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How to Make Money Mining Bitcoin

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Do you want to make money mining Bitcoin? This cryptocurrency has been in the news so much that it can be tempting to get involved in some way. Rather than purchase Bitcoin at an exchange or through a crypto trading exchange, you can get the right computer setup, as well as the correct programming, and then make money mining Bitcoin. Since it’s inception bitcoin has been the best performing asset in history even with our current bear market, mining can be very lucrative. Here’s how you can get started.

Bitcoin is a Cryptocurrency

To begin with, we need to emphasize that Bitcoin is a cryptocurrency. This means that it exists solely in the digital realm. You can’t hold a Bitcoin in your hand. You can, however, spent it, as long as you find a shop that accepts it. These are becoming much more common as the cryptocurrency takes off.

Normal currencies are backed up by the federal governments of the countries that they originate from. In some cases, as with the Euro, there are numerous countries involved. What makes them different from Bitcoin is the fact they are traditional money. You can hold a Euro. They are a centralized, physically existing form of currency.

Bitcoin is not, which makes it somewhat mysterious and far more interesting. When you add in the fact that you can make money mining Bitcoin, it’s no wonder that people are jumping on board.

What to Do First

Before you run out and buy the equipment that you need in order to make money mining Bitcoin, you first need to sign up for a virtual Bitcoin wallet. This is the place where your Bitcoin will go once you earn it. Everything will be tied together. There are a number of them to pick from, so the choice is really yours.

Why do you need to do this first? Well, once you’ve mined your own Bitcoin, it needs to go somewhere. If you want to spend it on goods and services or even sell it, you need to have that wallet set up. Otherwise, your Bitcoin will end up floating around on the internet, homeless. Think of your virtual wallet as being a little like a real one – you need to place all of your money somewhere. Once you have this setup, it’s time to move on to the next step – mining.

The Basics of Mining Bitcoin

In order to earn your first Bitcoin, your computer needs to essentially solve a code. That’s how you make money mining Bitcoin. This is a bit more complicated than it sounds. Since Bitcoin is a virtual currency, every transaction needs to be verified. The miners are paid in Bitcoin for verifying these transactions. There are millions of lines of code that go into this process, but you only need to process roughly one megabyte of them.

However, you must be the first person (or your computer needs to be the first) to come up with what they call the “proof of work.” This means that you can prove that you were the first person to process this transaction and come up with the correct solution to the mathematical problem. As you can imagine, there’s a lot of luck involved as well.

The people who mine for Bitcoin individually do so with very powerful computer systems. While they only need to process one megabyte of data, which sounds extremely small (as it is), they need to do this incredibly fast in order to be the first to finish. This is why there are cloud mining companies that can do this for you. They can help you make money mining Bitcoin.

Cloud Mining Companies

There are several large cloud mining companies that can help you make money mining Bitcoin. However, you first need to purchase their services. Yes, there’s a bit of an investment here. These could mining companies have their clients form pools. The more clients in a single pool, the more people you’ll be splitting that Bitcoin with once it’s mined. However, the odds of success are better using this method, since you’ll have more computers working together on the mining efforts.

Think of it this way – if you wanted to find gold in an abandoned mine, would it make more sense to go alone and hope to get lucky, or would it be better to go as a group, where each miner has a better chance of unearthing some gold, because they can dig in more than one place? The latter is the best option. The same is true of these cloud mining companies. If you really want to make money mining Bitcoin, the odds are better with one.

With that said, many people still get lucky enough to have mined a Bitcoin on their own. It all depends on the strength of your computer and your overall timing.

Bitcoin Mining Stocks

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You’ve probably heard about Bitcoin mining stocks. They’ve been in the news for quite some time – ever since Bitcoin was placed on the stock market for public trading. Although there were some hiccups at first, these stocks are back on the market and anyone who wants to can purchase them. Why buy stock in Bitcoin? And what exactly is Bitcoin anyway? These are some of the questions that we’re going to clear up here.

What is Bitcoin?

Before you purchase Bitcoin mining stocks, it probably helps to understand exactly what Bitcoin is. It’s a form of money that’s called a cryptocurrency. These cryptocurrencies came about because their inventors felt that there was a need for a currency that doesn’t have a country attached to it. For example, there are U.S. Dollars, the Euro, the British Pound, and so on. These currencies are backed up by the countries that they originate from. But it’s declared to be legal tender, but it is not backed by a physical commodity. The value of fiat money is derived from the relationship between supply and demand rather than the value of the material from which the money is made. They also have a physical form. You can hold a U.S. dollar in your hand.

Cryptocurrencies don’t have this. They are completely digital. If you went out to the store to spend your Bitcoin, you’d have to have it hooked up to a debit card of sorts so that the money could be converted and spent. You’d also have to find a store that accepted Bitcoin, but that is becoming less and less of an issue all of the time, as it gains traction with the general public.

Also, in order to obtain Bitcoin, you have three choices. You can mine for it, assuming that you have a computer that’s powerful enough and that you have the know-how, or you can purchase it in the form of stock/bitcoin trust, or you can purchase it on a crypto exchange or trading platform. The latter option is the easiest. Bitcoin mining stocks are available on the standard U.S. Stock Exchange/Nasdaq

Where Can You Purchase Bitcoin Mining Stocks?

As mentioned above, Bitcoin mining stocks are available on the NY stock exchange and the Nasdaq. You just need to find a stockbroker who is willing to help you make the purchase, and you’ll need enough money to invest in this cryptocurrency. If you pull up the latest stock exchange data, you’ll see that standard Bitcoin mining stock is trending fairly high. There are also several different types of Bitcoin stocks on the market, which can make it a bit tricky. For example, you’ll see Bitcoin USD (U.S. dollars), Bitcoin EUR (Euros), and then two versions that look the same, but are different – Bitcoin Cash USD and Bitcoin Cash EUR. These latter two are offshoots of the original Bitcoin.

Bitcoin Cash (both versions) are set up to make Bitcoin a bit more user-friendly for people who wanted to spend it like a traditional currency. Rather than make the company accepting the money wait for days for the transaction to process, the developers came up with a solution called a “hard fork.” They updated the Bitcoin software and created Bitcoin Cash. Now you can buy both versions – the original and the new cash version on the crypto exchange or in a bitcoin trust if you are a credited investor on the Nasdaq.

 Why Buy Stock in Bitcoin?

This is the real question. Why would anyone want to buy Bitcoin mining stocks? After all, it’s a cryptocurrency, meaning that it’s not really insured or backed by anything. You can’t hold a Bitcoin in your hand since it’s completely digital and exists only as a series of numbers and computer code. What’s the big deal?

The big deal is that these Bitcoin mining stocks are worth quite a bit of money. Since Bitcoin first went live on the U.S. (and world) Stock Exchange, the price per unit (one Bitcoin, for the record) has skyrocketed. People don’t think that it will go back down anytime soon, especially since there are a finite amount of Bitcoins out there. Mining for them has gotten a bit tougher, and there are more people trying to do it since it’s become quite popular. Look at it this way, cryptocurrency was once something that only the hardcore computer experts knew a lot about. That’s changed since the advent of Bitcoin.

On top of this, a number of other cryptocurrencies have followed Bitcoin onto the stock exchanges, making them something to watch. The popularity of them is only growing, so you need to buy in while the price is still affordable.

In addition, there’s something cool about having a cryptocurrency in your stock portfolio. It’s always good to diversify your holdings, and buying Bitcoin mining stocks are one way to do this. You can have a stock portfolio full of traditional stocks and bonds, and then throw Bitcoin into the mix. You never know when the price will go up, making that cryptocurrency stock one of the pricier things that you own. Purchasing stocks are one way to get a foothold in the cryptocurrency market.

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