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5 Best Sites Instantly Buy Ethereum With A Credit/Debit Card

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Buy Ethereum with a credit card/debit card

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Are you thinking about investing in Ethereum? Do you believe like many others that Ethereum and it’s cryptocurrency Ether has a lot more potential to increase in value compared to perhaps Bitcoin?

Or maybe you are a fan of both and you want to increase your ETH holdings? And now you are looking for easy sites to use to buy Ethereum with a credit card or debit card?

I have been in your shoes. And I’ve bought myself ETH using a card in the past. So I know how you can do it very easily and in a secure way.

So I thought I would share my tips and recommendations for how you can easily buy ETH using a credit card or debit card.

If you have any suggestions for other sites that you recommend then leave a comment and share that with us!

Remember at most of these sites you will need to get an Ethereum wallet first. With Coinbase and Bitpanda you don’t need to have a separate ETH wallet. But don’t worry we have written this guide to the best Ethereum wallet to use.

5 best sites to buy Ethereum with a credit card or debit card

Here below are our top sites to buy ETH with a card at.

Buy Ethereum with a credit card or debit card

Visit Coinbase

Visit Changelly

Visit Bitpanda

Visit Bitit

Visit Coinmama

1 ) Coinbase

Buy Ethereum With A Credit/Debit Card at Coinbase

Coinbase has made it possible for people to buy and sell cryptocurrencies easily and instantly for years. It is one of the most popular options available. Especially for U.S citizens but also Europeans these days.

Buying cryptocurrencies easily with your credit or debit card has been one of Coinbase’s big selling points. And if you are looking for a great and easy option to buy ETH with a card then using Coinbase should be worth checking out.

When using Coinbase you can rest assure that they are one of the most popular and secure crypto platforms around. So you can easily buy Ether there and keep them in your Coinbase wallet.

Get $10 for free when joining Coinbase using this link and buying for $100

How to get started with Coinbase

Head on over to www.coinbase.com and sign up for a new account if you don’t have one, otherwise, log in. To buy Ethereum instantly at Coinbase you need to link a bank card (credit card or debit card) to your Coinbase account.

And when you have linked a bank card you can make purchases up to $10,000 per week with the first level of verification done. To buy for more than that then you need to pass additional verifications.

You need your ID and personal details to get a new account at Coinbase. Which is the same for all options on this list.

  • If you want to get help registering a new account then you can use this guide.
  • Learn more about Coinbase and the other site Coinbase Pro here

NOTE: You can’t buy with a credit card at Coinbase from every country. In the U.S and Canada, you can only buy with a debit card. But in many other countries in Europe, you can use both a credit card and a debit card, read more here about it here.

Coinbase fees

Fees for buying at Coinbase with a bank card is 3.99% of the transaction.

Coinbase screenshot adding payment methods

2 ) Changelly

Changelly Crypto Exchange buy Ethereum here

Changelly is another great option and a favourite of ours. We really like the easy design and UX of their website. Buying ETH or other cryptocurrencies at Changelly is one of the easiest on this list.

They know how to serve customers who are looking for a slick and easy way to buy Ether, Bitcoin or a range of other cryptocurrencies.

This is nothing new in the crypto world. And you can view a crypto wallet like your bank account. And it is free and easy to get started with if you don’t already have a crypto wallet read this Ethereum wallet guide to getting started in no time. 

You can buy a range of cryptos at Changelly, not just Ethereum but popular cryptocurrencies like Bitcoin Cash, Litecoin, Stellar, Ripple, Binance Coin and more. 

Another popular option that Changelly have is their instant swap feature. Where you can easily trade a cryptocurrency for another directly on their website. Which is very handy if you without hassle want to trade your Bitcoins for Ether or another crypto.

How to get started with Changelly

Buy ETH with a card at Changelly

To get started head over to www.changelly.com. And then you can see the a payment widget on the start page. It has exchange – buy – sell. Select buy.

And then enter ETH, the amount you want to buy for and which fiat currency (USD, GBP, EUR, etc). Enter you country of residence and then proceed to the next step.

You will then see a list of the current options available to you. Select the one you like and complete the process by signing up and entering any details required for KYC/AML.

And then enter you card details and your Ethereum wallet address.

Here is where you coins will be sent to after you have completed the purchase.

Changelly fees

  • The fees at Changelly are for swapping = 0.25%
  • And for buying with your card = Changelly fee – 4% + MoonPay fee – 4.99 $/€/£ or 3.5% (whichever is the highest)

List of options to buy ETH from with a card at Changelly

3 ) Bitpanda

Bitpanda - buy Ether with your card

If you haven’t checked out Bitpanda yet then we recommend you do it. Bitpanda was launched in 2014 by a team based in Vienna, Austria. And they have so far reached over 1 million users.

With a team of more than 120 team members serving them. Working hard to create a super-easy way for people to easily buy ETH with a credit card/debit card at.

Ethereum is one of many coins and tokens you could buy at Bitpanda. In fact, you can buy more than 30 digital assets via Bitpanda’s website.

Bitpanda is a great option on this list as they have one of the biggest selection of cryptos available. And also a big range of payment methods available. From credit card and debit card to bank transfer (SEPA +), Skrill, Neteller, Sofort and many more. 

Buying cryptos easily on Bitpanda is their signum. With over 1 million users proving it. Some of the cryptocurrencies that are available right now at Bitpanda are: Bitcoin, Ethereum, Ripple, Stellar, IOTA, Litecoin, EOS, Dash, Augur, Cardano, Neo, Chainlink and many more

You can buy Ethereum with a few different fiat currencies such as USD, EUR, GBP, CHF. 

How to get started with Bitpanda

To get started go to www.bitpanda.com. To buy Ethereum instantly with a bank card you need an account first. But don’t worry getting an account is quick and easy to do.

After you have created an account you need to complete the full verification in order to buy Ether with your debit card or credit card.

At Bitpanda you don’t need to have a separate ETH wallet, but it is advised that you keep all your cryptos in a safe wallet that you own your private keys to.

Bitpanda fees

  • The fees for buying cryptos with a bank card at Bitpanda is 1.49% so that’s very cheap comparing to other options on this list. 

Buy Ethereum with a card at Bitpanda within minutes

4 ) Bitit

Bitit buy cryptos with your bank card

Bitit was founded in 2015 in France by three passionate crypto fans. With a clear goal of making it super easy for new investors to easily buy and sell cryptocurrencies online.

Like many others, they realised the potential and value that cryptocurrencies could bring.

Similar to the other sites on this list buying ETH at Bitit is very easy and something most of us would manage even without lots of experience.

And we at Go CryptoWise think that Bitit has done a great job in facilitating this experience.

Here people can buy a range of cryptocurrencies easily. They have a wide range of cryptos available, such as Bitcoin, Ether, Bitcoin Cash, Binance Coin (BNB), Stellar (XLM), IOTA, DASH, Ada (Cardano), XMR (Monero, and more.

You can also buy these coins using a variety of fiat currencies, from USD, EUR, JPY, SEK, GBP, AUD, CAD, DKK, and many more.

  • Find out exactly which cryptocurrencies and fiat currencies that are available on their website – www.bitit.io 

How to get started with Bitit

To buy Ethereum with a card at Bitit you simply head over to www.bitit.io and click on get started.

Proceed through the signup process and then at your dashboard you select Ethereum and the amount you want to buy for and then Buy Ethereum.

Select a card and enter your details. Remember you need an Ethereum wallet to send your coins at Bitit.

But you can also use an existing hardware wallet if you like. And this is something that we recommend to everyone. This makes the whole purchase a lot more secure and handy.

So if you have a Ledger wallet or Trezor wallet then we recommend you use it. If you don’t own one yet then we recommend you buy one.

Buy Ethereum with a card at Bitit

Bitit fees

3.9% fees for a VISA or Mastercard payment. Other fees are 0.25% for instant buying via a EUR wallet using a bank (SEPA) transfer, 4.9% for Skrill

Buying ETH instantly at Bitit with credit/debit card

5 ) Coinmama

Buy Ethereum easily with a card at Coinamama

Number five and the final site on this list is Coinmama.

Coinmama is another very popular option amongst cryptocurrency enthusiasts and investors. And buying ETH with your credit card/debit card at Coinmama is no different than to the others on this list.

And then you could also if you wanted to compare this to what you would get at other sites. Compare to get the best price for yourself. We always recommend people to do this.

And the complete process of buying cryptos at Coinmama is easy and simple. We promise that beginners will feel more than comfortable enough using Coinmama to buy cryptos.

How to get started with Coinmama

To get started buying Ethereum with a credit or debit card then you simply head on over to www.coinmama.com. While there you can simply scroll down on the website to see their instant buy banners. 

Here you can see that you can buy ETH easily with perhaps EUR or USD. Select the amount that you want to buy for and you can then see how much in crypto would get for that. Which is really handy.

To buy ETH at Coinmama you will first need to register an account.

And then you need to verify your identity. And then you are done and ready to buy ETH with your card.

Remember you also need an Ethereum wallet and address to send your ETHs to.

Coinmama fees

  • The fees for buying Ethereum with your bank card at Coinmama is 5.90%.

Buy Ethereum with a credit car or debit card at Coinmama

Conclusion

That is the end of this guide on how to buy Ethereum with your credit card/debit card, and our top recommended sites to use.

I think any of the sites recommended here would be a great choice to buy ETH at. They are all fairly similar in terms of how they work, the fees they take and the security.

It is recommended that you create an ETH wallet in which you own the private keys. But Coinbase and Bitpanda on this list have built-in wallets for you.

So it is not necessary to create an Ethereum wallet before using those it can still be advised that you create your own secure wallet.

If you have any suggestions for other sites to use then share those at the comment section or get in touch with us.

Otherwise I hope you liked this article, feel free to share it with others that might want to buy ETH with a card.

More popular guides:

  1. How to invest in Bitcoin the beginner guide
  2. Bittrex vs Binance comparison
  3. How to Sell Bitcoin for cash – ‘cash out BTC’
  4. Best Stellar wallets to use
  5. 16 Proven Ways of Making Money from Crypto

Written by:

Per Englund – Founder of Go CryptoWise a cryptocurrency and tech fan that want to see better and smarter products and services that make our lives better and easier

Source: https://gocryptowise.com/blog/buy-ethereum-with-a-credit-debit-card/

Blockchain

Mining Bitcoin: How to Mine Bitcoin

Introduction to Bitcoin Mining Mid-19th century California gold miners were called “forty-niners” after the year 1849, but this rush actually spanned from 1848-1853; it took five years for a quarter-million people to flood the state in search of “free wealth”. Satoshi Nakamoto first published the white paper on cryptocurrency back in 2008, and Bitcoin was … Continued

The post Mining Bitcoin: How to Mine Bitcoin appeared first on CryptoCanucks.

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Introduction to Bitcoin Mining

Mid-19th century California gold miners were called “forty-niners” after the year 1849, but this rush actually spanned from 1848-1853; it took five years for a quarter-million people to flood the state in search of “free wealth”. Satoshi Nakamoto first published the white paper on cryptocurrency back in 2008, and Bitcoin was launched in 2009. Today, in 2019, there are at least a million bitcoin miners around the world. A single bitcoin (or “1 BTC”) is worth almost $10,000, give or take a few hundred dollars, and there are around 1,800 new bitcoins mined every day, meaning there’s a whopping $18,000,000 being ‘created’ every day.

Not bad for ten years. No wonder everyone wants to learn how to mine bitcoin.

A Brief History on Money

Cryptocurrency is math that can be used as money.

Money is, fundamentally, an accounting of debt; you owe someone for a good or service, and giving them money erases that debt. Banks are giant ledgers, accounting for every transaction – when you paid for your coffee, this “ledger” sees that you lost $2 and the coffee shop gained $2.

Paper dollar bills do not record this specific transaction – who lost and who gained those $2 – but they act as evidence of a transaction having taken place at some point. In fiat currency, a state is the ultimate arbiter or holder of all the debts – and the one that mints, or makes, the currency in the first place. They account for how much currency they put out, and approximately how much is present now; the only road bump being that they do not know every transaction in between.

In cryptocurrency, no one person or entity controls a central ledger, because this “ledger” is effectively on every computer connected to the network of that currency; everyone has it. Since each unit of the cryptocurrency is composed of math, as opposed to physical substances like paper or gold, this math effectively records every transaction

So Where Does it Come From?

Fiat currencies are “made” (or rather, minted) by states, and accounted for by banks, but these currencies are often directly or indirectly made from precious metals that are mined from the Earth – which is why so many people flooded California in the mid-19th century. Minting is a middle step between the mining and the currency.

Cryptocurrency cuts out that middle step; bitcoin is “minted” and made from BTC mining.

If bitcoin is commercialized math, then mining is the process of solving all its equations. A common, yet accurate, joke explanation is, “imagine if you could solve puzzles, then use those solved puzzles as money”. Bitcoin is that, but on a much larger and astronomically more complex scale; bitcoin mining is both the process of solving puzzles, and the process of verifying other solves puzzles.

That said, these “puzzles” (called “blocks” in BTC mining) are operating on a very complicated scale. BTC mining is basically the process of racing to correctly the correct number out of 115,792,090,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000 possible options – and doing so hundreds, thousands, maybe even millions of times a day. This takes some pretty hefty computing power.

How to Mine Bitcoin

Despite a lot of chatter about bitcoin mining software, it is really a matter of hardware; software is just the most accessible way to access this hardware.

“Winning” or solving – and receiving payout for – is a combination of computational power and a bit of luck. If you accomplish this, you can get about 12.5 bitcoins, though starting in 2020, that will become 6.25. The number of bitcoins you receive for solving a block cuts in half every 210,000 blocks – which is roughly every four years, since the blocks get more and more complicated over time. This will keep going until 21 million bitcoins have been mined, a cap built into the system. There are currently only 3.17 million bitcoin left to be mined.

How to Mine Bitcoin in the Hard(ware) Way

There are two types of “miners” you can buy: application-specific integrated circuit (ASIC) or graphics processing unit (GPU). These are not only very expensive to buy, but they also take up a lot of electricity and require a powerful network connection. This is why mining calculators exist – these are various apps and sites into which you can input details on your miner, your power cost, and your network cost, to figure out how much profit (if any, even) you will turn.

It is usually pretty low, and these days, mining with your own hardware is only really advised for people who already happen to have lots of hardware and great network on hand, and would not need to go out of their way to get those.

That just leaves…

How to Mine Bitcoin With Bitcoin Mining Software

At 12.5 BTC per block, when bitcoins are worth $10,000 each, that’s $1,250,000 on the line every time you are competing with other miners to “guess the right number” first. This takes far more computer power than most people can afford on their own.

As such, the most common way to get in on BTC mining is to join a collective of miners and “rent” the mining tools – known predominantly as cloud mining.

The biggest advantage is that there is a much lower barrier to entry when you cloud mine bitcoins. The biggest disadvantage is that instead of getting the reward all to yourself, you are splitting those bitcoins with other people, and typically a lot of them. Winning a million dollars doesn’t mean as much when you’re splitting it with a million people.

Step 1: Choose Your Wallet

Before you start working for a job, you want to know how you will be getting your pay. By the same token, before you start mining for bitcoins, you should know where you will keep your bitcoins once you earn them.

Online wallets are typically the most convenient, and easiest to use. They are also typically the most efficient for actually using your bitcoins to purchase goods and services, and you will have your bitcoins even if you lose all your devices. That said, this does put you in a similar position with a bank. If the host is experiencing heavy traffic or DDOS attacks, you may not be able to access your funds, and if they are hacked, you can lose your bitcoins entirely.

Hardware wallets are the opposite extreme. As physical objects, are completely offline, and thus cannot be hacked or otherwise remotely attacked. As long as you have your hardware wallet and a device to access it with, you will be able to access your funds. But what you gain in remote security is lost in personal security; if you lose your device or it’s physically stolen from you, you lose your bitcoins.
The middle-ground between these is “software wallets” or “desktop wallets” (though these can also be mobile apps). These are on your local device, so even if exchanges go down or are attacked, you still have your bitcoins, and the only way you can lose them to remote exploitation is if you, the specific individual, are targeted and hacked, which is very unlikely. But, it can still be used to conduct transactions and otherwise go online as necessary. That said, this is also vulnerable to loss if you lose your physical device (i.e. if someone steals your computer).

Step 2: Find Your Cloud

Mining companies are the computing clouds or collectives of miners. While joining such a company might be couched in terms of renting the hardware, another way to look at it might be that you are investing.

The amount you invest, or the rate at which you rent, is known as a “mining package”, which you pick once you join a mining company. You can also invest ahead of time in new technology that will be coming out at a later date. That said, investing in something that doesn’t exist yet is always a heavy risk.

There are many sites in which you can find comparisons between companies, including user ratings and reviews. Be careful with the
reviews – while they can be insightful, many are also full of people attempting to get new ‘recruits’ specifically with referral codes, which will net the refer-er a small bonus or profit.

Step 3: Pick Your Pool

A “pool” is basically the team of miners that you choose to join up with, and contribute your invest or computing power. If you are just starting out mining bitcoins, you should start by joining an “older” (or rather, more established and vouched-for) pool, and perhaps one with lower fees. The payout or profit from these will usually be on the low side, but they are also less risky.

As you get the hang of bitcoin mining and learn how pools work, you can start venturing out to other pools that aren’t as established and carry higher risks, but also higher rewards.

Buy Bitcoin, Ethereum, XRP, and other cryptocurrencies on Coinsquare, the world’s home for cryptocurrency.


Coinsquare

Source: Coinsquare: Mining Bitcoin: How to Mine Bitcoin

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Disclaimer: CryptoCanucks.com is not intended to provide tax, legal or investment advice, and nothing on CryptoCanucks.com should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any asset by CryptoCanucks.com or any third party. You alone are solely responsible for determining whether any investment, asset or strategy, or any other product or service, is appropriate or suitable for you based on your investment objectives and personal and financial situation. You should consult an attorney or tax professional regarding your specific legal or tax situation.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://cryptocanucks.com/mining-bitcoin-how-to-mine-bitcoin/

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Blockchain

Binance Coin price prediction: BNB to recover $550

Tl;DR Breakdown Binance Coin price expected to BNB faces resistance at the $ mark The closest support level lies at $ After finally climbing past the $570.00 mark, Binance coin price failed to continue its bull rally, and the price has stagnated ever since and has dropped to $510.00. While the price at press time […]

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Tl;DR Breakdown

  • Binance Coin price expected to
  • BNB faces resistance at the $ mark
  • The closest support level lies at $

After finally climbing past the $570.00 mark, Binance coin price failed to continue its bull rally, and the price has stagnated ever since and has dropped to $510.00. While the price at press time holds at $510.00, the bearish pressure is very strong, and the price may fall further in the immediate future if the selling continues.

The broader cryptocurrency market enjoys a bullish sentiment across the last 24 hours, with most major cryptocurrencies recording profits across the timeframe. Major Players include DOGE and XRP that record a 43.86 and a 16.01 percent increase, respectively. Meanwhile, Bitcoin and Ethereum record a 5.80 and a 7.99 percent hike, respectively.

Technical indicators for BNB/USDT

Binance Coin price prediction: BNB to recover $550 1

Across the technical indicators, the MACD exhibited a bullish reversal today and has remained bullish since, according to the dark green histogram. Although the indicator is still just below $-5.00, both EMAs are moving upwards. The 12-EMA is above the 26-EMA and continues diverging, suggesting an increasing bullish momentum at the time of writing.

The RSI is currently trading in the neutral zone, a little below the 50.00 mark, and the indicator has been trading in the neutral zone since yesterday. At press time against the bullish momentum in the previous hours, the indicator has seen a spike towards the oversold region, suggesting a sharp bearish reversal.

The Bollinger bands are currently wide but show convergence as the price oscillates around the $510.00 mark. The price is currently returning to the mean point, suggesting further convergence. At press time, the indicator suggests a further drop in volatility for the Binance price.

Overall the 4-hour technical analysis issues a buy signal with 12 of the total 26 major technical indicators suggesting their support for a bullish movement. On the other hand, only four indicators issue sell signals suggesting a bearish retracement. Meanwhile, ten indicators sit on the fence, issuing no support for either side of the market.

The 24-hour technical analysis shares this sentiment and also issues a buy signal with 14 of the 26 indicators suggesting a bullish movement against only three indicators suggest a bearish retracement. Meanwhile, nine indicators remain neutral and do not issue any signals at the time of writing.

What to expect from Binance Coin price?

Binance Coin price prediction: BNB to recover $550 2

Traders should expect the Binance Coin price to continue its recovery as the price rises towards the $550.00 mark once again. The positive technical indicators and the supportive technical analyses suggest a bullish breakout from the level as the price continues its rise to the $600 mark.

However, the Binance Coin price faces resistance at the $530.00 mark, which prevents the bulls from gaining momentum. However, the selling pressure is relatively low, and the bulls may break above in the next few hours.

On the off chance that the Binance Coin price action is rejected at the level, Binance Coin price finds support at the $500 mark and further below at $480.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://www.cryptopolitan.com/binance-coin-price-prediction-2021-04-19/

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Refinable as the First Binance-Exclusive IDO on Polkastarter

Refinable has the distinction of being the very first marketplace for non-fungible tokens on the Binance Smart Chain. It has the backing of Mr. Beast and Binance, and the marketplace is specifically aimed to help investors accomplish a variety of functions with NFTs in an easy and hassle-free manner. It allows investors to trade and …

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Refinable has the distinction of being the very first marketplace for non-fungible tokens on the Binance Smart Chain. It has the backing of Mr. Beast and Binance, and the marketplace is specifically aimed to help investors accomplish a variety of functions with NFTs in an easy and hassle-free manner. It allows investors to trade and leverage their market positions while allowing the developers and creatives to create and discover NFTs. The vision of Refinable is to offer the next generation of the platform capable of processing digital transactions with desirable effectiveness and efficiency.

And now, adding another feather to its well-adorned cap, Refinable will become the very first Polkastarter IDO that will make its debut on the Binance on April 23, 2021. Polkastarter is a platform that helps the project to raise capital and is built for the auctions and token pools on the cross-chain.

Refinable as the First Binance-Exclusive IDO on Polkastarter

Expressing positive sentiments on this partnership, co-founder and chief executive officer of Polkastarter, Daniel Stockhaus, said that their organization was thrilled to make the platform available for the community of Binance. The entry of the Refinable is just the first step, and in the future, more such project will make their way into the very vibrant ecosystem of the Binance Smart Chain.

It is important to note that very recently, Polkastarter has started trading on the Uniswap and PancakeSwap, thanks to the bridging of its token, $POLS with Binance. Now the communities of both platforms can easily bridge their tokens using the app of Multichain.xyz.

The performance credential of the Polkastarter can be easily estimated from the fact that this capital-raising startup has raised $13.2 million for more than 40 projects in just 4 months in the past. On April 23, a total of 500,000,000 $FINE tokens will be distributed by Refinable in two different pools before making its token listing on the PancakeSwap.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://www.cryptonewsz.com/refinable-as-the-first-binance-exclusive-ido-on-polkastarter/

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Blockchain

Mining Bitcoin: How to Mine Bitcoin

Introduction to Bitcoin Mining Mid-19th century California gold miners were called “forty-niners” after the year 1849, but this rush actually spanned from 1848-1853; it took five years for a quarter-million people to flood the state in search of “free wealth”. Satoshi Nakamoto first published the white paper on cryptocurrency back in 2008, and Bitcoin was … Continued

The post Mining Bitcoin: How to Mine Bitcoin appeared first on CryptoCanucks.

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Introduction to Bitcoin Mining

Mid-19th century California gold miners were called “forty-niners” after the year 1849, but this rush actually spanned from 1848-1853; it took five years for a quarter-million people to flood the state in search of “free wealth”. Satoshi Nakamoto first published the white paper on cryptocurrency back in 2008, and Bitcoin was launched in 2009. Today, in 2019, there are at least a million bitcoin miners around the world. A single bitcoin (or “1 BTC”) is worth almost $10,000, give or take a few hundred dollars, and there are around 1,800 new bitcoins mined every day, meaning there’s a whopping $18,000,000 being ‘created’ every day.

Not bad for ten years. No wonder everyone wants to learn how to mine bitcoin.

A Brief History on Money

Cryptocurrency is math that can be used as money.

Money is, fundamentally, an accounting of debt; you owe someone for a good or service, and giving them money erases that debt. Banks are giant ledgers, accounting for every transaction – when you paid for your coffee, this “ledger” sees that you lost $2 and the coffee shop gained $2.

Paper dollar bills do not record this specific transaction – who lost and who gained those $2 – but they act as evidence of a transaction having taken place at some point. In fiat currency, a state is the ultimate arbiter or holder of all the debts – and the one that mints, or makes, the currency in the first place. They account for how much currency they put out, and approximately how much is present now; the only road bump being that they do not know every transaction in between.

In cryptocurrency, no one person or entity controls a central ledger, because this “ledger” is effectively on every computer connected to the network of that currency; everyone has it. Since each unit of the cryptocurrency is composed of math, as opposed to physical substances like paper or gold, this math effectively records every transaction

So Where Does it Come From?

Fiat currencies are “made” (or rather, minted) by states, and accounted for by banks, but these currencies are often directly or indirectly made from precious metals that are mined from the Earth – which is why so many people flooded California in the mid-19th century. Minting is a middle step between the mining and the currency.

Cryptocurrency cuts out that middle step; bitcoin is “minted” and made from BTC mining.

If bitcoin is commercialized math, then mining is the process of solving all its equations. A common, yet accurate, joke explanation is, “imagine if you could solve puzzles, then use those solved puzzles as money”. Bitcoin is that, but on a much larger and astronomically more complex scale; bitcoin mining is both the process of solving puzzles, and the process of verifying other solves puzzles.

That said, these “puzzles” (called “blocks” in BTC mining) are operating on a very complicated scale. BTC mining is basically the process of racing to correctly the correct number out of 115,792,090,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000 possible options – and doing so hundreds, thousands, maybe even millions of times a day. This takes some pretty hefty computing power.

How to Mine Bitcoin

Despite a lot of chatter about bitcoin mining software, it is really a matter of hardware; software is just the most accessible way to access this hardware.

“Winning” or solving – and receiving payout for – is a combination of computational power and a bit of luck. If you accomplish this, you can get about 12.5 bitcoins, though starting in 2020, that will become 6.25. The number of bitcoins you receive for solving a block cuts in half every 210,000 blocks – which is roughly every four years, since the blocks get more and more complicated over time. This will keep going until 21 million bitcoins have been mined, a cap built into the system. There are currently only 3.17 million bitcoin left to be mined.

How to Mine Bitcoin in the Hard(ware) Way

There are two types of “miners” you can buy: application-specific integrated circuit (ASIC) or graphics processing unit (GPU). These are not only very expensive to buy, but they also take up a lot of electricity and require a powerful network connection. This is why mining calculators exist – these are various apps and sites into which you can input details on your miner, your power cost, and your network cost, to figure out how much profit (if any, even) you will turn.

It is usually pretty low, and these days, mining with your own hardware is only really advised for people who already happen to have lots of hardware and great network on hand, and would not need to go out of their way to get those.

That just leaves…

How to Mine Bitcoin With Bitcoin Mining Software

At 12.5 BTC per block, when bitcoins are worth $10,000 each, that’s $1,250,000 on the line every time you are competing with other miners to “guess the right number” first. This takes far more computer power than most people can afford on their own.

As such, the most common way to get in on BTC mining is to join a collective of miners and “rent” the mining tools – known predominantly as cloud mining.

The biggest advantage is that there is a much lower barrier to entry when you cloud mine bitcoins. The biggest disadvantage is that instead of getting the reward all to yourself, you are splitting those bitcoins with other people, and typically a lot of them. Winning a million dollars doesn’t mean as much when you’re splitting it with a million people.

Step 1: Choose Your Wallet

Before you start working for a job, you want to know how you will be getting your pay. By the same token, before you start mining for bitcoins, you should know where you will keep your bitcoins once you earn them.

Online wallets are typically the most convenient, and easiest to use. They are also typically the most efficient for actually using your bitcoins to purchase goods and services, and you will have your bitcoins even if you lose all your devices. That said, this does put you in a similar position with a bank. If the host is experiencing heavy traffic or DDOS attacks, you may not be able to access your funds, and if they are hacked, you can lose your bitcoins entirely.

Hardware wallets are the opposite extreme. As physical objects, are completely offline, and thus cannot be hacked or otherwise remotely attacked. As long as you have your hardware wallet and a device to access it with, you will be able to access your funds. But what you gain in remote security is lost in personal security; if you lose your device or it’s physically stolen from you, you lose your bitcoins.
The middle-ground between these is “software wallets” or “desktop wallets” (though these can also be mobile apps). These are on your local device, so even if exchanges go down or are attacked, you still have your bitcoins, and the only way you can lose them to remote exploitation is if you, the specific individual, are targeted and hacked, which is very unlikely. But, it can still be used to conduct transactions and otherwise go online as necessary. That said, this is also vulnerable to loss if you lose your physical device (i.e. if someone steals your computer).

Step 2: Find Your Cloud

Mining companies are the computing clouds or collectives of miners. While joining such a company might be couched in terms of renting the hardware, another way to look at it might be that you are investing.

The amount you invest, or the rate at which you rent, is known as a “mining package”, which you pick once you join a mining company. You can also invest ahead of time in new technology that will be coming out at a later date. That said, investing in something that doesn’t exist yet is always a heavy risk.

There are many sites in which you can find comparisons between companies, including user ratings and reviews. Be careful with the
reviews – while they can be insightful, many are also full of people attempting to get new ‘recruits’ specifically with referral codes, which will net the refer-er a small bonus or profit.

Step 3: Pick Your Pool

A “pool” is basically the team of miners that you choose to join up with, and contribute your invest or computing power. If you are just starting out mining bitcoins, you should start by joining an “older” (or rather, more established and vouched-for) pool, and perhaps one with lower fees. The payout or profit from these will usually be on the low side, but they are also less risky.

As you get the hang of bitcoin mining and learn how pools work, you can start venturing out to other pools that aren’t as established and carry higher risks, but also higher rewards.

Buy Bitcoin, Ethereum, XRP, and other cryptocurrencies on Coinsquare, the world’s home for cryptocurrency.


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Source: Coinsquare: Mining Bitcoin: How to Mine Bitcoin

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