Mining pools have proven to be a cost-effective solution when it comes to crypto mining. That is because they allow people interested in mining digital assets to save on various costs, such as electricity expenses. In this guide, we will take a look at some of the leading mining pools that you can join to start mining cryptocurrencies more effectively.
Crypto Mining Pools Defined
A crypto mining pool is a group of miners who come together to combine their computational power to increase their chance of securing a block to mine in an effort to earn rewards. It is a great alternative to solo crypto mining, which is considered risky and expensive. Mining pools have witnessed massive adoption in recent years, allowing anyone across the world to participate in securing various blockchain networks.
How Do Crypto Mining Pools Work?
Before diving deeper into mining pools, it is important we explain Proof-of-Stake (PoS) and Proof-of-Work (PoW) mining. PoW is a consensus mechanism that lets miners validate crypto transactions based on the power of their mining hardware to solve complicated computational problems. Leading cryptocurrencies like Bitcoin and Litecoin use this mechanism.
PoS, on the other hand, allows miners to mine cryptocurrencies based on the amount of tokens they own. The second-biggest digital asset, Ethereum, is now a PoS token after migrating from PoW in September 2022. In this guide, we are going to focus only on PoW mining.
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Crypto mining involves two main functions: Validating transactions and adding them to a blockchain and releasing newly minted tokens into circulation. This sounds super easy. However, crypto mining is considerably expensive. To be a successful miner, you need costly, powerful machines that consume a lot of energy.
Nonetheless, the costs associated with crypto mining have not stopped investors from injecting funds into this venture, as it is pretty lucrative. Bitcoin miners, for example, get 6.25 BTC for every successful block they mine.
Top Crypto Mining Pools
SlushPool is the first crypto mining pool, having been founded in 2010. Over the years, it has grown to be a top pool in the industry, offering impressive returns to miners. Joining SlushPool allows you to mine Bitcoin. The pool’s interface is simple, making it easy for you to navigate it. The operators of the pool impose a 2% fee on rewards received from mining a particular block.
This pool seeks to address concerns from environmentalists who have repeatedly claimed that crypto mining pollutes the environment. To this effect, PEGA Pool has adopted several measures to minimize the carbon footprint produced during mining. For example, the UK-based pool has planted trees to remove the carbon emissions from crypto miners who are still using non-renewable energy. PEGA Pool charges a 1% fee on mining rewards.
The biggest ASIC manufacturer, Bitmain Technologies, operates this pool. Antpool is based in China. It lets you mine Bitcoin, and the payouts are made on a daily basis. Note that Bitmain Technologies charges a 4% fee on block rewards. The main competitive advantage Antpool has is that it’s managed by a reliable crypto player, making it easy to gain the trust of many crypto miners.
This pool came into existence in 2016. It is operated by a subsidiary of Bitmain Technologies, and almost all its features resemble those of Antpool. BTC.com charges a 1.5% on block rewards. Additionally, you need to hold at least 0.0001 BTC to receive rewards.
While most of the mining pools we have mentioned only support Bitcoin mining, F2Pool, on the other hand, allows you to mine Bitcoin, Litecoin, and ZCash. Payouts are made after every 24 hours. So what’s the fee charged by F2Pool? The operators behind this pool take a 2.5% cut on block rewards.
This pool was founded in 2017. Its founders, three former Bitmain Technologies employees, charge a 2.7% fee on block rewards. Like F2Pool, Poolin is a multi-currency pool that lets you mine Bitcoin, Litecoin, Ravencoin, and ZCash.
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