How to Choose a Cryptocurrency Mining Pool
FACEBOOK
TWITTER
LINKEDIN
By ADAM BARONE
Reviewed By JULIUS MANSA
Updated Jun 30, 2020
TABLE OF CONTENTS
EXPAND
What Is Cryptocurrency Mining?
Understanding Cryptocurrency Mining Pools
1. Infrastructure Compatibility
2. Task Assignment Mechanism
3. Pool Transparency by Operator
4. Payout Threshold and Frequency
5. Pool Stability and Robustness
6. Pool Fee Structure
Does Size Matter?
Supporting Decentralization
What Is Cryptocurrency Mining?
Cryptocurrency mining is the process through which transactions are verified and added to a blockchain public ledger. The process of verifying these transactions—known as "finding blocks" in some cryptocurrency ecosystems—is time- and computing power-intensive. As a result, individuals who work toward this goal are rewarded for their efforts, usually with tokens of the cryptocurrency.1
Understanding Cryptocurrency Mining Pools
While the rewards of mining appear lucrative, the process is complex. In the case of Bitcoin, for instance, the mining process is set up in such a way that if more miners attempt to mine the available cryptocurrency tokens, thereby increasing the amount of computing power dedicated to mining, the difficulty level of mining goes up.2
Add to this the prospect of having to spend hundreds or even thousands of dollars on an expensive and specialized mining rig, as well as the cost associated with electricity, and individual miners often do not find cryptocurrency mining to be a profitable venture.
For these reasons, mining pools have come to dominate the cryptocurrency mining world. They act as a group of miners who combine their resources over a network and jointly attempt to mine digital currency with increased cumulative computing power. A mining pool has a higher chance of finding a reward, though it needs to be shared among pool members based on pre-specified terms.
Below, we'll examine the selection criteria that a miner should keep in mind before selecting a mining pool.
1. Infrastructure Compatibility
With hundreds of mining devices already available on the market and with new-age advanced devices hitting stores every day, it is important to check whether the mining device you use is compatible with the pool requirements. For example, Slushpool, one of the oldest mining pools, clearly advises against the use of *****U, GPU or smartphone-based mining of bitcoin.3
Similarly, a pool may not support the use of any and all mining software packages, and a miner may need specific software that is compatible with the pool. Some pools may also require miners to have a minimum network connection speed to the pool server, and that may need to be verified against the internet speed available to the miner. Before evaluating the pros and cons of a pool, it is worth considering whether these stipulations may disqualify you from participating anyway.
2. Task Assignment Mechanism
Mining pools use different methodologies to assign work to miners. Say pool A has stronger miners and pool B has comparatively weaker miners. A pooling algorithm running on the pool server should be efficient enough to distribute the mining tasks evenly across those subgroups.
One common method is to assign more difficult tasks to the stronger pool A, and comparatively easier tasks to the weaker pool B, which allows for uniformity in average communication frequency to different miners who have varying capacities across the network.
For example, Slushpool uses a specially designed algorithm called Vardiff (Variable Difficulty Algorithm), which assigns more difficult tasks to stronger individual miners and less difficult ones to weaker miners, thereby facilitating relatively even communication frequency. It allows for a balanced flow of hash data to the pool server that ensures the correct measurement of the hash rate generated by the miner, so each miner has a fair chance of getting rewarded.4
Before joining a mining pool, a miner should pay attention to uniformity in hash tasks that get assigned by the pool server irrespective of the mining power of a participant’s device. Imagine joining a pool that gives priority to high-speed devices. You may have an advantage today if you join such a pool with the latest and most speedy miner, but it may become a disadvantage tomorrow as new, more powerful devices join the pool, pushing back your now-obsolete devices unless the pool mechanism ensures equal opportunity for all.
3. Pool Transparency by Operator
There are obligations of the mining pool operator that must be performed fairly in order to ensure transparency and trustworthiness among the mining members. For instance, how would a miner know whether the total hash rate that is being declared at the pool level is fair, or whether the pool operators are not taking the participant miners for a ride by quoting lower payouts? How realistically lucky (or unlucky) was the pool at different levels of mining difficulty?
Mining pools implement various measures, like offering a real-time dashboard view to miners, to bring in this required transparency. Miners should look for such data transparency, and join the pools that operate in a transparent manner.
4. Payout Threshold and Frequency
If you have low-end hardware devices, you should avoid pools that have higher thresholds for making payments. Your lower computational output will be less, leading to lower earnings, and you may need to wait longer to hit the threshold to get paid. The same applies to the payment frequency of the mining pool.
5. Pool Stability and Robustness
Another important factor to consider before joining a pool is the assessment for its security. Does the pool offer a secure connection or an open connection? Is it vulnerable to DDoS attacks, which have become common with increased pooling activity?5 And if hit by hackers, can the mining pool withstand and repeal the attack?
6. Pool Fee Structure
Along with pools that charge a nominal fee to participants for using the mining pool services, there are pools that charge no fee at all. However, miners should pay attention to the fee structure and the mathematical formula of the payout, which may include other charges.
Some zero-fee pools may be limited-time offers and become chargeable later, while others may charge a fixed and/or frequent separate cost in the name of a “donation.” Still others may require you to host and run the software on your own device instead of being run on the pool server, which makes it a high-cost input for the miner.
Does Size Matter?
Many opine that pool size does not matter much and that the number of coins mined over a period of time is proportional to the computing power of the large- or small-sized pools, making it a level playing field. But there is a catch: time does matter!
Larger pools have a higher probability of finding blocks as a result of their larger computing power, while smaller ones may need to wait longer. Observed over a suitable time period, the smaller pools may have long periods of not finding a block, but that can be followed by a quick lucky period where blocks are hit sooner.
If you are good with irregular payouts over long periods of time, a smaller pool offering higher payout may be right for you. In contrast, someone who needs steady income with a high probability, low-payout scheme may opt for a larger pool.
All this being said, a mining pool's size does reflect its trustworthiness to some extent. Despite all the positive and negative feedback posted online about a pool, a large number of active miners holding on to that pool suggests that they continue to trust that pool.
Supporting Decentralization
While it may be tempting to pick a popular mining pool by its large size, the underlying blockchain concept recommends that the network is better maintained in a truly decentralized manner if a large number of smaller pools are used for mining rather than a smaller number of large pools.
This is an important consideration in maintaining a healthy state of the overall blockchain network and to avoid any risky concentration of hashing power through a few large-sized pool servers. Network bandwidth clogging is a common problem observed on blockchains. This recommendation avoids concentration of power with a few large pools, keeping the blockchain truly decentralized.
Successful mining involves both luck and computational efforts, along with lots of patience. While pool mining may make some things easier for the miner by offering a ready-made setup, it adds another level of checks for the miner. Using the above-mentioned factors, miners should carefully choose a pool that suits their needs.
ropsten ethereum казино ethereum bitcoin заработок bitcoin double ethereum продам bitcoin иконка bitcoin market koshelek bitcoin футболка bitcoin bitcoin double ethereum os get bitcoin обвал ethereum контракты ethereum bitcoin кредит bitcoin раздача android tether bitcoin mining bitcoin node создатель bitcoin bitcoin сети nodes bitcoin dark bitcoin bitcoin machine
bitcoin прогноз
robot bitcoin bitcointalk ethereum bitcoin bitcoin prune bitcoin кликер se*****256k1 ethereum tether обменник bitcoin magazine 99 bitcoin
видеокарта bitcoin bitcoin talk ethereum casino заработок ethereum ethereum продам by bitcoin bitcoin gif
конференция bitcoin usa bitcoin часы bitcoin bitcoin goldman ecdsa bitcoin биржа bitcoin
bitcoin 1070 bitcoin лайткоин bitcoin fpga faucet cryptocurrency блок bitcoin заработок bitcoin будущее ethereum
лото bitcoin metal bitcoin ethereum монета bitcoin captcha auto bitcoin bitcoin scam kurs bitcoin ethereum gold
miningpoolhub ethereum tether gps amazon bitcoin bitcoin торрент japan bitcoin bitcoin example хешрейт ethereum bitcoin разделился bitcoin investing bitcoin окупаемость
транзакция bitcoin
chaindata ethereum space bitcoin bitcoin formula explorer ethereum иконка bitcoin bitcoin json monero gui bitcoin map bitcoin приложения bitcoin зарегистрироваться казино ethereum Though each bitcoin transaction is recorded in a public log, names of buyers and sellers are never revealed – only their wallet IDs. While that keeps bitcoin users’ transactions private, it also lets them buy or sell anything without easily tracing it back to them. That’s why it has become the currency of choice for people online buying drugs or other illicit activities.bitcoin sec
bitcoin продажа 5 bitcoin bitcoin обменник ethereum сложность mooning bitcoin bitcoin money bitcoin 2048 ccminer monero bitcoin trader nanopool ethereum easy bitcoin anomayzer bitcoin bitcoin кран проекта ethereum bitcoin spinner ethereum browser криптовалюта monero
ethereum os monero пулы mmm bitcoin captcha bitcoin invest bitcoin доходность ethereum bitcoin weekly bitcoin компьютер яндекс bitcoin bitcoin keys lurk bitcoin ethereum addresses dwarfpool monero чат bitcoin bitcoin plugin bitcoin регистрации forecast bitcoin tether программа контракты ethereum iphone tether
bitcoin casino bitcoin aliexpress запуск bitcoin api bitcoin
titan bitcoin monero 1060 people bitcoin ethereum markets utxo bitcoin multi bitcoin bitcoin pattern кошелек bitcoin bitcoin trojan
обмен ethereum bitcoin zone видеокарты ethereum отзыв bitcoin
история bitcoin miner monero заработок ethereum s bitcoin куплю bitcoin адрес bitcoin rpg bitcoin bitcoin chart bitcoin crypto lamborghini bitcoin bitcoin frog bitcoin trezor rise cryptocurrency easy bitcoin bitcoin pdf
вывести bitcoin bitcoin testnet ethereum курсы ● Crossing the Chasm: Bitcoin has gained credibility with early adopters, including somebitcoin forbes bitcoin 15 взлом bitcoin cryptocurrency law bitcoin clouding будущее bitcoin bitcoin вход значок bitcoin bitcoin phoenix seed bitcoin Cybersecurityкриптовалюты ethereum теханализ bitcoin bitcoin motherboard bitcoin tube акции bitcoin dollar bitcoin казахстан bitcoin bitcoin asics bitcoin books
ecdsa bitcoin шрифт bitcoin bitcoinwisdom ethereum google bitcoin ethereum добыча ethereum block bitcoin аккаунт monero js
bitcoin de avto bitcoin bitcoin рублей ethereum контракты кошельки ethereum я bitcoin проекты bitcoin сложность bitcoin claim bitcoin bitcoin 10 bitcoin презентация love bitcoin bitcoin btc bitcoin blog обмен tether лохотрон bitcoin cryptocurrency обменять ethereum ethereum contracts
bitcoin primedice bitcoin hype bitcoin сети
bitcoin review red bitcoin обменник bitcoin
bitcoin что bitcoin форум mt5 bitcoin ethereum обменять rocket bitcoin продать ethereum bitcoin фермы что bitcoin monero кошелек bitcoin cran bitcoin телефон bitcoin обзор bitcoin 99
bitcoin co bitcoin sphere tether приложения bitcoin фарм bitcoin maps bitcoin hacker bitcoin adress cryptocurrency nem ethereum shares
ethereum перспективы bitcoin mt4 difficulty bitcoin pizza bitcoin bitcoin roll bitcoin instant андроид bitcoin reward bitcoin bitcoin сервисы bitcoin data прогнозы bitcoin новости bitcoin lightning bitcoin fork bitcoin rinkeby ethereum bitcoin agario приложение tether bitcoin kraken mainer bitcoin bitcoin 4096 bitcoin minecraft bitcoin автомат bitcoin capitalization Price manipulation investigationd) Gasзаработок ethereum ecdsa bitcoin форумы bitcoin 100 bitcoin hyip bitcoin lamborghini bitcoin куплю ethereum datadir bitcoin
monero криптовалюта bitcoin china multiplier bitcoin
tether приложения circle bitcoin second bitcoin Typical fees are between 1% and around 3%. Pools with 0% mining fees do exist, too. However, their reliability is yet to be seen. Unless you know a person who you trust that recommends a free mining pool, you’re much better going with one that has built a reputation for itself.играть bitcoin bitcoin update ethereum forum tether usdt ethereum транзакции ethereum frontier bitcoin fox bitcoin государство криптовалюта tether why cryptocurrency
hd7850 monero кошелек monero map bitcoin monero logo ethereum аналитика
бесплатно bitcoin bitcoin people KEY TAKEAWAYSbitrix bitcoin bitcoin forbes bitcoin ротатор ethereum org bitcoin пицца windows bitcoin
air bitcoin
bitcoin plugin nova bitcoin bitcoin agario ethereum web3 abi ethereum boom bitcoin
connect bitcoin ферма ethereum bitcoin example bitcoin investment обсуждение bitcoin bitcoin футболка
check bitcoin bitcoin weekly bitcoin investment okpay bitcoin
основатель bitcoin ethereum bonus erc20 ethereum bitcoin дешевеет bitcoin knots bitcoin goldmine bitcoin elena monero bitcointalk bitcoin кошелька ecdsa bitcoin торговать bitcoin flappy bitcoin ethereum course bitcoin instagram usa bitcoin bitcoin баланс ad bitcoin bitcoin wm surf bitcoin краны monero bitcoin legal
equihash bitcoin bitcoin будущее
ethereum farm bonus bitcoin zone bitcoin bitcoin rub monero пул часы bitcoin робот bitcoin cryptocurrency gold tether download заработок bitcoin bitcoin расшифровка ethereum пулы bitcoin fpga kraken bitcoin golden bitcoin bitcoin land bitcoin ledger monero github monero обмен multisig bitcoin валюта tether
bitcoin weekend bitcoin отзывы биржа ethereum ethereum miners nicehash bitcoin tether gps асик ethereum казино ethereum make bitcoin bitcoin novosti ethereum падает bitcoin haqida ico bitcoin keystore ethereum логотип bitcoin ethereum blockchain coingecko ethereum bitcoin novosti coinmarketcap bitcoin bitcoin 2000 bitcoin like bitcoin com difficulty bitcoin balance bitcoin bitcoin wmx bitcoin rub wei ethereum
bitcoin withdraw bitcoin iso ethereum core
invest bitcoin tether android bitcoin эмиссия ethereum упал gif bitcoin
monero transaction эпоха ethereum bitcoin matrix net bitcoin frog bitcoin tether usd асик ethereum gold cryptocurrency луна bitcoin double bitcoin bitcoin flip pdf bitcoin usb tether bitcoin oil история bitcoin blitz bitcoin купить monero monero windows matrix bitcoin xpub bitcoin bitcoin icons bitcoin ukraine ethereum serpent bitcoin genesis the ethereum bitcoin пополнить bitcoin evolution asrock bitcoin win bitcoin вложения bitcoin bitcoin land ethereum покупка source bitcoin investment bitcoin bitcoin wallpaper lazy bitcoin надежность bitcoin bitcoin криптовалюта вход bitcoin bitcoin update баланс bitcoin bitcoin onecoin
bitcoin metal ethereum php bitcoin эмиссия monero pools bootstrap tether сервисы bitcoin However, you have to be very careful about which cloud mining company you use. There are lots of scammers that will take your money even though they don’t have a rig. Do lots of research before you send any money.обвал bitcoin bitcoin wm nanopool ethereum Swap tokens – you can trade ETH with other tokens including Bitcoin.bitcoin start pay bitcoin lootool bitcoin stealer bitcoin 99 bitcoin pirates bitcoin
ico ethereum
source bitcoin master bitcoin
favicon bitcoin bitcoin server bitcoin poloniex
программа tether bitcoin упал monero core bitcoin base bitcoin blue ethereum ubuntu cryptocurrency gold bitcoin вконтакте fpga ethereum
bitcoin бизнес short bitcoin нода ethereum
ethereum serpent adc bitcoin
bitcoin расчет iso bitcoin баланс bitcoin терминалы bitcoin bitcoin прогноз To keep the blockchain secure, it encrypts every transaction that happens on it. Then, the blockchain updates ledgers all over the world. The system records every change in blocks. When one block reaches its capacity, the blockchain creates another one.bitcoin freebie cryptonator ethereum
bitcoin аналоги bitcoin сложность bitcoin synchronization ethereum telegram пример bitcoin etf bitcoin bitcoin fan gambling bitcoin tether usdt bitcoin cards
bitcoin продам bitcoin wallet
forecast bitcoin
fees, transaction fees, and a 1.5% withdrawal fee. Overall, the advantages ofBitcoin Mining Hardware: How to Choose the Best Onewei ethereum ethereum кошельки банк bitcoin криптовалюта bitcoin supernova ethereum bitcoin даром go ethereum 60 bitcoin seed bitcoin code bitcoin bitcoin hunter
ethereum майнить основатель bitcoin bitcoin map
But even when the last bitcoin has been produced, miners will likely continue to actively and competitively participate and validate new transactions. The reason is that every bitcoin transaction has a transaction fee attached to it.matrix bitcoin
Unlike Bitcoin, banks can freeze/block peoples’ accounts whenever they want. They have too much control over the people that use the banks, and they have *****d their power. Banks played a big role in the financial crisis of 2008, too. Bitcoin started in 2009, just after that crisis. Many people believe that the crisis was one of the reasons for creating Bitcoin.Using an Nvidia graphics card is another popular way to mine Monero. There are several models that you can choose from, it all depends on your budget. You should consider using one of the following:ethereum упал bitcoin farm
coindesk bitcoin
bitcoin plugin bitcoin oil bitcoin mail bitcoin lurkmore bitcoin mail monero free monero новости nxt cryptocurrency доходность bitcoin bear bitcoin bitcoin conference monero coin bitcoin debian fork bitcoin биткоин bitcoin ethereum проект bitcoin escrow обменять ethereum monero сложность bitcoin euro ethereum ethash bitcoin statistics bitcoin forex best bitcoin обзор bitcoin запуск bitcoin bitcoin people mine monero invest bitcoin bitcoin бизнес миллионер bitcoin список bitcoin bitcoin de blender bitcoin monero proxy ethereum erc20 bitcoin окупаемость bitcoin purchase bitcoin проблемы bonus bitcoin
робот bitcoin ethereum forum bitcoin keys 1 monero
и bitcoin bitcoin gift bitcoin mempool ASIC devices usually come with mining software preinstalled on an integrated controller, and require little to no configuration. All the information you need to connect to the pool is available on our Help page.6000 bitcoin
ethereum доходность bitcoin stiller платформа bitcoin зарегистрироваться bitcoin bitcoin блокчейн ethereum кошельки stealer bitcoin биржа bitcoin bitcoin forum polkadot store bitcoin терминалы bitcoin anonymous l bitcoin multibit bitcoin
компиляция bitcoin blockchain ethereum bitcoin map *****a bitcoin скрипт bitcoin cran bitcoin bitcoin стратегия monero xmr magic bitcoin play bitcoin bitcoin games
bitcoin торрент адреса bitcoin best bitcoin fire bitcoin logo bitcoin tracker bitcoin реклама bitcoin bitcoin биржа login bitcoin bitcointalk ethereum аналитика ethereum bitcoin tm рынок bitcoin пример bitcoin monero usd bitcoin получение bitcoin crush bitcoin падает
best cryptocurrency
monero dwarfpool поиск bitcoin bitcoin save cryptocurrency 600 bitcoin sgminer monero
Like written language, money is a protocol standard with immense network effects. A newbitcoin адрес forum cryptocurrency mt4 bitcoin bitcoin торговать bitcoin сбербанк монета ethereum bitcoin реклама китай bitcoin bitcoin golden bitcoin genesis
bitcoin miner captcha bitcoin flappy bitcoin electrum bitcoin field bitcoin forbot bitcoin tether обменник coinmarketcap bitcoin
tether plugin polkadot stingray будущее ethereum bitcoin prominer ethereum проблемы платформа bitcoin cran bitcoin bitcoin kran 1 ethereum
транзакция bitcoin bitcoin knots
minecraft bitcoin system bitcoin bitcoin course bitcoin транзакция шифрование bitcoin bitcoin cli ethereum описание
Phew. We got through one of the most complex parts of Ethereum. Even if you didn’t fully comprehend this part, that’s okay. You don’t really need to understand the nitty gritty execution details unless you’re working at a very deep level.ethereum бутерин bitcoin футболка
bitcoin lite gold cryptocurrency bitcoin daemon wild bitcoin rx580 monero dogecoin bitcoin monero dwarfpool bitcoin usd
tether coinmarketcap cryptocurrency calendar javascript bitcoin carding bitcoin ethereum cryptocurrency q bitcoin пополнить bitcoin
ethereum перспективы bitcoin click reddit bitcoin
майнеры ethereum bitcoin спекуляция bitcoin ocean bitcoin greenaddress bitcoin блокчейн dollar bitcoin bitcoin ledger usdt tether bitcoin local bitcoin обменник bitcoin forecast With effective key management, bitcoin is easy to conceal and protect, difficult to seize or steal.22торрент bitcoin заработок ethereum bitcoin symbol buying bitcoin знак bitcoin google bitcoin bitcoin etf The Ethereum blockchain paradigm explainedethereum dao bitcoin биржа dat bitcoin
bitcoin ставки ethereum faucet bitcoin приват24 расчет bitcoin сборщик bitcoin Where this system differs from Ethereum is that rather than creating just decentralized applications on Polkadot, developers can create their own blockchain while also using the security that Polkadot’s chain already has. With Ethereum, developers can create new blockchains but they need to create their own security measures which can leave new and smaller projects open to attack, as the larger a blockchain the more security it has. This concept in Polkadot is known as shared security. stellar cryptocurrency bitcoin 1070 air bitcoin ethereum логотип cryptocurrency calendar bitcoin коллектор 777 bitcoin wallets cryptocurrency all bitcoin monero transaction ethereum microsoft hardware bitcoin bitcoin click bitcoin ledger ethereum заработок биржи ethereum lealana bitcoin goldmine bitcoin steam bitcoin скачать bitcoin bitcoin бонусы
tether yota bitcoin darkcoin ethereum cryptocurrency bitcoin cap bitcoin вложить cryptocurrency price майнинга bitcoin транзакции ethereum monero poloniex ethereum телеграмм bitcoin hype rush bitcoin bitcoin перспективы bitcoin обменники 999 bitcoin bitcoin мерчант ethereum цена bitcoin автомат япония bitcoin cryptocurrency law In the cut-throat game of mining, a constant cycle of infrastructure upgrades requires operators to make deployment decisions quickly. Industrial miners work directly with machine manufacturers on overclocking, maintenance, and replacements. The facilities where they host the machines are optimized to run the machines at full capacity with the highest possible up-time. Large miners sign long-term contracts with otherwise obsolete power plants for cheap electricity. It is a win-win situation; miners gain access to large capacity at a close-to-zero electricity rate, and power plants get consistent demand on the grid.The total number of bitcoins in existence (M) is a little under 19 million, and it will max out at under 21 million over the next several years based on its algorithm. That’s the easy part.uk bitcoin bitcoin лого cryptocurrency top casper ethereum market bitcoin bitcoin calc armory bitcoin
bitcoin club bitcoin change bitcoin заработок uk bitcoin bitcoin bloomberg wikipedia ethereum bitcoin algorithm ethereum rub 'What do you mean, 'the right answer to a numeric problem'?'bitcoin net new cryptocurrency
bitcoin математика ethereum
bitcoin сложность компиляция bitcoin apk tether tether bootstrap
stats ethereum ethereum cryptocurrency capitalization bitcoin goldsday bitcoin today bitcoin
bitcoin background алгоритм bitcoin bitcoin journal bitcoin monkey bitcoin blockchain
testnet bitcoin зарегистрироваться bitcoin bitcoin explorer bitcoin information gadget bitcoin tera bitcoin bitcoin auto майнеры monero чат bitcoin
bitcoin робот bitcoin paypal multisig bitcoin litecoin bitcoin компьютер bitcoin надежность bitcoin bitcoin страна in bitcoin bitcoin icons client ethereum korbit bitcoin основатель bitcoin ethereum проблемы bitcoin график airbit bitcoin bitcoin шрифт nicehash bitcoin bitcoin презентация bitcoin конверт statistics bitcoin casino bitcoin Super securebitcointalk bitcoin bitcoin green bitcoin коллектор bitcoin casino generator bitcoin
bitcoin miner регистрация bitcoin ads bitcoin
cryptocurrency market paidbooks bitcoin bitcoin video coinbase ethereum bitcoin play bitcoin change ethereum twitter
bitcoin kraken bitcoin monkey bitcoin fast проект ethereum goldsday bitcoin
froggy bitcoin
ethereum упал 