Bitcoin Mining

Where from come Bitcoins? With the paper money everything is clear, government regulates their printing, but where from come bitcoins? 

People send bitcoins to each other over the bitcoin network all the time, but who would keep a record of all these transactions? Who would was able to keep track of who had paid what and how much? So, the bitcoin network collect all these coins transactions into a list, called a block. Bitcoin miners confirm all those transactions writing them into a general ledger. It is a long list of blocks, we call it a blockchain. 

When such block of transactions is created, Bitcoin miners put it through a process taking the information in the block and apply some kinnd of mathematical formula to it - it all turns into something else, far shorter, seemingly a random sequence of letters and numbers known as a hash. Hash is stored along with the block.

There are few main categories of bitcoin mining hardware, and each of them are more powerful amd of course more expensive than the last one. But still using any of them, computing power chews up your electricity, and that costs a lot of money also.

Looks like a very complex process? Good thing that we do not need to know all these details, we do not need even to buy hardware for bitcoin mining, but we still can participate in Bitcoin mining process - there are few mining pools that you can join. 

 Bitcoin mining pool is a group of people that combine their computing power to make Bitcoins. The pool that I am involved in is Slush’s Pool,  but feel free to look at other options. For Slush Pool you can use mining program called GUIMiner. Install and run this program adding in your information from Slush’s Pool. Remember that your user name is actually the worker name. The worker name will be like this - username.worker ID,  and your password also will be from that worker ID.

 

Bitcoin Cloud Mining

Other way to mine bitcoins is to join cloud mining website. Cloud mining or, otherwise, cloud hashing allows users to form groups-pools, where their efforts are rewarded with greater income, if compare with individual mining with own equipment. There all Bitcoin mining is done in the cloud, with no offline hassle: electricity, hosting issues, installation and upkeep troubles. There everybody can earn some extra revenue with
 just a little or no risk at all.

Eobot - some says it is too slow, but it is still great choice for beginners. Eobot is easy, cheap and best cloud mining solution for those who just started. You can start just with  little $10 using PayPal, or invest earned free satoshi and other coins in free Faucets, buy cloud for mining and choose between any cryptocoins including Bitcoin, Litecoin, Dogecoin, Redcoin, Peercoin, Namecoin, Feathercoin, NautilusCoin, Vertcoin... For those who has no any money or coins, there is Faucet where every day you can get some free coins (Products->Faucet). I would advice first to mine your cloud for some time to increase its spead, then only choose what the coins you want to earn and make your configuration there. So, yes, there is opportunity to start for free, use their own faucet, invest coins earned in other faucets and not invest any fiat money at all, but mining speed of course will not be very high. 

There are plenty of Cloud Mining websites: Genesis Mining, ZeusHash and many others, just search google and find most suitable for you. make good research as some of them are not paying. 

Earn Free Bitcoins

Bitcoin is a peer-to-peer currency. What it means? Peer-to-peer means that no any central authority issues new money or tracks Bitcoins transactions. These tasks are managed only collectively by the network. The most attractive feature of Bitcoins for me is that this digital currency is not controlled by any government - Bitcoins cannot be artificially inflated or deflated. No any monetary authority can't pump more of Bitcoins into the market for to boost the economy.

 The way Bitcoins enter into the world's market is a process called Mining - computers solve mathematical algorithms to earn Bitcoins. These algotithms are very complex and take a lot of computing power to solve them.

Now everyone wants to earn Bitcoins. First thing what you need to do for starting earn some BTC is  get a Bitcoin Wallet. Bitcoin is a digital currency, so you need a place where to keep your earned Bitcoins.

Blockchain already crossed its sixth year of existence, so Bitcoin users become smarter in terms of saving their funds. Bitcoins we store in wallets, consisting of a Bitcoin address with a private key. There are few different types of Bitcoin wallets: online, desktop,mobile, hardware, etc. All of them can be used to store, to send and receive Bitcoins.

When you are thinking what the wallet to choose, think about what is your purposes of using Bitcoins. If you want to use Bitcoins every day for purchasing goods and services in your city, then better choose mobile Bitcoin wallet on your device. If you are a trader, then for you may more applicable would be an online wallet on a  Bitcoin exchange .

If your choice is desktop wallet, think about that all who are able to access your PC, will be able also to easily access your Bitcoin wallet and steal the private keys. To avoid such stealing, you can  simply encrypt your wallet. In this case for accessing your wallet will be required a password. You also must backup wallet.dat file and save this file somewhere outside your PC, for instance, use USB stick.  It will helps you to keep Bitcoins safe if something happens to your PC device.  

Similar to fiat money, it is also not recommended to keep all your Bitcoins savings in one place. Consider to split your funds into parts and save them in several wallets, maybe even in different types of wallets. Never keep big amount of Bitcoins in mobile wallet, because if you loose your phone, your Bitcoins will be lost also.

Enough popular wallet for Bitcoins is Blockchain, Xapo wallets. 

 

Advantages of Bitcoin

• Payment freedom and instant transactions.

It is possible to send and receive any amount of Bitcoins instantly anywhere in the world at any time. There are no bank holidays and no borders. There are no imposed limits. You will have full control  of your money.

• Low transaction fees.

Currently all Bitcoin payments are processed with no fees at all or it is extremely small fees. Users sometimes may include some fees with theit transactions for to receive priority of processing; it gives faster confirmation of transactions by the network.

• Low risks for merchants.

Bitcoin transactions are very secure and irreversible. These transactions do not contain any customers’ sensitive or personal information - protects merchants from losses caused by fraud. Also, merchants can easily expand new, before not accesible markets, where credit cards are not available or fraud rates are too high. So, they get lower fees and larger markets, but lower administrative costs.

• Security and control.

Bitcoin users are in full control of their transactions. Also, Bitcoin payments can be made without any personal information tied to these transactions, what offers strong protection against identity theft.  

 

Earn Bitcoins

 Now, when you know, how secure is Bitcoin and when you created one or few wallets for your Bitcoins - start earn them online. You can earn Bitcoins and other altercoins in many different ways. I will list many options how to do it, all you need to do is choose what you better like.

Ways to earn Bitcoins: 

• Earn free Bitcoins by completing tasks on websites.
• Earn Bitcoins from interest payments. 
• Earn Bitcoins from mining.
• Earn Bitcoins through trading.
• Use various Bitcoin faucets.
• Earn Bitcoins from gambling (not suitable for everyone).
• Earn Bitcoins by playing games online.
• And many other ways...

You can find quite a few ways to earn Bitcoins online, and all of them are different. But remmeber that such as gambling and trading always involve risks. And if in gambling everything depends mainly on luck, such as trading requires some your knowledge. So, choose way to earn bitcoins wisely and carefully. 

In summary, Bitcoins can be earned through multiple ways, and one way is not any better than another way. For ones way way may fits more than for others. And otherwise.  It is all about innovation, determination and doing good research. Do some research before buying a Bitcoin miner, as there is no any guarantee for no one that you will make a profit. Bitcoin is still very young currency, but has a ton of potential.

So, if you are  looking for simple ways to earn free bitcoins, I think you will get a lot of options online. No matter if you are just a new bitcoin user and have little knowledge, you still can earn bitcoins  doing simple tasks. I will add a list of Bitcoin Faucets that I use myself, and Faucets for other crypto currencies.  If you want to earn some free bitcoin, then you are in the right place.

You are not sure how to use earned Bitcoins? Store in your Bitcoin wallet if you wish, sell them, exchange or invest into other sites. I do invest in Mining sites and multiply my Bitcoins. In the nearest my posts I will explain how to do it.