By Mark Gill Last updated on July 4, at What is a Bitcoin mining pool? For those who are new to cryptocurrency, mining pools are groups of miners who pool their resources together in order to generate blocks more quickly.
Miners then receive more regular rewards than they would mining solo, as rewards are shared among members. How much of the block reward miners receive depends on how much their hashing power has contributed to solving a block. Before choosing a Bitcoin mining pool There are different mining pools for different cryptocurrencies.
Bigger pools offer more regular payments. Smaller pools offer less frequent payments but larger payouts. Whichever you choose, the return should even out in the long term. The main reward types to be found at different mining pools include the following: Each time a share is submitted, a user is paid a fixed amount.
The user is paid based on the proportion of shares they found. A proportional method weighed by the time a share is submitted. Similar to proportional, but each share can be rewarded on multiple rounds.
Keep in mind that not all mining pools are up front about their fee structures. Be sure to also consider the reliability of the mining pool, how much security it offers, and how easy it is to withdraw funds.
By exploring these areas, you can better decide if you can make a profit from Bitcoin mining. With regard to withdrawing, a threshold can be set, with balances sent out when this is reached.