Why You Should Join a Bitcoin Mining Pool

There are plenty of ways to mine the bitcoin. One of the things miners must keep in mind is the increasing difficulty of mining. This is not meant to deter the miner, but to help them choose a mining strategy. Bitcoin is the number one cryptocurrency in the world today. Other currencies are gaining traction, but the bitcoin remains way ahead, in terms of value and recognition. Since the bitcoin was the first currency based on the blockchain, this gives the BTC token a certain pioneer aura. If you are not keen to experiment with other currencies, and you want to make a neat profit from mining bitcoin, then you could look at ways to mine the currency.

Resources needed

As there are lots of miners looking to mine blocks of (BTC) Bitcoin coins, you need to consider your resources. There was a time when a few hours of spare time and a sufficiently powerful CPU was all you needed to mine the currency. This was thus, one of the favorite pastimes of heavy duty gamers, who already had the hardware. Over time, things came to pass that you could not imagine being able to mine currency unless you put your GPU to work. The power of a single GPU proved insufficient and soon, more than one GPU was needed. Thus was born ASIC mining. However, even this was not enough. ASIC mining can be expensive. You need to have more than one GPU and a high quality motherboard not to mention peripherals such as cooling. The hardware can be expensive, and with the increasing difficulty of block targeting, the returns can be less.

Benefits of a mining pool

If you are testing the waters and do not want to jump into fulltime mining right away, or you feel the heavy investment into hardware is not worth it, you could consider signing up with a mining pool. There are other miners like you, who lack the resources for block mining. You can form a group with them. Thus, the computers of many users, which form a formidable resource, can solve the mathematical puzzles that the bitcoin blockchain offers. Once the puzzle has been solved, you can claim the reward. Mining blocks will generate rewards, and the rewards are shared between the groups of miners, who form a mining pool.

Find the resources

If you don’t even want to invest in the hardware, you might want to lease the resources from a proven cloud mining service.  They maintain resource rich servers on their secure data centers. Therefore, you need not worry about security or availability of resources. The Bitcoin Mining Pool offers sufficient room for mining, but you need to have the resources needed. If setting up hardware is too cumbersome, then joining a cloud based mining service and acquiring resources on a virtual space and then using them to work with a mining pool is a good idea.

Before you join a mining pool you need to look at several factors. There are hundreds of Bitcoin Mining Pools. You need to choose one with higher payouts. The payouts are a percentage of the reward on claiming a block. While the percentage usually is fixed, the reward for blocks might fluctuate. This is very common, given that the rewards, block difficulty, and other factors are adjusted to keep the currency stable. Therefore, it is important to choose a reliable Bitcoin Mining Pool that offers high payouts, and pays up without fail. Many expert miners suggest trying more than one Bitcoin Mining Pool before you decide to work with one.  Once you have selected a mining pool, read the terms and conditions, signed up, and have the backing of a cloud based mining provider, you can start bitcoin mining.

Leave a Reply

Your email address will not be published. Required fields are marked *