Yet, it’s important to weigh both angles before deciding to join (or not join) one. Don’t sign up on a website as a miner/worker until you have all the information you need about them.
What are Mining Pools?
Mining cryptocurrrency allows miners to find new virtual coins on the blockchain network. Once you find these coins, you can increase the transactions in the public ledger. This process of mining gets more complex when more miners mine the same cryptocoins. In fact, when people mine on their own, their level of difficulty is higher since their resources are limited. Hence, the need for mining pools. Mining pools are groups of miners who come together to keep their resources in one place to mine any of the available cryptocurrencies. Pool miners work like gold miners, only that the difference is the use of computer programs and software. By releasing a new digital currency and increasing the transactions in the public ledger, you increase your chances of making more profit. Some of these mining pools in the table below. And yes, there are both private and public pools. So choose what you’ll be most comfortable with. So, how do you know the best mining pools to join? There are certain criteria that remain fundamental in choosing mining pools. They include:
- Pool Device Compatibility– Be sure that your mining device fits the requirements of the pool you choose. Slushpool, for instance does not allow mining on smart phones.
- Pool Size – When mining, timing is invaluable. Thus, the question of pool size is a big one, as it’s not enough to assume that small pools are the same as big ones. With big pools, you can find more blocks in little time, whereas it’ll require some extra time to get high up with small pools.
- Pool Trustworthiness/Transparency – Find out if the mining pool operator provides clear information (using a dashboard, for example) that allows miners to follow the success or difficulty of any mining process.
- Pool Fee Structure – Participants of mining pools often have to pay a fee and other charges for using the service. Even though there are some free pools, their offerings are limited, and the future costs may ultimately be unrealistically unaffordable.
- Pool Mechanism – Discover the rate at which the pool assigns tasks to miners and the level of difficulty. It’s important to observe balance based on pool members and their capabilities. Hash tasks should be similar and not based on a miner’s device.
Why People Need Mining Pools
With more miners comes a higher level of computational difficulty and individual miners may find it really tough getting around the blocks. Pool members report to the mining pool because it manages their hash rates, processing power, and rewards. Also, when the pool verifies a transaction, it rewards the miner with shares, but this doesn’t remove the initial fee that each miner has to pay. Pool members get to mine by waiting for the pool to assign them a work unit, completing that and requesting a new work unit. In other situations, the miner may pick any work they choose, but it’s important to make sure that nobody else is mining the same range. With most mining pools, individual miners get to combine their resources with other miners and increase their high-probability profits. You either get your pool rewards via pay-per-share (PPS) or full-pay-per-share (FPPS).
List of Coins You Can Mine
Below are coins you can mine from your CPU/GPU in 2018:
- Bitcoin (BTC)
- Monero (XMR)
- Bytecoin (BCN)
- Ethereum (ETH)
- Digital Note (XDN)
- Electroneum (ETN)
- Zencash (ZEN)
- Aeon (AEON)
- Dashcoin (DSH)
- Curecoin (CURE)
List of Coins You Cannot Mine
This list contains cryptocurrencies which you can’t mine:
- Ripple (XPR)
- WAVES (WAVES)
Now that you know why you should join mining pools
and what it takes to become a pool member, make the best of your choice and go all out to increase your profits. It’s like mining gold; so enjoy the adventure and beware of traps!