Bitcoin Mining Guide 2025

What is Bitcoin mining and how do I start doing it? In this article, we will explain in detail how to invest in mining with the greatest benefit.

What is Bitcoin Mining?

Bitcoin mining is a fascinating, high-tech process of earning bitcoin daily through energy-intensive computations on specialized equipment (ASIC). Today, participants in mining only need a general understanding of how bitcoin is produced to connect to a mining pool and receive daily mining rewards in BTC, proportional to their share of computational power.

Nowadays, having your own mining farm is no longer a requirement. The most profitable form of mining for small investors is the purchase or rental of computational power in large data centers that possess efficient mining infrastructure. This approach brings you into the mining market almost instantly and with minimal investment, while your equipment is professionally maintained by the mining company staff using its resources.

This form of ownership is called hosting.

Hosting of mining equipment allows you to earn bitcoin daily throughout the entire contract term (usually 3 years) or until the miner's resource is fully depleted.

Bitcoin Halving

Bitcoin Halving occurs approximately every four years (every 210,000 blocks) and represents a 50% reduction in mining rewards. This deflationary model is designed to decrease the emission of bitcoin, imbuing it with value as a scarce asset.

Halving cycles influence the price of bitcoin. Typically, new all-time price highs are achieved every four years. This is akin to the extraction of an increasingly hard-to-reach resource (similar to hard-to-recover oil reserves), whose price rises due to increased effort and higher production costs.

How to Mine Bitcoin at Home?

In the past, it was possible to mine solo on personal computers and graphics cards by assembling small-scale mining farms. Today, this is pointless from a profitability standpoint because without a reliable and centrally maintained mining infrastructure, even temporary success does not guarantee long-term profit for a solo miner and is merely a lottery that one cannot consistently win.

Today, Bitcoin mining is a major business where whoever operates at the lowest cost per mined bitcoin and can withstand market downturns without losing profitability wins. Under these conditions, solo mining has only one advantage: doing everything yourself to understand how it works. This experience allows one to approach the purchase of equipment with free hosting in a large data center in the most rational manner and enables them to start mining bitcoin on a pre-established, superior infrastructure without having to bear the space, ventilation, maintenance, and other costs. This is precisely what real investors value, along with the time savings.

What You Need To Mine Bitcoin

To start the mining process in Cuverse, it is enough to purchase a contract for the chosen miner model with free hosting. Your mining operation will start automatically within 24 hours. You will receive your first mining reward within 48 hours. Your mining equipment will be serviced 24/7 by a professional data center team.

If you want to engage in Bitcoin mining independently, you need to buy a miner and pay for its delivery, find a location to place the miner where its noise won't disturb anyone and it can be reliably cooled, connect to a cheap electricity source, pay for a reliable Internet connection, configure the software, connect to a pool, and periodically stop the equipment for cleaning and maintenance, interrupting the mining process.

Independent mining is a rather complex process that requires your constant involvement. Purchasing, logistics, space, noise/heat, internet, software setup, and scheduled maintenance - a failure of just one of these elements halts the mining process, thereby increasing the payback period. Mining with free hosting in Cuverse requires no attention from you, as the company assumes all technical risks.

Mining Hardware

The most important parameter when choosing a miner is its payback period. You can estimate the payback time of mining hardware using online calculators, e.g., asicminervalue.com. Don't forget to input the electricity cost! The more energy-efficient the miner, the more expensive it is.

Large companies make long-term investments, which allows them to include expensive, energy-efficient miner models in their investment portfolio. This approach minimizes electricity costs to the greatest extent and allows to offer the most favorable hosting conditions to its users. Users can combine devices with different prices and energy efficiency to balance their risks at the desired level.

Choosing your computing units in the Cuverse data center is very simple - the contract models and prices are presented on the website.

Mining Pools

You will only need to choose a mining pool for Bitcoin if you want to mine independently. In that case, an important question arises: which pool is more profitable?

If you operate through a hosting service, the company itself selects the pool and automatically connects you to it. Cuverse uses F2Pool (which represents 8% of the Bitcoin network's hash rate).

A mining pool is an association of miners for the purpose of collective bitcoin mining using the entire computational power (hash rate) connected to the pool. The advantage of connecting to a mining pool is that all rewards are distributed among the participants proportionally to their share of the hash rate, meaning that everyone wins in this scheme, and on a daily basis.

Some pools, for example CKPool, do not distribute rewards but transfer them entirely to the miner who solved the computational task. This looks good from a PR perspective, but in essence, it is a lottery.

How to choose the right Bitcoin mining equipment?

Mining hardware cannot operate without properly configured mining software. If you are determined to engage in independent mining, you will have to become a specialist in this area as well.

Hosting owned mining hardware in large data centers does not require users to have specialized technical knowledge related to configuring miners, connecting them to a mining pool, etc. The provider company takes on all issues related to mining equipment operation , including software setup, maintenance, replacement with backup computing power, and more.

The Bitcoin mining software from Cuverse is a convenient dashboard with complete statistics, deposit/withdrawal and fund conversion capabilities, news, analytical articles, and technical support. You will never be left one-on-one with your questions when using the mining infrastructure and software from Cuverse.

ASIC Miners

The payback period and profitability of mining depend on the price and energy efficiency of the ASIC miners used, the price of electricity, and the cost of maintaining the entire mining infrastructure. When you work with Cuverse, all infrastructure costs are borne by the provider company; you get a fixed electricity price for the entire contract term, plus a 20% cashback.

Thus, the payback and profitability of your mining with Cuverse will depend solely on your portfolio of selected ASIC miners. The mining profitability in USD equivalent additionally depends on the volume-weighted average price of Bitcoin, and with positive price dynamics, it can turn out to be significantly higher than calculated.

Expense items for independent BTC mining:

• ASIC miners
• Electricity
• Facility/Rental
• Professional skills
• Qualified personnel for farm maintenance
• Access to cheap electricity
• Infrastructure security
• Funds for replacing outdated equipment
• Funds for legal matters
• Equipment disposal costs
• Primary and backup Internet channels

Expense items for BTC mining with Cuverse:

• ASIC miners
• Electricity

Join Cuverse and enjoy: Bitcoin mining from anywhere in the world; 1 year manufacturer's warranty on equipment and its 24/7 operation + 1 year warranty from Cuverse; guaranteed power supply for miners under any circumstances; constant monitoring by our maintenance specialists.

Bitcoin Mining Alternatives

In the past, Bitcoin could be mined on GPU graphics cards, but since around 2012, it has become irrelevant as the computational difficulty has significantly increased. Today, only specialized equipment — ASIC miners produced by such crypto industry leaders as Bitmain, Canaan, MicroBT, and others — is capable of handling such complex computations.

Cloud Mining

Cloud mining of Bitcoin was quite popular until it was discredited by fraudulent companies. The essence of BTC cloud mining is that the user temporarily employs someone else's computational power for a fee, receiving a portion of the mining rewards.

And while the idea behind cloud mining was fundamentally sound (mining without buying equipment, just paying for its rental), the market saw an influx of offers promising fabulous profitability in a very short time. No mining operation could provide such returns. Companies offering cloud mining of Bitcoin and other cryptocurrencies under such conditions are financial pyramids that set up fraudulent reward payment schemes funded by the influx of new participants’ capital .

Mining under free equipment hosting terms is the fairest form of partnership between users and data centers, as users acquire the mining equipment as their property. The provider company is responsible for power, cooling, maintenance, etc. Daily BTC earnings are sent to user addresses. The equipment hosting offer from Cuverse ties together physical computing power, costs, and profitability in an honest manner, excluding unrealistic marketing traps.

Hosted Mining

Solo mining is a thing of the past. Today, Bitcoin mining is a business for large corporations. However, hosting miners is an excellent solution for enthusiasts, as it allows users to operate their own equipment in a fully equipped, centrally maintained data center. Miners connected to energy-efficient infrastructure under free hosting terms provide enhanced profitability and require no at-home maintenance.

Cuverse offers a wide selection of mining hardware for operation under free hosting terms. You don't need to worry about equipment maintenance and repairs, connection to a mining pool, etc., as all of this is already included in the price of your contract.

How is the difficulty of bitcoin mining measured?

The growing interest in bitcoin mining leads to new participants and new computational power joining the process. The Bitcoin network's difficulty depends on the total network hash rate (computational power). The higher the hash rate, the faster the computational tasks can be solved for block rewards. The network automatically recalculates mining difficulty every 2016 blocks (approximately every two weeks) to ensure that block computation (and the subsequent reward payout) does not speed up or slow down due to hash rate fluctuations, but takes about 10 minutes on average.

The size of mining rewards is inversely proportional to the Bitcoin network's difficulty. All other things being equal, you will earn less and less over time. Therefore, the constant increase in difficulty necessitates a gradual transition to more energy-efficient equipment; otherwise, your bitcoin mining will become unprofitable.

Conducting bitcoin mining under free hosting terms with Cuverse allows you to mitigate the risks of losing profitability, even in the event of a significant difficulty increase. This is because the company's cheap electricity and high-quality mining infrastructure ensure earnings regardless of the market situation.

How to secure your Bitcoin mining operation?

Mining security is based on confidentiality. If you engage in solo mining, every careless step carries the risk of loss. You must consider the security requirements for your physical equipment (facility) and cybersecurity. It is crucial to control your private keys and be the sole owner of the seed phrase for wallet recovery.

The most effective way to secure your operations is to transfer the technical and infrastructural risks to a professional provider. By operating under free mining equipment hosting terms in Cuverse data centers, you manage your mining through a convenient mobile dashboard. In this case, your security is the security of your Cuverse profile.

Beware of phishing: Do not follow suspicious links in emails and messages that disguise themselves as support services for pools or exchanges.

Today, Bitcoin mining through a large provider is the optimal path to success for the average user because it is much easier for a large company to ensure security and profitability than for an individual player. Connect to the Cuverse mining infrastructure and stop worrying about maintenance and security.

How to calculate the profitability of bitcoin mining?

Generally, to calculate the payback period for mining investments, you need to select a miner model and determine its daily net profit using a mining calculator (e.g., asicminervalue.com). Don't forget to specify the electricity cost. Divide the cost of the miner by its daily net profit, and you will get the number of days required for it to pay for itself. This calculation does not account for Bitcoin exchange rate fluctuations but is quite suitable for a general assessment, "all other things being equal." You can add your own expectations regarding BTC price dynamics to it, as well as assess the risks of a market downturn.

Calculating the payback period at Cuverse is even simpler, as all the necessary data is indicated in the miner info. For example, the cost of the popular mid-range model Bitmain Antminer T21 at Cuverse is $1,956, electricity ( after the cashback) is $5.2/day, and the daily income is $9.25. The number of days for this miner to pay back its cost = 1,956 / (9.25 - 5.2) = 483 days = 1 year and 4 months. This means that in the years following the payback period, you will be earning pure profit ($4.05 x 365 = $1,478 per year). An increase in the Bitcoin exchange rate during this time will proportionally increase your profit.

The latest trends in Bitcoin mining

Today, the Bitcoin mining business is already a domain for large corporations that set development trends for years to come. Big business invests for the long term and can afford significant capital expenditures to minimize operational costs. Mining hardware manufacturers follow this trend, offering increasingly energy-efficient and expensive miner models. Consequently, the gap between the profitability of large corporate mining and that of all other participants is constantly widening.

The mining business continues to be consolidated. Every market crisis will worsen the situation for small miners, who will either go bankrupt or be acquired by larger players. The weeding out of unreliable participants is part of the natural growth process.

Mining legislation is becoming increasingly stricter and more precise, backed by law enforcement practice. Jurisdictions with significant and cheap electricity capacities have huge advantages for developing mining projects. This is where the physical computing power of large companies is concentrated.

Energy consumption

Bitcoin mining is a computational process that requires significant electricity consumption. Moreover, this high energy consumption is fundamental to the security of the Bitcoin network. The computations performed by ASIC miners are a paid competition with bitcoin as the reward, and the energy costs as the participation fee .

Manufacturers of Bitcoin mining equipment also compete with each other, offering increasingly energy-efficient models of ASIC miners. Energy efficiency is measured in W/TH (or J/TH). Modern ASIC miners must have an energy efficiency of around 20-30 J/TH to remain profitable in a volatile market.

The cost of electricity is the decisive factor for mining companies, as it directly determines the cost of each mined bitcoin. Today, the winning mining companies are those that can achieve the best energy efficiency in their data centers. Success in mining is determined by the proximity to a source of cheap electricity and the continuous improvement of mining infrastructure.

Risks of Bitcoin Mining

Independent Bitcoin mining carries the following types of risks:

• Partial or complete loss of the physical asset due to external causes.
• Downtime caused by the lack of expertise required for the maintenance and operation of a high-tech asset.
• Regulatory risks - specifics of local legislation governing mining activities.
• Market risks - where strong volatility can cause significant losses.

By steadily diversifying and updating its equipment fleet, Cuverse eliminates for you the risks of physical asset loss, expertise-related risks, and legal risks, while also minimizing persistent market risks by offering highly profitable mining. Even the risks of equipment failure are mitigated by Cuverse through the rapid replacement of equipment with analogous units, ensuring your mining operations are continuous and you do not lose money.

How to invest in crypto mining

To successfully invest in crypto mining, it is essential to understand what determines its payback period and profitability. You can build your enterprise from the ground up, or you can leverage the infrastructure advantages of a large mining company.

The payback and profitability of mining depend on the price and energy efficiency of the miner models used, the price of electricity, and the cost of maintaining the entire mining infrastructure. When you work with Cuverse, all infrastructure costs are borne by the provider company, while you get a fixed electricity price for the entire contract term, plus a 20% cashback.

Thus, the payback and profitability of your mining with Cuverse will depend solely on your portfolio of selected miners. The mining profitability in USD equivalent additionally depends on the volume-weighted average price of Bitcoin, and with positive price dynamics, and it can turn out to be significantly higher than calculated.

Taxes on Bitcoin mining

In most jurisdictions, the law permits engaging in mining, albeit with certain stipulations. For instance, is Bitcoin mining allowed in the USA? In the United States, mining is taxed at both the federal and state levels. The Internal Revenue Service (IRS) treats cryptocurrency as property. When bitcoins are sold, a capital gains tax is triggered. It is calculated as the difference between the sale price and the initial cost basis (which is equal to the amount declared as income at the time of mining).

The situation in the United Kingdom is similar to that in the US, but with a clear distinction between mining as a "hobby" (Income Tax) and as a "business" (Corporation Tax).

The UAE is one of the most attractive jurisdictions for miners. There is no federal personal income tax. This means that the income of a private individual from mining is not taxed.

By mining with Cuverse, you don't need to worry about whether Bitcoin mining is permitted in your specific jurisdiction, as Cuverse is fully transparent under the law and bears responsibility to the user under the contract.

How to start Bitcoin mining

In order to understand how to start crypto mining with the greatest profit, the first question you should ask is: how much will I pay per kilowatt-hour? High operational expenses can significantly increase the payback period or even make the entire venture unprofitable.

Attempting to start Bitcoin mining on your own is likely to lead to significant losses, as only large companies typically have access to a "cheap power outlet."

If you want to start Bitcoin mining rationally and obtain a stable income from digital assets, you should host your equipment in a large data center. If you try to create your own infrastructure and start crypto mining, even with low electricity prices, the initial capital expenditures will prevent you from reaching profitability in the foreseeable future.

The Bottom Line

When answering the question of how to mine Bitcoin, it's crucial to understand that in today's cryptomining landscape, solo mining is no longer relevant. You can build an experimental mining rig and go through all the steps to get your first bitcoin to understand how it works. You will pay for the experience, but will not achieve the main goal - to earn substantially.

The most rational approach to starting Bitcoin mining today is to join a large mining company that develops and centrally maintains its own mining infrastructure. Cuverse offers free hosting and mining equipment ownership for efficient 24/7 mining.

Using a ready-made mining infrastructure allows you to start crypto mining with minimal risk, as the provider company assumes all risks except for market volatility.

Build your mining farm and start Bitcoin mining today!

FAQ

How do I start mining Bitcoin?

Today, you don't need deep technical knowledge or significant investment to start mining Bitcoin. Bitcoin mining is a business for large corporations, so the optimal solution is to connect to the infrastructure of a large, centrally managed data center under free hosting terms. You purchase the miners, and the provider company maintains them.

Is it possible to mine Bitcoin on a personal computer?

Today, this is not a viable option. The ability to mine Bitcoin using graphics cards ended back in 2012. You can do it with ASIC miners, but you will still remain uncompetitive. Mining requires significant investment in infrastructure and proximity to cheap electricity.

How much energy does Bitcoin mining consume?

Bitcoin mining requires enormous energy consumption. The power of modern ASIC miners is measured in kilowatts. The Bitcoin network consumes about 0.5% of all global electricity; however, the trend towards using renewable energy sources in mining is an encouraging development.

Why do you need Bitcoin mining?

Engaging in Bitcoin mining is exciting and profitable. By connecting to the Cuverse infrastructure, you can mine Bitcoin on your own equipment under free hosting terms, without worrying about its maintenance, updates, repairs, etc. Cuverse handles all maintenance issues.

Is Bitcoin Mining Suitable for Beginners?

The Bitcoin mining offer from Cuverse is attractive precisely because it suits both beginners and experienced investors. A ready-made mining infrastructure with a low cost per mined bitcoin allows you to succeed in this market regardless of your experience or knowledge. Such mining does not require constant investment, pays for itself quickly, and allows you to increase and diversify your income by investing in different mining equipment models.