Digital mining is one of the most important businesses in the world of cryptocurrencies and choosing the right pool can make all the difference. Although the vast majority of mining pools have the same purpose, there are particularities that differentiate one from another.
In order to get off to a good start in mining, it is important to keep in mind that this is not a random choice. People who start out in the mining world, whether from home or at an industrial level, have a wide variety of options in this regard.
There are numerous mining pools and depending on the conditions of each investor, some are convenient and others are not. Miners can also decide to mine alone. The latter refers to the activity of not sharing rewards with other miners. This practice makes it more difficult to obtain a block, but if you do, you will have the full reward.
As you can see, successful cryptocurrency mining depends largely on choosing between different pools or not choosing any at all. As already mentioned, the right choice depends on the convenience of the miner. These include fees, payment methods, and others. In general, the mining pool is one of the elements that you should stop and think about.
Main criteria for choosing a mining pool
As highlighted above, there are numerous criteria to consider when choosing a mining pool. First, it should be noted that Bitcoin is not the only minable currency. Thus, the first criterion is to choose a pool that is compatible with the currency you want to mine, be it Bitcoin or Litecoin, to name a few.
The pool size is also important when choosing a pool. The larger the pool, the more chances you have of getting blocks to mine. The downside is that the reward is split between a larger group of miners. It is worth noting that larger pools offer more frequent payouts thanks to their high hash power.
The fee structure is another element that should not be overlooked. Pools typically charge between 1% and 3% in fees. So, it is worth taking the time to shop around for the most competitive rates. Keep in mind that a pool with low fees is not always the best option, as this depends on the structure of the payment models.
Payment models in mining pools
In addition to the important criteria mentioned above for choosing a suitable mining pool, other vital ones must be added. Payment models are divided into two categories: pay per share (PPS) and pay per last N shares (PPLNS). The first offers fixed payments for each share and the second varies according to the contribution in specific periods.
Some pools like ViaBTC stand out for offering two mining modes: PSS+ and Solo. The Solo mode allows miners to operate independently, keeping the full reward when they discover a block, without needing to share it with other users.
The PSS+ option combines guaranteed payouts with additional benefits based on pool performance. Additionally, ViaBTC allows mining a wide variety of cryptocurrencies, providing options to diversify mining.
Another element of interest is the reputation of the pool . The latter has to do with the security of the funds that the miner generates through his computing power, and which are entrusted to the company that controls the pool.
Finally, the server location element is also essential . The latter means that the mining pool can offer efficient or poor latency. Basically, with a pool close to the miner's location, latency is reduced and efficiency is improved. With this, the miner can provide more action in less time.
