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. Giant mining companies are creating large mining farms. 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. Furthermore, they should know all other coins’ values. This is to make 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 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. This allows them to be competitive in the cryptocurrency mining industry. Their combined hash power 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.
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.
Multi-pool mining pools could be a good fit for newbs wanting to get into mining. Multi-pools continuously calculate which cryptocurrency is most profitable to mine. They automatically switch to the most profitable cryptocurrency when values change.
A multi-pool’s algorithm calculates the profitability, block time, and the price on the exchanges of all mineable cryptocurrencies. 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 payout their poolers in one crypto, usually Bitcoin.
Because multi-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 mining because of their immediate sale.
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 an excellent 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.