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 this way, to start mining activity on the right foot, it must be kept in mind that this is not a random choice. People who start a business in the mining world, whether from home or at an industrial level, have a wide variety of options in that regard.
There are numerous mining pools and depending on the conditions of each investor, some are convenient and others are not. Miners can even 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 so you will have the full reward.
As you can see, successfully mining cryptocurrencies depends largely on choosing between the different pools or not choosing any. As already mentioned, the correct decision depends on the convenience of the miner. These include commissions, payment methods and others. In general terms, the mining pool is one of the elements that must be stopped to think about.
Main criteria for choosing a mining pool
As highlighted above, there are numerous criteria that must be taken into consideration when choosing a mining pool. First of all, it should be taken into consideration that Bitcoin is not the only minable currency. Thus, the first criterion is to choose a pool compatible with the currency you want to mine, be it Bitcoin or Litecoin, to name a few.
The size of the pool is also important when choosing. Thus, the bigger it is, the more chances you have of getting blocks to mine. The downside is that the reward is divided among a larger group of miners. It is worth noting that larger pools offer payouts more frequently thanks to their high hash power.
The rate structure is another element that should not be overlooked. Generally, pools charge between 1% and 3% fees. Thus, it is worth stopping to look for the most competitive rates. It should not be lost sight of that a pool with low fees is not always the best option, since this depends on the structure of the payment models.
Payment models in mining pools
To the important criteria mentioned above for choosing a suitable mining pool, other vital criteria 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 entire reward when discovering a block, without having to share it with other users.
For its part, the PSS+ modality combines guaranteed payments with additional benefits depending on the performance of the pool. 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.
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