If you have decided to start mining bitcoin, check out the 5 secrets to bitcoin mining success.

Have clear goals

If you start mining with no clear goal in sight, you will never be able to rate how successful your mining operation has been. Before you start out, you should take the time to establish clear targets and goals such as making a certain amount of profit within a given timeframe.

Calculate the cost of your investment

If you want to be a successful bitcoin miner, you will need to work out how much you will need to invest before you can mine your first bitcoin. The costs will include a specialist mining rig and the electrical power needed to run the machine. If the cost of the rig and the electricity needed to mine one bitcoin is greater than the value of one bitcoin, you will be operating at a loss. If you intend to hold onto the bitcoin until it rises in value, this may not be a problem. However, there is no guarantee that the value of bitcoin will increase.

Consider joining a mining pool

If the cost of buying a rig and mining your own bitcoin doesn’t make economic sense, you may wish to join a mining pool. Mining pools allow users to pool together their computing power in order to mine bitcoin. Each user will receive a payment of bitcoin which is equal to the amount of processing power they shared with the rest of the pool.

Use a VPS

A virtual private server (VPS) will make mining bitcoin much safer. A VPS will help to protect your identity when you are mining bitcoin and will minimise the risk that hackers will target your computer.

Find a good bitcoin wallet

When you have mined a bitcoin, you will need somewhere to store it. There is a range of different wallet options available. The easiest way to store your bitcoins is to use an online wallet. However, these are not the safest option you run the risk of the wallet provider being hacked. For top security, you should use a self-hosted wallet which takes the form of a program which is downloaded onto your computer.