Cryptocurrency mining is one of the main concepts that should be taken into consideration while dealing with crypto-domain. But if the mining process is done individually it would not be more effective compared to the expenses of the procedure. It may require a huge computational power, more sophisticated software and hardware, and huge consumption of electricity. To come out of these kinds of issues, the concept of “mining pools” were introduced. According to the very basic explanation, a cryptocurrency mining pool is a set of miners who work collaboratively by sharing resources. Moreover, the computational power is increased by cumulating all the computing power of the participants based on specified rules and regulations. Before choosing a cryptocurrency mining pool, a beginner should consider few facts. Let’s have a look.
Consider the compatibility of the infrastructures.
Once you choose the best currency, you have to come up with the best infrastructure. Nowadays there are more than hundreds of mining devices in the world market. It is important to think about the performing capability of these devices. Especially, whether the mining devices are compatible with the pool requirements. Not all the software is supportable for mining pools, it should be considered to choose a specific software.
Consider the Task Assignment Mechanism.
Once you choose the best currency, best mining devices, you have to come up with the best mining pool. Mining pools follow different mechanisms to assign work to miners within the pool. A mining pool should have an algorithm to distribute the tasks through the subgroups in an optimum way. For example, if there are two mining pools with one consisting of a set of strong miners and the other with weak miners. For these kinds of scenarios, the server mechanisms should be effective to distribute the harder tasks for the subgroup of strong miners and the easier tasks for the remaining subgroup (for weak miners). Slushpool is a better example of the above type algorithms.
Consider the reputation, history, and transparency of the mining pool.
As same as all other investments, cryptocurrency has certain risks in mining pools from hackers and scammers who act like owners. As you don’t want to let your money be stolen, you have to find a reputed mining pool that does not harm your wallet. Searching and studying the history of the selected mining pool would be a better way of reviewing the reputation. On the other hand, all the members should maintain trust within the mining processes. All the rules, regulations, and terms should properly transfer within the members with full transparency.
Consider the payment structure of the mining pool.
As a beginner, this should be considered specially. If you are new to the crypto-pool you might not be able to afford a higher amount of money in the first few months. So, it is important to find out an affordable mining pool at the beginning. But, be aware! As the fee becomes low, the performance might be weak. You should be wise enough to choose the mining pool considering all the above factors.
