How do you make a profit with bitcoins – offer free bitcoins : The Bitcoin (BTC) is gaining more and more prominence. But am I too late to make money with Bitcoins? And How can I invest in Bitcoin? Also information about building a GPU mining rig yourself. What happens to my Bitcoins if my PC crashes? How do I create a secure Bitcoin wallet?… This and more in this article.
Is there a Bitcoin crash comming? In this article about ‘How do you make a profit with bitcoins’, I focus on mining the (alt)-coins and buy bitcoins with this mined alt-coins. (So I don’t buy bitcoins with fiat money (usd/eur) and I don’t trade!!! This is a longterm invetment in bitcoins.
Also in Dutch: Hoe winst maken met bitcoins – Mining – Tutorial
How do you Make a Profit With Bitcoins: Introduction.
Disclaimer: This is not investment advice, but just purely informative what is possible. What you do with that information is your own responsibility.
In short what is Bitcoin? It is a method to exchange a debt certificate (virtual money) with the whole world in a simple way. And this without the intervention of a bank. You play for the bank, as it were. How much this Bitcoin is worth, as with everything on the free market, is a matter of supply and demand.
Every transaction is registered (in the blockchain = cash book) and is an unfalsifiable proof that this transaction has taken place. This blockchain or cash book is not kept by a bank as with normal money. But it is on 1000s of computers all over the world.
How do you make money with Bitcoins?
So there are 2 ways to make money with Bitcoin.
1 How do you make a profit with Bitcoins – buy
By buying Bitcoins (and hoping their value will increase). There are only 21 million Bitcoins. And these cannot be added. So the more people who want Bitcoin. (And also start using.) The more it becomes worth.
Bitcoin is still in its infancy. But it has now proven that it works after just over 10 years. And as a result, there will be more and more shops where you can use Bitcoin as a payment method. !!! And now especially since PayPal ™ has announced that it will also start working with Bitcoin.
2 How do you make a profit with Bitcoins – Mining
In the beginning you could very easily get Bitcoins for free. Now yes for free !? By voluntarily acting as a controller of those transactions you could get a number of Bitcoins in exchange for the computing power of your computer. Who therefore approved those transactions and added them to the blockchain.
In the beginning of 2009. A normal computer was sufficient for this. And for every transaction and addition to the blockchain approved by you, you just received 50 Bitcoin as a fee.
Mind you Bitcoin was still worth less than 1 Euro at the time!
But because more and more people wanted this free money. So there will be an oversupply of virtual banks. But for this problem there is also a solution built into the Bitcoin. Apart from approving the transaction, you also need to crack a hash code. And the person (computer) who first finds the solution is then the winner who receives the Bitcoin fee.
Now people thought. Then I install more computers and thus increase my chance. (That’s how the mining farms started) But Bitcoin also has a solution for that. The more computers participate in guessing the solution, the more difficult the puzzle becomes.
The fee is also halved every 250,000 transactions. (Now 2021 you will still receive 6.26 Bitcoin.) At the current Bitcoin price of more than € 30,000, that is a nice gift.
But!!! Because there are so many miners, the chance is greater that you will win the lotto than that you will win the solution to that puzzle.
How do you make a profit with Bitcoins – How?
After Bitcoin proved itself. Are there others who also made their alternate coin. And you can still mine this with a PC or laptop.
The computing power of the GPU is used. (Video card). A good GPU is as powerful as 30 to 100 CPUs !!!
How can I build a mining rig myself?
You can simply buy a mining rack. But you can also build a mining rig (rack) yourself if you are a bit handy. That saves in the cost price and so you also make more profit with your Bitcoins. A standard PC desktop case is not big enough to accommodate more than 2 GPUs. But how do you connect multiple GPUs to the motherboard? The solution PCI-e risers.
PCI-e riser – More GPUs on 1 motherboard.
How to make a profit with Bitcoins – PCI-e risers: On a normal desktop motherboard there is usually only room for 2 decent GPUs. But there are now PCI-e risers (a kind of extension cord and adapter) that allow you to connect up to 6 GPUs to that motherboard. That won’t fit in your desktop cabinet. But you can mount that on a (homemade) rack. (mining rig)
Here an example (photo). With the current generation of motherboards, this PCI-e riser allows you to connect up to 6 GPUs to 1 motherboard. You insert the small piece into the PCI and PCI-e slots on your motherboard. You connect this with the USB cable with the large piece. And here you can put your video card (GPU). You put your motherboard and its power supply on the bottom of your (homemade) rack. And then you hang the GPUs one shelf higher. You also need to connect the PCI-e riser to your PC power supply. If you buy from a good brand, all necessary cables are included. (count on +/- 10Euro each, usually sold in a set of 6.)
There are now also PCI-e risers where you can make 4 PCI-e slots from 1 port on your motherboard. In theory you can then have 6 ports on the motherboard x 4 = 24 GPUs on 1 motherboard. (Depending on which GPU you are using, calculate +/- 120 Watt per GPU.
NOTE: If your power supply of the original desktop is only 450Watt, for example. Then you can use a maximum of 2 GPUs. So if you want more, you have to buy a new power supply of 1kWatt or more.
NOTE: If you make a metal rack yourself. That your bottom of your motherboard mounts with spacers, so that it cannot cause a short circuit. (duration defect, and risk of fire.)
How do you make a profit with Bitcoins – Mining-Rig?: Above you see an example of a simple (Bitcoin – Etherium) mining rig. The bottom plate is just 4 wooden boards between 2 aluminum L-profiles. The corner supports are L-shaped slats. And then you have a reinforcement bar left and right. With in between a wooden board on which the back of the GPUs rests. The GPUs are mounted with 1 screw on the mining rig at the top frame. (also just cheap L-profiles. If you are a bit handy, this is easy to make yourself.
Alternatively, you can buy a more expensive professional rack instead of. Buy a cheap rack and mess around there 🙂
Build plan of a GPU rig? Mining rig dimensions:
How do you make a profit with Bitcoins – Building-plans: See photo higher up for the design. I cannot give the measurements in advance because I do not know which power supply, motherboard and GPUs you are using. It is therefore important that you first buy those parts (or look up the sizes thereof) and then you can see how you can best arrange them. With the necessary space in between. (Necessary for cooling.) Only then to determine the dimensions of your rack based on that information and to purchase the building materials for this.
PAY ATTENTION! If you prefer a closed case. Then it is important that you include the necessary cooling fans. Because all in all, this device consumes 900 watts. (A small heater 😉) The fact that you use 900 Watts 24 hours a day, thirty days a month will also be reflected in your electricity bill. Your Bitcoin miner will only generate money if it is more than your consumption bill. !!!!
How do you make a profit with Bitcoins – mining-POOL
How do you make a profit with Bitcoins – Solo mining??? Solo mining is expensive and ricky!!! But now there is the possibility to collaborate with other people in an easy way. And the chance that that group of people will find the solution together and thus earn money is greater. This pool service looks at what percentage of computing power you contribute to the pool. And you get that percentage. Even if someone else from that pool finds the solution. He only gets his percentage.
The company that offers that pool service will of course also charge its part 🙂 But the chance is greater for you by working together.
Cudo-Miner – Free Bitcoins
How do you make a profit with Bitcoins – Practice: Cudo-Miner is such a pool service. This is very easy to install. And does all the work for you in the background. The program itself searches for the most profitable alt-coin for your PC or GPU rack. And you can choose whether to keep the coins you mine or automatically convert them into bitcoin.
You can go to that site and sign up there and you will get 5000 satoshi for free. BUT with this link you will get 10,000 satoshi. The choice is yours 🙂
PS: Satoshi is the smallest distribution of 1 Bitcoin. That’s 1 / 100,000,000. (So 5000sat’s = +/- 1 Euro at the current Bitcoin rate of 20,000 € / BTC.
How do you make a profit with Bitcoins? – Get free Bonus: FREE 10,000 Satoshi Bitcoin via CudoMiner
What happens to my Bitcoins if my PC crashes?
How do you make a profit with Bitcoins – Where are my Bitcoins?: Your Bitcoins are not on your PC or phone. All you need are your keys. Private key (your digital signature), and your public key (s) The account number to which people can deposit money (= Bitcoins).
There are several types of wallets. Divided into 2 groups. COLD and HOT. Colt is the safest. These are not on a device that is connected to the internet. For example a hardware wallet such as LEDGER. Or you can even literally put your wallet on paper.
How do you make a profit with Bitcoins – Bitcoin-Cold-Wallet: How do I create a secure cold Bitcoin wallet At bitaddress.org you can create a paper wallet for free. You can do that online on that site. But if you really want to make a bitcoin wallet safely. Then you go to that site. There you can right-click and save that site. Put that file on a USB and then transfer it to a PC that is never connected to the internet. There you start that saved website. And you can safely generate and print your Bitcoin wallet.
NOTE Never print your wallet on a network printer !!!! it contains a hard disk that can store everything that has ever been copied or printed !!!!
How do you make a profit with Bitcoins – Bitcoin-HOT Wallet: The hot wallets are on your PC (telephone) or even on the internet at a trade fair. The internet wallets are the least secure !!! It is best to use an HD wallet for your PC. It also generates a list of 12 or 24 words that you must write ON PAPER. And if something goes wrong. Can you recreate your keys with these words.
So nothing will happen to your Bitcoins if your PC crashes. You just have to make sure you have a safe backup of your keys.
End How do you make a profit with Bitcoins.
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