Have you ever been interested in joining a mining pool? These groups of miners that work together are growing in popularity and therefore it can be quite the challenge to pick one that suits you. What selection criteria should you be looking at? In this article we will briefly discuss some important things to consider.
But first, what are mining pools?
Mining pools are groups of cryptocurrency miners that combine resources in order to increase the chances of getting mining rewards. The rewards are usually split among the miners, according to the contributed effort. So, while mining own your own might earn you more, joining a mining pool increases the chances of getting more frequent rewards.
Mining pools in turn look for block rewards, keep track of the effort of all participating miners, assign block rewards to participating miners and collect the pool hashes.
Selecting a mining pool
So, how to select a mining pool that works for you? According to Investopedia, a well-known online source of financial content, there are a couple of aspects to keep in mind.
Pool compatibility and stability
Always check whether your mining device is compatible with the mining pool you are considering. There are some mining pools that explicitly advise against usage of GPU or CPU mining for instance.
Apart from hardware, always check whether the software your mining-rig is using, is compatible with the mining pool and whether your internet connection is fast enough.
Since you are relying on a third party, it is advised to look into the stability of the pool. Look into what connection they are offering and whether they are able to cope with attacks or have struggled with hacks before.
It is very likely that you cannot pay the mining pool a visit to check out their business. So, to a certain extent, you will have to rely on the service that is provided and the means of communication available. Therefore it is important to consider the transparency of the mining operation. You should want to know if the mining rewards are split in a fair way for instance.
Some mining pools are offering transparency by providing digital dashboards that visualize numerous sorts of data. Always consider if the data that is shared with you suffices.
Needless to say, mining machines differ from one another. Some mining rigs are more powerful than others so when pooling miners, it is important to know how mining pools make sure that the assignment of work and therefore the payout is equally distributed.
According to Investopedia it is common that mining pools assign the more difficult tasks to the more powerful mining machines and the easier tasks to less powerful machines. Either way, it is worth your while to look into the way the mining pool you are considering is handling this.
Some mining pools charge a fee and some do not. Always do more research when there is no fee. Some mining pools might charge you on your payout or the lack of fee might be a limited offer.
If you are looking for a mining pool, preferably check the aspects above and pay extra attention to the aspects that matter to you most! Part of cryptocurrency mining is effort, part of is luck. So, if there are any aspects that you can control – like picking a mining pool that suits you – look at these carefully.