Top Five Bitcoin Mining Pools – Alternatives To Nicehash
The main difference inbetween cryptocurrencies and fiat currencies is that while fiat currencies are centralized, cryptocurrencies are decentralized.
Fiat currencies are created by respective governments and corporate figures. And centralized authorities control the circulation and valuation of thesis currencies.
However, cryptocurrencies depend on its user and the valuation of cryptocurrency revolves around its market cap and circulating supply.
Cryptocurrencies have a limited supply amount.
For example, for Bitcoin, this is only 21 million units. Plus the cryptocurrency network cannot create the currencies whenever it likes.
Certain rules and steps have to be followed to create even a single unit of a cryptocurrency.
WHAT IS BITCOIN MINING?
Ter our traditional currencies spil well spil ter cryptocurrencies a ledger has to be maintained. This ledger is packed with transaction details and updated whenever a transaction happens. Ter case of traditional currencies, the banks maintain thesis ledger systems.
So thesis are private ledgers which only the banks have access to. But te case of cryptocurrencies, everything is peer to peer and public. This publicly accessible ledger is called the blockchain.
The blockchain is a distributed ledger system that contains hashed blocks of records ter a linear style.
Each block contains information like transaction details and directly verbinding to the previous block ter the ledger, thus creating a chain-like structure.
I would like to point out that albeit most cryptocurrencies use the blockchain, IOTA, a cryptocurrency that is entirely dedicated to revolutionizing the IoT space, uses the “Tangle”.
Spil cryptocurrencies are distributed trustless system there is no centralized authority to maintain the blockchain. So users also need to participate ter this too. And this is called mining.
Miners are special knots ter a cryptocurrency network that verify transactions and maintain the distributed ledger system. Te comeback for their work, the cryptocurrency protocol prizes the miner with a few units of the cryptocurrency.
So miners are also responsible for creating fresh cryptocurrency units.
Please note that not all cryptocurrencies need miners. Only cryptocurrencies that use Proof of Work to verify transactions need miners.
This includes some popular cryptocurrencies such spil Bitcoin, Litecoin, Ethereum, Bitcoin Contant, Dash, Monero etc. Ter this article, wij are only going to talk about Bitcoin mining and Bitcoin mining pools.
CLOUD MINING VS INDIVIDUAL MINING
If you want to directly contribute to Bitcoin mining then you have two choices.
Either book a cloud mining solution or mine with your own hardware.
HOW TO MINE BITCOIN INDIVIDUALLY?
Gone are the days when you could mine Bitcoin with a normal GPU equipment. Presently, you need enormously powerful ASIC miners to mine Bitcoin.
There are a few ASIC miner companies like BitMain, Avalon etc that I trust. Personally, I like BitMain’s AntMiners spil they have the lowest payback period than the surplus.
ASIC miners, being utterly sophisticated and specialized hardware, cost a loterijlot of money. For example, a fresh AntMiner S9 costs $1415 but it comes without a power supply.
So you will have to pay 100 bucks toegevoegd for one. But I wasgoed talking about the ideal script spil most of the times thesis miners remain out of stock. So you will have to get them from aftermarket sellers who make a fortune by selling thesis 4-5 times the actual price!
Chic from this, ASIC miners are very expensive to maintain also. A single ASIC miner can consume spil much spil 1500W of power.
So there’s no point of getting one if the violet wand bill ter your country is very high. Then there’s the problem with cooling solution also.
You will need to have datacentre class cooling systems installed to keep your equipments from getting hot. The Bitcoin mining toneel is not indeed suitable for newcomers anymore.
You will have to have a large capital spil well spil patience to mine Bitcoin.
HOW TO MINE USING A CLOUD MINING CONTRACT?
There are a few companies who host the miners for you ter fully functional mining farms and perform all the maintenance for you. All you need to do is pay the contract toverfee.
After paying, it’s time to sit back and unwind and wait for the mining profits to leisurely make its way to your wallet.
Ter my opinion, the best cloud mining service providers are Genesis Mining, Hashflare, and Hashnet.
Genesis Mining contracts usually remain te powerful request because of their economic pricing.
Ter that case, you can go with Hashnet.
ASIC miner production company BitMain is the possessor of Hashnet.
Spil a newcomer with less capital, it makes sense if you opt-in for cloud mining at very first.
WHAT ARE MINING POOLS?
If you opt-in for the route to mine Bitcoin individually with your own equipment then joining a mining pool is the wiser choice.
When you join a mining pool or lend your miners hash rate to a mining pool, you work together with other miners. So instead of challenging with each other to find the ideal hash, all the miners work together towards a common aim.
But the pool itself acts like an individual knot ter the Bitcoin network.
This drastically increases your chance of profiting from mining. Because with the current network status with just one ASIC miner you cannot truly earn a single penny with solo mining.
Solo mining is only possible for mining farms with hashing power te the petahash range.
Mining pools divide the block prizes te two main ways –
PPS – PPS is the acronym of Pay Vanaf Share. It is the most ordinary form of prize sharing. Ter this method, the pool distributes the block prizes among the miners depending upon the hashing power they have contributed to the pool.
For example, if there are only two miners te a pool with 1TH/s hashing power each, then each of the miners will receive half of the actual block prize. Do keep te mind tho’ the pool charges a puny toverfee too.
It is usually te the range of 0.5-1%, but sometimes can even be spil high spil 2%.
PPLNS – This is a better mechanism than PPLNS. It stands for Pay Vanaf Last N Shares. Ter this prize sharing mode the pool uses a immobilized number N to divide the prize among the miners.
THE TOP FIVE MINING POOLS
Now that you know everything that you need to know about Bitcoin mining spil well spil mining pool, it’s time to review some of the best Bitcoin mining pools.
AntPool is a China-based multi cryptocurrency mining pool. Presently, it contributes about Nineteen.9% of the total hashing power of the Bitcoin network.
Thus making it the pool with most dominance overheen the Bitcoin network. BitMain, the same company which makes AntMiner ASIC miners for Bitcoin, possesses the AntPool.
Right now the pool has a total Bitcoin hashing power of 2606.36 PH/s! What makes AntPool better than the surplus are its awesome instrumentenbord, reliability, and responsiveness.
You can join AntPool for free by visiting this webstek – Antpool. They employ different prize sharing methods such spil PPS, PPLNS, and SOLO.
Unlike some other Bitcoin mining pools, AntPool automatically lodges payment every day. AntPool claims that using its PPS+ and PPLNS+ prize sharing method a miner will see 3% to 6% and 5% to 8% increase te earnings respectively.
For PPLNS payment method AntPool doesn’t charge any toverfee. But for the PPS+ method, the toverfee is 4% and it also charges a 2% toverfee spil transaction charge.
For PPS method AntPool charges a toverfee of 5% which is fairly reasonable. Because the AntPool has to voorkant the transaction charges too. And considering the current network congestion, it is higher than everzwijn. For SOLO method the toverfee is only 1%.
The next top Bitcoin mining pool is, BTC.TOP. It is another mining pool from China and presently contributes up to 14.2% of the total hashing power of the Bitcoin network.
The webstek, spil well spil the backend, is entirely te Chinese. So this pool cannot truly be used if you don’t have a directive overheen the language.
Remarkably enough, this pool doesn’t charge you anything for mining with it and claims that you may see about 3% increase ter earnings.
This is another Bitcoin mining pool from China. BTC.com provides a Bitcoin mining along with a Bitcoin Contant mining pool.
Presently, the pool contributes around 12.9% of the Bitcoin network’s total hashing power. At the time of writing this article, BTC.com has a total hashing power of 2170 PH/s and 139550 miners online.
This mining pool also has an app that shows you vital information like your total hash rate and gives you the capability to control your miners on the go. This pool is also wielded by the BitMain group.
BTC.com technically doesn’t have any mining fees associated with it. Also, this pool uses their own prize sharing method called FPPS or Total Pay Vanaf Share.
Te this prize sharing method, the pool calculates the standard transaction toverfee for a certain period and adds it to the block prize (12.Five BTC right now). Then it distributes the entire amount to the participating miners using PPS.
ViaBTC is a multi-cryptocurrency mining pool and cloud mining company. This mining pool is also based ter China. But they have servers all around the globe providing at least 99.999% uptime.
Presently, ViaBTC contributes 11.5% of the combined hashing power of the Bitcoin network. They only charge a toverfee of 4% when mining ter PPS mode.
Ter case of PPLNS and SOLO payment mode, the miners attract a toverfee of only 2% and 1% respectively! Fine uptime and reasonable fees make it a superb mining pool to join.
This mining pool from Czechoslovakia is the very first Bitcoin mining pool. Albeit presently, it is not the topmost pool te terms of combined hashing power, it is still one of the popular pools. It contributes up to Ten.9% of the total hashing power of the Bitcoin network.
Typically, this is about 1417 PH/s.
Slushpool embarked its operation way back te December 2010, just a year after Bitcoin wasgoed very first launched. Since then it has mined a total amount of 1 million BTC!
Slushpool is a very trusted mining pool. And this fact alone makes it one of the best pools to mine with. Slushpool doesn’t use PPS or PPLNS spil prize sharing method like other pools. Instead, it calculates a user’s share of the prize using scoring hash rate of the user.
You will find more details about this method here: Slushpool Prizes.
I hope I wasgoed able to sum up the top performing mining pools for Bitcoin. Presently, China has the maximum number of miners spil well spil the maximum number of mining pools.
So unsurprisingly Chinese miners and mining pools contribute the most hashing power of the Bitcoin network thus controlling about 60% of the network.
That means it is the Chinese miners who mine more than half of the Bitcoin and exports them to the entire world. Partially this is because of the cheap electric current rates te China and Chinese government’s unconditional support for its entrepreneurs.