Choosing the best Ethereum mining pool
So you’ve heard that mining Ethereum can be a profitable business and you may have bought some mining equipment.
Your next step should be to join an Ethereum mining pool.
Mining basins are simply groups of miners who work together to mine Ethereum. Joining a pool helps reduce the volatility of your payouts by providing smaller, more frequent payments instead of a flat fee that you only get when a block is resolved.
When choosing a mining pool, it is important to join a low-fee pool that will bring reliable returns. You should also consider the pool’s server location when deciding which one is best for you. The closer your mining rig is to the server, the more efficiently it can be mined.
This article introduces three of the best Ethereum mining pools so that you can confidently decide which pool to join:
Ethpool / Ethermine
Ethpool and Ethermine are operated from two different websites, but they both contribute to the same pool. At ~ 26.8% of the network hash rate, this pool is the largest in the Ethereum network. Ethermine currently has over 125,000 miners using the pool software, while Ethpool has a little less than 1,100.
Both Ethpool and Ethermine calculate a 1% fee on every reward that you get – one of the lowest fees of the pools studied.
Ethermine allows you to set the minimum payment threshold required to receive your rewards. If you rarely want to receive your payments, you can set the threshold to a maximum of 10 ETH. Set your threshold to the minimum of 0.05 ETH for more frequent payments.
Nanopool is the third largest Ethereum mining pool with ~14.4% of the network hash rate and over 80000 miners. At 1%, the pool fee is also lower than most of the competition.
The default minimum payout threshold for Nanopool is 0.2 ETHHowever, you can lower and increase the minimum in your settings. The user interface is straightforward and easy to use when you’re just starting out.
The platform also has an extensive help and FAQ area to help you get started. It will guide you through setting up your miner, configuring the pool settings, and linking it to the appropriate mining clients.
In addition, the help section will tell you what kind of hardware is best for Ethereum mining. Nanopool recommends using an AMD GPU driver 15.12. they can mine with a CPU, but your rewards will be low, which is not worth the effort.
Nanopool also supports the mining of Ethereum Classic, Siacoin, ZCash, Monero, Pascal and Electroneum.
Some miners have reported that their hash rate through Nanopool is significantly lower (sometimes up to a 10% difference) than that in other pools or alone. The Nanopool team addresses this in its FAQ section. There are two main reasons for these differences:
- The hashrate displayed by the Nanopool fluctuates as it is based on the number of shares submitted. Instead, you should check what the average is over a 24-hour period.
- If your hashrate drops to zero, it may have been caused by corrupted DAG files on your miner. If so, stop the miner, delete the DAG files and restart it.
Overall, the community seems to trust and like this pool.
Once the market leader, Dwarfpool is now smaller at only ~ 2.4% the hash rate of the Ethereum network. Like Ethpool / Ethermine and Nanopool, Dwarfpool calculates a 1% fee on block rewards.
Your account balance must reach 1.01 Ethereum before the withdrawal and the pool will pay off 6 times a day. Unless you’re mining with a powerful mining rig or with multiple miners, you may want to join a pool with a lower payout minimum.
Dwarfpool also supports mining other coins such as Monero, Zcash, Expanse and Groestlcoin.
You really can’t go wrong by joining one of the top mining pools out there. Most of the largest are fairly reliable and have a similar fee structure. In the end, it is important to choose the one that you are most comfortable using.
Once you have a constant profit, you need to find the best way to sell the Ethereum you have mined.