What Are Crypto Mining Pools and Why Are They Important?
If you’re a crypto enthusiast, you may have heard the term “mining pool” before. Crypto is an everchanging infrastructure based on decentralized digital currencies, so people find alternative ways of reaping the most rewards in the safest, most financially secure means; being part of a mining pool is one way to do so. Read this guide on what are crypto mining pools and why they’re important.
What Are Crypto Mining Pools?
Ultimately, a crypto mining pool is a collective of individual miners working cohesively to mine a specific cryptocurrency. Contrary to individual or solo-based mining applications, mining pools combine their resources for higher rewards. These rewards are then divided among all members of the group. The combination of stronger processing power increases the profitability of the mining operation. Crypto mining pools further save time, energy, and costs that typically accrue during solo operations.
Why Are They Important?
It’s important to understand why you should choose to join a crypto mining collective versus mining crypto on your own. Mining pools offer considerable advantages. For example, each miner is guaranteed part of the reward with less strenuous work involved. Solo mining requires immense energy, which can further result in heft electricity bills. Miners who are part of a pool need less energy and still retain their profitability. Of course, the rewards are not as large as when doing so individually, but the rewards are based on proportionality for the work involved.
Joining a mining pool further opens up new lines of communication. Crypto infrastructure is a fledging field with a dedicated community of followers. Your fellow miners in the pool can share tips, advice, or answer questions and address any concerns you may have.
When focused on what crypto mining pools are and why they are important, you should also consider the possible disadvantages at play. Joining a mining pool requires you to sacrifice some of your mining autonomy. When you join, you’re bound by the terms and regulations set before you.
Additionally, the main consideration to keep in mind are the rewards. While you still receive rewards based on the proportionality of your workload, these rewards amount to less than expected with solo mining. Some crypto miners take issue with the role of a mining pool itself, as they feel it goes against the decentralized nature of digital currencies, and thus refuse to participate in them.
Whether you join a mining pool or do so individually, BT-Miners is the best place to find crypto mining hardware at affordable prices. We carry a wide selection of Bitcoin, Ethereum, and altcoin miners. If you’re looking for a Starcoin miner, we have it. Call us with any questions, and we’ll help you find the best rig available.