If you’re passionate about Bitcoin or cryptocurrency mining, then you should at least consider researching, if not joining, a mining pool.
In the early days of Bitcoin, mining was a fairly straightforward process that could be done by literally anyone with a half-decent computer. Nowadays, due to decreased block rewards and current hash rates, for solo mining Bitcoin to be profitable, one needs to invest a serious amount of cash in specialized mining equipment.
The introduction of various ASIC hardware machines might have resulted in more efficient mining, but not without a cost; usually, incredibly high electricity costs.
That’s why mining pools have caught on during so well during the past couple of years. With mining pools, you are provided with a more efficient mining environment, where you can work with other miners to pool your resources and generate block data easier. The mining rewards are split proportionally (or equally, in some cases) among all the pool members.
Another advantage is the fact that processing is faster. If by solo mining a block would have been validating in a year or so, with the help of mining pools, the process is greatly sped up. For Bitcoin, having large numbers of mining pools is a benefit. This efficient mining process reduces the number of the so-called “orphan blocks.” This type of blocks describes blocks that are not selected to be part of the blockchain.
In terms of processing power, China is currently at the forefront of Bitcoin mining pools. Bitcoin pools are ranked based on the hash power controlled by each pool. For example, AntPool is the biggest Bitcoin mining pool with a share of 25,2%, followed closely by BTC.com.
There are dozens of Bitcoin mining pools out there, but choosing the right one might help you earn money faster and with the minimum amount of hassle. That’s why we have created a list with some of the best Bitcoin mining pools from which you can choose:
As mentioned before, AntPool is the largest Bitcoin mining pool in the world, thanks to its impressive chunk of hash power (a quarter of hash power worldwide). It’s owned and operated by a China-based company called Bitmain Technologies, the same one that also manufacturers the Antminer ASIC mining equipment. Unsurprisingly, it has numerous servers scattered all around the globe, making it very easy for anyone to enjoy a reliable connection.
Getting started with AntPool is straightforward since creating an account is free. Users are provided with three options: peer-to-peer solo mining (with your hardware) which requires a 1% fee, PPLNS (0% fee) and PPS (2,5% fee).
The mining pool makes payments every day for balances over 0,001 BTC somewhere around 10 AM UTC. Users should know that every Bitcoin block is rewarded by AntPool with 12,5 BTC. There are some transaction fees which are not disclosed by AntPool, but it provides its users with a modern interface, lots of mining options, good security, and decent payouts.
Initially dubbed Bitcoin Pooled Mining Server, Slush Pool is one of the first Bitcoin mining pools, and it’s been around for almost eight years now (launched in 2010). The main things to note about this pool is the fact that it has incredible coverage with its worldwide servers, an excellent reputation, and top-notch stability and accuracy. With only 11,4% of the total hash power, it’s the fourth largest Bitcoin mining pool.
The sign-up process is not at all complicated, and beginners can also benefit from a “demo miner” to get acquainted with the dashboard. For such a well-organized mining pool, it provides its users with a lot of freedom when it comes to choosing what type of mining they want to do.
It boasts a standard transaction fee of 2% and payments are made once any user hits the 0,0002 BTC threshold. Not only does the pool run on secure servers, but it also boasts two-factor authentication, wallet address locking via a read-only login token.
Its transaction fees are not the lowest out there, but it is the world’s oldest mining pool, so that’s to be expected.
BTC.com is one of the most highly-regarded Bitcoin mining pools, and it’s still a very good pick for any 2018 mining enthusiast. The mining pool in question represents somewhere close to 20% of the global hash power with servers in China and Germany.
One of the main selling points of this particular mining pool is its unique, rewarding system known as FPPS, short for Full pay Per Share. The algorithm calculates a standard transaction fee and adds it to the block reward for mining Bitcoin (12,5 BTC) which is then distributed to miners. The average fee is 1,5%, and it usually takes up to two hours for users to receive payouts (it highly depends on the state of the Bitcoin network).
Other honorable mentions of good Bitcoin mining pools you should research include KanoPool, F2Pool, and Bixin.
As one can observe, there are various advantages and disadvantages associated with each Bitcoin mining pool. Before you choose, please do your research in order to make sure that it perfectly fits your needs as a future successful Bitcoin miner.