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Mining pools allow individual miners to join their mining tools with other miners, to boost their chance of solving a block and earning money. There are lots of pools to choose from, that are different in size and also the payment methods they supply.

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

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

If you already read our guide on Bitcoin mining, you know that new Bitcoins enter the circulation as a decoration for a miner who manages to figure that the solution to a mathematical issue. The winning miner get to add the latest block into the blockchain and update the ledger.

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By design, the further miners you have, the more difficult the issue gets, and vice versa. This system is known as mining difficulty and it was designed to regulate the flow of new Bitcoins into the machine (i.e. to prevent inflation).

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

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

Mining pools are essentially groups of miners who pool their mining tools together to get more hashing power. The more hashing power 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 rewards are then split between the pool members, proportionally to the amount of hashing electricity their gear contributed to the solution.

The mining pool owner typically charges a fee for setting up the pool as well. The pools vary in their payment procedures, in addition to in the fees that they cost and other parameters. In the following chapters we will review different mining pools and approaches to decide which one to choose. .

Mining pools differ on many standards. Listed below are a few factors to consider when youre choosing a mining pool:

Pool size: Larger pools offer more regular payments. However, the payout is significantly smaller due to its shared among more members. Smaller pools provide less frequent payments but bigger payouts. Whichever you choose, the return should even out in the long run.

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Fees: Some Bitcoin mining pools cost commissions, and some dont. Fees can range from as few as 0 percent, and go as high as 4 percent off the reward.

Reliability and safety: An important thing to look out for is if you can trust the pool to not cheat and steal your funds, or not get waxed and lose your earnings. While this is true with each third party that holds your money (e.g. a Bitcoin exchange), apply more caution when selecting a mining pool. .

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

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Payout policy: Another thing mining pools vary in, is their payout policies. If you want regular daily payments or get paid whenever a block is solved check over here by the pool, be sure that you do your due diligence before you sign up to some pool.

Before we can understand how mining pool reward approaches work, we need to understand what stocks are, in relation to mining. In other words, shares are units that allow pool owners to calculate individual miners contribution into the hashing effort. Whenever miners are mining via a pool, then they get shares that are proportional to their contribution to solving a block.

To be clear, in regard to the Bitcoin network, stocks are invisible, they are only used internally by the mining pools. According to the share amount the pools payment can choose the following forms:

Pay-per-Share (PPS): In PPS payment strategy, miners receive stocks that can be paid out in any point along the hashing process. PPS allows miners to have paid for shares they received, irrespective of if or not a block has been solved during their participation. To achieve this, the swimming pool operators pay miners from their own balance.