How to start mining Bitcoin Cash
So, by now you should know how much you will need to invest in your mining rig as well as how big your returns should be. If you’re still considering giving Bitcoin Cash mining a go, here’s how you do it.
First off, you will need a Bitcoin Cash wallet to receive your future mining rewards. For safety reasons, it is recommended you choose a wallet that stores your private key on a device it’s installed on.
Also, make sure to backup a wallet.dat file to a separate device, or print out a copy and keep in in a secure location. In case your computer crashes or gets stolen from you, you won’t be able to retrieve your funds without this file - they’ll be gone forever. You can read more about Bitcoin Cash wallets in our dedicated guide.
At this point, you’ll need to consider whether you want to be mining on your own or join a mining pool.
A mining pool is a group of Bitcoin Cash miners that combine their computing power in order to increase their chances of solving a puzzle. In a pool, your mining rig will receive smaller and easier algorithms to solve, and all of your combined work will increase the pool’s chances of solving the bigger algorithm and receiving the reward. When a pool receives a reward, it is then being shared among the participants, based on how much computing power they contributed.
On the other hand, if you successfully mine a block of transactions on your own, you will receive the full reward of 12.5 BCH all to yourself. The problem is, however, that unless you have an extremely powerful mining rig, which will require enormous amounts of electricity to operate, you don’t stand the slightest chance of sealing off a block. Thus, the absolute majority of casual miners opt for mining in a pool.
When choosing a pool, make sure to consider how big it is, how often do they find a block, what is their payout structure, what fees do they charge and what kind of stats they provide. To join one, all you need to do is sign up on their website and set up an account. After that, you will need to add a ‘worker.’ For every miner that you have running, you will need to use your worker ID, so that your contributions can be tracked.
At this point, you’re basically ready to connect your mining hardware to a power outlet, plug it into your computer and run it.
But, in order to be able to control and monitor your mining rig, you will need a mining software client to run on your computer. The right software will depend on your operating system and the actual mining rig you have.
If you’ve decided to join a pool, then in most cases it will have its own software. Some are being shipped with everything pre-configured, including a wallet address. In that case, plugging it into an outlet is all you’ll need to do.
If you’re a part of a pool, you will need to enter your username, password and the pool’s address into the software. Once this is configured, you’ll start mining coins. If you’re mining solo, once you’ve stalled off a block, the reward will appear in the connected wallet. If you’re a part of the pool, your part of the reward will be calculated automatically and added to your account. Just make sure to enter your wallet’s address in the required fields when signing up to the pool.