One of the biggest problems I ran into when I was looking to start
mining Bitcoin for investment and profit was most of the sites were
written for the advanced user. I am not a professional coder, I have no
experience with Ubuntu, Linux and minimal experience with Mac. So, this
is for the individual or group that wants to get started the easy way.
First thing you need to do is get a “Bitcoin Wallet”. Because Bitcoin
is an internet based currency, you need a place to keep your Bitcoins.
Got to http://www.bitcoin.org and
download the Bitcoin client for your Operating System. Install it the
client will begin to download the blockchain. Downloading the blockchain
can take a long time and will be over 6GB of data. If you have data
caps, I would recommend ordering a copy of the blockchain on DVD to keep
from going over as it is growing exponentially. Click to order the bitcoin blockchain by mail.
Once the client is up to date, click “New” to get your wallet address.
It will be a long sequence of letters and numbers. One of most important
things you can do is make sure you have a copy of the wallet.dat file
on a thumb drive and print a copy out and keep it in a safe location.
You can view a tutorial on how to create a secure wallet by clicking the
link on the top of the page. The reason is that if you computer crashes
and you do not have a copy of your wallet.dat file, you will lose all
of your Bitcoins. They won’t go to someone else, they will disappear
forever. It is like burning cash.
Now that you have a wallet and the client, you are probably roaring
to go, but if you actually want to make Bitcoin (money), you probably
need to join a pool. A pool is a group that combines their computing
power to make more Bitcoins. The reason you shouldn’t go it alone is
that Bitcoins are awarded in blocks, usually 50 at a time, and unless
you get extremely lucky, you will not be getting any of those coins. In a
pool, you are given smaller and easier algorithms to solve and all of
your combined work will make you more likely to solve the bigger
algorithm and earn Bitcoins that are spread out throughout the pool
based on your contribution. Basically, you will make a more consistent
amount of Bitcoins and will be more likely to receive a good return on
your investment.
The pool that I’m involved in is called Slush’s Pool
so I will be giving instructions on how to join there but feel free to
look at other options. Follow the link to go to their site and click the
“Sign up here” link at the top of their site and follow their step by
step instructions. After you have your account set up, you will need to
add a “Worker”. Basically, for every miner that you have running, you
will need to have a worker ID so the pool can keep track of your
contributions.
Most of the mining programs out there are pretty complicated to setup
and will frustrate your average user. Recently a great program has come
out to get the most basic of users started. The program is called GUIMiner.
Click the link and download the program (Be careful, some of the ads
are set up to look like the file download). Install and run the program
and add in your information from Slush’s Pool. Remember that the user
name is actually the worker name. The worker name will be your user
name, dot, worker ID (username.worker ID) and the password from that
worker ID.
Now that you are set up you can start mining. If you feel like you
want to make more Bitcoins, you might want to invest in mining hardware.
If you found this information helpful, please donate to 1ARKGEtvoaRNPsQ5K18CH5VSUgH5btS3wG
2013年5月30日 星期四
How to Create a Secure Bitcoin Wallet
This is a guide to making a completely
secure Bitcoin Wallet wallet you keep on a thumb drive. The reason it is
so secure is that we will be using Ubuntu to create a boot-able
operating system to avoid any malware, spyware, or viruses. We are doing
it this way because there are programs out there that try to steal your
Bitcoin Wallet. There are online wallets that you can use but I highly
suggest you only use those for day to day transactions and you keep a
separate wallet for your savings account.
Before we get started you will need 1 or 2
Thumb Drives (will go into detail on why you may need 2 later). They
don’t have to be big. I bought my 2 Gb drives for 5 dollars each. Once
you have that, we can get started.
The Operating system for your Secure
Bitcoin Wallet will be Ubuntu. Don’t be scared if you’ve only used
Windows your whole life. I will be walking you through this
step-by-step.
Go to the Ubuntu Download Page
and click the download option on the right of the screen. Make sure you
save it to a place you will remember because we will be needing it
later. You can also download this from a torrent site if you know how.
If you are unfamiliar with torrents just download it from the link
above.
Now we need to make a boot-able thumb drive. Lucky for us, there is easy to use software that does this for us. Go to the USB Installer Page
and download the usb installer program. This program will make is so
you can boot from a usb drive. Once it’s downloaded, run the program and
extract it to a folder you will remember. I would suggest using your
download folder and then creating a new folder called “USBinstaller” so
you remember where it is. Once it’s unzipped, go to that folder and run
the software.
Select Ubuntu for step 1. It should be the
top option on the drop down menu. Then you click the browse button and
you select the Ubuntu download from earlier (remember when I told you to
remember where you saved it to?). Then select your usb thumb drive. If
you plug it in and it doesn’t show up, leave it plugged in and restart
the program and it should be there. Then all you have to do is click
create and let it run. It shouldn’t take too long but it will be a
minute or two. Here is what mine looked like.
***Read the following couple paragraphs before booting from Ubuntu ***
Now that we have a Boot-able version of
Ubuntu, we need use it. Keep the thumb drive plugged in and restart your
computer. If it doesn’t automatically start Ubuntu, you may have to hit
the Esc or Del key as your computer is booting up. The next part is
very important. ** Do not install Ubuntu. Select “Run Ubuntu from USB
Drive” from the screen that pops up. The security of this method comes
from making sure you have a fresh Operating System every time you want
to access your wallet so you aren’t keeping any information that might
be malicious.
Once Ubuntu is running, go ahead and
connect to the internet. If you use a hardwired Ethernet connection
(actually have a cable running into your computer from your modem or
router) this should be done for you already. If not click the wireless
button on the top right of the screen, select your router and enter in
your password.
Now we need to download the Bitcoin client and start a new wallet. Go to the official Bitcoin Homepage
and remember that you are using Linux now. So don’t download the
Windows edition. I always unzip the file to my downloads folder but it
doesn’t matter, just remember where you extract it to. Once extracted go
to your download folder and open Bin>32> and then open the
Bitcoin icon. This will open the Bitcoin App. Now close it. The only
reason that we opened it was to create a wallet.dat file.
The next step is to make is so we can see
the hidden files on the computer. Open your file explorer (looks like a
house on a folder at the top of the menu to the left), move your mouse
to the top left of the monitor. You should see a familiar menu now
including file, edit and more. Click edit and then preferences. See
Below -
At the top of the window that just popped
up an option to view hidden files. Select OK and the window should
close. Now in file explorer click Ubuntu on the top left of the window
and you should be able to see a folder named “.bitcoin”.
Go ahead and open that and there is your wallet.dat file. Right click it and copy it.
Now while still in your file explorer
you can select your other USB drive from the left side of that window.
Right click and paste your wallet.dat file onto your USB drive. Now you
have a secure wallet that is safe from malware and viruses.
When you want to access your wallet you
will boot Ubuntu and install Bitcoin like you did before, but this you
will want to copy the wallet.dat file from the usb drive and paste it
into the .bitcoin folder and you are good to go.
Make sure that you do not overwrite your
wallet.dat file and I would recommend making more then 1 thumb drive
just in case something happens to your main. Some people recommend
encrypting your thumb drive but I would recommend hiding it in a safe
place… like a safe. If you have enough Bitcoins where you would suffer a
serious loss, I would go with a safety deposit box.
If you have found this tutorial helpful –
Donate to 1ARKGEtvoaRNPsQ5K18CH5VSUgH5btS3wG
and if I get enough, I’ll
move it to my secure wallet.
Mine or Buy?
A big question that is asked by people new to Bitcoin. There are
reasons to do both and the answer is dependent on your current setup.
Bitcoins have a mining goal in mind and that is to only allow a block to
be discovered every 10 minutes. The way that Bitcoin accomplishes this
is by increasing the difficulty to find the blocks. With more and more
publicity about Bitcoin, more people are mining and blocks are being
discovered at a rate faster then every 10 minutes causing the difficulty
to increase. So with that in mind, it is now harder then ever before to
mine Bitcoins.
First, we’ll cover reasons to mine.
It really depends on how close to having a mining rig pre-established rig. The first thing you need is an ATI/AMD graphics card. With current difficulty it is near impossible to generate Bitcoins with a CPU or an Nvidia GPU. CPUs and Nvidia GPUs simply don’t hash well. The best you can expect from them is around 20Mhash per second and that will get you about a bitcent per day if you’re lucky. On top of that, you will max out power usage. So using either of those 2 options will cost you a lot more then what you make unless you have free electricity. Even then, I would recommend buying Bitcoins over mining them inefficiently.
Some ATI/AMD cards are better then others. The best reference is at the Mining Hardware Comparison page. You can go there to figure out what card is the best for you when it comes to mining. You can also learn the best way to configure your card to maximize your hash rate on that card. I used that information to get my dual 6870s from around 220 Mhash to around 280. It makes a big difference putting the right flags into your mining software.
If you currently don’t have a motherboard that can support more then 1 card, don’t have at least a 750w power supply or a case that can keep 2-3 cards cool while they are running at 100% you should look into buying Bitcoins.
The big factor that will determine whether or not you should mine is your electricity costs. A lot of people are selling off their mining rigs because mining can cost more in electricity then you can currently make in Bitcoins. Another theory is that the increase in mining related costs/Bitcoin will increase their value as miners are unwilling to sell them for a loss, Making now a great time to buy.
Bitcoin investment is a great opportunity. There is no minimum amount to buy and right now they are very cheap. Because of the increasing demand for Bitcoins is increasing there is a possibility of them rising in value exponentially. There is also a possibility of them dropping. It’s speculation.
Right now the best 2 places to buy Bitcoins are:
Trade Hill
MtGox
If you found this information helpful, please donate to 1ARKGEtvoaRNPsQ5K18CH5VSUgH5btS3wG
First, we’ll cover reasons to mine.
It really depends on how close to having a mining rig pre-established rig. The first thing you need is an ATI/AMD graphics card. With current difficulty it is near impossible to generate Bitcoins with a CPU or an Nvidia GPU. CPUs and Nvidia GPUs simply don’t hash well. The best you can expect from them is around 20Mhash per second and that will get you about a bitcent per day if you’re lucky. On top of that, you will max out power usage. So using either of those 2 options will cost you a lot more then what you make unless you have free electricity. Even then, I would recommend buying Bitcoins over mining them inefficiently.
Some ATI/AMD cards are better then others. The best reference is at the Mining Hardware Comparison page. You can go there to figure out what card is the best for you when it comes to mining. You can also learn the best way to configure your card to maximize your hash rate on that card. I used that information to get my dual 6870s from around 220 Mhash to around 280. It makes a big difference putting the right flags into your mining software.
If you currently don’t have a motherboard that can support more then 1 card, don’t have at least a 750w power supply or a case that can keep 2-3 cards cool while they are running at 100% you should look into buying Bitcoins.
The big factor that will determine whether or not you should mine is your electricity costs. A lot of people are selling off their mining rigs because mining can cost more in electricity then you can currently make in Bitcoins. Another theory is that the increase in mining related costs/Bitcoin will increase their value as miners are unwilling to sell them for a loss, Making now a great time to buy.
Bitcoin investment is a great opportunity. There is no minimum amount to buy and right now they are very cheap. Because of the increasing demand for Bitcoins is increasing there is a possibility of them rising in value exponentially. There is also a possibility of them dropping. It’s speculation.
Right now the best 2 places to buy Bitcoins are:
Trade Hill
MtGox
If you found this information helpful, please donate to 1ARKGEtvoaRNPsQ5K18CH5VSUgH5btS3wG
What is a BitCoin?
Bitcoin is a peer-to-peer currency. Peer-to-peer means that no
central authority issues new money or tracks transactions. These tasks
are managed collectively by the network.
A Bitcoin is the base currency of the Bitcoin market. It is like how we reference a Dollar or a Euro, and like the different currencies in the world, the Bitcoin trades at different values based primarily on speculation, supply and demand.
One of the most attractive features of Bitcoins is that they are not controlled by any government. They cannot be artificially inflated or deflated. A monetary authority cannot pump more of them into the market to boost the economy. Basically, there is a set amount going out over time and as time goes on the amount entering the market decreases.
The way that they are entered into the market is a process called “Mining”. Basically, computers solve mathematical algorithms to earn the Bitcoins. They are very complex and take a lot of computing power to solve. The more computers trying to solve the equations, the harder the equations become to solve, the less you get for mining.
If you found this information helpful, please donate to 1ARKGEtvoaRNPsQ5K18CH5VSUgH5btS3wG
A Bitcoin is the base currency of the Bitcoin market. It is like how we reference a Dollar or a Euro, and like the different currencies in the world, the Bitcoin trades at different values based primarily on speculation, supply and demand.
One of the most attractive features of Bitcoins is that they are not controlled by any government. They cannot be artificially inflated or deflated. A monetary authority cannot pump more of them into the market to boost the economy. Basically, there is a set amount going out over time and as time goes on the amount entering the market decreases.
The way that they are entered into the market is a process called “Mining”. Basically, computers solve mathematical algorithms to earn the Bitcoins. They are very complex and take a lot of computing power to solve. The more computers trying to solve the equations, the harder the equations become to solve, the less you get for mining.
If you found this information helpful, please donate to 1ARKGEtvoaRNPsQ5K18CH5VSUgH5btS3wG
Places to spend your Bitcoin(s)
I’ve wanted to write something about some of the places that you can
spend your Bitcoins. As you know BTC only has value if people decide to
give it value, and then the value is determined in part by how easy or
difficult BTC are to liquidate or acquire. If there is no demand for
BTC then the price will drop, if there is a huge demand and low supply
the price will increase.
BTC as a value transfer mechanism will only take it so far. There is some level of anonymity, but even that can be reversed if care is not taken and the researcher has the power to subpoena. So in order to increase the demand, people have to feel comfortable that they could live in the BTC world. Hold their wealth in BTC and either buy directly with BTC or convert on the spot back to a currency.
There are more and more places that you can pay directly in BTC. The site https://www.spendbitcoins.com/places/ lists a number of places to spend your BTC directly. The Bitcoin Wiki also lists many places that you can spend your BTC: https://en.bitcoin.it/wiki/Trade.
I’ll list couple here:
If you are in sport shooting, target shooting or just want to stock up, another site you will want to check out is BitMunitions: http://bitmunitions.com. The prices are competitive. When I went to the site I expected to see a big mark up, but there wasn’t. This site is certainly one I have bookmarked.
There are rental agent taking rent payments in BTC in Las Vegas, NV, Nashville, TN and New York City, NY.
http://www.prweb.com/releases/2013/4/prweb10608334.htm
A bar in NY City accepts BTC for payment : http://www.marketwatch.com/story/what-can-you-buy-with-bitcoins-2013-04-06
The next step is to be able to spend BTC in Wal-Mart on demand, on Amazon, while out for dinner like Apple Bees, Fridays or Red Lobster. Well now you can sort of. Gyft is a company that sells gift cards for many different retail stores. They now accept Bitcoins at face value for gift cards. Soon from your mobile phone you can load your card, buy it, and then use it http://uptweet.com/story/Gyft-and-BitPay-Open-50-000-Retail-Locations-to-Bitcoins_1253. This about the closest thing we have the present time to spending them on demand. I know it will change how I spend BTC.
BTC as a value transfer mechanism will only take it so far. There is some level of anonymity, but even that can be reversed if care is not taken and the researcher has the power to subpoena. So in order to increase the demand, people have to feel comfortable that they could live in the BTC world. Hold their wealth in BTC and either buy directly with BTC or convert on the spot back to a currency.
There are more and more places that you can pay directly in BTC. The site https://www.spendbitcoins.com/places/ lists a number of places to spend your BTC directly. The Bitcoin Wiki also lists many places that you can spend your BTC: https://en.bitcoin.it/wiki/Trade.
I’ll list couple here:
- BitcoinStore : https://www.bitcoinstore.com
- BTC Shop: http://www.btcshop.org
- Word Press
If you are in sport shooting, target shooting or just want to stock up, another site you will want to check out is BitMunitions: http://bitmunitions.com. The prices are competitive. When I went to the site I expected to see a big mark up, but there wasn’t. This site is certainly one I have bookmarked.
There are rental agent taking rent payments in BTC in Las Vegas, NV, Nashville, TN and New York City, NY.
http://www.prweb.com/releases/2013/4/prweb10608334.htm
A bar in NY City accepts BTC for payment : http://www.marketwatch.com/story/what-can-you-buy-with-bitcoins-2013-04-06
The next step is to be able to spend BTC in Wal-Mart on demand, on Amazon, while out for dinner like Apple Bees, Fridays or Red Lobster. Well now you can sort of. Gyft is a company that sells gift cards for many different retail stores. They now accept Bitcoins at face value for gift cards. Soon from your mobile phone you can load your card, buy it, and then use it http://uptweet.com/story/Gyft-and-BitPay-Open-50-000-Retail-Locations-to-Bitcoins_1253. This about the closest thing we have the present time to spending them on demand. I know it will change how I spend BTC.
Bitcoin Mining Step by Step
I’ve been debating for quite a while about whether I should write this book. I know you, as a reader, may be glad to finally find a book on Bitcoin Mining.
The goal of this book is to again take all the information that exists out there and to bring it together in a single guide that provides you the information that you need in order to succeed. Many places in the book I reference existing material. I want to give you, the reader, the information you need in an ordered fashion and lead you to places that you will need to become familiar with.
Miners are a special entity in the network. They perform a complex cryptographic algorithm that allows the network to confirm all existing transactions. The result of the mining is called a hash. This hashing is how a miner gets paid.
The original designers understood that no one would voluntarily turn on nodes and the required mining equipment without somehow receiving compensation. The miner has to pay for the equipment and pay for the energy it uses. So they designed a reward system that adds Bitcoins into the supply on average every 10 minutes. The chances of obtaining these new Bitcoins are awarded by a built in Lottery. Your ticket to the lottery the hash rate of your mining operation.
The book will cover:
- Introduction
- What is Bitcoin Mining and Why Should I Mine?
- What is a Bitcoin?
- The Network
- Do I mine in a Pool or Solo?
- How to Solo Mine
- Picking a Pool
- Using a Pool
- Choosing Mining Equipment
- Mining Software
- Mobile Monitoring
- Things to Consider
- Legal Concerns
- More Information
- Final Thoughts
So You Want a Bitcoin?
Overview
Bitcoin is all over the news lately and it’s the hottest virtual currency. You know all that, but all you want to do is get your first Bitcoin. Well I’ll cut to the chase and show you step by step how to get there. I’ll describe how to convert real US Dollars (Other currency’s work to but the exchange sites are slightly different) into a Bitcoin. This blog entry will teach you how to get a Bitcoin. If you want to learn more about how to secure it, where to store it, how can you use it or how to get it back to cash, all that and more is explained in my Book Bitcoin Step by Step.Step 1: Sign Up for An Account
https://mtgox.com/signup
Once you are signed up, you’ll be asked to go through a verification process. You should consider doing this. However, if you will not be moving more than $1,000 USD / day and $10,000 USD /month, you do not need to be verified.
Step 2: Fund Your Account
From the Home Page, Select “Funding Options”.To get money into the account, you can do a bank transfer, which is best for large amounts. If you have cash and want to get it into the system fast, the following is one way to do it. We’ll only be moving a small amount so we’ll use BitInstant.
Step 3: Determine How Much We Need
When you log in you are taken to the Trade Screen and the Buy tab. On this form there is a price entered in the Box Price per coin in USD. This is how much 1 Bitcoin (BTC) cost at the moment. It will change prior to your purchase. So we may get a little more or a little less than a full BTC. That’s ok.Add 3.99% $3.95 to this amount and that’s what you will need in cash. So if you plan to spend $100 you’ll need:
$100 + $3.99 + $3.95 = $107.94
Step 4: A Cash Deposit through BitInstant
Before going to the BitInstant site, it is important to note your account number from MtGox. It can be found at the top of the web page in the center. It will say “Account Number” next to it. You will need that number to ensure you will receive the money.Go to the site: https://www.bitinstant.com/
Select “MoneyGram” in the Pay From drop down menu and “MtGox” in the Pay To drop down menu. You can experiment with other options. Look to see if there are CVS or 7/11 stores that support transactions in your area. Near me, only MoneyGrams are supported. I can go to Wal-Mart and have it funded.
In the account box, place your MtGox account number.
In the Amount place $100
Enter the amount to send and notification email.
When you do, you will be taken through a series of screens where you will verify additional information. I cannot finish the process to get the screen shots. If I do, I will have an outstanding money order. So there are no screen shots for this. When you do this, you will end up at a ZipZap site where you can enter your phone number and search for a location to send the MoneyGram.
Once you’re done entering your information, select “Create Payment Slip” at the bottom of the screen.
Print this out and take it to the location you chose. I’ll continue with the example assuming you picked Wal-Mart. At Wal-Mart, there is a Money Center generally in the front of the store. Go there, grab a blue MoneyGram form and fill in the information. The slip you printed out will have the information you need to properly fill it out.
Pay the clerk the money. Drive, walk, take a cab, bus or train home. Within 30 to 60 minutes, your MtGox account will be funded.
The fees on this are a little bit less:
- 3.99% = $3.99 on $100
- $3.95 MoneyGram
Step 5: Buying Bitcoins
If you recall from the Exchange section, you can place a market order to tell the system how much USD you want to spend, and you’ll spend that much money and receive the number of BTC based on current BTC for sale. Alternatively, you can enter a limit order and set the price at which you want to buy the BTC. With a limit order, you will need to wait until someone in the marketplace decides they want to sell at the price you are asking.
To enter a limit order:
- Enter the number BTC to buy.
- Enter the price to pay.
- Select the “Buy Bitcoins” button.
There you have it! You now have Bitcoins.
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