Mining pools were created to eliminate variance from the mining process.
For example, let’s say your mining rig had a .1% chance to mine a block. After mining 1000 blocks, the expected blocks mined would be 1. However, due to probability, this isn’t always the case. You could find 0!
Mining pools combine hashing power of several miners to reduce variance. If collectively a block is found, the rewards are distributed proportionally to the hashing power contributed. In exchange for their services, mining pools take a small fee.
Now that you know why mining pools form, let’s look at your options for pools.
|Pool||Mining Fee||Hashrate Estimate|
Ethpool is one of the most popular Ethereum mining pools out there. Ethpool is a predictive solo mining pool, meaning the block reward will be given to the miner who contributed the most work. While this sounds counter-intuitive to the idea of pools, this is recommended for users with larger mining setups.
When the pool mines a block, the miner holding the most credits is given the full block reward and his credits will be reset to 0. Ethpool currently charges a 1% fee for their services.
Ethermine pools together the same hashing power as Ethpool, but has a different payout method. Ethermine has instant payouts upon reaching your payment threshold. Just like Ethpool, Ethermine has a 1% fee on mining profits.
DwarfPool is another option that mines Etheruem Zcash, Monero, and Expanse. Dwarfpool also charges a 1% fee. Dwarfpool has a minimum payout of .01 ETH, making it convenient for smaller miners. Dwarfpool also eliminates Ethereum transaction fees upon payouts by using the pool fee to cover it.
NanoPool is one of the most popular mining pools and supports altcoins such as Ethereum Classic, Monero, Siacoin, Zcash and more. Expect a 1% fee when mining with Nanopool. Nanopool has a minimum payout of .05 ETH.
Most mining pools will leave you with near the same Ethereum at the end of the day. The lower the fee the better, but most pools charge 1% anyway. Although a 1% pool fee is annoying, the convenience it adds is certainly worth it.
Technically, as the amount of blocks mined reaches infinity, it becomes better to solo mine. But that could take years, and you probably want to get your payouts sooner than later.
Frequently Asked Questions
What is the best Ethereum mining pool?
There isn’t really a best Ethereum mining pool as it varies on a few factors such as your total hash rate, tech background, and country. Dwarfpool and Nanopool are probably better for smaller miners due to their payout structure while Ethpool and Ethermine are great for larger mining setups.
Is it possible to remove the pool fee?
Unfortunately no, unless you want to start your own pool. You may be able to find smaller pools with a lowe fee, but you generally want to use a higher tier pool to increase your frequency of payouts.
What is hash rate?
Hash rate is the speed your mining hardware can mine. Here’s how the units work.
- 1 kH/s is 1,000 (one thousand) hashes per second
- 1 MH/s is 1,000,000 (one million) hashes per second.
- 1 GH/s is 1,000,000,000 (one billion) hashes per second.
- 1 TH/s is 1,000,000,000,000 (one trillion) hashes per second.
- 1 PH/s is 1,000,000,000,000,000 (one quadrillion) hashes per second.
- 1 EH/s is 1,000,000,000,000,000,000 (one quintillion) hashes per second.
- 1 ZH/s is 1,000,000,000,000,000,000,000 (one sextillion) hashes per second.
Do I want a mining pool with a high hash rate?
Yes and no. Mining pools reward you for the amount of work you submit proportional to the rest of the miners. If your pool has a high hash rate, you will find blocks and be rewarded much more often. However, the higher the hash rate, the lower % of the hash rate your rig will have meaning your reward is less.
A medium hash rate mining pool allows for somewhat frequent rewards, with higher payouts.
What is the best mining pool in the United States?
Of the pools stated above, all are supported in the United States. So depending on your setup, certain pools will be better than others.
Is it worth it to mine Ethereum?
This depends on how much extra time you have, and how much electricity costs in your area. A helpful tool for calculating mining profitability is Cryptocompares mining calculator.
How do I use Ethermine?
Mining pools can be somewhat tricky for beginners. Check out this guide: