Many people feel that cryptocurrency or Bitcoin mining is the way of the future. It is the method via which fresh Bitcoins are circulated through transactions.
The blockchain ledger is the most significant component here. After appropriate identification and verification by the specified network members, a series of blocks are created on which transaction data are recorded; this is called a blockchain.
Bitcoin mining is carried out by advanced computers that can solve complex math problems. You can use a GoldShell MiniDoge for an advanced, smoother mining experience.
Once a computer is done solving, it receives the next set of Bitcoins, and the process continues. As tempting as it sounds, it is important to know how you can mine crypto before you invest time, effort, and money in it.
Maybe you just started mining or are looking for a different mining pool. In this article, we aim to provide you with sufficient information so that you can make the best decision on which pool to choose.
Check Resources and Stats
Websites like MiningPoolStats.Stream, one of the favorites of cryptocurrency miners, shows different mining pools for different currencies and the hash rate of each mining pool. So you can take a quick look at the hash score each mining pool has to offer for respective currencies.
Pool Payment Methods
This is one of the most confusing things, even for people who have been mining for quite some time. There are usually two methods: PPS and PPLNS. PPS stands for Pay Per Share and PPLNS stands for Pay Per Last N Share.
In PPS, you don’t have to wait for the pool to hit a block for you to receive your payment. You get paid every time you invest. In PPLNS, you have to wait for the pool to hit a block, so you have to consider its luck score or probability of it hitting a block.
Over time, the pool will find a block, but until it does, your share will keep piling up and you get paid only after a block is found. However, if your PPLNS pool gets lucky and keeps hitting blocks, then you will be able to earn much more than by PPS.
The payout threshold is you being able to configure and customize the minimum amount of pool balance you have to reach before the mining pool starts paying you.
Some pools allow you to do this while others don’t. For example, Hiveon Pool has a minimum threshold of 0.1 eths in terms of Ethereum, and you cannot change this rate. So every time you hit 0.1eth that day, you get paid.
On the other hand, in Ether Mine, you can change the minimum payout threshold. If you are a smaller miner, it might not matter much to you as you are getting paid when you hit the pool’s predetermined minimum payout threshold.
However, if you mine large amounts, then a smaller threshold will mean that more transactions will hit your wallet. While doing taxes, keeping records for all of these transactions can be quite exasperating.
Mining Server Fees
Alongside pools that charge a minimum expense to members for utilizing the mining pool servers, some pools that charge no expense by any means. Be that as it may, miners should focus on the expense structure and the numerical equation of the payout, which might incorporate different charges.
Some zero-expense pools might be restricted time offers and become chargeable later, while others might charge a fixed or potentially continuous separate expense for the sake of a “donation.”
Still, others may require you to host and run the product on your gadget rather than being run on the pool server, which makes it a significant expense input for the miner.
Pool Server Latency
This might not be a popular factor when it comes to choosing a mining pool but is an important one. You want to look at the ping and the latency to your pool server.
Choose a server that is closest to your geographical area so that you have the lowest ping and latency. This is important so that you don’t produce stale shares.
Depending on the pool, stale shares may not get paid as they are oftentimes not counted by a lot of pools, while some pools count them fully, and others count a certain portion of them.
So you have to make sure that you have great network connectivity to the pool. You can use tools like 2miners to check the servers with the lowest ping near your physical location.
Tracking Pool Profitability
It is a smart idea to keep a track of different pool profitability. Tools like Etherchain allow you to see the average reward that different pools are hitting or paying out. So come back and check this website, maybe a few times a week, to know which pool is paying more so that you can maximize your earning.
Investing in cryptocurrency can seem a bit overwhelming, but with the right techniques, anyone can nail it. Alongside pool profitability, it is also essential to understand which currency is the most profitable at the moment. For example, ethereum has reached a high profit margin currently.
- Pool Stability: Is the pool you are using stable? Can it withstand DDoS attacks? What if the network is hacked? These questions should be asked to identify the stability and robustness of your pool. An insecure pool can cause you to lose all your money!
- Pool Size: Pool size might not matter much, but what matters is the time. Since larger pools have larger computing powers, hitting a block has a much higher chance than small pools. While in smaller pools you might have to wait longer, but then again it can hit a block soon too. It is all a bit of a gamble.
In case you are acceptable with irregular payouts throughout significant periods, a more modest pool offering a higher payout might be right for you. Interestingly, for somebody who needs steady pay with a high likelihood, a low-payout plan might decide on a bigger pool.
To Sum Up
Now that you know all the factors you should keep in mind while choosing the right pool for you, we hope you make the best decision. Remember to research and analyze each pool before you start investing your money in it. Happy mining!