Mining pools are combinations of miners who want to utilize their resources together. These miners will contribute their resources like processing power. This is to increase their likelihood of finding a block and successfully mining cryptocurrencies.
Pool mining becomes successful when they find a block. After that, they receive rewards that they divide depending on their contribution. Each miner must first show their proof of work to receive such rewards.
Bitcoin miners like you, need to equip yourselves with enough information about the mining process. When you choose to join a mining pool, you need to learn which among the many pools is the right mining pool for you. It is also necessary to learn about the different mining pools, their entire process, your mining power, the mining reward, and more.
Crypto mining is a process for circulating bitcoin. This does not only apply to Bitcoin but also to other cryptocurrencies. This is also a way for the Blockchain’s maintenance and development. Miners solve complex computational problems. One must find the solution to the problem first to be able to claim rewards.
Let’s now go with the difference between pool mining and solo mining. Solo mining happens when a single independent miner conducts the mining process. Solo miners do not need a third party in mining bitcoin. They individually link their computers to clients in discovering blocks.
The mining pool, on the other hand, rises due to the constraints of solo mining. It combines the hashing power of each miner. It coordinates the network of miners to find new blocks more quickly.
Advantages and Disadvantages of Mining Pools
We will discuss the advantages and disadvantages of mining pools. Let’s learn this further in the following paragraphs.
Several miners join a mining pool due to its benefits. This is despite a lower reward as they divide the total rewards for every miner in the pool. Even when they get only a proportional reward, miners find it better due to the higher probability of success. They can secure a block faster due to their higher computing power and hash power.
Mining pools also require less participation from each miner. This is in terms of hardware, cost of electricity costs, and mining power. The profitability is also higher than in solo mining. When you’re mining solo, you have fewer chances of receiving a reward due to many mining requirements. Solo mining also requires a lot of computing power from several ASICs.
With the advantages, there are still other miners who prefer doing it solo. This is because joining a mining pool also means that the miner is bound by the terms of the pool. Cryptocurrency miners also sometimes prefer to face the many mining requirements of doing it solo than divide the block rewards.
Another disadvantage that miners acknowledge is their reliance on a third party to earn. Miners in pool mining also need to invest trust in the pool owner for the possibility of inside swindling. There are possibilities that pool operators create fake miners who do not work but still receive rewards. These rewards will then be kept by the operators.
Crypto Mine Pool Methods
There are a lot of different mining pools. It’s now better to choose a mining pool that the protocols are suitable for you. Let’s further discuss them below:
Miners of this type contribute processing power to the pool. They then receive shares up until the pool succeeds in locating a block. Afterward, miners receive rewards that are calculated proportionally to the shares they own. This method is among the most common methods in mining pools.
Pay-per-share pools also let every miner in the pool receive shares proportionate to their contribution. However, miners in the PPS method don’t depend on when the block is found. They receive instant payouts regardless. A miner who contributes to this method can trade shares for a proportionate reward.
This type of mining pool sees to it that the pool structure is decentralized. They design a separate blockchain to prevent operators from cheating. They also prevent the pool from failing because of a central issue.
Most Profitable Mining Pools of 2022
The different methods of pool mining indicate that there are many mining pools present. Below are 10 of the most profitable mining pools in 2022.
Minedollars is by far the best when one is using a mobile phone for solo mining. This mining pool let users invest in mining contracts and the company pool these together. It does not necessarily require miners to buy hardware for mining.
Minedollars uses GPUs and a mining rig called an ASIC to help users monitor their earnings via a website or app. These GPUs are accessible using software on the cloud. The company is part of the most profitable mining pools as it claims to have over 320,o00 users and a total of about 1 million transactions.
This mining pool is good for both beginners and advanced miners. The payment threshold is when you at least $100 while the payment mode is solo. The transaction fees are zero deposit with withdrawal fees and a minimum BTC contract of $3,000.
- Slush Pool
If you’re one of the ASIC miners who have high hash rates, and mining at zero cost with Braiins OS+, slush pool is the best for you.
This company is one of the oldest and biggest Bitcoin mining pools. It runs Bitcoins and Zcash located in the USA, Europe, and more. Now, over 15,000 and 750 people mine Bitcoin and Zcash on it respectively.
The BTC pool hash rate of the company is 9.54 EH/s with 0.0001 BTC as payout thresholds. Its mode of payment is score and it has different fees for when using Braiins OS+ or not.
F2Pool is the best for the merged mining of four cryptocurrencies. It is also considered the best for ASIC miners with a high hash rate, and when you want to earn free coins while in a Bitcoin mining pool.
This is one of the earliest mining pools for cryptocurrencies like Bitcoin. Users can also receive coins for free from mining with this pool.
F2Pool is currently the biggest mining pool for Bitcoin with a share of 18.26% of the total hash rate of mining Bitcoin.
This is considered the best for remote mining activity control and low-threshold rewards. This is the second-largest pool for mining Bitcoin. To compare with F2Pool, this company has a 14.3% share of the total mining hash rate.
AntPool also supports merged mining. To mention its other feature, it has Pay Per Last N Share, Pay Per Share, and more.
For hash rate trading, loans, and crypto trading, this is the best option. It has an 11.44% share of the total hash rate of BTC mining with approximately a total number of workers of 16,400.
Its mining farms have varied prices according to the weather, but there are also yearly pricing alternatives. Some of its features have a multicurrency wallet and pool, a multicurrency crypto exchange, and it also has crypto loans and hedging services.
This is the best for mining Bitcoin and Bitcoin Cash. Bitmain runs the pool and it has transparent status about the ranking of which user is mining the tokens, their hash rates, fee ratio, and more.
Some of its features include an android, iOS app, and a web app for monitoring. There is also multi-currency mining support, and its BTC mining hash rate is 13.630 EH/s.
If you prefer various payment modes, then this is the best for you. Its mining pool has approximately 2,358,175 workers for BTC mining. The same with BTC.com, it also provides profitability rank for miners.
To go to its features, it also offers iOS, Android, and web platforms like other mining pools. It also has mining guides and tutorials for the miners.
- Genesis Mining
For beginners who don’t own mining hardware, Genesis Mining is the best for you. This pool also allows mining altcoins other than BTC. It also has its mining machines and sells packages for a price.
You can have daily mining outputs to your accounts and there is also an allocation of hash rate to any crypto you prefer. These are just some of the features of Genesis Mining.
This is the best for data center mining in both owned and rented data centers. Bitfury runs data centers that undergo immersion cooling. It also targets MSMEs that are eager to efficiently mine Bitcoin.
They also sell another mining device. This is BlockBox AC, a portable data mining center. Its features are its instant support for servers’ buyers, it offers 350 units as its minimum order and it has consultations for your mining setup consultation.
- Binance Pool
Lastly is the Binance Pool. This is known to be the best for pool savers who are willing to reinvest their profits from mining. This company also utilizes an algorithm that is auto-switch.
The auto-switch they offer allows the switching of mining algorithms for cryptocurrencies like BTC, BCH, ETH, and more. This results in the generation of higher profits. For its features, it offers daily payouts, mining tutorials, frequent bonuses, and more.
Things to Consider When Choosing a Cryptocurrency Mining Pool
After you decide that you want to try the cryptocurrency mining pool, there are several things to consider. You can learn more from the following:
First, you need to figure out whether you’ll need expensive equipment or not. There are a lot of devices that users can utilize to mine cryptocurrency. As most pools require a graphics processing unit (GPU) or central processing unit (CPU), this does not produce more profit due to more time and energy consumption.
It is also a recommendation for you to use a mining rig called ASIC. It is preferable to build multi-GPU computers for mining. Purchasing a new model is also good to keep up with miners with powerful rigs. Ensure also that you meet the minimum speed of network connection to the server.
Ensuring the Transparency of the Mining Pool
You should always ensure the transparency and trustworthiness of the pool operator. You should investigate if they truthfully indicate the total hash rate.
Look for the pool reputation. See to it that the pool that you want to participate in is transparent. If not, you need to consider joining another mining pool.
Reviewing the Pool Payout Scheme
Look out for lower payout schemes of the operators. If your mining device is low-end, avoid higher threshold pools. You need to also consider studying the different methods of payment schemes. See to it that you know about pay-per-share (PPS), Equalized Shared Maximum Pay Per Share (ESMPPS), and more.
Look for Mining Pool Stability
It is also important to look for the stability of your mining pool. Investigate their downtimes experiences. This will help you avoid pools that might affect your mining ability and profit maximization.
You must know if the pool has a secure connection, and if it’s more vulnerable or more active to repel attacks?
Reviewing the Pool Fees
Almost every pool requires a pool fee. SlushPool, for example, requires 2% of your reward and 0.0001 for the payout fee. You need to know the fees that you are required to pay on the mining pool that you want to join.
Weighing the Mining Pool Size and Power
It is important to know the size of your pool as it also lets you know its computing power. A pool with more participants generally takes lesser time to mine. However, a small pool of the latest equipment will still outdo a large pool of an older one.
Larger pools of new equipment have the highest probability of finding blocks. This is also because of its larger computing power.
Which is Better, Solo Mining or Pool Mining?
There are pros and cons to both mining solo and when you join a mining pool. For solo mining, it is beneficial in terms of the rewards you receive. You get to keep the income for yourself without having to divide it among other miners. However, it also provides erratic income as more miners join the blockchain. You also have a meager chance of mining an entire block due to the network demands.
On the other hand, pool mining offers a higher chance of mining a block. You will then receive a proportion of the rewards depending on the terms of the pool which is mostly based on the contribution of the miner. However, the miner is bound to the terms of the pool and has to rely on a third-party operator to earn rewards. You also need to find a transparent mining pool that is reliable.
Both of them have their competitive edges. It is really important for you, as a miner, to learn their risks and benefits. Therefore, the decision on which of them is better is on you.
Because you have reached this far, it is more likely that you are now seriously thinking about joining mining pools. As you have probably read, there are so many things that you can learn from mining cryptocurrency. Pool mining itself has a lot to offer. With its benefits, it is enticing to immediately join a mining pool.
However, we want you to remember that before joining a pool, it’s important for you to understand the risks and benefits it can offer to you.
In the end, the greatest takeaway that you can learn from this article is the key important things you should remember before joining mining pools. Weigh your options. Evaluate your choices.