For any individual wanting to get into mining Bitcoin and other cryptocurrencies, the best way to drive their mining profitability is to join a mining pool.
Mining cryptocurrencies is a huge industry. There are giant mining companies creating huge mining farms, and each and every farm launched pushes the individual miner further to the sidelines, dwindling their chances of earning a profit.
So joining a mining pool is the best way to maximize one’s profits. However, a miner then has to know which coin to mine at any given time, and even know all other coins’ values so they can be sure they’re mining the most profitable cryptocurrency at any given time.
Sounds like a lot of research? It can be, but to be fair, mining Bitcoin is the safest way. That said, joining a multi-pool mining pool could possibly maximize your profits even more than playing it safe with mining only Bitcoin.
Mining Pools and How They Work
Mining pools are a collection of miners who have pooled their resources together to be competitive in the cryptocurrency mining industry. Their combined hashpower makes them much more likely to earn any block reward than would be possible if mining alone.
Not only this, but as the mining difficulty of a cryptocurrency increases, the processing power needed to mine it also increases, as does the energy cost. All of this makes it difficult for an individual miner to compete, so being part of a collective gives an individual a much more realistic chance of earning a decent profit.
Multi-Pool Mining Pools
There are many mining pools, mining many different cryptocurrencies, and with many different payment methods, so it’s up to any individual to decide which mining pool is best for them.
Most mining pools give miners the option of which cryptocurrency to mine, and leave it up to the individual to work out which coin is most profitable to mine. But there are mining pools that do all the profit calculations for you and mine only those.
Related Reading: Which Mining Pool Should You Join
Multi-pool mining pools could be a good fit for newbs wanting to get into mining. Multi-pools constantly calculate which cryptocurrency is most profitable to mine and will automatically switch to the most profitable cryptocurrency at that given time.
A multi-pool’s algorithm calculates the profitability, block time and the price on the exchanges of all mineable cryptocurrencies, and if it discovers a more profitable coin to mine it will automatically transition to mining that coin.
Multi-pools will automatically exchange the mined coins and pay out its poolers in one crypto, usually Bitcoin.
Because mutli-pools mine only the most profitable coins, it’s possible that you will receive more Bitcoin than if you were just mining Bitcoin. However, it could also affect the price of the coin you’re actually mining because they will be sold immediately.
There’s no right or wrong answer about which way or coin is best to mine. Mining Bitcoin is usually most profitable, but with the Bitcoin halving just around the corner, the block reward will be cut in half, and the competition for the block reward will be even tighter.
Mining Pools offer individual miners an opportunity to compete for any block reward, but again, it takes time and research to know which best suits you.
Multi-pool mining pools could be a great way for any newb wanting to get into mining cryptocurrencies. They do all the research for you and mine only the most profitable cryptocurrency at any given time.
Author: Tommy Limpitlaw