Bitcoin mining pools – an overview

You may have heard the term ‘Bitcoin mining’. Bitcoin mining involves ‘making’ cryptocurrency an income stream and can take place ‘solo’ or as part of a ‘pool’.

Joining a pool is the best way forward when seeking to mine Bitcoin because, although you have to share the rewards, you will have more chance of making a steady income from the venture. Mining as part of a pool is also a really good idea if you’re a beginner; you can learn from more experienced pool members and share the profits too.

What to mine?

If you can’t decide which currency you want to mine, you could join ‘Multipool’, which automatically switches your mining hardware between the most profitable cryptocurrencies. Multipool updates every 30 minutes so that you can see your balance increasing in multiple currencies.

You can also choose to fix your hardware on just one currency if you prefer. Once you’ve decided which currency you prefer to mine, you can then move to a pool that specializes in that.

Pool rewards

A key factor to take into consideration when deciding which bitcoin mining pool to join is how the shares are distributed among the members. The value of shares is usually decided on depending on the level of difficulty of the mining involved.

Another important factor to consider is the deductions made by the pool from your payments. Some pools deduct nothing, whilst others take as much as 10%.

Starting to mine with a pool

Once you’ve chosen the currency you want to mine and decided on the mining pool that you want to work for, you need to get started. First of all, create an account on the pool’s website and create a ‘worker’.

If you want to, you can create multiple workers for each individual piece of mining hardware you will be using. Most pools have default settings for workers that assign a number as their name, but you can change these to whatever moniker you prefer.

If you fancy trying your hand at Bitcoin mining, your best starting point is with a mining pool. Choose which currency you want to mine, select the pool you prefer, create your account and get mining!