How to Mine Bitcoins With a GPU Using CGMiner
Sam works as a Network Analyst for an algorithmic trading rock hard. He obtained his Bachelors Degree in Information Technology from UMKC.
With their latest leap in value Bitcoins are becoming more popular than ever. This unexpected increase in popularity has created a gold rush causing everyone to build up interest in this fresh digital currency.
While many people find it lighter to simply buy Bitcoins others have discovered Bitcoin mining is a joy and challenging hobby.
Mining for Bitcoins can be both joy, and profitable and it’s actually lighter to get commenced then you might think. In this hub I’ll explain how to commence mining for Bitcoins using your GPU and a program called CGMiner.
Have you heard of Bitcoins before?
AMD Radeon movie cards are the best GPUs for mining Bitcoins. Unluckily Nvidia cards do not perform very well at all when it comes to mining when compared to AMD cards.
If you already have an AMD Radeon five thousand eight hundred or newer movie card installed then you are in good form to begin mining for coins.
I wouldn’t recommend going out and purchasing a fresh movie card just to mine Bitcoins with but if you need to substitute an older card anyway you might consider purchasing a Radeon card instead of Nvidia Hardware..
With newer ASIC based Bitcoin miners hitting the market in the near future GPU based mining may soon be obsolete so be cautious of investing powerfully in GPU hardware just for mining.
Why MIne Using a GPU?
GPUs are much better than CPUs when it comes to mining for Bitcoins due to the nature of their design. Graphics rendering requires tons of mathematical computations which GPUs are specifically designed to do.
Since Bitcoin mining also requires math computations (hashing) GPUs work very well for this purpose.
While CPUs can also be used to generate hashes they are not almost as effective as a GPU.
Here is a popular analogy:
A CPU is like a puny group of very brainy people who can quickly perform any task they are asked to do.
A GPU is like a large group of dumb people who on their own are not very prompt or intelligent, but they can be trained to do repetitive tasks, and as a group they can be more productive due to the sheer number of them.
Create an Online Bitcoin Wallet
Before you commence mining for Bitcoins you will need to create an online wallet that will be used to receive and store Bitcoins.
There are several places to create online wallets but I recommend using Blockchain. Blockchain permits you to create a free, and secure wallet that provides many useful features.
To create a wallet click on the link labeled ‘Create my free wallet’. To set up the fresh account come in an alias (think of this as the username for the account), a secure password, and the capcha reaction.
Blockchain will generate a password recovery mnemonic, be sure to store this somewhere safe in case you ever need to recover access to your wallet.
It’s significant to use a very secure password for the wallet. If anyone were to build up access to your wallet they could quickly steal all of the coins inwards.
Find Your Bitcoin Wallet Address
After creating the account log into the wallet using the identifier and password. The address of the wallet can be found on the main wallet home tab.
The address consists of 27-34 alphanumeric characters. This address is what you will provide to people so they can send you payments using Bitcoins.
Join a Bitcoin Mining Pool
While it is possible to mine for Bitcoins on your own it is not something I would recommend doing. Solo mining requires an incredible amount of processing power which most people don’t have access to.
Pooled mining permits miners to group up to solve blocks and earn Bitcoins together. Each miner that joins the pool earns shares for the work they contribute.
Each time the pool finds a block (presently worth twenty five BTC) the Bitcoins earned are divided among the users in the pool based on how many shares they earned in the particular round.
There are many different mining pools you can join, each pool has their on pros and cons. As you learn more about Bitcoins you will be able to make a more educated decision of which pool is best for you.
I recommend joining the Eclipse Mining Consortium because it has some good features and is effortless to use.