Mining Bitcoin cashcan become profitable when you invest in specialized mining equipment’s. To understand the mining profitability you can make use of the online profitability calculators which are readily available. To use such calculators, you must provide inputs like the hash power of the miner you are using, the network difficulty level, the power usage and costs, Bitcoin Cash price etc. The greater the hash rate the higher is your chance of successfully mining blocks.
Mining Bitcoin Cash is quite similar to mining the Bitcoin although there are some important distinctions between the two. While the block size of the Bitcoin Cash has been limited to 8 MB, for the Bitcoin it was simply 1 MB. It is also true that bigger block size means that you will need more computing power. So, this means higher investment costs for mining Bitcoin Cash. The rewards for every successfully-mined block however remain the same at 12.5 tokens. To attract the miners the Bitcoin Cash network needs to maintain low mining difficulty levels as compared to the mining difficulty level of the Bitcoin.
Steps to follow for mining Bitcoin Cash:
- When you know how profitable mining Bitcoin Cash is going to be you and how much you have to spend to build a mining rig, you can start mining it. To begin mining, you will need a wallet to store the future Bitcoin Cash. It is advisable to select a wallet which comes with a private key. You must also keep backup wallet files in a separate device or take a print out which you can store in a safe location. This is to ensure that you are able to retrieve your funds in case the computer is stolen or damaged or it crashes.
- You will need to spend money on buying special hardware for Bitcoin Cash mining. Today mining is profitable only if you are able to get the ASIC miners which are specially designed computers to mine cryptocurrencies. Apart from the costs of the miner you choose, you must also take into account its power consumption and hash rate.
- You must also decide whether you want to mine the Bitcoin Cash on your own or you wish to join a mining pool. In a mining pool, there will be a group of miners who will share their computing resources to improve their chances of earning rewards. When the pool is able to mine a block successfully, it will be divided amongst the miners depending on their individual contribution to the computing power of the pool. When you mine the Bitcoin Cash on your own, you can enjoy the entire reward by yourself. The only problem with this is that you must own a very powerful mining rig to be able to mine blocks successfully. When you choose a mining pool, you must also consider certain key factors like the size and reputation of the pool, its payout structure, the pool fees and the frequency with which they solve blocks successfully.
- Besides buying specialized mining devices for mining the Bitcoin Cash, you will also need to install appropriate mining software. This again depends on the mining rig your own and the operating system you use. Most of the mining pools have their distinct software. This means you simply have to use your username and password to use this software. When the software has been duly configured, you are ready to start mining Bitcoin Cash. The two most well-known mining programs available today for Bitcoin Cash mining are BFGMiner and CGMiner. You must remember to choose software which will be compatible with your miner.
- For those who do not wish to invest in a mining rig to mine the Bitcoin Cash, cloud mining contracts are most helpful. They can enter into contracts with cloud mining companies and use the shared power from multiple remote data centers. You will neither have to buy costly mining hardware; nor will you have to deal with the excess heat and noise generated by such equipments.