Some people prefer mining by themselves. The reason for such a decision is obvious. When mining solo a person gets all the profit there is to himself/herself. This is great. However, there is also a certain problem to be aware of. If you make up your mind to start mining alone, keep in mind that your success will be based on a luck factor. In other words, if your hash power isn’t high enough, you’re very likely not to get any reward at all. With pool mining you won’t have to “rely” on your luck. This method of mining allows to get you as many rewards as you deserve. To be more exact, your profit will directly depend on the amount of work you do.
We believe that the most important things to pay attention to when choosing a mining pool to connect to are fees and the way the block rewards are distributed. As a rule, all pool mining “systems” try to prevent fraudulent activities. In particular, we are talking about the fact that the miners are forbidden to swap between pools.
In this article, we aim to tell you about certain aspects of mining based on which you can find the best pool mining for you. We hope that the information provided below will be useful.
Those who are planning to start earning cryptocurrency by pool mining may find a list of the best poll mining services on the Internet. We recommend you getting as much information about a mining pool as possible and take into consideration not only their features, but also feedback provided by people who are already using them.
- The fee that you’ll be charged. This should be your biggest concern. It’s common for mining pools to charge miners fees that depend on the way the payment distribution process is carried out. Besides, the party that’ll bear all the risks will also be taken into account. In case the operator of the mining pool bears the risks that may occur, be ready to pay high fees. If it’ll be the miners who’ll bear all the possible risks, the fees to pay will be low.
As a rule, the fees that miners are charged vary from 0% to 4%. At the same time, the standard fee is rarely higher than 1%. In case you happen to find a pool that implies a higher fee, the only thing you can do to find out if it’s worth it is to find out more about its payment system and other features that are available to miners. If you come across a different mining pool that has the same set of features but charges a smaller fee, you will be better off by choosing this pool.
Actually, there are pools out there that have a fee of 0%. We need to warn you about the fact that it’s very unusual for a well-known mining pool to charge no fee at all. The pool that has no fee to pay for the rewards you earn is the pool that has been introduced to the market recently. It’s currently charging no fee due to the fact that there is a need to attract miners. Once a pool becomes popular, there will occur charges. (That’s why you shouldn’t forget to check it)
- Payment system of a pool. In case a mining pool implies that the risks are to be assumed by the operator, it means that you’ll get payment for either each proof of your work that’s done or for hash solution you offer. This is how it works. Let’s say the total network is 100GH, the payment method implied by a mining pool is PPS, the hash rate is 10GH and the block reward amounts to 25 Bitcoins. Consequently, you’re expected to earn 2,5 Bitcoins per block.
The biggest advantage of a mining pool that functions this way is that all the miners will get their profit. In other words, it’s the operator that bears the risks. For some miners this may really be a good deal. It’s good to know that your work will be noticed no matter how much you’ve done. The profit will be determined based on the amount of work you do.
If you still doubt that such an approach is beneficial, think over the following. When it’s the miner who assumes all possible risks, he/she may fail to solve a block during a certain period of time. As a result, there is no profit to expect at all. Of course, the fees a miner is to pay when using this system are lower, but there is a chance that you won’t get anything from using a pool.
When it comes down to the hashing power, there are certain methods used in order to avoid its “fluctuation” thus allowing to have a “steady income”. These methods are mentioned below:
- Proportional method means that the reward is split so that each of the miners gets profit according to the hashing power each of them contributed.
- PPLNS method (Pay Per Last N Shares) implies that the last number of shares is taken into account when determining the profit of a miner. This method allows to get the profit even when you get disconnected for some reason. Let’s say you contributed to lots of bitcoin block 1-6 and then you suddenly become disconnected for block 7 (in which your pool is found). You’ll still get a payout depending on the number of last shares and the time they occurred.
- There are lots of other approaches that prove to be effective. One of these approaches is the Double Geometric Method (DGM). Here is the way it works: the operator of a pool gets some payments during short rounds. He/she then distributes them among the miners during longer rounds.
You also need to know that some pools imply an additional fee. However, this is rare. As a rule, the fees vary from 0% (if either proportional or PPLNS schemes are implemented) to 10% (if the Pay Per Share scheme is implemented). Some pools give miners an opportunity to merge mine different coins apart from SHA-256. Scrypt pools may be a great option for those who need to be able to merge mine crypto currencies like Dogecoin and litecoin.
Nowadays, there are lots of payment systems that are used in mining pools. It’s common for altcoin pools to use either a Proportional or PPLNS payment system. At the same time, there are also the following schemes that may be implemented in a pool you choose:
- CPPSRB that means Capped Pay Per Share with Recent Backpay.
- DHM (we’ve already mentioned it above). It’s often considered to be a kind of the system that unites the best features of the PPLNS scheme with the Geometric reward types.
- The scheme implies that the rewards are distributed equally among all the miners.
- In this case, you’re paid on the basis of the difficulty returned to pool and not served by it.
- The description of this scheme is provided above.
- PPLNSG is the scheme that’s almost the same as the PPLNS. The only difference is that shares are “united” as shifts. A miner gets a payout based on all the shifts.
- Pay Per Share. This scheme implies that each share you submit has a value of certain number of bitcoins. The crux of the matter here is that finding a block requires a certain number of shares. Consequently, if the mining pool you’re connected to uses this scheme and charges no fees, the potential profit will amount to approximately 12.5 bitcoins that are divided by the number of shares. This scheme implies a lot of risks for the operators. That’s why the fee charged is usually high.
- The scheme is described above.
- The scheme is very much like the SMPPS. The only thing that makes it different is that the most recent miners are given a priority over all of the rest.
- Score system allows a miner get a reward that depends on both his/her work and the time the shares were submitted. Actually, here the shares that are submitted later have more value than those that were submitted earlier. On the basis of the value, a miner’s score is determined. It is exactly the score that matters in terms of the profit he/she’ll get.
- This scheme is very much like the PPS scheme. However, you’ll never be able to get a profit that’s higher than the profit of the pool.
One more thing we recommend you paying attention to when looking through the list of mining pools is the minimal number of coins that’s allowed to withdraw. (Actually, some pools allow its miners to set an auto-payout) In some cases, it’s even possible to set a higher than minimum limit. This way you’ll save some money on carrying out such like operations. Overall, when deciding on what pool to use, you need to find out what the minimal payout is as well as how long the payout period lasts and whether a miner is charged additional fees for carrying out such transactions.
- The currency you can mine. Of course, when choosing a pool, you need to know what crypto currency you can mine with its help. At present, the most popular currencies for which you can earn the biggest profit are Zcash, Ethereum, and Ethereum Classic. You have an opportunity to calculate the profit you can get for them with the help of a special calculator. Still, you shouldn’t forget that the profit can change due to the fact that it’s based on a number of factors including the price of the currency and mining difficulty. That’s why we recommend you checking the value you can get for your currency regularly so that to always know what’s going on.
There are mining pools out there that allow to mine 2 different cryptocurrencies at one and the same time without loosing efficiency. The only thing to remember that this is only possible when certain algorithms are implemented.
One more option you may be interested in is a multi-pool that lets you mine a couple of currencies simultaneously and then convert them automatically into Bitcoin. This is the best option for those who want to mine altcoin and convert it into BTC.
- Your location. Actually, your location influences the efficiency of the mining process. We are speaking about the fact that when a miner that’s based in Europe is using a Chinese server, he/she may get the results that are far from the best results possible. That’s why we encourage every miner to find out if a mining pool he/she wants to use has servers in the country where he/she is based. If there are some servers, it’ll also be useful to check their URLs.
- Variable Difficulty. This characteristic tells you about how difficult it is to work on the shares you get. We definitely recommend a miner to check this parameter when choosing a pool. The Variable Difficulty is the parameter you should know now matter whether you’re a low or a high hashrate miner. the thing is that the Difficulty changes so that to fit your hashrate. There are pools that have different ports that correspond to the different difficulties. If it so happens that the pool you choose has no Variable Difficulty parameter, it’s best to test different ports in order to see what the difficulty is in each of them.