How to mine Bitcoin Cash Guide 2020
Are you interested in Bitcoin Cash, and would you like to earn some Bitcoin Cash as a potential income source? And at the same time help Bitcoin Cash grow and become one of the more popular cryptocurrencies?
Perfect! Then you should look into starting to mine Bitcoin Cash. And in this beginner’s guide, we will help you with everything you need to know on how to mine Bitcoin Cash – 2020 edition.
In this beginners guide to mining Bitcoin Cash we will help you:
- Learn about the different methods you could use to mine Bitcoin Cash
- Find out what equipment you need for mining Bitcoin Cash
- How to get started mining Bitcoin Cash
- And what the future might hold for mining and BCH in general
Before we head into the mining part of this guide, we wanted to take a few minutes to briefly talk about Bitcoin Cash for those of you who don’t know it.
You might have heard about Bitcoin right? The first-ever cryptocurrency. Created by this mysterious figure that we only know as Satoshi Nakamoto.
Well, Bitcoin was created and became very popular. Inspiring and bringing in people from all types of backgrounds. No matter if you were interested in Bitcoin from a developing, investing, financial or societal point of view. Bitcoin meant something for many of us.
And with the increased interest and popularity, new opportunities but also issues arose.
- Different factions within Bitcoin came about. Many with different ideas for what should happen to Bitcoin and what it was for – a digital payment method or more just a store of value
- But also with the increased interest and usage of Bitcoin, the questions and issues of scalability became all more urgent
And as the different groups and factions within Bitcoin couldn’t agree on how to move forward eventually it led to a hard fork of Bitcoin.
And in August 2017 Bitcoin Cash (BCH) was born. A new cryptocurrency, with an increased block size of 8MB (source).
So today we have two strong contenders of the Bitcoin name, and two different but very promising (and similar) cryptocurrencies. Both fighting for the number one position. Both in market cap and trading volume, but also in the name.
About mining Bitcoin Cash
Both Bitcoin and Bitcoin Cash are Proof of Work blockchains where miners play an essential part in securing the network and validating new transactions. And for their contribution, they get rewarded new coins which are mined by them.
Before we provide you with all the information and guides you need to get started mining BCH we want to summarise some key questions that are often asked by potential new miners.
- Will the mining of Bitcoin Cash in 2020 be profitable?
- Can I fairly easy start mining Bitcoin Cash without too much effort?
- Is mining Bitcoin Cash better than mining Bitcoin?
- And what are the steps of getting started mining BCH?
We will in our guide to mining Bitcoin Cash provide you with the answer to those questions but also many more. And you will get all the information necessary to get started mining Bitcoin Cash.
How to mine Bitcoin Cash guide
So let’s get started exploring how to mine Bitcoin Cash in 2020!
There are few different ways that you could mine BCH, these are the most popular and common ways of mining in 2020:
- Mine by yourself – this might be harder depending on the equipment you have but you get all the rewards for yourself
- Join a mining pool – here you contribute to the pool’s common effort and get a percentage of the rewards
- Cloud mining – it is a way to start mining without the equipment and you instead pay to take part and earn shared rewards
So you need to decide which of these methods you want to follow. The most common method for people who want to start mining Bitcoin Cash at home is to join a mining pool.
But it depends on how much you can spend on equipment, your technical skills, if you have room to keep the equipment somewhere, etc.
In this guide on how to mine Bitcoin Cash most of the information about equipment, software, etc will only be relevant for those of you who want to mine Bitcoin Cash by yourself or by joining a mining pool.
And for those scenarios you will need a couple of things to get started mining:
- Mining equipment (such as an SHA-256 ASIC miner)
- Mining software
- A Bitcoin Cash wallet
- Somewhere to put your mining equipment
- Internet connection
What mining equipment do you need to mine Bitcoin Cash?
A very essential component of mining any cryptocurrency is the mining equipment. Back in the early days of Bitcoin hobby miners could mine it from their computers at home.
It is the mining equipment that provides computational power in order to do the mining.
Today you will need more effective mining equipment in order to compete with the others and effectively mine Bitcoin Cash and Bitcoin.
So you will need to invest in some modern Bitcoin Cash mining hardware. That would mean a dedicated mining rig right now to be successful.
BCH uses the SHA-256 algorithm which means that you will need specific mining equipment that can match this specific algorithm. So today you will need an ASIC miner (Application-Specific Integrated Circuit miner) to mine BCH.
The absolutely most common mining rig for Bitcoin Cash and for mining Bitcoin are Antminers, from Bitmain.
They are definitely the most commonly used mining equipment out there today. For example the Bitcoin Antminer S17+, S1759Th to previous models such as the Antminer T17, S15, T15.
Head over to Bitmain’s website to learn more about the different Antminer models.
But other new coming names and smaller existing ones are:
- Canaan Avalon 1166 (link to Canaan)
- Cheetah Miner F5i-60T (link to Cheetah)
- Ebang EBIT models (link to Ebang Ebit)
- MicroBT Whatsminer (link to Whatsminer)
So depending on your budget and preferences you need to decide on which mining equipment you need to buy to start mining Bitcoin Cash.
When you decide on mining equipment you can use these metrics and the mining calculator from What to Mine to help you decide:
- Power consumption
- Hash rate
So choose the Bitcoin Cash mining hardware that fits your budget and needs and good luck!
Bitcoin Cash mining software
In order to get started using the mining equipment, you will need to download and set up some mining software. And there are a few different options available depending on your technical skills and device.
Some of the most popular mining software that you can use are:
- CGMiner – One of the most popular mining software available (GitHub – Wiki page)
- BFGMiner – another popular option similar to CGMiner (website)
- Easyminer – a GUI wrapper mining software that makes it easy to start mining (website)
- MultiMiner – a desktop app that makes starting to mine really easy (website)
So check the different options out and select the software you want to use to start mining.
Select a mining pool (if you are not solo mining)
If you are not planning to solo mine, i.e. mine BCH by yourself and instead join a mining pool then here we will provide you with the information necessary.
A mining pool is essentially a larger group of miners that all join in and contribute together in their pool. By joining a larger mining pool you will increase your chances for successfully getting mining rewards.
But you will also need to share the mining rewards with others, and potentially pay a fee.
These are the most common mining pools for BCH:
1 ) Bitmain’s Antpool
This is the mining pool from the world’s most famous mining rig producer namely Bitmain. It is one of the most popular mining pools out there today. You will need to have mining equipment from Bitmain (Antminer) to join the pool.
- Antpool’s website
2 ) BTC.com
Owned by Bitmain Technologies and it is one the largest mining pools for Bitcoin Cash today.
- BTC’s mining pool website
3 ) viaBTC
Another very popular mining pool option is viaBTC. Where you can mine BCH, and others like BTC, LTC, ETH and more.
- viaBTC’s website
4 ) Hashflare
Another option that you could use for mining BCH is Hashflare.
- Hashflare’s website
5 ) F2Pool
This is a fairly big mining pool used for mining BCH, ETH, and LTC amongst others.
- Link to F2Pool’s website
So have a look at the different mining pool options listed here if you want to join a mining pool for BCH.
Learn more about mining pools for Bitcoin Cash here.
Choosing a Bitcoin Cash wallet
Another important step you need before you start mining BCH is to select a BCH wallet. This is where your rewards will be sent. So it is a very important part of setting yourself up to mine Bitcoin Cash.
You have many good options to choose from when it comes to BCH wallets. We have written a guide about Bitcoin wallets, and it very much applies to Bitcoin Cash also.
- Read our wallet guide for Bitcoin and Bitcoin Cash here
When looking for the best Bitcoin Cash wallet we would recommend using a secure hardware wallet.
And it is all the same as important for when you want to mine Bitcoin Cash. Perhaps even more so. As you will deal with fairly large sums when you successfully mine BCH.
- Learn more about good hardware wallets for BCH and other cryptocurrencies here
After selecting the wallet for your mining rewards you will then connect it to your BCH mining software (enter the wallet address).
To summarise the steps you need to take to start mining Bitcoin Cash:
- Buy the mining equipment
- Set up the equipment (connect it to the internet and electricity)
- Select the mining pool you want to join (if not solo mining)
- Find your mining rig’s IP address
- Log into the browser interface of your miner and enter the IP address
- Enter the mining pool information
- Setup the mining software
- Start mining
Solo mining Bitcoin Cash
You can also mine Bitcoin Cash and other cryptos without joining a bigger pool. As mentioned this decreases your chance to successfully mine a block by yourself. Unless you plan to use a lot of Bitcoin Cash mining hardware.
But when you do successfully mine a block there is no one else you need to share it with.
Technically the steps to solo mine BCH are the same as mentioned above. But instead of joining another pool you setup your own.
Learn more about setting up your own solo mining pool here.
How to mine Bitcoin Cash via cloud mining
Another option that we mentioned earlier is to mine BCH via a method known as cloud mining.
And as we briefly said cloud mining is actually done without all the equipment and software setups. With cloud mining, you won’t need to have the equipment at home running 24/7 draining your energy bill and producing a lot of heat and noise.
The steps to start cloud mining is also much easier. Basically it is:
- Find a reputable cloud mining provider
- Agree on a contract with that provider
- Setup your own BCH wallet (advised)
- Start mining
Cloud mining providers
Here below we will list some of the more popular cloud mining providers so that you can easily get started cloud mining Bitcoin Cash if you want:
1 ) CCG Mining
CCG Mining is a company founded in 2016 and with branches in five countries. Currently, they have over 45 000 private customers from around the world.
- Find out more about them on their website
2 ) NiceHash
Another popular option for remote/cloud mining is NiceHash. Now with NiceHash, you don’t buy the hash power from them but actually other people connected via NiceHash. But other than that it is the same structure and setup.
- Find out more on their website
3 ) Cryptonaras
These guys are based in Norway and they are offering a range of packages to help you get started mining BCH in no time with little to no effort.
- Find out more on their website
4 ) Bitcoin.com
Now this Bitcoin and BCH powerhouse is also providing cloud mining services for those who are interested. An obvious choice of interest as this is a provider that you know is reliable enough to stay around for years.
- Find out more about cloud mining with Bitcoin.com on their website
Is mining Bitcoin Cash in 2020 profitable?
To help you find out if mining Bitcoin Cash is a good idea or not you should look into the potential profitability for yourself.
So a very common question asked by new potential miners is how can they calculate the Bitcoin Cash mining profitability?
And to help you answer that question you can use some Bitcoin Cash mining profitability calculators.
They are based on the following things (amongst others):
- The hash rate produced by your mining equipment (the effectivity)
- The power outage of your mining equipment (the usage)
- The cost of electricity for running your mining equipment (this differ depending on where you live and your electricity contract)
- The (potential) initial cost for buying the mining equipment
- Any potential fees from mining pools
Those are the key aspects, but others in various scenarios might apply and affect the potential profits from mining BCH.
Basically, it is a simple question of revenue and costs. Where you need more revenue than the cost to make a profit from mining.
You can use this calculator from the site What to Mine to calculate what equipment you should buy in order to be profitable depending on the costs of electricity where you live.
There are other Bitcoin Cash mining profitability calculators that you can use. Such as:
FAQ (Frequently Asked Questions) about mining Bitcoin Cash
1 ) Do I need a mining rig or can I mine Bitcoin Cash with my computer?
Well no, not really. You can’t solo mine or join a pool and mine with your Computer’s CPU or GPU today. It wouldn’t be able to compete with today’s mining difficulty. You would need a specialised Bitcoin Cash mining hardware like an ASIC miner.
But technically you could perhaps use something like NiceHash and contribute with computational power to another miner. Learn more about it here.
2 ) Can I use any wallet for my mining rewards?
Yes, you can. Well, any Bitcoin Cash wallet that is. Feel free to use any wallet you like. There’s no requirement for a special wallet. But as always do think about using a safe wallet.
And make sure you are protecting your cryptos. Using a safe wallet in which you own the private keys is the safest choice and the best Bitcoin Cash wallet should be a hardware wallet.
Learn more about protecting them here.
3 ) Is it safe and legal to mine Bitcoin Cash?
Yes, mining Bitcoin Cash or other cryptocurrencies should be perfectly safe. There is nothing in mining itself that poses any clear risks.
But you should be aware of the potential scams that do exists in the cloud mining space. So make sure you do your research and go with a trusted partner.
And in regards to the legality question, we can’t say for sure about the legality of mining Bitcoin Cash or other cryptocurrencies in your country. You should best look into that before you start.
4 ) Do I need to pay taxes on mining BCH?
Yes, it might be the case. Once again every country’s tax laws differ, so check with your national tax agency or a local CPA to find out more.
But in some countries mining can be taxed either as a hobby or as your income and could affect your tax rates. Check with a tax expert to find out more.
We have written some guides on crypto taxes that also could help, find out more here.
We do hope that this guide on how to mine Bitcoin Cash gave you all the information needed on how to mine Bitcoin Cash.
We encourage everyone to try it out if they can. Mining BCH and other cryptocurrencies can be a lot of fun. And also it does help the network and you are contributing to a whole new ecosystem of opportunities.
Decentralised technologies, finance, and applications are the future. And you could be an important part of that.
If you do have any other questions please feel free to contact us or leave a comment below.
If you liked this article please share it with others.
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- Bitcoin investing guide
- How to short Bitcoin
- Best Ethereum wallets
Per Englund – Founder of Go CryptoWise a cryptocurrency and tech fan that want to see better and smarter products and services that make our lives better and easier