The goal of a bitcoin mining pool is that a group of miners will get together to form a pool and they will all attempt to mine a block which pays the newly minted coin to the pool manager.
The pool manager then distributes the coins among the miners based on their input and he also takes his commission for managing the pool.
While this may sound attractive, you should be careful of anything that will make you rich with a little effort.
Choosing the best bitcoin mining pools that work for you and your hardware setup is important because it will ultimately determine how much bitcoin you will make.
Each pool has a different structure and a pool fee associated with it and this should be considered when choosing a pool.
With the flood of mining pools available, there are some that are scam mining pools that you should avoid.
Watch this video by The Daily Decrypt as Charlie of CryptoCompare shares with Amanda Johnson his thoughts on the world of bitcoin mining pools and how to differentiate the legitimate mining pools from the bad eggs.
Crypto ‘Mining Pool’ Basics & How to Avoid the Skullduggery
” Why would you join a cryptocurrency mining pool — that is, purchase a mining contract? And how can you parse the legitimate operations from the scams? Charlie of CryptoCompare offers up advice based on his own navigation of the exciting seas of the mining pool.”
Each of these pools has their own advantages and disadvantages. Below are the bitcoin mining pools available to join and the market share they hold.
Largest Bitcoin Mining Pools and Hashrate Distribution
|BitClub Network||Telco 214|
Even though Charlie reported he had good experiences with mining polls like HashFlare, Genesis Mining and HashCoins, I think people should begin to start looking at bitcoin mining as a high-risk investment because the length of your mining contract may not match your profitability expectations.
The BadBitcoin website helps to expose these fraudulent schemes by publishing a huge list of bitcoin mining scams, Ponzi schemes etc and regularly updates the site.
Charlie explains that the scam mining sites often appear flashy, dodgy and try to pull the wallet in people’s eyes, while the genuine ones are open to show you everything about their mining operations.
Since the mining difficulty of bitcoin is escalating by the day, bitcoin mining is becoming less profitable.
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Have you used any good bitcoin cloud mining company or do you know of any resources that will be beneficial to miners? Please share your thoughts by leaving a comment below. Thank you!