There are numerous ways to make money online. Lots of people have explored various options, one of which is cryptocurrency. There are several means of earning from cryptocurrency. One of the ways to make money in Nigeria is with Bitcoin mining, and we believe that many Nigerians are doing it.
One Can liken Bitcoin mining to doing an auditor’s work for Bitcoin transactions. But there are factors to consider, especially in Nigeria. Mining requires electrical energy, which might be challenging for interested persons in Nigeria. But there are ways to skirt around it.
This article will discuss how to make money with Bitcoin mining in Nigeria. Keep reading to see what it entails and know if you want to try it.
Overview of Bitcoin
Before diving into Bitcoin mining, let’s briefly define Bitcoin.
Bitcoin is a virtual currency that exists on a Blockchain. It is a cryptocurrency developed as a payment or store of value without any central authority controlling it. Bitcoin is the reward a miner receives for validating transactions on the blockchain.
A blockchain is an open record of transactions secured with a string of cryptographic numbers called a hash. It is a distributed ledger that primarily stores transactions carried out by users. The blockchain makes Bitcoin and other cryptocurrencies secure because of its transparency. Since the record of transactions is there for everyone to see, it’s difficult for anyone to change figures in their favour.
What is Bitcoin Mining and How Does it Work?
Bitcoin mining is the process of verifying the Bitcoin transactions in a block on the blockchain through the generation of a string of encrypted numbers called a hash. The people who perform this task are called miners. There is a correct hash that has to be generated for the block to be verified. That hash is encrypted, so miners must guess and generate as many hashes as possible to match the encrypted one. The first miner to guess correctly wins and receives newly added Bitcoin and transaction fees as a reward for their work. This is where the term “Proof-of-work” comes from.
Bitcoin mining is similar to mining natural resources – there is a limited number available, 21 million. As soon as that number is exhausted and all the Bitcoin is in circulation, Bitcoin miners will no longer receive Bitcoin as their reward. However, mining must continue because the transactions must be verified or audited to prevent fraud or double-spending. So, the miners will then receive the transaction fees as payment for their work. Investopedia explains in more detail how bitcoin mining works.
Bitcoin mining serves three primary purposes:
- Verifying transactions in a block (like auditing) while maintaining a decentralised system.
- To add new Bitcoin into circulation.
- To prevent double-spending.
How to Make Money with Bitcoin Mining in Nigeria.
To mine Bitcoin in Nigeria, you need three primary things
- A powerful computer
- Mining software
- A crypto wallet
- A strong computer
This is a no-brainer because mining is a complex process that requires substantial computational power. That’s why you need not just any computer but a strong one with high-grade graphics cards and CPUs.The kind that can mine Bitcoin is usually quite pricey. But if you can afford to get one, you’ve conquered the biggest challenge.
- Mining Software
If you intend to make money with Bitcoin mining in Nigeria, in addition to having the right computer, you’ll need to download the mining software. They’re mostly free. From XMR to CG miner, any of these are good enough to set you up for Bitcoin mining and are compatible with most MAC and Windows computers.
- A crypto wallet
If you’re going into any money-making venture, you need a purse or account or wallet, in this case, to receive the dividends of your pursuits. So, you’ll need to have a Bitcoin wallet to receive the newly minted Bitcoin whenever you eventually complete the requirement, i.e., guessing the hash correctly. You’ll also receive the transaction fees there.
Getting the first two requirements is capital-intensive. In addition to the hardware, you’ll need to pay for electricity constantly, which may mean you spend more than you earn. What guarantee do you have that you’ll guess a correct hash, especially if you do not have the best hardware for the job?
So, what is the best way to make money with Bitcoin mining in Nigeria?
You can join mining investor pools. These are groups of crypto enthusiasts and connoisseurs who pool their resources together to mine Bitcoin. Then, they split the rewards afterwards.
Tips and Considerations
As a resident of Nigeria, setting yourself up to make money with Bitcoin mining can be a cumbersome task. Here are some factors to consider before and even while getting what you need to start.
- Bitcoin mining is power-intensive. You’ll need lots of electricity to keep your hardware running. Even if you want to leverage solar power, it requires tremendous inverter power to keep your computers running.
- You must have a computer with a high-intensity CPU. This is for you to generate as many hashes as possible quickly.
- Bitcoin is volatile, and its price keeps fluctuating. You must study the market thoroughly before investing in the equipment you’ll use to mine. It would be heartbreaking to spend a lot buying your mining gear only to receive Bitcoin that isn’t up to your capital. So, ensure the Bitcoin market isn’t undergoing a terrible bear run.
Frequently Asked Questions on Making Money With Bitcoin Mining In Nigeria
Is Bitcoin mining profitable in Nigeria?
A: You can make money from Bitcoin mining in Nigeria, provided you have the capital to invest in quality equipment and electrical energy needed for the mining process. It also depends largely on the price of Bitcoin per time because every four years, the number of Bitcoins a miner receives as a reward reduces by half. If Bitcoin’s price is low when you buy your gear, it may barely cover your expenses. Other than that, it is profitable.
Can I mine Bitcoin with my phone?
A: You can mine Bitcoin in Nigeria on your mobile phone with certain applications that you can get from fellow miners. Mining Bitcoin or any Proof-of-Work cryptocurrency on your phone is called mobile mining. Joining a mining pool improves your chances of getting rewarded if your group solves the cryptographic problem first. Your phone’s processor contributes the computational power needed to improve the hash rate per time. Just note that this will drain the life of your phone over time.
How long does it take to mine 1 Bitcoin?
A: Usually, mining Bitcoin takes about 10 minutes. That’s the approximate time it takes to complete the verification of one block. However, miners succeed at different periods because they must correctly provide the hash for the block they want to verify.
Conclusion
Anyone can make money with Bitcoin mining in Nigeria. They need to invest some resources at first. Mining involves solving complex cryptographic problems to verify the transactions in a block. The reward for completing this task is Bitcoin and transaction fees; those who do this are miners.
Power is one of the limitations you may face while trying to make money with Bitcoin mining in Nigeria. Electricity is expensive, and the equipment one needs is also pricey. A way out is to join mining pools or networks.
Bitcoin mining is still profitable despite the number of people joining the mining network daily. Research ways to be part of this earning system and be mindful of scammers.
