Bitcoin Mining Beginner's Guide: How Should Beginners Start Mining?

Can you really “mine” a BTC for “free”?

Many people have heard that in the early days, Bitcoin could be easily mined with a home computer, and they think they can do the same now. But the harsh reality is: by 2025, it’s basically impossible to mine Bitcoin “for free” using an ordinary computer.

Why? Because the total network hashrate has already exceeded 580EH/s, and individual computing power is negligible in this massive network. Mining has now evolved into a professional, industrial competition dominated by large-scale mining farms.

What exactly is Bitcoin mining? A one-sentence explanation

Simply put, Bitcoin mining is when miners use mining machines to keep records and verify transactions on the Bitcoin network, earning BTC rewards in return. These miners and mining machines together form the backbone that keeps the entire Bitcoin network running.

Without miners, the Bitcoin network would have no maintenance, transactions couldn’t be confirmed, and the entire system would grind to a halt. Therefore, mining determines Bitcoin’s survival, and miners are the main suppliers in the cryptocurrency world.

The logic of mining: Proof of Work (PoW) mechanism

Bitcoin uses a system called “Proof of Work” (PoW) for mining:

1. Transactions are packaged into blocks — Transactions on the network are collected and organized into a data set (block)
2. Perform special calculations — Miners need to find a hash value that meets certain criteria, which requires大量 trial and error and computation
3. Block verification and broadcasting — Once a miner finds the hash, they send the new block to the entire network for validation
4. Reward collection — When most nodes accept the block as valid, the new block is added to the blockchain, and the successful miner receives a reward

Mining difficulty adjusts dynamically based on total network hashrate. The higher the total hashrate, the greater the difficulty, ensuring that roughly every 10 minutes, a new block is produced.

How much can mining earn? Breakdown of income sources

For miners, income mainly comes from two parts:

1. Block rewards

• For each successfully verified block, miners receive a fixed amount of newly minted BTC
• After the Bitcoin halving in April 2024, the block reward drops from 6.25 BTC to 3.125 BTC
• Historical reward changes: 50 → 25 → 12.5 → 6.25 → 3.125 BTC (halved every four years)

2. Transaction fees

• Users pay fees when transferring BTC
• Fee income varies depending on network congestion and transaction volume
• In recent years, with the rise of applications like (Ordinals), fee proportions have increased

Mining tutorial: From mining machines to hashrate, how has the technical route evolved?

Bitcoin mining technology has undergone three major upgrades:

CPU era (2009-2012)

• Mining with ordinary home computers
• Low difficulty, low cost, golden age of mining

GPU era (early 2013)

• GPU mining emerged, far more efficient than CPUs
• Required high-end graphics cards, significantly increasing costs

ASIC era (mid-2013 to present)

• Specialized mining chips (ASICs) appeared, with far greater hashrate than GPUs
• Mainstream mining machines: Antminer S19 Pro, WhatsMiner M30S++, AvalonMiner 1246, etc.
• Purchase cost: $1,000–$2,000, some even higher
• Now dominates the entire mining industry

How can individuals mine Bitcoin?

( Three forms of mining options

Solo mining (largely phased out)

• Individuals buy mining machines and mine alone
• In today’s high difficulty environment, success rate is extremely low, almost impossible to mine BTC

Mining pools (mainstream choice)

• Multiple miners combine their hashrate in a pool, sharing rewards proportionally
• Well-known pools: F2Pool, Poolin, BTC.com, AntPool
• Advantages: stable income; disadvantages: pool fees

Cloud mining (higher risk)

• Rent hashrate from cloud platforms
• Platform names: NiceHash, Genesis Mining, HashFlare, Bitdeer
• Advantages: no hardware purchase needed; disadvantages: beware of scams

) Mining tutorial: Five steps for beginners

Step 1: Understand local policies Mining is a high-energy-consuming industry; some countries or regions restrict or ban it. Confirm whether mining is legal in your area before investing.

Step 2: Calculate costs and returns

• By 2025, the cost to mine one Bitcoin is about $108,256.62
• This includes: hardware costs + electricity + cooling + maintenance + pool fees
• Miners only profit if Bitcoin price exceeds mining costs

Step 3: Choose equipment and operational mode

• Self-operation: buy new high-efficiency mining machines, manage and maintain yourself (suitable for those with technical background)
• Hosting services: buy mining machines and have third-party operators run them (convenient but with hosting fees)
• Rent hashrate: directly rent hashrate from platforms, no hardware needed (low threshold but beware of scams)

Step 4: Join a mining pool Select reputable pools, configure your mining machines, and start mining. Remember: any new miner must join a pool, or else individual hashrate is too weak to mine BTC.

Step 5: Monitor and optimize

• Regularly check hardware status, replace outdated miners
• Monitor electricity costs, consider relocating to areas with lower electricity prices
• Adjust mining strategies based on market conditions

How does Bitcoin halving affect mining rewards?

Bitcoin halving occurs roughly every four years, cutting the block reward in half. This has a profound impact on the mining industry:

Impacts of halving

• Miner income drops immediately by 50%, squeezing profit margins
• Small miners with high electricity costs or outdated equipment may be forced to shut down (“capitulation wave”)
• Transaction fee income becomes more important, supplementing miner revenue

Miners’ strategies

1. Upgrade hardware — replace old miners with more efficient ASICs
2. Reduce electricity costs — move to regions with cheaper power (e.g., Iceland, Central Asia)
3. Mine multiple coins — some pools support automatic algorithm switching, mining Bitcoin and Dogecoin simultaneously
4. Hedge — use futures contracts to lock in Bitcoin prices, avoiding price drops

Post-halving industry trends

• Small miners struggle to survive; market becomes more concentrated
• Large mining farms leverage economies of scale and cheap electricity
• Innovative mining models emerge, such as waste energy mining and AI-powered mining farms

Is it worth trying? Summary and advice

Advantages of mining:

• Relatively stable passive income (depends on electricity and hardware efficiency)
• Contributing to the Bitcoin network brings a sense of community value

Disadvantages of mining:

• High upfront costs (hardware from $1,000–$2,000)
• Huge electricity expenses directly affect profitability
• Requires technical knowledge and maintenance skills
• Mining equipment updates rapidly; old machines become unprofitable
• Regulatory risks exist

Advice for beginners:

• If you lack cheap electricity and sufficient capital, mining may not be the best choice
• If interested in mining but don’t want to operate hardware, consider trading Bitcoin spot or contracts, which have lower risks and costs
• Regardless of your choice, be cautious of scam platforms and only use reputable service providers

Final conclusion of the Bitcoin mining tutorial: Mining has evolved from an early “free gold mine” into a high-threshold professional industry. To profit from mining, you need substantial capital, low-cost electricity, and professional operation skills. For ordinary investors, direct trading of Bitcoin is more flexible and cost-effective.