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Mining for Bitcoins

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You can get started earning Bitcoins in a variety of ways. Mining for Bitcoin is how you earn Bitcoins by participating in the network. It’s usually handled by special mining hardware that is expensive and specialized. The equipment also needs Bitcoin mining software to connect to the blockchain and your mining pool (a collaboration of many miners jointly working together and then splitting the rewards of their efforts; see Book 6, Chapter 3 for more about pool mining).

Here are three standard ways to explore mining Bitcoin:

 Bitcoin-QT: The Bitcoin-QT client is the original software written by Satoshi Nakamoto. You can download it at https://bitcoin.org/en/download.

 CGMiner: CGMiner is one of the most popular mining software applications. It is open source and available for Windows, Linux, and iOS at www.github.com/ckolivas/cgminer.

 Multiminerapp: The MultiMiner app is an easy Bitcoin client to run. You can download it at www.multiminerapp.com.

Bitcoin is a very competitive environment, and unless you buy specialized mining equipment, you may never earn any Bitcoins. The industry is constantly changing and equipment can become quickly out of date. Expect to pay between $500 and $5,000 per machine on average. For more information, head to Book 6, which goes into much more detail about cryptocurrency mining, including what equipment you need and other cost and risk factors.

Cryptocurrency All-in-One For Dummies

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