10 steps to implement and deploy your Bitcoin Mining Rigs 1. Setup bitcoin mining pool accounts Assuming you are not solo mining, you will need to create account with 1 or more bitcoin mining pools. Discussed in section 12. 2. Find a location for your bitcoin miners You will need to find a good place that you can keep your bitcoin mining rigs. Somewhere they will not be bothered. No kids, pets, weather, or other interferences. 3. Ensure location quality / resources (Internet, power, cooling) You will need to ensure that wherever you keep you bitcoin mining rigs you have: An internet connection, enough power, and a suitable operating temperature with enough airflow. Discussed in section 6, 7, and 8.
4. Asses your budget Determine how much money you have, and want to invest in bitcoin miners. Weigh the profit, loss, and risks. Discussed in section 2, and 3. 5. Decide on hardware and purchase hardware You will need to select and purchase the best hardware according to your budget. All this is explained in section 4. 6. Build, configure, and test bitcoin rigs You will need to be capable of building these machines from scratch. Without the knowledge of building computers, it is going to be difficult to be successful in running your own bitcoin mining rig. You must know the ins and outs of these beasts. Also discussed in section 4.
7. Obtain and implement software and scripts There are many options to choose from. Will you be using Windows, or Linux? What kind of Bitcoin mining software will you choose? Will you decide to automate your bitcoin mining rigs? The questions will never end. Learn more in section 11. 8. Setup bitcoin proxy Now that you have everything setup, you could centralize everything using a bitcoin proxy. This will always keep your login information the same, and allow you to manage mining pools and workers very easily. Discussed in section 13. 9. Deploy Finally, deploy your bitcoin miners, and start generating bitcoins! 10. Overclock When everything is running smoothly, get even more performance out of your GPUs by overclocking them. Discussed in section 9.
1. What is Bitcoin Mining? Simple definition: Bitcoin mining is the process of creating or generating new Bitcoins. Technical definition: Mining is the process of spending computation power to find valid blocks and thus create new Bitcoins. Technically speaking, mining is the calculation of a hash of the a block header, which includes among other things a reference to the previous block, a hash of a set of transactions and a nonce. If the hash value is found to be less than the current target (which is inversely proportional to the difficulty), a new block is formed and the miner gets 50 newly generated Bitcoins. If the hash is not less than the current target, a new nonce is tried, and a new hash is calculated. This is done millions of times per second by each miner. Common question: Is mining used for some useful computation? The computations done when mining are internal to Bitcoin and not related to any other distributed computing projects. They serve the purpose of securing the Bitcoin network, which is useful.
2.How much money do I have to invest? a. How much money do I actually have available to invest in Bitcoin mining? Well, it’s pretty obvious that only you know the answer to that question. If you can’t answer this question, I suggest you login to your online banking and start keeping better track of your finances b. How much money is required in order for me to start mining for Bitcoins? This was the question you were probably referring to. And unfortunately, there is no single answer to this question. Assuming you have a computer, you can already begin mining for Bitcoins! Yes that is correct! Using your current computers CPU, or GPU you can actually begin generating Bitcoins using various available free software (depending on your operating system). The bad news is that unless you have done the research or actually customized your computer for this type of performance, chances are that you really won’t be able to generate Bitcoins at a feasible rate to make any money (in your lifetime at least).
3.What kind of hardware do I need? In order to mine for Bitcoins, you generally need the same hardware as a regular computer such as: Motherboard, CPU, Power Supply, Memory (RAM), GPU, Harddrive OR USB Flash drive Additionally you may need some other components such as: Ethernet cable, Keyboard, Mouse, and Monitor. The Keyboard, Mouse, and Monitor components are only required for the initial setup and configuration, and do not need to be connected in order to actually continue mining. Some other components are optional such as a computer case, Hard drive, and CD-Rom drive.
4.What kind of internet connection to I need? You don’t need any special or crazy fast internet connection or configuration. Any standard high speed internet connection should be able to handle many Bitcoin miners just fine. I would recommend 5mbps+. Also, I would recommend that all Bitcoin miners are connected through a wired internet connection for stability and reliability. I’ve has some spotty issues using wifi for bitcoin mining, it’s simply not worth the hassle.
Sources: http://www.coinsetter.com/bitcoin-exchange Article: http://bitcoinfornewbies.com/bitcoin-mining/