In the last few months Miners around the world have been extremely active, as evidenced by a surge in hash rates that coincided with a significant surge in cryptocurrency prices. In early 2020, Ether (ETH) could be bought for $ 130, and now the ETH has hit $ 500. The king of cryptocurrencies, Bitcoin (BTC), increased its price by nearly $ 10,000.
In order to, How can users interact with the industry? What has been apparent for a while is that solo mining is not the way to go. For Bitcoin, Ether and all important Altcoins, the blockchain is structured in such a way that the complexity of finding blocks is constantly increasing. This means that some graphics cards are not powerful enough to generate a block.
The point is not that the equipment is not powerful enough to mine Aether, but that it is mathematically impossible. A team can search for a block there for several months. If we talk about mining bitcoin with an ASIC, it will take even longer. It’s easier to go bankrupt, buy devices, and pay for electricity than just mining cryptocurrency. The calculation is simple: divide the total hash rate of ether by your hash rate and you will get the average number of seconds it takes to find a block.
Hence, it seems logical for miners to pour into mining basins, especially today as even non-mining companies are starting to bring such products to market. For example, Binance recently launched its own mining pool for Ether.
What do you need to know before joining a mining pool?
A mining pool is a server that combines the computing power of all participants connected to it. Miners join the pool through the internet and reassign their hardware to the pool. Together they perform math solutions to find blocks of a specific cryptocurrency. When the group finds a block, the group receives consensus from other participants on the network and then receives a reward. This reward is shared among all group members according to the hash rate they provide.
Before choosing a pool, it is important to know its size. As a pool grows, the chances of spotting a block increase. But the more people join the pool, the less profit each participant receives. It’s a double-edged sword: small but frequent payments or larger payments, but less frequent.
Before joining the pool, users must determine the minimum payout. This is the minimum amount of cryptocurrency that needs to be mined before it is sent to users’ wallets. If the minimum payout is high, the user must be part of the pool for a long time before receiving income.
Another important fact to mention is that joining a pool is not free. Users pay a percentage of their income to participate. As usual, This commission varies between 1% and 3%. In general, joining a pool does not require serious investment and knowledge. If the user has already put together a team, it is not difficult to determine which pool to choose. You should consider the following when choosing a pool, regardless of the cryptocurrency to be mined:
- The number of participants in the pool that affects individual income.
- Ping or delay time that is the result of the user’s computer needing to submit information to the pool. The ping time depends on the territorial distance: the lower the ping, the shorter the time delay and the faster the data is transmitted. A high ping is not appropriate because there are pauses between block changes in cryptocurrency networks and a high ping can cause the user’s computer to cycle through the old block values and mine to no avail. In general, a comfortable ping is up to 10 milliseconds.
- The minimum payment size, which shouldn’t be too big, otherwise the payment may not take a long time.
- There are many pools that are fraudulent or generate larger sales. Users need to know your reputation in advance.
Now that you’ve put your team together, it’s time to choose a mining pool. Of course, most of them work for mining Bitcoin or Ether. Below are some of the most popular pools that are used to mine the two major cryptocurrencies. For bitcoin, almost all of the major pools are located in China, which is no surprise given that the country produces most of the bitcoin mining hardware.
Founded in 20013, F2Pool is one of the oldest pools in China and one of the main interests of Bitcoin miners. The pool accounts for almost a fifth of the total amount of BTC mined. He uses Pago Per Share + (pay per entry) or PPS + as a payment model where the miner receives a reward for every share accepted by the pool, regardless of the blocks found. The pool determines the cost of each share independently, taking into account the complexity of the network, the reward, the blocking time, and the pool’s own performance.
In addition to Bitcoin, more than 40 coins are mined in the pool. The commission is between 1% and 5% depending on the currency. With Bitcoin, the pool receives 2.5% of the premiums because commissions and payments are made once a day. Users must withdraw the earned money within 90 days, otherwise the pool will keep it for the development of the service.
Poolin is owned by the parent company Blockin, which was founded in 2017. The pool is popular with Bitcoin miners. Poolin offers a range of currencies to choose from: Ether, Bitcoin Cash (BCH), Bitcoin SV (BSV), Litecoin (LTC), etc. The commissions are not fixed; Rather, they are set separately for each cryptocurrency. with a commission of 2.5% for BTC.
The payment model depends on the currency chosen: PPS or Full Pay Per Share, known as FPPS. In the latter method, the group also spreads the transaction fees among the miners and increases their income by 10 to 20%. This method is used to pay for Bitcoin mining.
One notable feature is that Poolin provides mining on ASICs and GPUs from Nvidia and AMD. The development team updates the software regularly every two weeks to ensure the stability of the service.
BTC.com is one of the largest international pools for cryptocurrency mining. It is controlled by the well-known manufacturer of mining equipment Bitmain, which produces a number of ASIC miners under the Antminer brand. The China-based platform was launched in 2013.
The commission for each block removed from the pool is 4%. In addition to Bitcoin, other cryptocurrencies can be mined via BTC.com. including Bitcoin Cash and Litecoin. The representatives of the mining pools keep records of the income of their users.
AntPool is a Chinese project that started in 2014. Like BTC.com, Bitmain controls the pool. In addition to BTC, AntPool can mine seven other cryptocurrencies, including privacy-focused coins Dash and Monero (XMR).
Payments are made daily and the service has low commissions, some payments are made with no commissions. In AntPool, payments are made mainly through the standard Pay Per Last N Share or PPLNS method, where users receive payments for the last participation according to the pool’s luck.
There is no fixed pay per share with this method and the main problem is the speed with which a block is found. When a pool uses the PPLNS method, payment is made from “time shifts” between the two blocks being found. This means that if the block is not found for a long time, the payment will gradually increase.
A distinctive feature of the pool is the ability to work in “solo” mode, but not in the literal sense. The pool enables mining “alone” through a collective effort. This means that the user whose computer discovered the block will receive the payment.
SparkPool is registered in China and started in January 2018, a year and a half later the pool was added to the list of leading companies in ether mining. In addition, SparkPool enables the mining of coins such as Nervos, Grin and Beam Common Knowledge Base (CKB).
The mining is done according to the Ethash algorithm and the payments are made according to the PPS + method. Payments are made daily according to Singapore Standard Time and the minimum amount for payments is 0.1 ETH. On the 28th of every month The money will be automatically withdrawn if the remaining balance is greater than 0.0105 ETH and the withdrawal fee is 1%.
Registration in the pool is optional. Users can tear down anonymously, but if so, not all pooling features are available.
Ethermine is one of the most popular pools in ether mining. This pool is the largest for Ethereum. The pool servers are located in Europe, Asia and the USA.
The pool uses the PPLNS payment model. The minimum payment amount is 0.5 ETH and the maximum is 10 ETH. There is no commission for withdrawing funds and payment is instant if the blockchain network is stable. The pool is only intended for mining cryptocurrencies with GPU processors.
SpiderPool is a five-year Chinese project that only supports four currencies: ETH, BTC, BSV and BCH. However, the pool is very popular with ether miners.
Not much information is available for non-Chinese users. However, the pool commission is 2%. The minimum payment amount depends on the currency. However, once a week, users can request an amount that is below the minimum threshold. Otherwise, payment will be made automatically once a day.
Nanopool specializes in coins that are mainly mined with graphics cards. Currently supported Mining Ether, Ethereum Classic (ETC), Zcash (ZEC), Monero, Ravencoin (RVN) and Pascal (PASC). The pool allows users to mine not only a single cryptocurrency, but also two different cryptocurrencies at the same time with a proportional distribution of power between them. Like any other mining pool, Nanopool has a commission that is calculated based on the income of its users. The group uses the PPLNS payment method.
Ether withdrawals from a miner’s account to his wallet are made automatically in Nanopool as soon as they are reached the minimum payment is 0.05 ETH
Nanopool does not have a clear payment schedule, but payments are made in different phases throughout the day. As soon as the miner’s account balance exceeds the specified minimum value, it will be paid out in the next payment round.
To me or not to me
When choosing a pool, each person should look at the list of available currencies to ensure that the currency of their choice is on the list. In addition, you should consider the payment and commission model as it is preferable to have a pool that offers the lowest commission and pays for transactions. ORAnother problem is the proximity of the pool servers: the closer you are to the server, the more stable the mining process becomes.
In general sRegardless of which currency the user chooses, they are unlikely to lose by using a mining pool. according to Chun Wang, Co-founder of F2Pool, the entire mining industry is currently on the rise:
“The mining of Bitcoin and other cryptocurrencies continues to increase, as it did last year. Thanks to DeFi, there has been a period of high transaction fees in the ETH network in recent months, which has led to significantly higher income from ETH mining than usual. People were drawn to buying related mining equipment in order to mine ETH. With mining revenues falling, the miners’ passion for ETH’s commitment to mining has recently been waning. But the rapid rise in prices for BTC and other currencies is making mining more profitable, now more people are ready to participate in mining. “