Money can be made, but no method guarantees profit
Now that you have Bitcoin mining hardware , your next step is to join a Bitcoin mining pool. Mining pools are groups of cooperating miners who agree to share block rewards in proportion to their contributed mining hash power. Miners can, however, choose to redirect their hashing power to a different mining pool at anytime. Many only have Chinese websites and support. There are about 20 major mining pools.
The list below details the biggest Bitcoin mining pools. We strongly recommend new miners to join Slush Pool despite it not being one of the biggest pools. It was the first Bitcoin mining pool and remains one of the most reliable and trusted pools, especially for beginners. We strongly recommend joining Slush Pool instead. Antpool is a mining pool based in China and owned by BitMain. Slush is probably one of the best and most popular mining pools despite not being one of the largest.
ViaBTC is a somewhat new mining pool that has been around for about one year. Bitclub Network is a large mining pool but appears to be somewhat shady. We recommend staying away from this pool. Bitfury is a private pool that cannot be joined. Bitfury currently mines about 3. The comparison chart above is just a quick reference. The location of a pool does not matter all that much. Most of the pools have servers in every country so even if the mining pool is based in China, you could connect to a server in the US, for example.
Before you join a mining pool you will also need Bitcoin mining software and a Bitcoin wallet. Many people read about mining pools and think it is just a group that pays out free bitcoins. This is not true! Mining pools are for people who have mining hardware to split profits. Many people get mining pools confused with cloud mining.
Cloud mining is where you pay a service provider to miner for you and you get the rewards. As Bitcoin mining is somewhat centralized, mining companies have claimed the vast majority of network hash power. With many of these companies in the same country, only a number of countries mine and export a significant amount of bitcoins. Georgia is home to BitFury , one of the largest producers of Bitcoin mining hardware and chips.
The US is home to 21 Inc. The rest of the hash power is spread across the rest of the world, often pointed at smaller mining pools like Slush Czech Republic and Eligius US. Bitcoin miners can switch mining pools easily by routing their hash power to a different pool, so the market share of pools is constantly changing. To make the list of top 10 miners, we looked at blocks found over the past 6 months using data from BlockTrail.
The size of mining pools is constantly changing. We will do our best to keep this posted up-to-date. Bitcoin miners are crucial to Bitcoin and its security. Without miners, Bitcoin would be vulnerable and easy to attack. However, miners are responsible for the creation of all new bitcoins and a fascinating part of the Bitcoin ecosystem. Mining, once done on the average home computer, is now mostly done in large, specialized warehouses with massive amounts of mining hardware.
Despite recent controversy, Antpool remains the largest Bitcoin mining pool in terms of its Bitcoin network hash rate. Antpool mined its first block in March , meaning that it emerged roughly four years after the first mining pool; Slushpool. Antpool is run by Bitmain Technologies Ltd.
Antpool supports p2pool and stratum mining modes with nodes that are spread all over the world to ensure stability US, Germany, China etc. First, you need to acquire Bitcoin mining hardware. Then you need to download mining software. If you need help deciding, I suggest you take a look at our hardware and software guides. So make sure to make the right choice in order to optimize your rewards. Antpool claims that it does not charge any fees for using its pool.
While Antpool does not directly charge fees, it also does not disclose the Bitcoin transaction fees that are collected. Basically, clients are left in the dark. Currently, every Bitcoin block has a Lately, however, Bitcoin transaction fees have been rising and an additional bitcoins are collected per block by pools. At this time, Antpool keeps bitcoins form transaction fees for itself, which are not shared with miners who have hash power pointed toward the pool.
It can be argued that these rates prevent the service from being usable for small-time and big-volume users. Consequently, some users on bitcointalk. The minimum withdrawal amount is 0. Solo mining means you mine for bitcoins without joining a pool. So if you use Antpool you are not solo mining by default.
Antpool has refused to enable arguably beneficial upgrades to Bitcoin for reasons based on claims that have been largely disproved. Notably, this has taken place with somewhat of a vindictive attitude. More specifically, the controversy revolves around Segwit — a feature that requires miner activation to be enabled. Despite the fact that most Bitcoin users want this feature activated, Antpool, among other pools, appears to be blocking this feature. Antpool claims that it will only signal for Segwit if there is a hardfork, which is a proposition that most users oppose.
Furthermore, allegations that the owner refuses to sell hardware to Segwit supporters have also begun to circulate. If you wish to decide which implementation your hardware should signal for, you can use a pool that leaves the choice to its users, like the Slush mining pool.
The main difference between the Bitfury pool and other mining pools is that Bitfury is a private pool. Bitfury, the company, makes its own mining hardware and runs its own pool. So, unlike Slush or Antpool, Bitfury cannot be joined if you run mining hardware at home. Although Bitfury controls a large portion of the Bitcoin network hash rate, its committed to making Bitcoin decentralized :.
BitFury is fundamentally committed to being a responsible player in the Bitcoin community and we want to work with all integrated partners and resellers to make our unique technology widely available ensuring that the network remains decentralized and we move into the exahash era together.
The company also runs a Bitcoin exchange, wallet, prints physical bitcoins and more! BTCC evenly splits the transaction fees among its miners, just like it splits the You will want to point your software towards the URL location closest to you. This will maximize your mining profits. This may seem like a lot but unlike other pools it shares the transaction fees with its miners.
At current levels, these amount to BTC more per block. Satoshi Labs runs Slush Pool. Many people want to use the pools above for Ethereum too. But, most of the pools listed above are only for Bitcoin mining.
Please see our post on Ethereum mining pools for more info on ETH specific pools. Like Ethereum, none of the pools above support litecoin. For LTC mining you will need separate hardware and a separate pool. But most likely you will have to pay income tax on income from mining pools just like you would for any other type of income. Disclaimer: Buy Bitcoin Worldwide is not offering, promoting, or encouraging the purchase, sale, or trade of any security or commodity.
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Jordan Tuwiner Last updated January 29, Just Want Bitcoins? If you just want bitcoins, mining is NOT the best way to obtain coins. Best Bitcoin Cloud Mining. Best Bitcoin Mining Hardware.
What is Bitcoin Mining?
Mining pools are group of miners working together to mine bitcoins and share the rewards based on the hashrate everyone contributes. In simple terms, your machine is a worker bee which will connect to one of the mining pools and a work gets allocated to solve a portion of SHA puzzle and based on the overall rewards you will receive your share and the reward depends on how much hashrate are you contributing. The odds of you mining alone and finding a new block are very slim instead you join a group of miners whta work together and share rewards there by your payouts will be in a predictable hood. Here is the top list of mining pools for payyout and their combined hashrates. For every block mined there is a block reward which is now When someone buys hashrate, by default it divides the hash rates among these 3 pools namely BW.
What is a Mining Pool?
In return, participants receive compensation in bitcoins BTC. When you participate in Bitcoin mining, you are essentially searching for blocks by crunching complex cryptographic challenges using your mining hardware. Once a block is discovered, new transactions are recorded and verified within the block and the block discoverer receives the block rewards — currently set at Once the maximum supply of 21 million Bitcoins has been mined, no further Bitcoins will ever come into existence. This property makes Bitcoin deflationary, something which many argue will inevitably increase the value of each Bitcoin unit as it becomes more scarce due to increased global adoption.
Pool Concentration in China
Disclaimer: Buy Bitcoin Worldwide is not offering, promoting, or encouraging the purchase, sale, or trade of any security or commodity. We strongly recommend new miners to join Slush Pool despite it not being one of the biggest pools. Just join one of these P2P mining pool. Buy Bitcoin Worldwide is for educational purposes. Miranda Marquit has been writing about money for The Balance since There is no "extra credit" for Friend B, even though B's answer was closer to the target answer of This will maximize your mining profits. Best Bitcoin Cloud Mining. However, if a Bitcoin miner does not submit a share for over a period of a week, then the pool will send any remaining balance, regardless of its size. While Antpool does not directly charge fees, it also does not disclose the Bitcoin transaction fees that are collected. Related Articles. When there are fewer machines racing to solve math problems to earn the next payout of newly created bitcoin, difficulty falls; when there are more computers in the game, it rises. The pool shares the transaction fees earned with miners. Basically, clients visit web page left in the dark. This process is also known as proof of work. Mining pools are group of miners working together to mine bitcoins and share the rewards based on the hashrate everyone contributes. Although it's tempting to pick the most popular one, it's better for the health of the network to mine with smaller pools so as to avoid potentially harmful concentration of hashing power.