These days a lot of companies and mining farms are active in Bitcoin mining industry. As a result, everyone, who wants to join the game has to compete with all those big companies and farms. So, they have to make the decision that they want to go solo or join a Bitcoin mining pool. In fact, solo mining is not profitable anymore for Bitcoin. So, if you decided to become a Bitcoin miner, it’s recommended joining one of the mining pools.
Generally, pooled mining uses when multiple users contribute their computing power in order to generate a new block. If, you join a mining pool, you will have more chance to solve a bloc and get reward. But, the reward will split between contributors based on their processing power.
Advantages and disadvantages of joining a mining pool
If you choose to mine solo, it seems that you will get more reward. But, the fact is that you can go far by solo mining. However, in pooled mining the reward split between contributors, but you have more chance to solve a block. By joining a mining pool, you can create a constant stream of income.
On other hand, you have to be aware to join legitimate mining pools. It’s recommended joining famous ones and do your own research before choose any of them. What you have to notice is that a mining pool should not have to have more than 51% of the hash power. For instance, in 2014, many miners suspected that a mining pool called GHash.io is getting more than 51% of the hash power. As a result, they asked all the miners to leave the pool.
The Bitcoin mining difficulty refers to how difficult and time-consuming it is to find the right hash of each block. In fact, it indicates the difficulty of solving a complex cryptographic puzzle. Mining difficulty is volatile, which means it depends on the number of the active miners in the network.
In Bitcoin network the mining difficulty is high. It means, it’s not affordable for miners to go solo due to high costs of mining. In order to mine Bitcoin, you need to create a mining farm using ASIC hardware and join one of mining pools.
Which cryptocurrency is better to mine?
Bitcoin is not the only option among cryptocurrencies, which you can mine. There are many other altcoins out there, which you can start mining them. If you are a beginner and you don’t want to spend much on mining hardware, it’s recommended choosing cryptocurrencies with “scrypt” algorithm. Those kinds of cryptocurrencies have lower mining difficulty and solo mining is still profitable in their network.
Bitcoin mining pool reward
Once you chose which pool you are going to join, the next step is to consider the reward and costs. Mining pools usually have a specific transaction fee and it varies between different pools. They also charge you with a commission on your income in the pool. So, before, join a pool do the research to find out the costs. Usually pools split the block reward based on hash power that a miner contributed.
Bitcoin Mining Pool; How to join a pool?
Once you chose your cryptocurrency to mine as well as your pool to join, it’s the time to sign up. Joining a pool is as simple as creating an email address or signing up to any other website. You just need to create an account on the pool’s website. Once you created the account, you need to connect your mining hardware to the pool. Now, you can start mining and have an income.