Where can you mine Bitcoin and Ether in 2020? Here are the main tips about mining pools and what you need to know before joining one.
Over the past few months, miners around the world have been extremely active, which can be seen through spikes in hash rates that coincided with a significant increase in cryptomone prices. In early 2020, Ether (ETH) could be bought for USD 130, and now, ETH has reached USD 500. The king of cryptomonies, Bitcoin (BTC), added almost USD 10,000 to its price.
So how can users interact with the industry? What has been obvious for some time is that mining alone is not the way to go. For Bitcoin, Ether and all the major altcoins, the block chain is built in such a way that the complexity of finding blocks is constantly increasing, which means that a couple of graphics cards are not powerful enough to generate a block.
The point is not that the computer is not powerful enough to mine Ether, but that it is mathematically impossible. A computer can stay there looking for a block for several months. If we’re talking about mining Bitcoin with an ASIC, it will take even longer. It’s easier to go bankrupt by buying equipment and paying for electricity than by mining cryptosystems alone. The calculation is simple: divide Ether’s total hash rate by your hash rate and you get the number of seconds it will take on average to find a block.
So, it seems logical that miners flock to mining pools, especially today, since even non-mining companies are starting to launch such products. For example, Binance recently launched its own mining pool for Ether.
What do you need to know before joining a mining pool?
A mining pool is a server that combines the computing power of all participants connected to it. The miners join the group via the Internet and reassign their hardware to the group. They jointly perform mathematical solutions to find blocks of a specific cryptomat. When the group finds a block, the group gets a consensus from other network participants and then receives a reward. This reward is shared among all group members according to the amount of hash rate they provided.
Before selecting a pool, it is important to know its size. When a pool grows, the chances of discovering a block increase. But the more people who join the pool, the less profit each participant receives. This is a double-edged sword: small but frequent payments, or larger but less frequent payments.
Before joining the pool, users should find out the minimum payout, which is the minimum amount of the crypt currency that must be mined before it is sent to the users‘ wallets. If the minimum payment is high, then the user will have to be part of the pool for a long time before receiving income.
Another important fact to mention is that participation in any pool is not free. Users pay a certain percentage of their income to participate. Usually, this fee varies from 1% to 3%. In general, participation in any pool does not require a serious investment and knowledge, if the user has already built a team, then it will not be difficult to determine which pool to choose. This is what you should pay attention to when choosing a pool, regardless of the cryptology currency to be mined:
The number of participants in the pool, which affects the individual income.
Ping time, or delay time, which is the result of the user’s computer needing to transfer information to the pool. Ping time depends on the territorial distance: the lower the ping, the shorter the time delay and the faster the data is transferred. A high ping is not appropriate because there are pauses between block changes in crypto-currency networks, and with a high ping, the user’s computer can go over the values of the old block and mine in vain. Usually, a comfortable ping is up to 10 milliseconds;
The minimum payment size, which should not be too large, otherwise the payment may not be made for a long time.
There are many pools that are fraudulent or take a larger amount of revenue. Users should know their reputation in advance.
After setting up your team, it’s time to choose a mining pool. Of course, most of them work for Bitcoin or Ether mining. Below are some of the most popular pools used to mine the two main cryptosystems. For Bitcoin, almost all of the main pools are based in China, which is not surprising since the country produces most of the hardware.