Mining Bitcoin From Anywhere For Profit – A Beginners’ Guide To Bitcoin Cloud Mining
In the space of several months, mining Bitcoins went from being the sort of hobby anyone with a computer could do to this entire industry where you need a well cooled warehouse full of specialized mining rigs. The Chinese company Asic Miner, with its application specific integrated circuit designed to do nothing but mine Bitcoins, turned mining over to the realm of the specialists, and right behind them several other companies raced to push out their own specialized mining hardware. Meanwhile, the value of Bitcoins started climbing and more and more people wanted to mine them.
With one Bitcoin now being traded for over $500, mining Bitcoins is more profitable than ever, but can you get your piece of the action if you are brand new? Is Bitcoin mining for beginners even possible?
The answer is a resounding yes. Thanks to cloud mining Bitcoins, a complete Bitcoin beginner can start mining within hours without having to purchase any specialized hardware. In fact, it is theoretically possible (though maybe not convenient) to mine Bitcoins in the cloud without even owning a computer! For an overview of all of the companies providing Bitcoin cloud mining, including which service is the easiest to use and the most profitable please take a look at cloudminingreport.com.
This is your step by step guide for how to mine Bitcoins. It will take you from complete Bitcoin newbie to cloud mining Bitcoins of your very own. It will also describe the process a bit further: Bitcoin mining explained.
Step 1: Get a Bitcoin wallet
CoinBase is a web-based free Bitcoin wallet which also allows you to purchase some Bitcoin by linking to your regular bank account. This allows you to bypass the whole process of having to get on an exchange. It is easy to register an account with CoinBase. This is the first step for how to cloud mine Bitcoin.
Step 2: Buy some Bitcoin
You will need some Bitcoin to start cloud mining Bitcoins, and you can purchase some directly through CoinBase. First click on the Buy/Sell tab in the left hand margin. Next, click on “payment methods” in the top bar. From there you can link your bank checking account. Once your bank account is verified you will be able to make your first Bitcoin purchase. You can theoretically start off as small as you’d like, but it is recommended you purchase at least 0.1 BTC. At current prices this comes out to an initial investment of less than $150. As far as Bitcoin investments go, this is a nice low entry point. It may take a few days for your bank account to be deducted and the Bitcoins to get deposited into your wallet.
Step 3: Register to mine Bitcoins in the cloud
Point your browser to http://cex.io and register your account. You will need a valid email address, a user name and password. Please choose a user name and password combination that you do not use anywhere else for maximum account security. CEX.IO is the service for how to mine Bitcoins quickly and easily. It provides Bitcoin mining for beginners at its finest.
Step 4: Deposit your Bitcoins into your cloud mining account
Once your Bitcoins arrive in your CoinBase wallet, you need to send them to your CEX.IO account. Click on the balance tab in the top navigation area. At the top of the page you will see your CEX.IO Bitcoin address. It will look like a medium length string of random letters and numbers. Highlight and copy this address.
Then in your CoinBase account click on the send/request tab in the left margin, then select the send money button in the top right corner. Paste your CEX.IO address in the address field and enter the amount of Bitcoin you want to send in the amount field. Be sure to double check that you have copied and pasted the entire string of numbers and letters of your CEX.IO address. It is very important that nothing gets left out. Then hit send and your funds are on their way. It will take up to a half hour for your funds to become available in your CEX account.
Step 5: Buy your Bitcoin cloud mining power
Head on over to the trade section by clicking on the trade button in the top navigation bar. It will take you to the place where you buy cloud mining power with your Bitcoins.
Hashing power is denominated in GH/s (Gigahash per second), and at this writing the cost for one GH/s is 0.072 BTC. If you transferred 0.1 BTC into your cloud mining account you will be able to purchase about 1.25 GH/s.
There are a couple of approaches you can take to buying your hashing power. The trading section is set up like a regular online trading floor. If you think the price per GH/s is too high, you can place a buy order at a lower price and wait for it to fill.
But you are probably anxious to just get started with mining Bitcoins. Right underneath the GHS buy and sell windows is a little button that says “instant buy/sell.” Click on that and it will bring up a set of very similar buy and sell windows. The buy window is on the left hand side. Enter the amount of Bitcoin you want to spend into the BTC to spend box. The estimated GHS amount box will calculate automatically. Click the buy now button, and confirm when the dialog box pops up. Congratulations! You are now cloud mining Bitcoins.
Step 6: Relax
Once you buy hashing power on CEX.IO, it instantly goes to work mining Bitcoin for you. You do not have to do anything else. You could stare at the screen waiting for something to happen, and within a half hour (on average) you will earn some Bitcoin from the hashing power you purchased.
Even better, log out of CEX.IO, go do something else for a few hours, and then come back to check on your progress. Those results will be much more impressive. With cloud mining you can earn Bitcoin even when you are sleeping or relaxing.
Step 7: Buy more GHS, make Bitcoin again
At first you might want to reinvest your earnings into more hashing power, using them to make Bitcoin again. You will notice that besides Bitcoin your hashing power is also mining Devcoin, Namecoin and Ixcoin. Those are three alternative cryptocoins which are able to be merge mined with Bitcoin. You can purchase more GHS directly with your Namecoins. Ixcoins and Devcoins will soon be able to be traded for Bitcoins right on CEX.IO. Since CEX.IO only recently added merge mining, you can think of all those other mined coin as free Bitcoin.
You will eventually want to do something else with the Bitcoin you mine, just like you would with all other Bitcoin investments. When you get to that point, on the Balance page, you will see a withdrawal button next to your Bitcoin balance. Click on it, then copy/paste your wallet address in the address field and fill in the amount field. CEX.IO subtracts a commission of 0.001 BTC from your withdrawal amount so take that into account. Add 0.001 BTC to the amount that you would like sent to your wallet.
To find your CoinBase address, click on “Account settings” in the left margin, then “Bitcoin addresses” in the top navigation. You will be taken to a page with a list of one or more addresses. Any one of them will work, or you can even generate a new one. As before, make sure that you copy and paste the entire string of numbers and letters.
Bitcoin mining explained
Now that you have begun your Bitcoin cloud mining adventure, you may be wondering what is going on behind the scenes. If you were to purchase your own mining hardware, you would need to integrate it with your computer, install mining software, join a mining pool, and then you’d be ready to go. Then you would have to let your mining equipment run day and night. You would also have to keep it cool with some good fans. You would have to pay for increased electricity costs. You would have to deal with anything that goes wrong. In short, you’d better be pretty tech savvy to mine using your own equipment. Although your computer equipment would be doing the actual mining work, it would take a lot more effort on your part to make Bitcoin.
Or you can skip all that and follow the above steps for how to cloud mine Bitcoin. When your GHS on CEX.IO gets a mining reward, a small amount is deducted to cover the costs of maintaining and running the hardware. Those costs are much smaller than what you would pay doing the same thing at home because at CEX.IO, the operation takes advantage of the economies of scale.
Once you have purchased some hashing power, it works for you 24/7 no matter what you are doing. You could be sleeping, on vacation or working on something else. You could even have your computer turned off for days and still your cloud mining power will earn Bitcoin for you.
Dealing with mining difficulty increases
One of the not so fun facts about Bitcoin mining, and a huge reason why it’s tough to do at home, is that the more hashing power that’s dedicated to Bitcoin mining, the more hashing power it takes to get the job done. The Bitcoin mining algorithm adjust difficulty levels every couple weeks so that no matter what, one new block is mined every ten minutes on average.
This means you can’t buy a set amount of hashing power and then let it go indefinitely. You will need to reinvest some of your earnings into buying more GHS. You can experiment with the amounts and percentages, but you will have to frequently buy more hashing power. You can reinvest your merge mined altcoins back into hashing power as well.
Trading hashing power like a commodity
Once you have been cloud mining for a while you will start to become aware of the way in which GHS prices fluctuate. If you have a knack for trading, then you could treat hashing power just like any other commodity you might trade in. You can try to buy low and sell high. Some people have reported doing far better on the trading than on the actual mining. Please be advised that trading GHS, just like with other Bitcoin investments, comes with risks so take your time to learn the ropes and only invest what you can afford to lose.
Bitcoin cloud mining is best for beginners
There is no doubt about it. Bitcoin mining for beginners is best done in the cloud. When you mine Bitcoins in the cloud, all you have to do is buy your hashing power and it starts mining Bitcoins instantly. You don’t have to deal with hardware setup or maintenance or increased electricity costs, and all you have to do to deal with mining difficulty increases is buy more hashing power. CEX.IO gives you the ability to benefit from their highly specialized mining factory without having to worry about your own hardware. And if you ever get to the point where you do want to be a do it yourselfer, CEX.IO allows you to redeem your hashing power into hardware that gets shipped right to your door.
This is Bitcoin mining explained for the complete beginner. Even for non beginners cloud mining can’t be beat for ease and convenience, not to mention the ability to get going with less than a couple hundred dollars.
As with all BTC trading opportunities do not play with more than you can afford to lose, and please conduct your own due diligence.
Important: CEX.IO are no longer offering Bitcoin cloud mining services. We now recommend HashFlare for the best value Ethereum Cloud Mining and Bitcoin Cloud Mining available today.