Read this article before you choose the Mining Pool
Many people do not know that there are various types of mining pools bitcoins that exist today. Multi-pools allow mining of several types of cryptocurrency based on profit, some only focus on promising new coins, and some focus on a particular coin as the overall goal. Not only are there various types of mining pools that must be chosen, but the payment methods are different, the most popular are PPLNS, PROP, and PPS.
This mining guide will give instructions on what mining pool you can use and what payment methods to use.
Single Coin Mining pools
The mining pool of a single coin is the same as the name. This type allows Coinvestors to focus on mining certain cryptocurrency activities.
Most people usually do Litecoin or Bitcoin mining directly using this type of mining pool. If you want to avoid exchange rates that are in exchange and have the right mining tools for mining a certain coin, you can collect a fair amount of coins this way.
However, the problem is when there are many people mining on the same network as you. The difficulty will increase to compensate for additional hashing power. Now the types of mining pools after this will show you how to overcome these problems.
Multi-pools are a type of mining pool that allows you to change automatically from one coin to another based on which coins are the most profitable to mine.
Usually, multi-pools consider various things, such as exchange prices and the difficulty of each coin. When a coin becomes more profitable to mine, the pool will start for mining the coin.
If you are only interested in a particular coin, some multi-pools exist which allow you to mine on separate ports specifically for the coin. Among the most popular mining pools for this type are CleverMining.com and Multipools.us.
When you are interested in investing in coins that “pump and dump” or promising new coins, IPOMiner.com allows you to mine these coins based on the level of profit. If you are willing to spend more effort to get more Bitcoin from mining, then most coins will be like that too. If you look at the exchange rate chart at CoinWarz.com then you can see that most coins start with the value in the middle of the chart. Then the price will go up a little, and after the curve is pointing downwards.
Mining using IPOMiner allows you to do new coin mining just before the price peak, so you can try to sell it to get as many Bitcoins as possible. The difficulty level of the coin is usually still low because the coin is still new, and you can maximize the profit from selling it at the right time. Most coins will not sell at a value higher than the peak price. But the condition is you must always pay attention to the value of the coin and sell it when you feel the price is the highest price. You can still get enough profit even though selling it is a little late past the peak.
In the world of mining, there are various methods used by mining pools to calculate your income. On BitcoinMining.com there are payment methods that can be used by a mining pool to pay miners. PPS, PROP, and PPLNS are the three most popular among the methods. PPS pays the miner for each part given to the pool, and provides payment stability, but transfers a lot of risk to the pool operator. PROP pays all miners proportionally based on how many parts have been given to the pool, and Pay Per Last N Shares (PPLNS) pay miners for the last part they collect to the pool.
Pay Per Share or PPS
is one way to determine how many crypto coins are obtained when it reaches its minimum. This method of calculating payments includes luck, and the average yield is greater than PPS in the long run. If you want to make more money in crypto networks, you should use PPLNS. The value collected in the PPLNS method will have an impact on fluctuations
Methods Besides PPLNS and PPS
In addition to the two payment methods above, some mining pools also prepare their own policies by applying one of the following methods:
- Capped Pay Per Share with Recent Backpay (CPPSRB). The mining pool will pay as many miners as possible based on block discovery. But the pool will not go bankrupt because the variant is high and the miner has a lower variant of the reward system.
- Double Geometric Method (DGM). It is a combination of PPLNS and types of Geometric rewards that allow the pool to absorb some variant risks. The mining pool will accept a portion of the payment in a short round and return it to a long round to normalize payments.
- Equalized Shared Maximum Pay Per Share (ESMPPS). Just like PPS, but equating payments fairly.
- Pay On Target (POT), is a high variance PPS that pays based on the level of difficulty of work in the mining pool
- Pay Per Last N Groups (PPLNSG). This system is similar to PPLNS, but shares are grouped alternately which are paid in whole.
- Proportional (Prop), this method divides reward to all workers proportionally according to what is found by each miner.
Make sure you understand how you will be paid when doing business with a mining pool, otherwise you can miscalculate the possible benefits of mining. It is important for you to choose the mining pool that is right for the task you want to complete. If you are an ASIC miner, make sure the pool you are using is set with VARDIFF (difficulty variable) so you can get more difficult targets and not waste time collecting low parts. If you set the difficulty level manually, then set it according to the hash rate. Sometimes a mining pool operator will allow requesting a certain level of difficulty.