It’s true. In order to earn Bitcoins you must in order to be one of the initial miner to find the correct answer, or the most appropriate answer, to a numerical problem. This process is also referred to in the field of the proof of work (PoW).

“What do you mean, ‘the right answer to a numeric problem’?”

A good thing is thatNo sophisticated math or computation is actually involved. There’s a chance that miners are solving complex math problems, but that’s not because math isn’t easy. What they’re really trying to do is be the first miners to create an hexadecimal 64-digit number (a ” hash”) that is smaller in comparison to or equivalent to desired hash. It’s basically speculation.

The downside:It’s a matter of the random or improbable However, given the amount of possible solutions for each one of these issues at the level of billions, this is extremely difficult task. The number of possible solutions is only increasing the number of miners are added to this mining system (known as mining difficulty). mining challenge). To tackle the problem miners require a significant amount in computing capacity. In order to be successful in mining you must have a very high “hash rate,” which is measured in terms of gigahashes each second (GH/s) and Terahashes per Second (TH/s).

If you’re looking to figure out how much bitcoin you can earn using your mining equipment’s hash rate, Cryptocompare provides a useful calculator. Other sites provide similar tools.

Mining and Bitcoin Circulation

Alongside filling mining pockets as well as helping to support in the Bitcoin community, it also also serves another important purpose: It is the only method to allow new cryptocurrency to enter circulation. Miners have the function of “minting” currency. As an example, in September 2021, there was about 18.82 million bitcoins available in the world, which is a number of around 21 million. 2

Apart from the coins created through the first block (the first block that was invented by the its founder Satoshi Nakamoto), every bitcoin was created because of miners. If miners were not present, Bitcoin as a network will still exist and remain accessible, but there’d never be any bitcoins. But, since the amount that bitcoin is “mined” is reduced over time, the last bitcoin will not be available until about 2140. It doesn’t mean transactions will no longer be checked. Mining miners are still required to validate transactions, and they will be compensated by fees in order to maintain an integrity to Bitcoin’s blockchain. 3

In addition to the immediate Bitcoin payout, being an active coin miner gives users “voting” power when changes are being considered in your Bitcoin blockchain protocol. This is referred to as a BIP (Bitcoin Improvement Protocol). Miners are able to influence over the process of decision-making regarding issues such like taking a fork.

How Much a Miner Earns

The benefits of Bitcoin mining decrease to half approximately each four months. 1 When bitcoin first began mining during 2009, mining a single block could earn an individual 50 BTC. In 2012, the amount was reduced down to just 25 BTC. In 2016, it was cut again in 2016 to 12.5 BTC. In May of 2020 the reward was reduced in value to 6.25 BTC.

In the month of September in 2021, the Bitcoin price was approximately $45,000 for a bitcoin. That means you’d earn $281,250 (6.25 times 45,000) when you completed the block. 4 Not an excellent incentive to tackle the complex hash issue described above, but it could be.

If you’d like to track the exact time when these halvings be happening, you can refer to the Bitcoin Clock, that updates the information in real-time. It is interesting to note that the value of Bitcoin has been, over the course of its history, generally correlated with the decrease in new coins that have released into circulation. The lower inflation rate has increased the scarcity of Bitcoin, and in the past, its price has increased with it.

If you’re curious about the number of blocks that have been mined to date There are several websites like, that can provide you with this info in real-time.

What You Need to Mine Bitcoins

Though in the beginning of Bitcoin’s history , individuals might be able to be competitive for blocks using an ordinary personal computer at home however this is no longer the situation. The reason is that the difficulty in mining Bitcoin alters with time.

To ensure the efficient functioning of the blockchain as well as its capability to verify and process transactions to ensure its integrity, the Bitcoin network strives to produce one block at every one minute or more. But, if there’s millions of mining rigs competing to solve the problem of hash and come to the solution quicker than the situation where only more than 10 mining equipments are engaged in the same task. This is why Bitcoin was designed to assess and alter the mining difficulty every 216 blocks, which is roughly each two weeks. 1

If there’s more computing power that is collectively used to mine bitcoins, the difficulty of mining grows to ensure the production of bitcoins at a constant level. A lower computing capacity means that the difficulty level is reduced. With the current size of the network an individual computer mining bitcoins will probably not find anything.

All of this means that, to be competitive in mining miners have to invest in powerful computing equipment, such as GPU (graphics processing unit) or, more accurately the application-specific integrated circuit (ASIC). These range between $500 and hundreds of thousands. Some miners — particularly Ethereum miners — purchase specific graphics card (GPUs) to provide a cheap method of combining mining activities.

An Analogy

Imagine telling three people that I’m contemplating a number between one and 100. I write it down on one of the pieces of paper, and then seal it up inside an envelope. My buddies don’t have to know the exact number. They simply have to be the first person to guess a number that is lower than or equivalent to the number that I’m thinking of. And there’s no limit on the number of guesses they can make.

Let’s say I’m thinking about 19, for example. If Friend A guesses 21 and loses because 21 is greater than 19. If Friend B is guessing 16 and C guesses 16, and C thinks 12 they’ve theoretically arrived at plausible answers because 16 19 and 12 19. There’s there is no “extra credit” for Friend B even the fact that B’s answer was more close to the desired answer of 19. Now imagine I ask you with the “guess what number I’m thinking of” question, however I’m not asking only three people but I’m thinking of a number that is between 1 to 100. Instead, I’m posing millions of potential miners to answer as I’m that thinking about a 64-digit hexadecimal hexadecimal. You can see that it’s going to be incredibly difficult to determine the correct answer.

If B and C respond at the same time, the analogy is broken.

In Bitcoin terms the frequency of simultaneous answers is high however, in the final analysis, there could only be one winning solution. If multiple simultaneous answers are given that are equal to but less than desired number and it is the Bitcoin network will determine by a simple majority, namely 51%, which mining company will honor.

Typically, it’s the miner who has performed the most work, or that is the one who validates the largest number of transactions. The lost block is then an ” orphan block.” Orphan blocks are ones which aren’t being added to blockchain. Miners who have solved the hash issue but aren’t able to verify the majority of transactions don’t get bitcoin.

What Is a “64-Digit Hexadecimal Number”?

Here’s an example this number:


The above number has 64 numbers. It is easy enough to comprehend at this point. You may have noticed this number does not consist only in numbers. It also includes the letters that make up the alphabet. What is the reason for this?

To better understand the function of these letters within the numbers, let’s break down the term “hexadecimal.”

The decimal system employs as its basis factors 100 (e.g. that 1 percent equals 0.01). This implies that every digit in the multi-digit number is capable of 100 possibilities, ranging from zero to ninety-nine. In computing the decimal system, it is reduced to base 10, which is zero to nine.

“Hexadecimal,” on the contrary, refers to base 16 as “hex” is derived from the Greek word meaning six, as well as “deca” is derived from the Greek word meaning 10. In a hexadecimal format every digit offers sixteen possibilities. The numeric system however only provides 10 different ways to represent the numbers (zero to nine). This is why you need to insert letters specific letters, such as A, B, C and d, as well as e and the letter f.

If you’re mining Bitcoin it is not necessary to have to determine the total value of this 64-digit code (the hash). In other words, you don’t need to determine the value of the hash.

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How to Make Money with Bitcoin in 2022

How to Make Money with Bitcoin in 2022

In the past few months, Bitcoin (BTC) has been gaining recognition as the most popular type of cryptocurrency that is decentralized. The person who invented it is an unanswered question to the present but one thing is sure: there are plenty of possibilities for you to earn money using Bitcoin in the present.

There are numerous choices to pick from and choosing the right path isn’t easy. To make it a little easier to you, we’ve created an array of suggestions for making money using Bitcoin from. Let’s get started!

1. Buy and keep Bitcoin

If you’re trying to figure out how you can earn money using Bitcoin without too much effort buying and holding strategy is one of the best alternatives. Holding and buying BTC is among the most simple and easy ways to earn money using cryptocurrency. Here’s how:

  1. Sign up for a Paxful account and you’ll get the complimentary Bitcoin money account after signing up!
  2. Buy Bitcoin by the bank transfer or select from over 400 payment choices.
  3. Keep hold of your BTC and watch for increases in value, regardless of how long it will take.

It’s possible to wait for weeks, months and even years until deciding to sell. This is the appeal of holding and buying. This strategy has become popularthat it even has an online term for it- “HODL”. It began as an error in the forum, but then became an abbreviation for Hold on For Dear Life. If you decide to purchase and hold your BTC, make sure you hold on to the BTC for the rest of your life.

If you’re looking for a more systematic strategy for HODLing then why not consider the Dollar Cost Averaging? Also known as the constant Dollar Plan, DCA is an approach that lets you invest the entire amount of your funds in smaller increments over an extended period of time instead of distributing an entire sum at one time. This is particularly useful for those who want to invest in specific assets over the long-term.

Difficulty: Very Easy Speed:Slow

2. Earn an interest rate on your cryptocurrency

If you’re planning to use your Bitcoin to protect your wealth or just HODL for a specific period of time our latest tool could be the best option. We let you earn more cash by earning an interest rate on your cryptocurrency weekly with our btc mining machines, every Tuesday, for instance. It’s like savings accounts that you can keep your cash but also offers more chances to earn additional cash. It is currently accessible throughout the Nigerian region and is expected to be launched in various parts of the world.


3. Get Bitcoin cashback on purchases made with credit cards

Numerous payment giants around the world are also beginning to explore the waters of crypto. This has opened the way for a lot of crypto-currency users to access new opportunities in finance with Bitcoin when using credit cards.

Its BlockFi Rewards Visa(r) Signature Credit Card For instance, it gives its cardholders cryptocurrency, instead of points or miles. Cardholders are also able to receive 1.5 percent to 3.5 percent cashback. This can be converted into BTC instantly and deposited into a monthly account with BlockFi. In addition to offering you a new experience in the financial world The best part is that there are no foreign transaction charges.


4. Join affiliate marketing programs

Another way to earn money using Bitcoin is to use affiliate marketing. Numerous companies utilize this type of marketing to attract new customers. It’s a method of encouraging customers who are already loyal to the company to refer their family and friends to the company. There are these kinds of programs on the marketplace, but they’re distinct from each other. Take your time studying each and then decide which program you’d like to spend your time into.

Difficulty: Easy

5. Accept Bitcoin payment for your goods and services

As BTC is maturing and mature, we’re beginning to see increasing numbers of companies accepting BTC payment for their products and services. If you’re already operating an enterprise and you want to make money from Bitcoin then why not consider accepting BTC as a method of payment for your products?

Incorporating Bitcoin to your payment method can increase your market and will make transactions more accessible to those who do not have accounts with banks as well as credit cards. The great thing is that it’s extremely simple to accept BTC transactions.

Speed: Fast

6. Make use of Bitcoin faucets

Are you a fan of watching advertisements and responding to questions? You’re fortunate because it is possible to earn a substantial amount of cash doing the same thing, because of Bitcoin faucets. These reward systems offer tiny amounts of BTC to people who perform small tasks, such as watching advertisements or responding to questions. They can even be with mini-games! If you are interested take a look at the following video to find out more.

Difficulty: Easy
Speed: Fast

7. Find micro jobs and Pay-to-Click websites

This is a reliable method to earn BTC that very few people will talk about. Many Pay-to Click (PTC) websites offer a fraction of BTC when you view an advertisement or click an ad or link on a website that contains advertisements.

Keep in mind that earning a substantial amount of money by doing this is a difficult and time-consuming job. If you’re willing to do the effort, these websites are a great option to earn an income quickly. Check out sites such as Coinpayu or AdBTC If you’re interested in finding out how to earn money using cryptocurrency.

Microworkers is a different site that offers a modest cost to do simple tasks such as watching the YouTube video or taking a survey. These PTC websites include BTC equivalents like BitcoinGet as well as CoinTasker which allow members to select from a variety of tasks to do for a chance to earn Bitcoin.

Difficulty: Easy
Speed: Fast

8. Find tips in BTC

The most satisfying things you can do is helping people in need. And when you are rewarded with by a few dollars in the process then that’s great! A well-known websites are Bitfortip which offers BTC incentives for performing different tasks, such as helping people to find the perfect dress online, and providing accurate technical solutions to their inquiries.

Furthermore, if you’re a streamer of videogames Why not take tipping in BTC? Twitch and other streaming platforms also have integrated crypto-tipping , so be sure to look them up!

Speed: Fast

9. Monetize your website

Another way to earn money using Bitcoin is by monetizing the website. If you’re running a website but aren’t sure where or how to start monetizing it, you might consider looking to Paxful Kiosk. Paxful Kiosk.

There’s a Paxful Kiosk is another tool you can employ to boost your Bitcoin profits and help others learn about the advantages of cryptocurrency. By putting an Kiosk on your site it will help your customers or site visitors purchase Bitcoin conveniently and securely. It’s an excellent way to assist people get started with cryptocurrency.

Paxful Kiosk is flexible and simple to install. It also doesn’t chargeback and lets your customers utilize nearly 400 payment methods it accepts. Additionally you’ll earn commissions on every purchase that new users connect to Paxful.

Speed: Medium

10. Divide fractions of Bitcoin

The fact that Bitcoin is decentralized Bitcoin and other cryptocurrency makes it easy to conduct transactions. There is no requirement for authorities to confirm it.

As a result of this decentralization you are able to borrow BTC to earn cash by earning interest. Consider it an opportunity to let your money flow even if you’re hoarding your money instead of storing it inside your bank account.

Unchained CapitalBitbond BTCpop and Bitbond BTCpop These are a few websites that can assist you in obtaining loan services. If you’re trying to figure out how to earn money using cryptocurrency, consider giving lending a go.


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Getting Started – Mining Crypto currencies

Mining Crypto currencies – What is Bitcoin mining?

Bitcoin mining uses computing processing power to run SHA256 double round hash verification processes to validate Bitcoin transactions and provide the requisite security for the public ledger of the Bitcoin network. Computing power or the speed you mine Bitcoins at is measured in hashes per second.
To earn Bitcoins, the network awards your miners with Bitcoins based on your computing power. The more miners you have and the more computing power you have, the more Bitcoin you can earn.

How to start Bitcoin Mining – mining Crypto currencies

Mining Crypto currencies – To begin Bitcoin mining you will need to purchase Bitcoin mining hardware.  One of our most popular models is the Avalon 841.  You will also need a power supply (PSU) and a controller.  The Avalon 841 controller can control up to 20 units.  Some other more expensive units like the Antminer S9 do not require a controller and are controlled individually.

When choosing a power supply make sure to look at the specs of your miner to make sure that you select the correct power supply with enough wattage to support your miner.  For example, if your miner uses 1300 watts and your power supply is rated at 1200 watts, you will need a power supply with more wattage.  Another thing to consider would be whether you are going to run 110v which is standard in most households, or 220v which would require a different outlet which is not commonly found in households.  Many power supplies will offer a higher wattage output at 220v, so these are things to consider when setting up your mining station.

Sign up for a mining pool and join a mining pool – mining Crypto currencies

A mining pool is a group of Bitcoin miners that work together to solve a block and share its rewards.  If you do not join a mining pool and mine by yourself, you may mine for over a year and earn Little bitcoins.  It is far more beneficial to share the work with other miners and split the reward with a larger group.  The way to make money mining is to have a large amount of processing power so a group of a thousand miners will solve problems much faster than a single miner you run yourself.

A couple popular mining pools are Slushpool and Viabtc.  Viabtc is generally easy to find blocks more frequently and they do Bitcoin and Bitcoin Cash so switching is easy.  There are many mining pools out there, so do your research and choose a pool that works best for you and your equipment.  As far as how much money you can earn with different pools it’s generally about the same for the most part.

Once your miner is powered up you are ready to join a mining pool.  Once you’ve joined a pool, you will want to set the pool to pay out your earnings to your Bitcoin wallet.  If you want to mine a different type of coin other than Bitcoin (called Alt coins, short for alternative coins), you would locate a pool for that coin, log into your miner software and point your miner to the new pool and you will be mining a different coin.

Set up a Bitcoin wallet – mining Crypto currencies

A Bitcoin wallet is where you digitally store your Bitcoins.  There are many ways to store your Bitcoin: you can use software-based, website based or hardware wallets such as the Ledger Nano S.  For a software based wallet, we recommend Electrum because it is open source and not based off a person or company’s software that can potentially crash or be hacked.

Configure your miner – mining Crypto currencies

Once you have your mining hardware ready, you will need to configure your miner.  You will need an internet connection to begin setting up your miner.  Some miners such as the Avalon 841 will need a controller that allows you to access the miner software.  Other miners, such as the Antminer S9 do not require a controller and the software is built in.  To set up an Avalon 841, please refer to the controller instructions.

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Picking The Right Power Supply


The power supply that you’re going to decide to purchase depends on a few factors.

Which cryptocurrency and or hashing algorithm are you wanting to focus on mining?
How many miners are you looking to run at one time? (A general idea will be fine)
Do you only have 110v outlets readily available for your mining rig, or 220v? or both?
“Why does the type of cryptocurrency or hashing algorithm matter?”

The cryptocurrency and or hashing algorithm will determine the type of miner you will be looking to use ( is a great resource for which cryptocurrencies to mine). Once you’ve determined which miner you are in the market for, you can start researching the specs on those miners that will correspond to your future power supply.

Miners need a certain amount of voltage to run at different efficiencies, while power supplies can offer the minimum, maximum and excess of voltage for a miner you want to pick the power supply for the type of mining rig you want that will run at your max efficiency.

Ex. Your miner’s power consumption is approximately 1150W with a 93% PSU efficiency at 25 C. This means you need a power supply that can supplement at least one (1) miner 1150W of power on either a 220v or 110v outlet. Your main concern when starting your own mining rig is getting a power supply that will have an output rate high enough to meet the consumption of the miner.

If you’re looking to run one (1) miner on one (1) power supply then your output is the minimum consumption of that one miner. However, for those looking to build a larger mining operation the output and consumption numbers need to be revisited.

“I want to use more than one miner, how does that influence my choice of power supply?”

Power supplies have a power output range depending on which input you’re using. Typically if you want to run more than one miner on one power supply you’ll need the input to be a 220v which will maximize the power supply to have an output high enough to power more than one miner.

You also need to be mindful of how many PSU (power supply unit) power connectors a miner has as power supplies can come in a various numbered connectors.

Ex. You have two (2) miners you want to power. They both have a power consumption of 1150W with a 93% PSU efficiency at 25 C. In order to run both on one power supply you’ll need at least 2300W. The power supply is rated at 1300W with an input of 110v and 2600W with an input of 220v. Therefore, to run two (2) miners on one (1) power supply you’ll need a power supply that is rated 2300W or higher plugged in an 220v outlet with enough PSU connectors for both miners.

“I only have 110v, so what power supply do I have to get?”

Power supplies typically don’t come with a power cord and would need to be purchased separately. The reason for this is due to the output range based off of the input range. Many miners can run off of either a 110v or 220v outlet, so you’ll need to purchase the type of power cord that will match your input outlet.

If you only need to run one miner and the power supply you’ve picked has a high enough output with an input of 110v then you’ll be fine with just the 110v outlet. However, the 220v outlet will maximize the power output so that will offer other options on how you run your mining rig.

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How to Choose The Best Mining Rig


If you’re going to be a cryptocurrency miner, the hardware you use is probably the most crucial piece of the puzzle. Without the right mining gear, you can end up burning electricity to no effect.

Cryptocurrency mining has come a long way since its flagship implementation in Bitcoin. The practice advanced as GPUs were found to be more efficient than a CPU at the repetitive task of calculating hash values. Similarly, using GPUs to push massive amounts of data through machine learning algorithms led to breakthroughs in ML\AI, and resulted in the technique known as Deep Learning.

Today, the most powerful way to mine cryptocurrency is with an Application-Specific Integrated Circuit(ASIC). The CPU is designed to be useful for a variety of tasks, and not as fast as specific repetitive tasks as the GPU. ASIC takes this specialization even further. These units are made to operate on only one specific function, which allows them to perform incredibly well at that task. The downside is that they are entirely useless for any other purpose. Their efficiency is so great that it becomes nearly impossible to earn anything with a GPU based rig, once an ASIC is released for an algorithm.

The Right Hardware for You

When deciding between the different models of miners, there are two essential qualities that you’ll need to keep in mind. Hash Rate and Energy Consumption. Hash rate is the number of calculations that your chip can perform every second. The higher your hash rate, the better chance you have of solving the cryptographic challenge, and collecting a block reward.

Energy consumption is also essential to consider. To calculate how much a unit will cost you in electricity, multiply the number of watts it uses with the number of hours you plan to use it in a day. Take that number, divide it by 1000, and you’ve got your kilowatt hours for the day. Next, you can pull up your electricity bill and find out how much you are charged per kilowatt hour(kWh). Multiply your electric rate with your kilowatt hours, and you know your energy costs for the day.

Mining Algorithm

Another critical consideration is the algorithm you’ll be working on. As we mentioned before, ASIC miners are made to perform one task, and one task only. More of them are being developed for different algorithms all of the time. Bitmain leads the pack in the number of algorithms they’ve released ASICs for. They have units available for SHA-256, Scrypt, X11, Blake(2b), CryptoNight, Equihash, and one for Ethash is coming soon.

Currently, we carry ASIC units serving five different algorithms: SHA-256, Scrypt, X11, Blake(2b), and Tensority.

The original cryptocurrency hash algorithm is Bitcoin’s SHA-256. The ASICs we carry for mining this algorithm are Avalon 821Avalon 841, and the Antminer S9 Series. Besides Bitcoin, this algorithm can be used for mining a number of other coins, including:

BitcoinCash (BCH)
DigiByte (DGB)
Peercoin (PPC)
Universal (UNIT)
Deutsche eMark(DEM)
Bytecoin (BTE)

Litecoin popularized using the Scrypt algorithm for cryptocurrency in 2011, and Dogecoin adopted it in 2013. Currently, we stock the Antminer L3+ for Scrypt mining. Besides Litecoin and Dogecoin, Scrypt is also in use by the following coins and others:

GameCredits (GAME)
DigiByte (DGB)
Aricoin (ARI)
Linx (LINX)
Florin (FLO)
Einsteinium (EMC2)
Verge (XVG)


The X11 uses 11 different algorithms, hashes incredibly fast, and requires less processing power compared to other popular algorithms. We carry the Antminer D3 for mining X11 cryptocurrencies, including:

Dash (DASH)
Cannabiscoin (CANN)
Monoeci (XMCC)
Paccoin ($PAC)
MonetaryUnit (MUE)
Prime-XI (PXI)

Blake (2B)

The Antminer A3 performing the Blake (2b) algorithm is currently only useful for mining SiaCoin. Sia produces their own ASIC as well, and when Bitmain released the Antminer A3 there was some talk of a soft fork to invalidate it. That talk has passed, however, and the Sia team decided not to change the algorithm. In part, this choice was to avoid having a monopolistic hold on ASIC production.


The Bitmain Antminer B3 is the only miner available for Bytom cryptocurrency. This is the first mining algorithm which was made to be useful for more than just cryptocurrency. The Tensority algorithm it performs can also be used in AI deep learning. The fact that it can be used for something besides cryptocurrency is very exciting and offers additional benefit for the mining hardware. The Bytom team is very active and posts weekly updates on their progress. There are a number of reasons to suspect that this project is vastly undervalued.

Comparing Efficiency Between Different Miners

It’s important to keep in mind that the different algorithms hash at different rates. For example, Litecoin hashing is measured in MH/s where bitcoin hashing is measured in TH/s. So you can only compare rates among units that work on the same algorithm. To do so, you need to compare energy costs with the hash ratio. The simplest way to do that is by using the handy calculator at

Lets use the Avalon 841 for our example. We highly recommend this model, as not only does it compete with the Bitmain S9, it also includes a 730 day manufacturer warranty that no other ASIC manufacturer comes close to. It operates at 1290w, and we’ll input 14000.0 GH/s for its hash rate. That, along with $0.10(USD/kWh) as our electric rate, results in $3.09 a day of Bitcoin mining rewards, per unit. Helpfully, whattomine gives you a comparison of potential rewards for mining other SHA-256 coins as well.

These are not the only variables for considering your prospective profits. There are mining pool fees, token growth potential, increases in hash difficulty, and others. This is plenty for comparison shopping between miners, however. The short version is that we’re looking for low power consumption and a high hash rate.Summary

So you can see, there are a few factors in choosing the best mining rig for you. Which algorithm to work on is your first consideration. There are many other projects using SHA-256, Scrypt, and X11 than are listed on this page. Some of them will grow to become be worth a lot more than they currently are.

You’ll need to weigh the cost of the unit, along with electricity rates, hash rate, and your potential mining rewards. Of course, we hope that the value of our cryptocurrencies will grow as time goes on. That can make choosing which coins to mine an essential part of the process.

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Hashing Algorithm Explained


Put simply the hashing algorithm is the cryptographic hash function that maps data of any size, performs a mathematical operation on it and returns the output data of a fixed size.  This process is what is used to perform cryptographic transactions while authenticating and documenting the transaction in the blockchain.

Miners are what runs these operations with certain types of hashing algorithms that correspond with a certain coin.

Here are some of the most common hashing algorithms available:

SHA-256 Algorithm (GH/s)

SHA or “Secure Hash Algorithm” is a family of cryptographic hash functions that was published by the National Institute of Standards and Technology as a U.S. Federal Information Processing Standard.

256 refers to the specific family of hash functions that operates while using the block size of 32-bit words at a rate measured in GH/s: Gigahashes per second.  This algorithm mining can be performed on an ASIC hardware (application-specific integrated circuit).

Some current coins mined utilizing this algorithm:

  • BitcoinCash (BCH)
  • Bitcoin (BTC)
  • Bitcoin SV (BSV)
  • Universal(UNIT)
  • 21Coin (21)
  • Peercoin (PPC)
  • Namecoin (NMC)
  • Unobtanium (UNO)
  • Betacoin (BET)
  • Bytecoin (BTE)
  • Joulecoin (XJO)
  • Devcoin (DVC)
  • Ixcoin (IXC)
  • Terracoin (TRC)

Scrypt Algorithm (KH/s)

The Scrypt Algorithm is used as a “proof-of-work” algorithm which typically is performed on GPU: graphics processing units.  Due to it’s focused use of GPU’s, miners running this algorithm will tend to have a faster processing time than CPU’s: central processing units.  Scrypt’s hash rate is measured by KH/s: Kilohashes per second.

Some current coins mined utilizing this algorithm:

  • Litecoin (LTC)
  • Einsteinium(EMC2)
  • DGB-Scrypt(DGB)
  • Viacoin(VIA)
  • Novacoin (NVC)
  • Verge-Scrypt(XVG)
  • WorldCoin (WDC)
  • Latium (LAT)
  • FeatherCoin (FRC)
  • Bitmark (BTM)
  • TagCoin (TAG)
  • Ekrona (KRN)
  • MidasCoin (MID)
  • DigitalCoin (DGC)
  • Elacoin (ELC)
  • Anoncoin (ANC)
  • PandaCoins (PND)
  • GoldCoin (GLD)

X11 Algorithm (MH/s)

The X11 hashing algorithm is another proof-of-work algorithm that is measured by MH/s: Megashashes per second.  One of the main benefits of running this algorithm is that it is one of the more energy efficient that run 30-50% cooler and require less wattage.

Some current coins mined utilizing this algorithm:

  • Dash (DASH)
  • CannabisCoin (CANN)
  • DigitalpriceClassic(DPC)
  • AUR-Scrypt(AUR)
  • StartCoin (START)
  • MonetaryUnit (MUE)
  • Karmacoin (Karma)
  • XCurrency (XC)

Cryptonight Algorithm (H/s)

The Cryptonight Algorithm is specifically designed to be suitable for ordinary PC CPU’s and can only be CPU-mined.  Unlike Scrypt, Cryptonight depends on all the previous blocks for each new block.  The hash rate is measured by H/s: Hashes per second.

Some current coins mined utilizing this algorithm:

  • Bytecoin(BCN)
  • Monero (XMR)
  • Sumokoin(SUMO)
  • Boolberry (BBR)
  • Dashcoin (DSH)
  • DigitalNote (XDN)
  • DarkNetCoin (DNC)
  • FantomCoin (FCN)
  • Pebblecoin (XPB)
  • Quazarcoin (QCN)

Dagger Hasimoto – Ethash Algorithm (MH/s)

Dagger Hashimoto is a combination of two algorithms to mine Ethereum.  Measured in MH/s: Megahashes per second.

Current coins mined utilizing this algorithm:

  • Ethereum (ETH)
  • Ethereum Classic (ETC)
  • Ubiq(UBQ)
  • Expanse (EXP)
  • Musicoin(MUSIC)
  • Pirl(PIRL)
  • Ellaism(ELLA)
  • Nicehash-Ethash

Equihash (H/s)

Another proof-of-work algorithm which is memory orientated and it’s mining capabilities is mostly determined by the amount of RAM you have.  Measured in H/s: Hashes per second.

Current coins mined utilizing this algorithm:

  • Zhash (SEC)
  • Nicehash-Equihash
  • Zencash (ZEN)
  • Zclassic (ZCL)
  • Hush (HUSH)
  • BitcoinGold (BTG)
  • Komodo (KMD)

Hashing Algorithm Profitability

There are quite a few resources that can be used to determine which hashing algorithm is used and the amount of profit per cryptocurrency that can be expected when mined.   This way you can maximize your profits per miner.

Here are a few that we recommend:

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How to Sell Bitcoin

IntroductionOnce you’ve bought some Bitcoin, it can be quite a process figuring out how to sell Bitcoin afterwards.

In this guide, we’ll make selling Bitcoin a breeze and let you know how to sell your Bitcoin easily on some of the most popular Bitcoin exchanges, including Coinbase, Binance, Changelly, BitMEX, HitBTC, and LocalBitcoins. You’ll also learn how to keep track of all your sales as well as potentially dive deeper into the market with charting and technical analysis.

Where to Sell Bitcoin

There are several places to sell your Bitcoin but we’ll go over some of the easiest and most popular ones.

Selling Bitcoin on Coinbase

Coinbase is one of the most popular exchanges for buying and selling cryptocurrencies like Bitcoin. This is probably due to how easy the platform is to use as opposed to other exchanges, which might be more oriented towards those familiar with trading platforms.

To sell Bitcoin on Coinbase, login to your account and send Bitcoin to your Coinbase wallet (if it’s not there already).

This can be done by going to the “Accounts” tab at the top of Coinbase and depositing BTC to your Coinbase BTC wallet (hit “Receive”).

Afterwards, go to the Buy/Sell tab to sell BTC from your BTC Wallet and send the proceeds to your preferred linked account, such as your bank account.

selling bitcoin on coinbase

Selling Bitcoin on Binance

Binance is another hugely popular cryptocurrency exchange where you can sell your Bitcoin. However, Binance is cryptocurrency-only and you can only sell your Bitcoin for other cryptocurrencies (in other words, buy other cryptocurrencies using Bitcoin). Luckily, there is a huge array of cryptos to choose from, including Ethereum, Litecoin, and Bitcoin Cash as well as some relatively obscure ones.

Although Binance isn’t as easy to use as Coinbase, its huge selection of cryptocurrencies is a big draw for many.

For beginners, the easiest way to sell Bitcoin on Binance is to deposit Bitcoin to your account and then go to whichever cryptocurrency you wish to buy with your Bitcoin. Scroll to the bottom where it says “Buy *Insert Desired Crypto Here*” then place a market order (an order based on currently available market prices).

selling bitcoin on binance

(For example, instead of selling Bitcoin for dollars or other fiat currencies, you could sell it for cryptocurrencies like Walton).

Selling Bitcoin on Changelly

Changelly is another place that you can easily sell your Bitcoin.

While you can buy Bitcoin on Changelly using fiat currencies, such as the dollar and euro, you cannot sell Bitcoin on Changelly for fiat currencies. Instead, you have to sell your Bitcoin for other cryptocurrencies just like on Binance.

Nevertheless, Changelly, too, has quite a broad selection of cryptos to choose from, and you can sell BTC for cryptos including but not limited to Monero, Dash, Ripple, Ethereum, Ethereum Classic, Litecoin, and EOS.

Just enter how much BTC you want to sell using the box on the left, then select the crypto you want in return on the right. Changelly will calculate how much of the other crypto you get using real-time exchange rates.

how to sell btc on Changelly exchange

Selling Bitcoin on BitMEX

BitMEX is another exchange for selling Bitcoin. BitMEX is different from the exchanges covered thus far as it is most definitely geared towards experienced traders. For example, it offers trading on leverage, which can be great for selling Bitcoin if you want to short the market because you believe that the price of Bitcoin will drop.

BitMEX offers various order types: limit orders, market orders, stop orders, stop limit orders, trailing stop orders, take profit limit orders, and take profit market orders.

Each of these order types can be further customized as well.

Note that all BitMEX trading (both buying and selling) is done in Bitcoin. For example, if you successfully short Bitcoin, any potential profit is calculated in Bitcoin, which you can then withdraw to other places for selling to fiat or different cryptos.

how to sell cryptocurrency on bitmex

Selling Bitcoin on HitBTC

HitBTC is yet another exchange for selling Bitcoin. HitBTC is similar to Binance in that you can sell your Bitcoin for a wide array of cryptocurrencies, such as Ethereum, Monero, Dash, ZCash, Ripple, EOS, and more. Also, as with Binance, you are technically buying other cryptocurrencies by selling your Bitcoin for them with the exception of Tether (value pegged to the dollar), which offers a more intuitive Sell BTC for Tether option.

Bitcoin Sales on HITBTC

Selling Bitcoin on LocalBitcoins

LocalBitcoins is another place to sell Bitcoin but is different from the exchanges covered up to this point. Unlike other exchanges, which act as market makers or trade matching platforms, LocalBitcoins is a peer-to-peer (p2p) exchange. LocalBitcoins merely acts as a middleman between buyers and sellers of Bitcoin and provides an escrow service to help prevent fraud.

LocalBitcoins users can sell their Bitcoin for different currencies and other types of value. In the United States, users can sell Bitcoin for dollars via bank transfers, Paypal, Moneygram, and Western Union. If users want some sort of payment other than cash, they can even sell Bitcoin for things like gift cards on Amazon and Ebay.

how to sell btc on localbitcoins

Tracking Bitcoin Sales – Cointracking

For those selling Bitcoin frequently, it can be frustrating trying to log all of your trades for accounting and tax purposes. Instead of using an Excel sheet, many sellers of Bitcoin opt for more convenient options, such as, which takes your Bitcoin sales from different exchanges and platforms then generates reports on coin value, profit and loss, realized and unrealized gains, estimated taxes, and more.

Trading Charts – TradingView and Coinigy

If you’re looking for advanced charting and technical analysis options to take a deeper look at the Bitcoin market, TradingView and Coinigy are two of the most well known options amongst buyers and sellers of Bitcoin. Both have free and paid user accounts.

Of the two, TradingView is more popular amongst Bitcoin traders. The site’s free plan gives you three indicators per chart as well as one indicator template. On top of the free plan, other factors that draw users to TradingView is that the paid option is slightly cheaper than Coinigy’s, but still offers real-time data options, faster data flow (compared to TradingView’s free option), and no ads. Users can try the paid plan with TradingView’s free 30-day trial.

Another thing that people like about TradingView is its social aspect – users can view other users’ analyses, make comments (and potentially friends), and even post analyses of their own and get feedback. As such, TradingView is a great place for those who want to learn more about charting and technical analysis.

Coinigy is also a solid option to consider. It offers a free option but paid subscribers can take advantage of data from 45 exchanges, use Coinigy’s mobile app, receive email and SMS price alerts, and experiment with over six dozen technical indicators.

On top of its vast exchange support, Coinigy has support for more altcoins (cryptos other than Bitcoin) than TradingView and API support. As such, Coinigy might be a better charting and technical analysis option for serious traders.


If you got this far, congratulations!

Selling Bitcoin isn’t always easy the first time around. Regardless, after reading this guide, you should know everything you need to get started selling your first Bitcoin, keeping track of trades, and potentially analyzing the market.

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Cryptocurrency 101

What is cryptocurrency?

Cryptocurrency is a digital token that uses cryptography for chaining together digital signatures of token transfers, peer-to-peer networking between users directly and decentralization.  In some cases the proof-of-work scheme is used to create and manage the currency.  These systems work without a central repository or single administrator.

Transactions using cryptocurrencies between users are verified by a network of nodes and recorded in a public distributed ledger called a blockchain by a process known as mining.  Cryptocurrencies are created only as a reward for the payment processing work called mining.

These transactions are only reversible through an additional transaction that is also documented.

*Blockchain is a public anonymous ledger that continuously records every cryptocurrency transaction and is verified through anonymous parties.

*Blockchain for Business is a blockchain built with the ability to allow you to exchange anything of value, whether it be a house or car, documents, videos and photos.  It is also a private interaction between invited members with the correct permissions who may participate in the exchanges that are run on smart contracts, business logic imbedded in the network to reduce disputes and increase trust between parties involved.  Also in blockchain for business you may regulate who verifies the transactions and exchanges.


What is Bitcoin?

Bitcoin is the first open-source decentralized virtual currency. Developed in 2009 with the highest market capital, it uses peer-to-peer technology to operate without a central authority or banking institution. It manages transactions which issue Bitcoin, also known as mining, using the collective network. No one person or organization has total control over the entire network. The price of BTC or Bitcoin is determined by supply and demand. If the demand increases so does the value.


How are transactions processed and verified?

A transaction consists of transferred value between two cryptocurrency wallets through a blockchain.  Each wallet has a private key or seed that is used to sign transactions which provides the mathematical proof that it came from the correct owner of the wallet.

When one user initiates a transaction, the user designates each address and the amount of cryptocurrency being transferred.  Users may transfer amounts to multiple addresses in one transaction.

Once the transaction is initiated, miners process those transactions.  Paying a fee is optional by the user to those miners processing and verifying the transaction, but transactions with a higher fee will be prioritized.


What is mining?

Mining is a service done through the use of computer processing power.  Miners are the record-keepers that maintain the blockchain by consistently verifying and collecting newly broadcasted transactions through different hashing algorithms (depending on which cryptocurrency it is mining) into a group called a block.  Each block created is attached with the previous block by containing the previous block’s cryptographic hash, thus creating a blockchain.


How or where can I purchase a crypto currency?

Bitcoin, Litecoin, Ethereum and any cryptocurrency can be purchased using your credit/debit card, wire transfer or PayPal/Skrill from any exchange available online.  Many exchanges have apps that process those transactions and even downloadable apps that act as your cryptocurrency wallet.  Make sure to purchase through a reputable exchange.

You may also purchase cryptocurrencies from another user through a blockchain.

There are over 700 variations of cryptocurrencies but the top 10 in order of Market Cap are:

  1. Bitcoin
  2. Ethereum
  3. Bitcoin Cash
  4. Ripple
  5. Dash
  6. Litecoin
  7. IOTA
  8. NEO
  9. Monero
  10. NEM

So what can cryptocurrencies do for me?

With cryptocurrencies like Bitcoin you can make transactions of value anonymously (if you choose) without paying a bank transaction or monthly fee essentially lowering that cost for buyers and sellers and without concern for currency conversion.   This makes cryptocurrencies efficient and almost instantaneous where transaction confirmations are received anywhere in the world within 10 minutes typically, and transactions can’t be reversed once made.

There are also platforms that you can use to trade, lend and invest Bitcoin and various cryptocurrencies to create daily percentage profits.

Many companies are now accepting cryptocurrencies for services, goods and almost anything of value.

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