30 October 2020
As of 2020, there are about 18.42 million bitcoins in circulation around the world. This is clearly a huge market, and it’s only growing. Some experts project that the global cryptocurrency market will reach $1758 million by 2027!
If you’re looking to begin making money with bitcoin, you likely have considered bitcoin mining. However, you also may not be completely clear on what that entails or how you can start the process without investing a lot of money up-front.
That’s what we’re going to talk about here today! Read on for a comprehensive guide on how you can begin bitcoin mining without investment.
What Is Bitcoin Mining?
Before you can learn how to undergo an investment-free mining process, it’s important that you’re clear on what mining bitcoin actually means.
Whenever a bitcoin transaction takes place, it gets recorded in a ledger on the blockchain. Since bitcoin transactions are anonymous, keeping up-to-date on these records is essential in making sure everyone gets the money that they’re owed. As you might imagine, this is a challenge that requires many people worldwide and a very complex codebase.
Bitcoin mining is the process of confirming every bitcoin transaction and recording them in the blockchain ledger. As a miner, you’ll make sure that the transactions are fairly made and that no one is trying to steal and spend the cryptocurrency of other users.
Once you’ve verified a transaction and made sure that the bitcoin is at its destination, you’ll ‘seal off’ (complete) the transaction. You get a reward every time you do this in the form of cryptocurrency that you can spend online.
Are Investments Needed for Free Bitcoin Mining?
As you might imagine, there are some investments that you’ll need to make.
Many miners invest in a bitcoin mining rig. This is a piece of hardware- a computer- that’s specifically made to mine bitcoin. It performs no other tasks and therefore can devote itself entirely to this purpose. This is the #1 expense of most serious crypto miners.
This leads to other investments like the electricity costs required to power rigs. All of the money that you invest in these technologies may or may not be worth it depending on the random ‘blocks’ in the blockchain that your rig discovers and decides to mine. Your ROI is somewhat based on luck- someone with exactly the same rig as you might randomly find a transaction that’s easier to seal off.
You also will need to invest in the software platform required to mine bitcoin. Some of the most common are Bitcoin Miner, CGMiner, and EasyMiner. While all of these softwares are awesome for more serious miners, they do cost money and therefore might not be the best choice for beginners looking for complete free Bitcoin mining without investment.
How Can You Mine Bitcoin Without Investment?
Indeed, it seems that mining bitcoin is an expensive endeavor. However, there are ways that you can get around this as a beginner. Investment-free bitcoin mining is easier than ever before with the new technologies in place.
Note that we recommend bitcoin mining without investment primarily to hobby miners and those with less experience. If you’re serious about mining, a rig will make the process much faster and more profitable. Software platforms will also provide you with more options for accessing and interacting with the blockchain.
Basically, investment-free mining is best for newbies like you!
Top Ways to Mine Bitcoin for Free
Using Your CPU
The first is… not investing in a bitcoin mining rig. You heard that right: you don’t need any special hardware to mine bitcoin. You can legitimately just use the CPU that you’re reading this on.
While this won’t be nearly as fast or lucrative as a rig would be, you can get a feel for how to mine on your computer. This is how things used to be done in the past, and it still works as long as you have a powerful processer and a fast connection to the blockchain.
Accessing a Bitcoin Mining Pool
In lieu of special mining software, you can also freely access something called a ‘bitcoin mining pool.’ This basically is the Bitcoin Brotherhood- people share their resources in the pool to gain access to more processing power. Each machine connects to a network and adds its processing power to the pool, which makes the mining process faster for everyone.
This is totally free and can be pretty profitable for beginners. While the payout is awarded based on the amount of work you did to contribute to finding a block, each user gets a share for simply being part of the pool. So while you may not get a lot of bitcoin as a new user with CPU hardware, you’ll at least get a little something.
The Benefits of Free Bitcoin Mining Without Investment
There are loads of benefits to low-cost bitcoin mining. First, you get some output without needing to invest a lot of money off the bat. While you may not get as high an ROI as someone who invests more money into hardware, you’ll get something, which is awesome for those that don’t have much to initially invest.
It also is a great way to kick off your bitcoin mining career. You can learn the fundamentals and basics of bitcoin mining completely investment-free before deciding if it’s right for you. After all, you can always get a rig or a software subscription later!
Because you haven’t put any money into mining, you haven’t made a strong commitment to logging transactions. You can stop whenever you like totally stress-free. Think of bitcoin mining without investment as a free trial run!
Now that you know all about free bitcoin mining without investment, it’s time to get started.
Bitcoin mining can be incredibly exciting and profitable. That said, it is still a complex topic. If you are interested in becoming an expert on the topic of Bitcoin and cryptocurrencies you should check out our complete crypto beginner’s course.