Any discussion on Bitcoins cannot be completed without mentioning blockchain which acts as a bitcoin ledger. Every transaction on the Bitcoin blockchain is confirmed and processed only because of Bitcoin miners. Bitcoin miners faciliate the transaction on blockchain network. In absence of Bitcoin miners, no transactions could be confirmed and hence the entire system of Bitcoin transactions would collapse.
Bitcoin miners are an essential part of the entire transaction in processing cryptocurrency. A percentage of transaction fees go as a reward to the Bitcoin miners. Bitcoin mining can prove to be a new way to get extra money. There are many people who have now become full time miners. Let us now see how you can start mining Bitcoin and earn extra money.
The basic way is to use Bitcoin mining app. Using a Bitcoin mining app is very simple as the user has to simply download the app which in turn does everything for you. There are many such apps available online for free which you can download and use on your phone, PC or Tablet.
After downloading the miner app, a user has to just enter his Bitcoin payment wallet address through the settings section and then click on start button. The number of transactions your device can handle depends upon the power of your device. It means that installing such an app on your phone would not be as effective as installing it on your PC. Even in your PC, the greater the processing power your PC has, the more are the chances of solving the Bitcoin algorithm.
Another way to mine Bitcoin is to use cloud platform for cryptocurrency mining which is also commonly referred as cloud mining. In this process you will sign up to a third party website and would pay them to mine cryptocurrency for you. There are different pricing plans for cloud mining. Some websites also have contracts for longer periods of cloud mining. The cryptocurrency that gets mined is regularly sent to your cryptocurrency wallet by the cloud mining site.
There are also other techniques like creating a mining pool or buying expensive hardwares with high processor speeds to do the mining.
If you go to any Bitcoin or cryptocurrency forum, then you can interact with people at those forums to create your own mining pool. There are plenty of new ways shared on such forums regarding cryptocurrency and its various aspects.
However mining is not always profitable if you are operating on a very low budget because the electricity costs may be greater than the value of Bitcoins earned. With time, mining will become expensive because more and more coins will increase in circulation thereby leaving fewer number of coins to be mined.