If you are thinking of entering the world of Bitcoin mining or recently have, you may have come across a Bitcoin Mining Pool. However, it may not be overly clear what they are and why they might be a good idea to join, which is where this article will help.
Bitcoin Mining Pools are simply groups of Bitcoin miners who have come together to mine rather than operating on their own. It would seem that this method of mining is becoming increasingly popular with Bitcoin miners who appreciate the extra advantages it can bring.
Why join a Bitcoin mining pool?
There are a number of reasons why joining a mining pool may be a great option for you when entering the cryptocurrency world. Firstly, by working as part of the larger pool, you will see a more regular income stream as more puzzles will be solved by the pool than you would on your own.
In simple terms, a mining pool has more chance of working together to solve a block and getting the reward. In addition, it is a great choice for the smaller miner who might not have a mega-powerful computer to use personally.
By being part of the mining pool, you are in effect taking advantage of more computer power from all the other miners in it even if your own computer is fairly standard spec. It will also give you a smoother introduction into the world of cryptocurrency mining with people to support you rather than doing it in isolation.
If you join a mining pool, it is not just Bitcoin you can mine. Although this is one of the most popular cryptocurrencies, others like Ethereum or Litecoin are also possible to mine via a pool. This means you have access to the full range of cryptocurrencies if you decide to mine in this way.
One thing to consider is that you will naturally have to split any rewards from mining between the whole pool. Although this will mean less rewards per block mined, you do have to take into account the increased number of blocks the pool will mine in the long-term.
It is also worth checking out the conditions of being in the mining pool before joining, such as if they deduct any fees from your mining payments for being a member.
Mining pools are just another superb facet of the whole cryptocurrency industry. Whether you decide to join a pool or a cloud mining service or even go it alone, you are sure to be in for an enjoyable and rewarding ride.