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Mining pools allow individual miners to join their mining resources with other miners, to improve their chance of solving a block and earning money. There are several pools to choose from, that are different in size and the payment methods they offer.

Bigger pools provide more frequent payments, but smaller pools provide greater rewards (since the reward is divided among less miners). Here are the top Bitcoin mining pools today:

SlushPoolPool dimensions:Medium-LargePayment options:Score-basedAverage prices:2%Total rating:4.5 Star RatingAntpoolPool dimensions:MediumPayment options:PPLNS, PPS+Average prices:1%Overall rating:4.5 Star RatingBTC.comPool size:LargePayment options:FPPSAverage prices:1.50%Overall rating:4 Star RatingF2PoolPool dimensions:Medium-LargePayment options:PPS+Average fees:2.50%Total rating:4 Star RatingViaBTCPool dimensions:MediumPayment options:PPS, PPLNSAverage fees:3%Overall rating:3.5 Star RatingKano CKPoolPool dimensions:SmallPayment options:PPLNSAverage prices:0.90%Total rating:3.5 Star Rating

If you want an indepth understand of the way mining pools work and reviews of each one keep on reading. Heres what Ill cover in this post:

If you already read our guide on Bitcoin mining, you know that new Bitcoins enter the circulation as a prize for a miner who manages to guess that the solution to a mathematical problem. The winning miner get to bring the most recent block to the blockchain and update the ledger.

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By design, the further miners you've got, the harder the problem gets, and vice versa. This system is called mining issue and it was designed to regulate the flow of new Bitcoins into the machine (i.e. to prevent inflation).

Bitcoins popularity boost made the mining problem sky rocket and rendered home mining operations pretty much obsolete. As more and more people jumped on the mining wagon, the mining problem rose to a point it became unprofitable to mine using a home operation.

Throw in the initial & ongoing costs involved in home mining (buying the equipment, power invoices, etc) and not only youre not making any money youre losing it.

Mining pools are basically groups of miners who pool their mining resources together to secure more hashing power. The more hashing power that you have, the more chances you have of adding a block and claiming the payoff in a given time frame.

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With mining pools, miners manage to solve problem more often than they would mining . The benefits are then divided between the pool members, proportionally to the amount of hashing electricity their equipment contributed to this solution.

The mining pool owner usually charges a fee for setting up the pool too. The pools vary in their payment procedures, in addition to in the fees that they find more info cost and other parameters. In the following chapters we will review different mining pools and ways to choose which one to select. .

Mining pools differ on several standards. Here are a few factors to consider when youre choosing a mining swimming pool:

Pool size: Larger pools offer more routine payments. However, the payout is smaller because of its shared among more members. Smaller pools provide less frequent payments but larger payouts. Whichever you decide on, the return should even out in the long term.

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Fees: Some Bitcoin mining pools charge fees, and some dont. Fees can range from as few as 0%, and go as large as 4% off the reward.

Reliability and security: An important thing to keep an eye out for is whether you can trust the pool to not cheat and steal your funds, or not get waxed and shed your earnings. Even though this is true with each third party that holds your money (e.g. a Bitcoin exchange), employ more caution when selecting a mining pool. .

A fantastic way to mitigate these risks is by joining a more veteran, pool. Be sure to also read user reviews before you join, keeping in mind that therell always be disgruntled users so nothing should be taken at face value.

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Payout policy: Another thing mining pools change in, is their payout policies. If you want regular daily payments or get paid whenever a block is solved from the pool, be certain that you do your due diligence before you sign to some pool.

Before we can understand how mining pool benefit methods work, we need to first understand what shares are, in relation to mining. Simply put, shares are units that allow pool owners to calculate individual miners contribution into the hashing effort. Whenever miners are mining by means of a pool, they receive shares that are proportional to their contribution to solving a block.

To be clear, in terms of the Bitcoin network, shares are invisible, they are only used internally by the mining pools. According to the share amount the pools payment can take the following kinds:

Pay-per-Share (PPS): In PPS payment scheme, miners receive shares which can be paid out in any point along the hashing procedure. PPS enables miners to get paid for stocks they received, irrespective of whether a block has been solved during their participation. To achieve that, the swimming pool operators cover miners from their own balance.