You can make profits from mining Bitcoin cash, but you need to invest money into specialized mining equipment in order to realize significant profits.
Mining Bitcoin cash is similar to mining Bitcoin, but there are some slight differences, one of the major ones being that the block size of Bitcoin cash is eight MB while Bitcoin is one MB.
You can calculate your expected profits using a profitability calculator by finding out your hash rate. Hash Rate is the speed at which your computer and equipment can compute the function of a hash function.
A higher hash rate indicates that you have more chances of successfully mining a bitcoin cash block. To start this lucrative business, you need to know some of the most important details that can affect your success.
Get a bitcoin cash wallet
This is where you will receive your mining rewards, and it should be connected to your bank account so that you can withdraw and exchange currency. It is better that you choose a wallet that stores your private key on the device it is installed on for safety reasons.
You also need to back up the wallet data file in a secure place to avoid losing your funds in case your computer crashes or gets stolen.
Choose whether to mine alone or join a mining pool
You have the option of mining alone or joining a mining pool. A pool is comprised of a group of Bitcoin Cash miners who combine their computing power to solve a puzzle.
The best thing about a mining group is that every member of the group receives smaller and easier algorithms to solve, which simplifies the puzzle. Combined efforts in the group increase the group’s chance of solving the bigger algorithm.
When a group finds a block successfully, the reward is shared according to the computing power that each participant contributed. You need to find details about how big the pool is, how often they can find a block, their payout structure, the fees charged, and the stats that they provide.
You can find a worthwhile group at Nakitcoins and start cashing rewards into your Bitcoin wallet.
Get the software for Bitcoin cash mining
You should invest in an ASIC miner, which is a special computer that has been designed strictly for mining purposes. Your hardware influences the software that you will install, which is a major factor to consider.
You should also consider the hardware miner’s hash rate and electricity consumption.
The most popular Bitcoin mining software is CGminer and BFGminer, which are command-line programs, or you can still choose EasyMiner, which acts as a wrapper for the two and can be used in both solo and pooled mining. If you do not want to manage your own hardware in Bitcoin cash mining, you can opt for cloud mining. Cloud mining enables you to share computing power from remote data centers, thereby simplifying the process of getting into the business.
Bitcoin cash mining is pretty captivating because it involves solving complex mathematical puzzles and pooled mining simplifies everything.
A piece of powerful mining equipment and safe bitcoin wallet are among the key things that you should consider as a beginner.