What is crypto mining pool? How to choose a suitable mining pool?

In the early days of blockchain, a single computer could make money on a daily basis due to the small number of miners. With the total network hashrate growing, however, independent mining quickly became unprofitable. To deal with, some developers have developed a way to combined operation of small amounts of hashrate, and the websites created in this way are called "mining pools."

By joining the mining pool and participating in mining, regardless of whether the effective blocks are successfully mined, you can earn tokens as reward according to how much you contribute to the mining pool.

A common mistake many novice miners make is to frequently change the mining pools for quick profit because of the promotion campaign by a mining pool. This approach wastes a lot of time, and the losses often outweigh the short-term benefits of the campaign. Miners should take into account the conditions of a mining pool in the following aspects:

·High Hashrate

Many people don't think the hashrate of a mining pool is an important indicator, because in the long run there won't be much of a difference in revenues. However, from the point of view of mining blocks, a mining pool with high hashrate is more stable in mining blocks, so that the benefits of miners can be guaranteed.

·Low Commission Fee

There are certain differences in the commission fees stipulated by the operators of platforms providing different mining pool services. Users naturally want to earn more revenues from mining, so we must choose the mining pool platforms with low transaction commission fees, so that users can earn more return of investment.

However, there is a misunderstanding here. The cost varies among mining pools, depending upon the payout schemes. Therefore, when comparing the commission fees, we should compare the commission fees under the payout schemes. It is generally recommended to choose mining pools adopting PPS or PPLNS payout scheme.

·Low Network Latency

The process of data transmission from the mining machine back to the server will be affected by geographical location, local network speed, mining pool server and many other factors. If the mining pool has high network latency, it has major impact on the revenues of miners.