The current crypto market is crashing down after witnessing an all-time high over these years. If you are following the crypto community regularly you may know that the BTC and ETH crossed a jaw-dropping price mark of $68,000 and $4,800 respectively.
It goes without saying that crypto miners made solid profits during this crypto hype just by providing resources to the ecosystem. But how do they make a profit by mining cryptocurrencies? what is crypto mining? If your mind is full of such technical questions, keep reading till the end.
What Is Cryptocurrency Mining?
The process of mining cryptocurrency sounds more like a complicated technical term. However, if you try to understand the concept with an example, It will be easier to digest for every newcomer.
As you are already aware of the fact that professionals dig out valuable substances from the earth via mining. And as a result, we can enjoy expensive diamonds, gold, and similar items.
In the same way mining cryptocurrencies is digging out different cryptos by helping the Blockchain network to verify the transactions. In order to help the blockchain verify a large number of transactions effectively, a miner provides heavy computational power like graphic cards or complete mining rigs if they can afford it.
These resources keep running 24/7 and try to solve the complex codes from the blockchains as soon as possible. Because the users have rewarded on a priority basis whenever the block is executed successfully. This means the cryptocurrencies miners receive are compensation for helping the ecosystem stay alive.
What Are Cryptocurrency Mining Pools?
Mining Pools are organizations of distributed miners that jointly participate in Mining activities. Talking about the payouts, they send the compensation according to each individual's commitment to the pool.
This allows dredger to streamline their income at a small discount over the cost of the pool operator. No wonder crypto mining is among the proven methods to make money with crypto.
Commitment to the mining pool is estimated as a HASH RATE. This is part of the amount of hash (efforts to find another code block) performed every second.
Every time someone finds a block in the pool, it pays the mining pool organizer a fixed amount of fees. As part of the small fee, the organizer pays each individual from the pool according to the hash rate commitment.
For newcomer miners that are very unlikely to track the field alone, joining a mining pool will give you a stable income. This income is arguably small as it hugely depends on the size of the miner, but the sustainability of the income helps the investor continue without worrying about labor costs.
Top 3 Mining Pools Worth Choosing In 2022
Now after going through the details of what cryptocurrency mining pools are, you may have already made up your mind to join a mining pool. But do you have enough knowledge about various mining pools in the market? do you know how you will receive your payouts and at what intervals? do not worry we have got your back.
1. AntPool(image created with Canva Pro)
Antpool is among the world's largest mining pools which provides almost 15% of the overall BTC mining Hashrate. For those people who are not familiar with the term "Hashrate", it is a measuring element used in crypto mining.
Hashrate specifies the number of efforts you are pouring into a mining pool. So the more hash power you have, the more you will earn from crypto mining.
With over ten different cryptocurrencies support, Antpool is an efficient open access mining pool. This works on four different types of earning modules.
Respectively SOLO, PPS+(Pay Per Share + Transaction Fees), PPS(Pay Per Share), and PPLNS(Pay Per Last N Shares). You can go through the mining pool knowledge base to understand these modules if you decide to choose Antpool.
2. Binance Mining Pool
When there is a lot of potential in something it is common practice that big heads in the industry won't lose their chance to profit from it.
Therefore, Binance the number one crypto trading platform around the globe decided to launch its own mining pool in 2020. Not to mention the Binance mining pool only supported Etherum ETH mining during the initial launch.
Whereas, if you join it currently you can enjoy mining multiple coins on the mining pool. With that said, the Binance mining pool works on two different protocols which are FPPS for BTC mining and PPS for ETH mining.
And if you are concerned about getting your payouts, Binance pays at 10:00 UTC every day. The only drawback of choosing this mining pool is the possibility of getting fewer coins to mine.
3. Slush Pool
The last one in our list of top crypto mining pools is Slush Pool. You can say that this mining pool has the best user interface of any other mining pool in the market. Unfortunately, the platform supports only Bitcoin and Zcash mining at the moment.
However, the service will not disappoint you whether it is regular payouts or fixing any issues related to the earning calculation based on your hash rate delivery.
As the platform currently doesn't plan on allowing the mining of altcoins, it is easy for miners to keep an eye on the price fluctuations. In addition to that, the platform does not offer a referral program in order to avoid possible issues like abuse.
Still, it is hard to believe that a mining pool founded almost a decade ago in 2010 is following its set parameters till now. So you can imagine the credibility of the platform easily just by looking at the market duration.
Final Thoughts
Choosing the best cryptocurrency mining pool is a confusing process. Especially if you are a newcomer and wish to join the crypto mining industry. Considering the minor flaws tailored with mining pools, they can prove handy if you rely on them in the starting phase.
Because growing as an individual miner requires sufficient technical knowledge. In conclusion, Your resources and choice of mining pool will affect your overall profit margin. Hence, make sure to go through the terms and conditions before joining any mining pool.
Additionally, you can try two mining pools at the same time to find out the better one by comparing the profits easily. Feel free to ask any questions below and do share this useful information with others.
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