fbpx
Mining

What Is a Mining Pool?

CryptoCompare needs javascript enabled in order to work.

Follow these instructions to activate and enable JavaScript in Chrome.

PC

MAC

What Is a Mining Pool? 1What Is a Mining Pool? 2What Is a Mining Pool? 3What Is a Mining Pool? 4What Is a Mining Pool? 5What Is a Mining Pool? 6What Is a Mining Pool? 7What Is a Mining Pool? 8What Is a Mining Pool? 9What Is a Mining Pool? 10

Bitcoin mining poolA mining pool, or Bitcoin mining pool like CEX.io, is simply a group of miners working together to reduce the volatility of their returns.

It is similar to the concept of diversification in portfolio management, where holding ten diverse stocks is better than holding one.

When miners try and find a hash to the correct block – they are taking part in a lottery.

If there are a 1000 tickets and you hold one of those tickets – the probability of you winning the lottery is one in a thousand. But if you hold 100 of the tickets – then your chances are 1 in 10 – so you can expect to win the lottery every 10 draws. With your one ticket, you would expect to win every 1000 lottery draws.

However, if you can’t afford 100 tickets you can band together with another 99 individuals to form a syndicate and split the reward every time you win. This means that your cash inflow will be less, but more frequent: the volatility of returns is lower.

Reducing Return Volatility with Mining Pools

The same thing is true for Bitcoin and cryptocurrency mining.

If you have a 1TH machine and the Bitcoin Network total hashpower is 1 PetaHash then you have a 1 in 1000 chance of solving the block every ten minutes. You might not solve it for long periods, but by joining together with other miners in a pool you can form a syndicate and work in concert – and split the returns according to what percentage of the hash power you contribute to the pool. So if you have 10 TH of a 100 TH mining pool and you win the block reward of 12.5 Bitcoins – you would receive 10% or 1.25 BTC.

With mining, it is important to understand the different types of blocks involved, because of the effect it can have on your expected income. This article provides a comprehensive insight into orphan, uncle & genesis blocks.

Mining pools are a good way of smoothing your returns, but there is a cost – usually 1-2% of your winnings. Instead of hooking up your Bitcoin miner that you have bought – you can outsource it further by buying a mining contract that gives you rights to a certain amount of hash power for a certain period of time. This is called cloud mining.

See our guides on how to join a mining pool and comparison of Bitcoin mining contracts that you can buy off the shelf.

This website is only provided for your general information and is not intended to be relied upon by you in making any
investment decisions. You should always combine multiple sources of information and analysis before making an
investment and seek independent expert financial advice.

Where we list or describe different products and services, we try to give you the information you need to help you
compare them and choose the right product or service for you. We may also have tips and more information to help you
compare providers.

Some providers pay us for advertisements or promotions on our website or in emails we may send you.
Any commercial agreement we have in place with a provider does not affect how we describe them or their
products and services. Sponsored companies are clearly labelled.

CryptoCompare needs javascript enabled in order to work.

Follow these instructions to activate and enable JavaScript in Chrome.

PC

MAC

What Is a Mining Pool? 1What Is a Mining Pool? 2What Is a Mining Pool? 3What Is a Mining Pool? 4What Is a Mining Pool? 5What Is a Mining Pool? 6What Is a Mining Pool? 7What Is a Mining Pool? 8What Is a Mining Pool? 9What Is a Mining Pool? 10

{{DateParsing.formatFromNow(connection.data[0].DATA.LASTUPDATE*1000)}}

{{connection.data[0].DISPLAY.LASTMARKET}}

{{connection.data[0].DISPLAY.LASTVOLUME}}

#

{{heading.display}}



{{keyDefaultData}}

{{$index+1}}

{{item[heading.name]}}


Sponsored

{{item[heading.name]}}
{{item[“DISPLAYTOTALVOLUME24H”][“USD”]}}
{{item[heading.name]}}
  • {{coin}}
  • +{{item[heading.name].length}}

Read more


Visit site



The Astra Protocol team points out that high-profile money laundering cases across multiple financial platforms have led to regulators paying close attention to the nascent decentralized finance (DeFi) space.

The native token of popular cryptocurrency exchange aggregation platform TabTrader, TTT, has launched on cryptocurrency trading platform Gate.io as well as on decentralized platforms on the Solana blockchain.

DecimalChain has been in the cryptocurrency market for only one year, but over time it already developed and launched a number of innovative products that helped the project get to the level of major blockchain firms.

Medieval games are an exciting genre where the world of magic, folklore and history are interwoven together. This exciting prospect is taken to the next level by TaleCraft, a gaming metaverse that has successfully built a medieval game on the blockch…

Blockchain gaming metaverse Polker has announced the listing of its utility token PKR on crypto exchange platform Bittrex. This latest development one day after the successful launch of the Polker ‘Testnet’ Closed Beta Game.

Once you install Good Crypto on your iOS or Android device or open the Web App, it offers real-time market data and analytics, automated portfolio tracking, and advanced trading terminal supporting 30 leading crypto exchanges.

CryptoCompare needs javascript enabled in order to work.

Follow these instructions to activate and enable JavaScript in Chrome.

PC

MAC

What Is a Mining Pool? 1What Is a Mining Pool? 2What Is a Mining Pool? 3What Is a Mining Pool? 4What Is a Mining Pool? 5What Is a Mining Pool? 6What Is a Mining Pool? 7What Is a Mining Pool? 8What Is a Mining Pool? 9What Is a Mining Pool? 10

Back to top button
Sitemap