The best cryptocurrency mining pool is one of the first subjects that any person who wants to mine may like to know. A cryptocurrency mining pool is a virtual place where miners from all over the world come together. They share their computing power in that pool to generate a blockchain and receive rewards.
Miners receive the same percentage of the block reward as they share computing power. In the following, we describe the advantages and disadvantages of the best cryptocurrency mining pool.
Why do the miners need a pool?
It is the miners’ question that if they want to mine bitcoin or any other coin, it is better to do it alone or join the best cryptocurrency mining pool.
As the hash rate and difficulty of the Bitcoin network and other currencies increase, all miners are gradually moving towards joining these pools. In the early years of bitcoin, anyone could mine bitcoins on their own. After a while, as the difficulty of the bitcoin network increased, mining became difficult for people who did not have a strong processing power. So the specialists created the best cryptocurrency mining pools.
If you are planning to join a pool, you can consider it as a lottery that the chances of winning and not winning are the same. If you want to start mining alone, you do not need to share your rewards with anyone. But you should also consider that your chances of getting rewarded will decrease. Because it is not clear that you have enough computing power to solve math problems. It is not clear that you have a chance to produce a block.
How to choose the best cryptocurrency mining pool?
Before finding a mining pool, it is recommended to find the Top 10 Most Profitable Cryptocurrency mining in 2020. Then find out the ASIC Miner profitability ranking in 2020? and choose the Best crypto mining rig in 2020 if you want to mine Bitcoin and Ether.
When deciding which cryptocurrency mining pool to join, you should consider some cases as below:
- How much of a reward does each mining pool will share with you?
- How does the pool pay you?
There are several ways in which a mining pool can distribute a bonus after a block has been added to a blockchain. Some of the pool award structures are:
- Pay per Share or PPS: The PPS approach, as one of the first pool award structures, offers instant pay per share of the solved cryptographic puzzle. Payment of interest made from the balance of the mining pool.
- Full Payment per Share or FPPS: In addition to rewarding block extraction, the FPPS approach allows miners to enjoy transaction fees. The transaction fee is calculated for a specific period, added to the block bonus, and distributed to miners based on the PPS model.
- How much does each pool charge you?
The pools themselves usually make up between 1 and 10 percent of your share. Of course, some pools do not charge a percentage.
All of these factors reduce your profitability from mining. So all of these factors should be considered when joining a mining pool. If you want to know which cryptocurrency mining machine (like new Rack-Style miner of Bitmain AntRack miner) is more profitable, you can use a mining calculator.
What are the best cryptocurrency mining pools for joining?
- AntPool is the largest mining pool in terms of hash power. The pool operated by China’s largest mining equipment manufacturer, Bitmain. Creating an AntPool account is free. AntPool settles daily accounts over 0.001 Bitcoins at around 10 AM UTC.
It is possible to choose several working methods, the fees of which are as follows:
- Solo mine method with 1% commission
- PPLNS method with fee 0
- PPS method with a 2.5% commission
- SlushPool was the first cryptocurrency mining pool in 2010. This pool has mined more than 15,000 blocks. Satoshi Labs, a company based in Czech is the owner of SlushPool.
It receives a fixed commission of 2%. The minimum daily payment is 0.0002 bitcoins.
What are the advantages and disadvantages of the cryptocurrency mining pool?
The advantages of the best cryptocurrency mining pool are:
- Pools increase the chance of getting rewards because of their ability to solve more blocks. One of the advantages of the best cryptocurrency mining pools is a high chance of solving more blocks, and this will let you earn more than individual mining.
- One of the benefits of a mining pool for many miners is that joining the pool creates a steady stream of revenue. You can choose the way for your income deposit. For example, in a short period or after a certain time. This allows miners to have a steady income.
- The last thing that benefits the miner is the cost of mining. Miners who join mining pools pay fewer expenses than individual miners.
The disadvantages of a cryptocurrency mining pool are:
- You get rewarded for sharing your resources. But in this case, the reward divided among all members. So you do not receive a full 12.5 Bitcoins from the block production.
- One of the disadvantages of mining pools is that the pools may have problems and their operations may be interrupted or they may not be active for several hours or several days. This makes the miner less likely to work and get much less than it deserves.
- Issues such as pool fees or bonus payment methods are not pleasant for many miners because these pools themselves offer payment options and this can be one of the disadvantages of mining pools.