Getting started with Bitcoin mining
Everything you need to go from zero to mining your first bitcoin, step by step.
What is Bitcoin mining?
Mining is how new bitcoins enter circulation and how the network confirms transactions.
The short version
Bitcoin miners run specialized computers that race to solve a cryptographic puzzle. The first miner to solve it gets to add the next block of transactions to the blockchain and earns the block reward (currently 3.125 BTC) plus transaction fees. This process is called proof of work, and it's what makes Bitcoin secure and decentralized.
Mined per day
The network produces roughly 144 blocks per day at 3.125 BTC each. The reward halves every 210,000 blocks (roughly every four years). The next halving is expected in 2028.
How Bitcoin mining works (3 min)
Bitcoin mining is the process of running SHA-256 hash computations to validate Bitcoin transactions and secure the network's public ledger. The speed at which you mine is measured in hashes per second (H/s), and today's miners operate in the terahash range (trillions of hashes per second).
The Bitcoin network compensates miners by releasing newly minted bitcoins (the block subsidy) and including the transaction fees from the transactions in each block. The more computational power you contribute, the greater your share of the reward.
Mining difficulty adjusts every 2,016 blocks (roughly two weeks) to maintain a target of one block every 10 minutes. As more miners join and global hash rate increases, the difficulty rises, requiring more computational power to earn the same reward.
Step 1: Choose your mining hardware
Custom chips called ASICs are purpose-built to mine bitcoin. The key metric is efficiency: joules per terahash (J/TH).
What to look for
Modern Bitcoin mining requires an ASIC (application-specific integrated circuit). These machines are designed from the ground up to compute SHA-256 hashes and are millions of times faster than a CPU or GPU. Mining with anything else will cost more in electricity than you earn.
The most important spec is efficiency (J/TH). Lower is better. A miner at 15 J/TH uses half the electricity per hash as one at 30 J/TH. Hash rate matters too, but efficiency determines whether you're profitable.
Three categories
Home miners are small, quiet, open-source boards (like the Bitaxe) that run on standard household power. Great for learning and lottery-style solo mining.
Air-cooled ASICs are the workhorses. Affordable and straightforward to set up, but loud and hot. Best for small to medium operations.
Hydro/immersion-cooled ASICs use liquid cooling for maximum efficiency. Higher infrastructure cost, best for larger operations.
Featured miners
Bitaxe Gamma 601
Latest single-chip open-source miner using a BM1370 from the S21 Pro; 1.2 TH/s at just 18W with 15 J/TH efficiency.
Antminer S21 XP
Bitmain's top air-cooled miner with 5nm chips delivering class-leading 13.5 J/TH efficiency.
Antminer S23 Hyd
Bitmain's hydro-cooled powerhouse delivering 580 TH/s at an exceptional 9.5 J/TH.
Step 2: Set up a Bitcoin wallet
You need a wallet to receive the bitcoin you mine. Use a self-custody wallet where you control your own private keys.
Self-custody matters
A Bitcoin wallet stores the private keys that let you send and receive bitcoin. "Self-custody" means you hold the keys, not an exchange or pool. If you don't hold the keys, you don't control the bitcoin.
Your mining pool will pay out to your wallet address. The most important step is securing your wallet: write down your seed phrase and store it somewhere safe offline.
Wallet types
- Mobile: Bluewallet, Nunchuk, Green
- Desktop: Sparrow Wallet (ideal for miners, has UTXO management)
- Hardware: Coldcard, Trezor, Jade (best for long-term storage)
Step 3: Install mining software
Mining software connects your hardware to the Bitcoin network and your mining pool.
Stock firmware works out of the box
Every ASIC miner ships with manufacturer firmware pre-installed. Plug in your miner, open its web interface in a browser, enter your pool URL and wallet address, and you're mining. No extra software needed to get started.
Upgrade later for efficiency
Third-party firmware like Braiins OS+, LuxOS, and Vnish can improve energy efficiency by 15-25% through per-chip autotuning. This is optional and can be done at any time. Start with stock firmware and upgrade when you're comfortable.
Step 4: Join a mining pool
Pools let miners combine their hash power to find blocks more frequently and split the rewards.
Why pools exist
Solo mining with a single ASIC is like buying one lottery ticket. At current network difficulty, an Antminer S21 XP would take roughly 65 years on average to find a block on its own. Mining pools let thousands of miners combine their hash power, finding blocks more frequently and splitting rewards based on each miner's contribution.
Over 95% of all Bitcoin blocks are mined through pools. Most miners earn small, predictable payouts daily instead of waiting for a jackpot that may never come.
Blocks found by pools
Nearly all Bitcoin blocks are mined through pools. Solo mining is possible but statistically impractical for most miners.
Step 5: Keep learning
Mining is a constantly evolving space. Stay up to date with the latest from the blog.
Is Bitcoin mining profitable?
Profitability isn't guaranteed, but it's not the only reason to mine.
What determines profitability
- Electricity cost: the single biggest factor. Competitive miners target under $0.07/kWh. Above $0.10/kWh is very difficult.
- Hardware efficiency (J/TH): lower is better. Modern miners at 15-20 J/TH are far more profitable than older machines at 30+ J/TH.
- Network difficulty: rises as more miners join. The same hardware earns less bitcoin over time.
- Bitcoin price: higher price means each bitcoin mined is worth more in fiat terms.
Mining as a long-term investment
Not every miner sells immediately. Many treat mining as a bitcoin accumulation strategy: even if today's electricity cost roughly equals the bitcoin's current market value, you're acquiring an asset that has historically appreciated over multi-year time horizons.
The key question isn't just "am I profitable today?" but "will the bitcoin I mine be worth more in the future than what I spent to mine it?"
Decentralization needs you
If only large, profitable operations mine, hashrate concentrates in fewer hands, fewer geographies, and fewer political jurisdictions. Home miners and small operators are the counterweight that keeps Bitcoin decentralized. Your miner may be small, but it's one more node of resistance against centralized control.
Censorship resistance
Miners choose which transactions go into blocks. A diverse, distributed set of miners makes it nearly impossible for any government or entity to censor specific transactions or addresses. Every independent miner is another voice that says: all valid transactions get confirmed.
Your hardware, your vote
Mining is how Bitcoin's protocol rules are enforced. Running your own miner means you directly participate in Bitcoin's governance, not through a token vote, but through real computational work. When protocol changes are proposed, your hashrate decides which rules you support.
Frequently asked questions
Common questions from beginners about Bitcoin mining.
How much does it cost to start mining Bitcoin?
A home mining device like a Bitaxe costs around $50-200 and uses minimal electricity, making it a low-cost way to learn. A competitive ASIC miner like the Antminer S21 costs $2,000-5,000 and requires significant electrical infrastructure. Total startup cost depends on hardware choice, electrical setup, and whether you need dedicated cooling or ventilation.
Can I mine Bitcoin on my laptop?
Technically yes, but it would be completely unprofitable. Modern Bitcoin mining requires ASIC hardware that is millions of times faster than a laptop CPU at computing SHA-256 hashes. Mining on a laptop would earn fractions of a penny while consuming electricity and potentially damaging the hardware from excessive heat.
How long until I earn my first bitcoin?
With pool mining, you'll start earning fractions of a bitcoin (satoshis) within hours of connecting your miner. How quickly those accumulate to a whole bitcoin depends on your hash rate and the current network difficulty. A single modern ASIC mining in a pool might earn 0.0001-0.001 BTC per day depending on the model and electricity costs after accounting for expenses.
Is Bitcoin mining legal?
Bitcoin mining is legal in most countries, including the United States, Canada, most of Europe, and many others. Some countries have banned or restricted cryptocurrency mining (notably China in 2021). Check your local regulations, and be aware that some jurisdictions have specific requirements around electricity usage, noise, or business licensing for mining operations.
What is the best Bitcoin miner for beginners?
For learning with minimal investment, start with a Bitaxe (open-source home miner, ~$50-200). For serious mining, the Antminer S21 series or Whatsminer M60 series are top choices, offering the best efficiency (13-16 J/TH) in air-cooled models. See the mining hardware guide for detailed comparisons.
Is mining worth it even if it's not profitable?
Many miners say yes. Mining contributes to Bitcoin's decentralization and security, even at thin margins. It's also one of the few ways to acquire bitcoin without KYC (identity verification). Some miners treat it as a long-term accumulation strategy, holding what they mine and betting on future price appreciation rather than measuring profit against today's exchange rate. If you believe in Bitcoin's long-term value, mining is a way to both acquire it and directly support the network.