There are hundreds of cryptocurrencies available in the market and Ethereum is among those that have become very popular, most likely due to its smart contracts. It works similar to Litecoin and Bitcoin meaning that you can buy and sell the currency with transactions that are handled over blockchain. Miners remain in charge of running computational algorithms and completing them gets them rewarded with Ether – in basics they are verifying and writing transactions onto the blockchain. Mining Ethereum can seem complicated, but is actually very simple, and one of the most important thing to look into are the Ethereum mining pools. As Ethereum is moving to Proof-of-Stake pools within the future may also move to staking, thus it’s important to get to know some mining pools now, so you can pool stake and make higher interest in the future.
Ethereum mining pools can be defined as groups of miners working together to mine ethers – basically consolidating computing power to act as one rather than just mining on your own with little computing power. They are more like diverse investment portfolios that yield sustainable and controlled returns to contributions. Joining such pools is better than working as an individual miner because they greatly lower payout volatility, once the pool reaches the end of the block the pool is given the reward 3.4889 (per block) divided by how much computing power you contributed. The pools offer smaller but frequent payments instead of lump sums when blocks are solved. Even though lots of variable can affect profit calculations, it is correct to say that mining pools are profitable, and there are several factors such as payout time and pool fee’s.
What you need to know about Ethereum mining pools
The mining pools are best for miners who may not have enough equipment to solo mine – as solo mining requires a lot of computational power in order to have a greater chance of finding the next block. I will share that if you are a person who cannot commit time in the mining, then it is best to buy Ethereum on sale, like right now during a down market. Mining does require a lot of work, but I’m sure if you are here you probably understand that, and you’re just trying to find out what pools you should be using.
Some other things to keep in mind before joining a pool is you will need the following: an Ethereum mining wallet to store up the cryptocurrency earned, you can check out the following:
When joining a pool, ensure that it has lowest rates, but reliable returns so all your efforts into the mining are maximized as possible. Profitable ethereum pools should also offer fewer joining requisites and mining servers that are close to your rig. Proximity of the server is very important because it can impact on connection and speed your mining rig operates on, although this isn’t a major factor. I use nanopool U.S. East servers, since I’m located in New England. The best Ethereum mining pool will of course depend on the users and total hashrates, as well as payout times and fees as discussed earlier.
Another important factor of choosing a pool is their reward system, here are a few of the different reward systems:
- PPS – Pay-per-share
- PPLNS – Pay-per-last-N-shares
- MPPS – Maximum pay-per-share
- SMPPS – Shared maximum pay-per-share
- ESMPPS – Equalized shared maximum pay-per-share
What reward system to choose depends on what miner you are using, as well as what kind of reward system you prefer. Since this is Ethereum, we will be looking at ELI5 reward systems like HBPPS, RBPPS, PPLNS. Which if you are looking to get more information on blockchain reward systems, this is a great read: Analysis of Bitcoin Pooled Mining Reward Systems
Here is the current 24 hour distribution of hashing power by pool, which you can check out by heading over to the Etherscan.io and to the miner statistics page here.
Popular Ethereum Pools you can consider
It is termed as the second biggest Ethereum pool, hence is it one of the best Ethereum pools you can choose for your mining. Apart from mining Ethers, you can also use this pool to mine other cryptocurrencies including the all so popular Bitcoin. Unfortunately, the pool is only accessible to users based in China; with all its popularity, it would without a doubt be the most prominent mining pool if it was accessible globally. Its 3% fee on every reward earned is on the higher side but this does not make it any less popular.
Together with Ethermine they make the largest mining pool. They may be different websites, but they contribute to same pool therefore boasting an impressive 25% hashrate power net. This pool has tens of thousands of miners and the two charge only 1% fee on each reward earned as joining fee. These are some of the lowest charges you will find making this among the best Ethereum mining pools you can join. I’ve personally used Ethpool for quite a while, the only downside is from what I’ve heard the payouts can take EXTREMELY long especially if you have a smaller mining rig.
It is also among the biggest pools and charges a 1% fee on earned rewards. Using this pool, miners are able to withdraw from their accounts only when ether minimum is at 1.01. Another notable thing about the pool is that it only pays six times daily which seems limited, especially when compared to payouts by other pools. As an advantage you are free to mine other currencies besides Ethereum when you join the pool including Monero and Expanse among others.
It is probably the third largest for ethereum mining. It has thousands of miners and charges 1% per rewards. Nanopool is flexible in terms of increasing or lowering requested payment threshold, but the minimum is usually at 0.2 upon joining. The changes can be made easily from the user settings. Most notable about this pool is the friendly interface that even newbies can use without getting confused. Nanopool is probably the pool I use the most, and I highly recommend using it especially if you are just getting started with mining. They have very simple instructions on getting started with Ethereum mining, check it out here.
It generates 7.6% of hash rates compared to lower rates other larger mining pools command. It is a small mining group attracting Ethereum miners and rare professionals. The block finding fee, bonuses and transaction fee are some of the factors used to calculate charges on rewards. This mining pool is available in various locations with servers located in Europe, Asia and the US and the all offer redundant mining environments to miners. This is one of the best pools for professional Ethereum miners looking for more bonuses and rewards.
The great thing about miningpoolhub as well is it’s auto switching feature – thus it will switch algo’s as well as coins based off profitability!
Joining a good Ethereum mining pool is one of the most important things a miner can do in terms of maximizing on the profits. Whether you are a mining rig expert or just a miner, a pool can go a long way in rewarding your efforts and helping you achieve your goals. With a plethora of mining pools, you will definitely find the best Ethereum pool serving your needs and expectations. Your needs should guide you into the best pool and it helps to conduct a thorough search on pools you are interested. A few comparisons between the pools can also help you narrow your search for the best, as well as testing them yourself within your miner configurations.