Bitcoin Mining Pools: How to Find and Join One

Changing Bitcoin mining pools can improve your mining but it isn't mandatory

What to Know

  • Join a popular alternative mining pool with a solid community and reputation, such as Slush Pool or CGminer.
  • Check out the CryptoCompare website, which ranks almost all available pools for quality and reliability.
  • Keep these factors in mind when choosing a new mining pool: fee, country of origin, and reputation.

This article explains how to find a reliable Bitcoin mining pool. It includes information about using a default mining pool and gives reasons for changing mining pools.

How to Find a Mining Pool

Finding a mining pool is a valuable part of mining Bitcoin and other cryptocurrencies. Mining pools allow Bitcoin miners to combine their efforts and share the rewards earned. Using a mining pool almost always results in higher earnings than mining alone. There are numerous pools to choose from, some officially managed by companies and others run by dedicated users.

The popular alternative Bitcoin mining pools are Slush Pool and CGminer. Slush Pool was the first Bitcoin mining pool created and, while it is no longer the biggest, it has a solid community built around it and a lot of support material available to help new miners get started.

The most convenient place to find alternative Bitcoin mining pools is Crypto Compare. The site lists almost all available pools and lets you sort pools by specific details and rank them out of five stars for quality and reliability.

Here are three things to look out for when searching for a mining pool:

  • Fee: The fee percentage is what the owner of the pool takes from your overall earnings. This can range from 0 percent to 10 percent. While joining a pool without a fee sounds tempting, pools usually have low or no fees because they have no users and are trying to attract new members. It can often be worth joining a better-quality pool with a lot of users and paying a higher fee as that could earn you more in the long run.
  • Country of origin: While you can join a pool located anywhere around the world, joining one closer to where you are results in a better experience and higher earnings.
  • Reputation: The cryptocurrency space can be political, with some mining pools actively trying to sabotage the evolving Bitcoin technology by deliberately mining Bitcoin in a way that slows down transactions on the blockchain or refusing to switch to a more advanced version of Bitcoin that could be more secure and cheaper for users. A Twitter search of a mining pool's name usually reveals any negative aspects relating to a mining pool and its miners. Some pools to avoid are BTC Nuggets, F2Pool, and AntPool.
Bitcoin Against a Circuitboard

S3 Studio / Contributor

Using a Default Mining Pool

Most Bitcoin mining apps and services run their own official pools. These official mining pools are typically the default option but can be changed to a custom pool in the application settings.

Official Bitcoin mining pools are usually a reliable option for most people as they often have many other Bitcoin miners mining in them. These mining pools also receive technical support and upgrades by the company behind the app or service it's related to.

Examples of services that provide a default mining pool are the Windows 10 Bitcoin Miner app and the popular Bitcoin mining rig hardware manufacturer, Bitmain.

Should You Change Mining Pools?

Change Bitcoin mining pools to experiment and see if a different pool will increase your earnings. In most cases, using a default, official mining pool should be perfectly fine.

One good reason to change mining pools can be if you wish to mine a different cryptocurrency. The Windows 10 Bitcoin Miner app can also mine Litecoin, for example, by entering the address of a Litecoin mining pool in the Custom Miner option in Settings.

If the type of cryptocurrency mining pool changes, the payout wallet address should also change. For example, if you mine from a Litecoin mining pool, make sure that your payout wallet address is for a Litecoin wallet. Using an incorrect cryptocurrency wallet results in an error and you lose your earnings. There can be some exceptions to this rule where a mining pool could allow you to mine one cryptocoin such as Ethereum and be paid in Bitcoin. The pool's official website or discussion forums mention if this duality is possible.

How Does Bitcoin Mining Work?

Bitcoin mining is the process in which transactions are confirmed on the Bitcoin blockchain. People who partake in mining are referred to as Bitcoin miners.

Bitcoin miners use dedicated software on their computers to process transactions. The more powerful a miner's computer is, the more transactions they can process and the more Bitcoin they earn as a reward for their efforts.

Mining rewards consist of the small fees charged to the person who initiated the Bitcoin transaction (for example, a person buying a coffee with a Bitcoin smartphone wallet).

Bitcoin mining

Occasionally, the Bitcoin blockchain releases new Bitcoin during the mining process, and this largess is divided among the members of the Bitcoin mining pool that unlocked it.

What Is a Mining Pool?

Joining a Bitcoin mining pool is like buying lottery tickets with a group of friends and agreeing to split the prize money if one of you wins. You have a greater chance of winning a little bit of money more often this way than simply buying one ticket by yourself and hoping to get the grand prize once.

Each Bitcoin mining pool offers a numerical address inputted into the custom settings in the Bitcoin mining software. Most mining apps and services support their own official mining pools, although many online communities have also created their own.

Some pools can be more profitable (that is, earn more rewards) than others, so it can be worth experimenting with different pools on a weekly or monthly basis. Using a custom pool isn't a requirement, though, and is usually done by advanced miners.

Other mineable cryptocurrencies also have their own mining pools.

Bitcoin is now regulated in the U.S. as a commodity

Mining Pools Don't Replace Hardware

A pool, no matter how great a reputation it has, cannot make up for a lack of quality mining hardware. Mining pool earnings are calculated on how much your computer can mine, so you will need to invest in building a mining rig if you hope to make anything worthwhile.

If purchasing a mining rig isn't an option for you, cloud mining could be a viable alternative because of its cheaper price and ease of use.

Bitcoin arbitrage

sorbetto / Getty Images

Was this page helpful?