How to Mine Bitcoin at Home in 2025 – 5 Things You Need

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Eliman Dambell

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Eliman Dambell

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Eliman Dambell was a news writer and editor at Bitcoin.com, FXStreet and Investing.com. He commentates on various markets, including Crypto, Stocks and FX.

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February 17, 2025 07:44 EST

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If you’re looking to mine Bitcoin in 2025, there’s a lot that you need to consider. You’ll need some ASIC devices, mining software, and a lot of energy.

In this guide, we explain how to mine Bitcoin at home in simple terms. We will also explore some Bitcoin mining alternatives that are suitable for beginners.

What You Need to Start Mining Bitcoin at Home

Can you still mine Bitcoin? While not impossible, mining Bitcoin from home is very challenging. As noted, you’ll need some expensive ASIC devices and vast amounts of energy consumption. You’ll also need some Bitcoin mining software and cooling devices. The latter ensures that your Bitcoin mining rig doesn’t overheat.

Read on for more information on how to mine Bitcoin at home 2025.

Bitcoin Mining Hardware Essentials

If you want to mine Bitcoin directly, you’ll need some mining hardware. When Bitcoin first launched in 2009, people were mining at home with basic CPUs. As more miners entered the market, the difficulty of Bitcoin mining increased. CPUs were no longer capable of solving mining equations – instead, miners had to upgrade to GPUs.

Fast forward to 2025 – neither CPUs nor GPUs will enable you to mine Bitcoin at home. They’re simply not powerful enough, meaning they won’t realistically compete against other miners. Today, you’ll need to buy an Application-Specific Integrated Circuit (ASIC).

And not just one ASIC – you’ll need multiple. The more ASICs you have, the more hashing power you can generate simultaneously. More hashing power enables you to generate more potential answers to the mining equation. This means you have a greater chance of being the first miner to solve the equation and win the 3.125 BTC mining reward.

There are some drawbacks to consider. For a start, the latest and most powerful ASIC devices are often developed by large mining organizations. These organizations use the best ASICs exclusively, giving them a huge advantage in the market.

After several months of usage, the ASICs might then be sold to the public. At this stage, the mining organization will likely have developed a newer ASIC, allowing it to retain its edge over other miners.

In addition, ASIC devices are expensive. Take one of the best ASICs on the market, the Bitcoin Bitmain Antminer S21 Hyd (335Th). This can generate a hash rate of 335 Th/s, with a power efficiency of 16j/Th. The cost? $5,000. And as we just noted, one ASIC won’t be enough – you’ll need an entire farm of devices to stand a chance of competing.

Bitcoin Mining Software

Once you’ve sourced some suitable ASICs, the next step is to install Bitcoin mining software on your desktop device. This sits between your ASIC and the Bitcoin network, allowing you to mine from home. There are several types of Bitcoin mining software – the one you need will depend on various factors.

For example, the type of operating system you’re running and the specific hardware device you’re connecting.

• If you’re purchasing ASICs, then CGMiner is a great option. Not only is it compatible with the latest ASIC devices but it’s free to use.
• Another option is BFGMiner, which is also ideal for running ASICs around the clock.

That said, some ASIC manufacturers release their own mining software. This means that third-party software won’t be compatible. Always check this with the manufacturer before making a purchase.

Reliable Electricity and Power Supply

When you mine Bitcoin at home, you’ll be using a significant amount of electricity. Bitcoin mining consumes approximately 176.62 terawatt-hours (TWh) of electricity annually, surpassing the energy consumption of entire nations such as Egypt, Malaysia, and Poland.

This energy usage accounts for about 0.5% of the world’s total electricity consumption. Although early 40% of Bitcoin mining operations are powered by renewable energy sources, it still relies heavily on energy-intensive proof-of-work processes.

The amount of energy you’ll require when mining Bitcoin will depend on how many ASICs you’re running. More ASICs mean more electricity. Additionally, the cost to mine 1 Bitcoin depends on where you live. 2023 research by CoinGecko showed that mining one Bitcoin would cost you a relatively modest $266.20 worth of electricity in Lebanon vs $64,111.02 in Japan.

Not only do you need to consider the cost of mining Bitcoin at home but also reliability. After all, you’ll need to run your ASIC devices 24 hours per day, 7 days per week to stand a chance of winning mining rewards. This means you’ll need uninterrupted power supplies without any downtime.

It’s best to speak with your energy supplier before you start mining Bitcoin. Your usage will increase by unparalleled amounts, which could force the supplier to turn off your power.

Cooling System

So far, we’ve established that you’ll need multiple ASIC devices with advanced power capabilities. Consequently, your ASICs will consume vast amounts of energy around the clock. The result? Your stay-at-home mining rig will generate significant power. This means your ASIC devices will overheat, resulting in downtime, maintenance fees, and lost earnings.

Therefore, you’ll also need to invest in adequate cooling systems. That being said, some of the best ASIC devices – especially those manufactured by Bitmain, come with internal cooling features. This means that the ASICs monitor and regulate their own temperature levels. This feature is rarely included with older ASICs, so make sure you check this before proceeding.

Bitcoin Wallet to Collect Earnings

Before activating your mining set-up, you’ll need to make sure you have a suitable Bitcoin wallet. This must connect to your Bitcoin mining software. If you successfully mine a Bitcoin block, the 6.25 BTC reward will be transferred to the stated Bitcoin wallet address.

Considering the value of 6.25 BTC, we’d suggest buying a hardware wallet. One of the best crypto hardware wallets is Trezor. Its basic model costs just $59 – which is more than sufficient for safeguarding your Bitcoins. Your private key is stored within the Trezor device, which is never connected to the internet. This protects you from remote hacking attempts.

Other popular hardware wallets include Ledger Nano, Safepal, KeepKey, and SecuX. Once you’ve chosen a wallet and set it up, you’ll need to copy the unique deposit address. Paste this into the Bitcoin mining software.

Joining a Mining Pool

As a Bitcoin miner, you’ll be competing with large mining operations that have hundreds of powerful ASIC devices running around the clock. They invest millions of dollars in energy consumption every month, and even then, they’re not guaranteed to successfully mine Bitcoin.

As a solo miner, you should consider alternative options, such as mining pools. In a mining pool, you pool your resources with other solo miners, giving you a higher chance of successfully mining Bitcoin as a collective.

Another benefit of Bitcoin mining pools is that they are a lot more budget-friendly. Your energy costs will be reduced, as you won’t need to own dozens of ASICs. You can also switch your mining devices off at any time, so your ASICs won’t need to run 24/7.

There are many Bitcoin mining pools in the market. Here’s what to consider when selecting a provider:

• Pool Size: It’s best to focus on large mining pools. This will give you the best chance of generating mining income. You can dip into and out of the mining network at any time, without it impacting your earning ability.
• Stability: Make sure you’re chosen mining pool has a proven track record, meaning little to no downtime. This will ensure you can mine Bitcoin from home without interruptions.
• Payout Schemes: Each mining pool will have its own distribution model. This determines how and when you get paid. Some of the most common methods are pay-per-share and pay-per-last-N-shares. Do some research to determine which model is best for you.
• Hardware Capabilities: You’ll also need to ensure the mining pool is compatible with your hardware device.

Pool Fees and Reward Structures

Although mining pools give casual users a chance to mine Bitcoin, you’ll need to pay fees. Fees will vary depending on the mining pool, but average 1-3% of your mining rewards. So, if you’ve earned 0.5 BTC in mining rewards, you’d likely pay between 0.005 BTC and 0.015 BTC in fees.

In addition, you’ll need to choose the most suitable reward structure.

Here’s an overview of the two most common:

• Pay-Per-Share (PPS): This is based on a proportionate model, meaning your share of earnings depends on the contributed hash rate power. However, irrespective of how much is mined, you’ll receive a pre-agreed amount from the pool. This offers a steady, predictable income flow. However, expect to pay higher fees.
• Pay-Per-Last-N-Shares (PPLNS): This payout method is also based on proportionate contributions. However, you’ll only earn when the pool successfully mines a block. When it does, you’ll receive an equal share based on your contributed hashing power. You could earn more or less than the PPS model.

Setting up Pool Connection

Once you’ve found a suitable mining pool, you’ll need to register with the provider.

You’ll be provided with some unique credentials, which you can add to the Bitcoin mining software. This ensures you receive your fair share of Bitcoin mining rewards, based on the amount of hashing power provided.

From then on, everything should be automated. You’ll receive your share of Bitcoin mining rewards per the agreed payout framework. It’s important to monitor your progress to ensure you’re receiving what you’re owed.

Mining Difficulty

The mining difficulty determines how easy or difficult the cryptographic equation – the equation that miners must solve to win the mining reward – is.

The Bitcoin mining difficulty rises and falls based on how much hashing power is being contributed. In the early days of Bitcoin, when very few people knew about Bitcoin, let alone Bitcoin mining, the mining difficulty was very low. Bitcoin mining could be done easily from home with a CPU or GPU.

Bitcoin is now a trillion-dollar asset, and Bitcoin mining has become extremely competitive, making it significantly more difficult than it was 15 years ago. This is why you need multiple ASICs to stand a chance of mining Bitcoin.

Hash Rate

The hash rate determines how much power an ASIC device can generate. It’s usually measured in terra hashes per second (Th/s). The more Th/s, the more powerful the mining device is.

Subsequently, more hash rate power means you’ll have a greater chance of mining the next block. This is why the most powerful ASICs are so expensive – they have an unparalleled Th/s.

Bitcoin Halving

Bitcoin reduces the mining reward approximately every four years. This increases Bitcoin’s scarcity, as over time fewer new coins are being issued. So, when Bitcoin first launched in 2009, the mining reward was 50 BTC. In 2012, it was reduced to 25 BTC. In 2016, it was reduced to 12.5 BTC.

In 2020, it was reduced to 6.25 BTC. The 2024 Bitcoin halving reduced the mining reward further to 3.125 BTC. Historically, Bitcoin halvings tend to herald the start of the next bull cycle and a new round of all-time highs.

Calculating Profitability: Is Bitcoin Mining at Home Worth it?

Several variables will determine whether or not you can make a profit from Bitcoin mining. This includes the average electricity costs in your home country, the amount you invested in hardware, and the current price of Bitcoin.

Let’s explore these variables in more detail.

Evaluating Electricity Costs

Your biggest cost when mining Bitcoin from home will be electricity. Crucially, your powerful ASIC devices consume significant energy as they constantly try to solve difficult cryptographic equations.

As the difficulty of Bitcoin mining continues to rise, so will the amount of electricity consumed. If you’re based in a country with high electricity costs, Bitcoin mining likely won’t be viable.

Considering Hardware Investment

Another significant cost when mining Bitcoin from home is hardware. You’re going to need several thousand dollars per ASIC purchased, without any guarantees that you’ll make a profit, let alone cover your costs.

In addition, you’ll also need to consider cooling systems. There will also be costs associated with maintenance. This can be costly, as ASIC maintenance requires high-level expertise.

Keeping Track of Bitcoin’s Price

The Bitcoin price will have a substantial impact on your ability to make money from mining. After all, Bitcoin rewards are the only way you’ll generate revenue. You then need to factor in your variable costs, such as electricity and maintenance, as well as sunk costs from your ASIC devices.

Mining Bitcoin when its price is high is the optimal time for miners. This ensures there’s enough margin to cover costs, generate a sufficient profit, and encourages more miners to contribute hash rate power. However, this also makes mining more competitive and increases the Bitcoin difficulty, resulting in increased hashing power and electricity consumption.

How to Optimize Your Home Mining Operation

Buying and setting up a mining rig is just one part of the process. You’ll need to constantly monitor the performance of your mining efforts. Optimizing your setup means keeping tabs on the Bitcoin difficulty, electricity costs, and the amount of mining rewards you’re generating.

Energy Efficiency Best Practices

We’ve established that electricity will be your biggest cost when mining Bitcoin from home. Therefore, you’ll want to follow some best practices to keep your costs down. For a start, make sure your mining hardware is energy efficient. This is determined by the Joules per Terahash (j/Th). The more efficient your mining hardware is, the less energy is required to successfully mine Bitcoin.

It’s also important to ensure you’re getting the best deal possible. Speak with your energy supplier and let them know you’ll be mining Bitcoin. Explain that this will result in a significant increase in energy usage and that a discount would be appropriate. You should consider switching to a more competitive energy supplier, if possible.

Upgrading Hardware

Every ASIC has a shelf life, and at some stage, you’ll need to consider upgrading to a more recent, powerful model with a higher Th/s and a lower j/Th to generate more power in an energy-efficient way.

Fortunately, your older ASICs don’t need to go to waste. You can use them to mine other cryptocurrencies.

Risks of Mining Bitcoin at Home

Besides the financial risk, there are some additional drawbacks to consider when mining Bitcoin at home.

Hardware Failures

You’ll need your ASICs running 24/7 to effectively mine Bitcoin solo. Constant usage means an increased risk of hardware failure. If you don’t know how to fix ASICs yourself, you’ll need to consult with a third party.

This is likely to be costly. What’s more, there might not be anyone living locally that can help. This means your expensive ASICs could be left redundant.

Tightening Government Regulation

Nobody can predict the future of cryptocurrency regulations. This is especially the case with Bitcoin mining. After all, Bitcoin mining isn’t legal everywhere. For example, the Chinese government banned Bitcoin mining in 2021. Even so, Bitcoin mining is still huge in China. The ban has simply pushed mining operations ‘underground’.

Bitcoin mining is also illegal in countries where cryptocurrency ownership is prohibited. This is a major risk to consider when exploring how to mine Bitcoin at home.

Security Risks

Bitcoin mining is big business. Successfully mining one block will secure 3.125 BTC – plus transaction fees. That’s more than $320,000 worth of Bitcoin based on current prices. With this in mind, Bitcoin miners are a target for scammers and thieves.

Best practices include keeping your Bitcoin mining activities private. What’s more, you should store your Bitcoins in a cold wallet. Some of the best cold wallets include Trezor and Ledger.

Conclusion

Mining Bitcoin at home is no longer profitable. You’ll need hundreds of ASICs running simultaneously to stand a chance. This would require a significant upfront investment, not to mention substantial energy costs.

There are, however, other crypto mining sites can offer viable alternatives with a simple home setup. Other cryptocurrencies such as Litecoin are more affordable to mine compared to Bitcoin and could be a more attractive option for most people.

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