Sam has been mining Bitcoin and other cryptocurrencies since 2013. He has experience building and optimizing GPU and ASIC mining systems.
Bitcoins are more popular than ever. This sudden increase in popularity has created a gold rush causing everyone to gain interest in this digital currency.
While many people find it easier to simply buy Bitcoins, others have discovered Bitcoin mining to be a fun and challenging hobby.
Mining for Bitcoins can be both fun and profitable, and it's actually easier to get started then you might think. In this article, I'll explain how to start mining for Bitcoins using your GPU and a program called CGMiner.
AMD Radeon video cards are the best GPUs for mining Bitcoins. Unfortunately, Nvidia cards do not perform very well at all when it comes to mining when compared to AMD cards.
If you already have an AMD Radeon 5800 or newer video card installed, then you are in good shape to start mining for coins.
I wouldn't recommend going out and purchasing a new video card just to mine Bitcoins with, but if you need to replace an older card anyway, you might consider purchasing a Radeon card instead of Nvidia Hardware..
With newer ASIC-based Bitcoin miners hitting the market in the near future, GPU-based mining may soon be obsolete so be cautious of investing heavily in GPU hardware just for mining.
If you're hardware isn't powerful enough to mine Bitcoin you can still earn Bitcoin by using NiceHash which mines other cryptocurrencies but pays users in BTC.
Why MIne Using a GPU?
GPUs are much better than CPUs when it comes to mining for Bitcoins due to the nature of their design. Graphics rendering requires tons of mathematical computations which GPUs are specifically designed to do.
Since Bitcoin mining also requires math computations (hashing) GPUs work very well for this purpose.
While CPUs can also be used to generate hashes they are not nearly as effective as a GPU.
Here is a popular analogy:
A CPU is like a small group of very smart people who can quickly perform any task they are asked to do.
A GPU is like a large group of dumb people who on their own are not very fast or intelligent, but they can be taught to do repetitive tasks, and as a group they can be more productive due to the sheer number of them.
Create an Online Bitcoin Wallet
Before you start mining for Bitcoins you will need to create an online wallet that will be used to receive and store Bitcoins.
There are several places to create online wallets but I recommend using Blockchain. Blockchain allows you to create a free, and secure wallet that provides many useful features.
To create a wallet click on the link labeled 'Create my free wallet'. To set up the new account enter an alias (think of this as the username for the account), a secure password, and the capcha answer.
Blockchain will generate a password recovery mnemonic, be sure to store this somewhere safe in case you ever need to recover access to your wallet.
It's important to use a very secure password for the wallet. If anyone were to gain access to your wallet they could quickly steal all of the coins inside.
Find Your Bitcoin Wallet Address
After creating the account log into the wallet using the identifier and password. The address of the wallet can be found on the main wallet home tab.
The address consists of 27-34 alphanumeric characters. This address is what you will provide to people so they can send you payments using Bitcoins.
Join a Bitcoin Mining Pool
While it is possible to mine for Bitcoins on your own it is not something I would recommend doing. Solo mining requires an incredible amount of processing power which most people don't have access to.
Pooled mining allows miners to group up to solve blocks and earn Bitcoins together. Each miner that joins the pool earns shares for the work they contribute.
Each time the pool finds a block (currently worth 12.5 BTC) the Bitcoins earned are divided among the users in the pool based on how many shares they earned in the particular round.
There are many different mining pools you can join, each pool has their on pros and cons. As you learn more about Bitcoins you will be able to make a more educated decision of which pool is best for you.
I recommend joining AntPool because it has some great features and is very easy to use.
Creating an Account at AntPool
The process for joining most Bitcoin mining pools is very similar but in this guide I'll show you how to start mining with AntPool.
The first step in joining the pool is to register for a new account.
Create a Subaccount
After registering with AntPool you will need to create a sub account and associate a Bitcoin wallet. Payments will be sent from the pool to this wallet address once the payment threshold has been reached.
After logging in click on the settings like to create a new sub account. Once you've created a sub account click the edit link to add your Bitcoin wallet address.
The changes to your account will need to be confirmed by responding to the email sent from AntPool.
Creating a Worker
Next you need to setup a worker, click on the dashboard tab then workers. You will need one worker account for each copy of CGMiner you intend to run.
Download and Configure CGMiner
At this point you should have a Bitcoin wallet which is now associated with the AntPool worker. This means you are finally ready to start actually mining for Bitcoins!
There are several different Bitcoin mining clients available but I will be showing you how to use CGMiner.
CGMiner is a GPU/FPGA bitcoin mining program written in C. It is compatible with both Windows and Linux operating systems.
Among the great features of CGMiner are support for overclocking, hardware monitoring, fan speed control and also remote interface capabilities.
Cgminer version 3.7.2 is the latest version with GPU support. Versions later than 3.7.2 do not support GPUs (only ASICs).
Extract the Contents of the Zipfile
After downloading the compressed zip file open the archive. You can use 7zip to extract the contents of the file. Inside the archive you'll find a folder called cgminer-3.7.2-windows.
Move this folder to C:\ and rename it to cgminer.
You should end up a with a folder called c:\cgminer , the contents should like like the image below.
Edit the CGMiner.conf File
Nest you need to enter the pool settings into the cgminer.conf file contained inside the c:\cgminer directory where you extracted the files.
Edit the existing cgminer.conf file and modify the pools section as shown below. Replace subaccount.worker with the name of your own sub account and worker you created in the AntPool dashboard.
Remove the extra pool sections unless you intend to add configure multiple pools.
Once the config file has been modified you are ready to start mining for Bitcoins using CGMiner. Double click on cgminer.exe to start the miner.
If your configuration is correct CGMiner launch, connect to the mining pool, and start mining for Bitcoins.
Each of the GPUs detected by CGMiner will be lised in the second section below the summary. The current hash rate for each card will be displayed in Mh/s (Mega hashes per second).
If you're unable to get CGMiner working here are some common things you should check first.
- Install the latest version of the video card drivers
- Try launching cgminer directly from the command prompt instead o to check for error messages.
- Double check the worker name entered in the cgminer.conf file.
CGMiner Video Tutorial
Checking the Worker Stats in the Mining Pool
Once CGMiner starts mining for Bitcoins you can check the status of the worker in the mining pool web interface. Most pools take somewhere between 5-15 minutes before they will start showing statistics for the worker online.
If CGMiner was able to successfully connect to the pool you will see the current speed and an estimate of the workers profitability per day.
If you do not see any stats after the miner has been running for a while check the username and pool settings in the CGMiner config file.
Moving Forward with Bitcoin
Mining for your own Bitcoins is a great way to learn more about digital currency. You might find that you enjoy mining enough to become a hardcore enthusiast and purchase high end mining hardware such as the ASIC miners designed by Bitmain.
If you decide that mining Bitcoins isn't for you it's still easy to be involved with Bitcoins in other ways. You can buy and sell Bitcoins on many of the popular exchanges such as Coinbase.
This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.
© 2013 Sam Kear
What are your thoughts on Bitcoins?
DowntroddenInDC from Houston, TX on July 20, 2020:
BTC mining is dead unfortunately. If you have a decent gaming PC with an 8GB GPU then being a "hobby miner" maybe the route to go. Setting things up and then doing profit switches manually is too tedious. Check this out (https://www.publish0x.com/cryptoyield/mining-with-... - also if you haven't heard of Publish0x before, it's definitely worth checking out. It's like Hubpages, but geared towards crypto and it has crypto tipping integrated (presently, LRC, DAI and BAT - adding ETH here soon.) I think you're articles would do well over there!
Dr. Wisson on June 24, 2020:
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Dunstan Prosper Nyoni on September 23, 2019:
After all this and the system is ok.if the worker is working what do I do or all is left to the worker
Majid on September 24, 2018:
Starting to do these instructions, I did not receive any Hash rate on top of Antpool. What is the problem with hashing results demonstration on my Antpool account?
Sam Kear (author) from Kansas City on April 29, 2018:
The Raspberry Pi works great for controlling ASIC miners. I'm not aware of any mining software for other microcontrollers, most requires either Windows, Linux, or Mac.
mariusz on April 29, 2018:
hello, is there a commercial sense of connecting arduino 328, leonardo, stm32, teens. where to look for ready examples of mini excavators.
Ananth on March 03, 2018:
How to get gpu device ? Just regular cpu and add graphics card?
Sam Kear (author) from Kansas City on February 20, 2018:
It sounds like it's unable to connect to the mining pool. Double check the server address, worker name, and password in cgminer.conf and make sure they are correct.
Chris on February 20, 2018:
I followed this guide now and i get this in cgminer: pool 0 JSON stratum auth failed: (null) Do you know whats wrong?
Chris on February 20, 2018:
I tried doing this but i always get this message: Rejected and there are some numbers and its says GPU 0 ( Too low Difficulty)
Sam Kear (author) from Kansas City on February 11, 2018:
The Eclipse pool has shutdown. I'm currently working on updating this article but in the mean time I recommend checking out www.antpool.com instead.
You may also want to take a look at my most recent mining article which explains how to earn Bitcoins with NiceHash. I suspect you may earn more with it instead.
Antho on December 28, 2017:
I have 3 gpus, i can only get 2 of them mining.. It shows 3 gpus in cgminer screen after running batch file, one off them show OFF, any idea why?? Thanks
Felippe on December 13, 2017:
I'm getting this error:
cgminer.exe: -d: unrecognized option
I'm using the latest version (4.10.0)
Ness on December 11, 2017:
OK, great intro. Thanks.
But, what if miner.bat not opening? Seems it starts, shows 2 fast cmd windows, and that's it. Nothing opened after that...
email@example.com on February 24, 2017:
Perfect blog info about bitcoin.
Dan on August 13, 2016:
CGMiner throws up errors with the other switches except username/password.
I think the biggest flaw is the /? switch isn't supported :(
Sam Kear (author) from Kansas City on August 06, 2016:
Try running the batch file from a command prompt in order to see what error message you are receiving.
moviesreviews on February 23, 2015:
Great article - Very educational
The Logician from now on on February 03, 2014:
You see this? http://www.wallstreetdaily.com/wallstreet-research...
Isn't it true the more bitcoins that are mined (added to the total out there) the longer it takes to create one and then more expensive machine you'll need to mine them in a reasonable time. Isn't it very late to come to this party all ready (seems like a ponzi scheme).
Sam Kear (author) from Kansas City on May 01, 2013:
@Michael - Once more of the ASIC miners start coming on line GPU mining will probably become much more difficult. Many people are actually planning to start mining Litecoins at that time.
You are correct in that it can take quite a while to generate one Bitcoin depending on how powerful your system is. Luckily by joining a pool you can earn fractions of a Bitcoin. Each coin is divisible by 8 decimal places.
At today's current price .1 BTC is still worth about $12.
You can run a quick calculation to determine if mining is profitable for you using one of the many online tools. You'll need to know the power draw of your miner, hash rate, and how much you pay per kilowatt for electricity.
Michael from Australia on May 01, 2013:
very interesting, i'm still wondering if doing this is worth it...i have a very good GPU, but i've heard it can take up to months just to find 1 coin