Beginners Guide for Cryptocurrency Mining Pool Selection

Many people find it difficult to choose the right mining pool for cryptocurrency. It is mainly due to the highly complex and vast number of payment models offered by the mining pools. Moreover, if you are a beginner, you may find it tough to get good guidance. So, in this article, we will help you with a few suggestions that will help you choose the right mining pool.

One of the common mistakes seen with miners who are beginners is that they fall for mining pools that do promotions. They will rush and join this mining pool. Always remember that such mining pools are going to help you only in short-term gains. If you are interested in making long-term gains, you must not waste your time in such pools.

 

Can you Share some of the Mainstream Mining Pool’s Payment Models?

There are multiple payment methods opted for by the mainstream pools. These payment models include PPLNS, PPS, FPPS, SOLO, and PPS+ mode. The charges will differ for each of these payment models. So, as a miner, it is essential to know about the pros and cons of all these payment modes. We will see each of these payment modes in detail here.

 

FPPS

FPPS stands for Full Pay Per Share payment method. Here, the transaction fee of the bitcoins, as well as the block rewards, are fully distributed among the mining workers. There will be a service which will be only a small percentage. Currently, the service fee of the FPPS method is around 4 percent. When you compare this method with the PPS settlement, you can see an increase in profit by 20 percent. You will get a minimum 10 percent increase in profit. In the case of PPS settlement, there is no transaction fee distribution.

 

PPS

PPS stands for Pay Per Share. Here, you can expect a stable income from mining if the miners work in their normal conditions. The payment happens through the already existing funds of bitcoins in the pool. Thus, it will allow you to cash the mining income immediately. There is no wait time needed for the completion of the blocks. There are no external factors that impact the payment here. These external factors include the fees for the transaction and the pool luck.

There are a few advantages of using this payment method. First, it helps to reduce the mining worker’s risk. Here, all the risks will be handled by the operator of the pool. If you are a beginner in mining, PPS will be a good choice for the payment mode. The profit will be low in this mode. But you can expect a stable income daily without any risks.

 

PPS+ 

PPS+ payment mode is the short form of Pay Per Share Plus. Here, there will be a distribution of the transaction fee. This distribution will happen as per the original value.

 

PPLNS

PPLNS stands for Pay Per Share Last N Shares payment mode. Here, the profit will be distributed among the mining workers whenever a valid block is detected in the mining pool. The profit share for each of the mining workers in the pool is calculated on the basis of the ratio between the hashrate of the user to the hashrate of the pool measured in the last N rounds of difficulty. Sometimes, you will get invalid profits. It happens when you leave the crypto mining pool during a certain time. It was when there were no blocks found in the pool before the N shares.

There are a couple of advantages when you use this payment mode. First, your average income will be more due to higher rates at times. Secondly, they have a lower fee.

There are a few disadvantages also for this method. There won’t be any stability in the profit for the mining workers. The profit is fully dependent on the pool’s bock outcome. If you are beginner, you may find it tough to generate a consistent income using this payment mode.

 

SOLO

SOLO payment modes mean single-handed crypto mining. Here, you need to do the calculation of the blocks to get the hash value. You will have to harvest all the block rewards alone. You can go for the SOLO mode only if you are getting big hash rates. If your hash rate is low or in the medium range, then the SOLO mode will not be beneficial for you.

 

Comparing Different Mainstream Crypto Pools

There are many crypto pools out there. But there are a few that are quite popular. So we will compare those mining pools here. It will give you a basic understanding about these mainstream mining pools.

 

Antpool

The Antpool makes use of the Antmonitor miner system of monitoring. Bitmain owns this pool. The minimum payment threshold of this pool is 0.001 BTC. You can check the Antpool here.

 

 F2Pool

It is a unique mining pool that is known to support more than 30 plus cryptocurrencies in China. Here, you will get the payment at 8:00 on a daily basis in the locked payment address. You can check the F2Pool here.

 

Pool.btc.com

Currently, their hashrate is ranking first in the entire Bitcoin network. It comes with many intelligent agent features. They also support many European mining locations with the help of their pool batch tools. You can check pool.btc.com here.

 

Pooling

They have crossed the 2.1 billion mark if you take both the total number of PINs given for the Pool Pass along with the Half LTC rate. Here, you can participate in the decision-making process. You will also get the supervisory power for the election along with many other privileges and rights. You will also get more privileges if you are holding cryptocurrencies above a certain threshold. These privileges include special customer service benefits, concession in the rate, deduction of commission, and different incentive PINS. You can check poolin here.

 

ViaBTC

The ViaBTC mining pool comes with a dedicated PPS+ service. It also supports PPLNS as well as integrated PPS modes. Thus, it supports wallets of different cryptocurrencies. You can check their pool here.

 

Tips to Choose the Right Mining Pools

 

Now, I will share some tips that will help you select the right mining pools.

  1. The first thing that you need to check and ensure that you are able to connect to that pool. You may see screen port 3333 with certain network companies.
  2. You can go for a pool that supports the highest hash rate. If the mining pool offers a high hash rate, the pool is capable of ensuring the block capacity. Thus, it will be beneficial for you. If the mining pool is large, you can go for the PPLNS or the PPS payment mode. It will generate good income for you.
  3. Choose a network that offers minimum losses.
  4. Sometimes, there can be mining disasters. So, it is a better idea to choose some spare mining pools. Then, you can use them in case of mining emergencies.

 

If you see the popular mining pools out there, the benefits offered are more or less the same. Once you have decided to go with a specific pool, then stick to that pool itself. Don’t make any switches after confirmation. There are many factors that affect the process of returning the miner output to the server. These factors include the speed of the local network and the pool server. So, we strongly recommend you build the P2 pool pools by yourselves.

 

Appendix

Series articles on crypto miner maintenance:

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