A Bitcoin mining pool is a gaggle of miners who mix their computational (hash) energy to spice up their possibilities of mining new blocks. To elucidate extra merely, the miners join the mining {hardware} on the pool’s server slightly than creating your individual. Furthermore, the pool rewards are distributed amongst members based mostly on how a lot hash energy every gives.
Mining swimming pools emerged as Bitcoin mining turned extra aggressive and resource-intensive, making it troublesome for smaller, solo miners to earn constant rewards. With out contemplating the expense of vitality and energy provides, the consumer would want appreciable sources and capital to earn a constant, profitable reward.
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Advantages of Becoming a member of a Mining Pool
- Consistency: Extra frequent rewards in comparison with solo mining.
- Accessibility: You may take part with out huge {hardware} or electrical energy investments.
- Help: Many swimming pools supply less-experienced miners assist, instruments, and steerage.
Mining swimming pools additionally improve community safety by rising the variety of miners concerned, sustaining decentralization, and stopping anybody entity from dominating the blockchain.
It’s a troublesome market on the market for miners, given how fierce the competitors is, which is why most would go for pool mining on account of steadier returns whereas nonetheless contributing to the community’s safety and decentralization. However, like something in life, there are a number of execs and cons to every:
Solo mining execs:
- Full management over any mined rewards.
- No charges to a pool operator.
And cons:
- Irregular rewards; probably very lengthy gaps between successes.
- Excessive price for {hardware} and electrical energy.
Pool mining execs:
- Extra constant earnings on account of collaborative efforts.
- Decrease preliminary funding in comparison with solo mining.
And cons:
- Pool charges scale back total revenue.
- Much less autonomy because the pool operator usually makes choices.
How Does Bitcoin Mining Work?
Now that the fundamentals have been defined, it’s time to dive a bit deeper into the specifics. To elucidate how Bitcoin mining works, let’s use organising and becoming a member of a BTC mining pool for instance.
Selecting a Bitcoin Miner
Most Bitcoin miners use ASIC gadgets, like an Antminer S19 or S9, as a result of conventional GPUs and CPUs are now not worthwhile for BTC mining. The mining rig ought to meet present effectivity requirements to remain aggressive.
Shifting on, match your energy provide unit (PSU) to the miner’s energy draw. As an illustration, an Antminer S9 can devour roughly 1,375 watts, so a sturdy and dependable PSU is crucial.
Subsequent, arrange a steady, wired Ethernet connection (advisable) to attenuate downtime and guarantee your rig can talk constantly with the pool’s servers. It is because your shares (i.e., your items of labor to show your contribution to fixing the cryptographic puzzle) should be submitted as rapidly as doable, and wi-fi connections might expertise interruptions on account of a number of components (bodily obstacles, excessive latency, inconsistent bandwidth on account of community congestion, and so forth.).
Miner Settings and Pool Navigation
Naturally, you wish to plug within the miner and the PSU and join an Ethernet cable to your native community. The following step is to make use of a community scanner, like Offended IP Scanner, to seek out your miner in your native community.
The instrument will scan your community and present the IP addresses of all linked gadgets. Discover the miner’s IP deal with and enter it into an online browser to open its management panel. Miners have default login particulars, usually “root/root” username and password, however chances are you’ll wish to instantly change these credentials for safety so nobody else can entry your miner.
Choosing a Bitcoin Mining Pool
New miners ought to analysis swimming pools based mostly on charges, payout schemes, safety measures, and server geography. A few of the greatest Bitcoin mining swimming pools embrace F2Pool, Foundry USA Pool, and Slush Pool.
When you’ve chosen a pool, you will need to create your employee credentials, that are principally your username and password. Your username (needs to be) usually a mix of your pool account title and an optionally available “employee” identifier (e.g., account_name.worker_name), however the password could be of any worth (or the one prompt by the mining pool).
Configuring the Miner
Subsequent, test the pool’s web site and go to the dashboard to test the record of Stratum addresses. This can be a URL protocol that your miner will use to submit work and obtain duties. Whereas mining swimming pools supply a common/default Stratum URL, ideally, you wish to select the closest server geographically on account of decrease latency and higher effectivity.
For instance, in North America, it needs to be one thing like this:
stratum+tcp://btc-na.f2pool.com:3333.
In your rig’s management dashboard, go to miner configuration or settings and enter the Stratum deal with particular to your chosen mining pool, alongside together with your pool username and password.
After saving, your miner will start directing its hashing energy towards the pool.
Linking a Bitcoin Pockets
Join your Bitcoin pockets deal with to the pool. This may be a part of your account profile on the pool’s web site. Some swimming pools permit members to set a minimal payout threshold, controlling how usually their earnings are despatched to their wallets.
When you don’t have one already, take a look at our information on a few of the best Bitcoin wallets in 2025, from sizzling to chilly options.
Beginning the Mining Course of
After it’s configured, your miner will ship shares (the items of labor) to the pool, which aggregates all members’ hashing energy to seek out legitimate blocks. In return, you obtain a share of block rewards proportional to your contribution. The extra you contribute, the extra you might be rewarded.
You may monitor your miner’s efficiency both via its personal interface or the pool’s web site.
How Are Rewards Distributed in Bitcoin Mining Swimming pools?
There are three kinds of payout fashions for rewards. Every strategy includes particular trade-offs regarding charges, rewards, and threat:
- Pay-Per-Share (PPS): With PPS, you obtain a hard and fast, predetermined payout for each share your mining {hardware} submits to the pool. The pool operator absorbs the chance of whether or not a block is definitely discovered, providing you predictable and regular revenue.
- Full Pay-Per-Share (FPPS): FPPS builds on PPS by paying a hard and fast fee per share and together with an estimated share of transaction charges along with the block reward. This technique affords much more predictable earnings by smoothing out the variability of transaction price revenue, however it might include barely greater charges because the pool operator is assuming extra threat.
- Pay-Per-Final-N-Shares (PPLNS): This technique pays out solely when the pool finds a block, distributing rewards based mostly on the proportion of the final N shares submitted by all miners. Your payout can fluctuate. If the pool is unfortunate otherwise you disconnect earlier than a block is discovered, your earnings for that interval could also be low or zero. Over time, nevertheless, this technique can yield greater rewards throughout fortunate intervals.
How you can Select the Correct Payout Methodology
Selecting a reward distribution mannequin is as vital as selecting the best pool. There are 4 details to contemplate: threat tolerance, charges, mining objectives, and dependency on operators, which could be summarized as follows:
- PPS and FPPS are good matches for individuals who want a gentle revenue and keep away from fluctuations tied to dam discovery. Nevertheless, PPS and FPPS swimming pools are inclined to cost greater charges as a result of they assume extra threat however pay their members no matter block discovery.
- Nevertheless, PPLNS swimming pools supply decrease charges however are way more risky. They usually have uneven payouts relying on how usually the pool finds blocks. In different phrases, the extra blocks which can be discovered, the upper the yield.
Typically talking, there are two explanation why a miner would select PPs or FPPS: both they’ve restricted sources, or they need predictable, regular revenue. Nevertheless, these with substantial hashing energy and sources usually gravitate towards PPLNS due to the larger yields. This maximizes total earnings in instances of bullish market exercise however accepts some short-term uncertainty, all in alternate for the most important rewards.
Dangers of Utilizing Bitcoin Mining Swimming pools
When utilizing a BTC mining pool, there are three fundamental dangers miners ought to pay attention to.
It’s no secret that giant swimming pools can dominate the share of the Bitcoin community’s complete hashrate. Such a focus of energy defeats the aim of decentralization, as a number of entities wield elevated affect over transaction validation and block manufacturing.
One other threat to contemplate is chain and pool manipulation. Swimming pools might commit sure unethical practices, like withholding legitimate blocks to achieve a bonus or censoring particular transactions to compromise the community’s safety and trustworthiness. Furthermore, operators maintain vital management over reward distribution, and people dishonest might manipulate payouts, delay rewards, and even vanish with members’ funds (in what is called an exit rip-off).
When assessing any mining pool, it’s prudent to confirm its monitor file of uptime, the safety measures in place, resembling superior Distributed Denial-of-Service (DDoS) safety, and its historical past of dealing with potential threats. In that sense, a safe and reliable pool protects your earnings and operational consistency.
A pool experiencing repeated disruptions (DDoS assaults, most frequently) can result in server downtime, impacting earnings. As an illustration, in 2020, Poolin, one of many largest Bitcoin mining swimming pools on the time, suffered a DDoS assault during which the pool’s servers have been flooded with malicious site visitors. This brought on downtime and a lack of income for taking part miners.
Along with the above, researching a pool’s popularity and transaction historical past is all the time a basic step earlier than becoming a member of one.
Besides, there’s no assure {that a} respected mining pool received’t have interaction in questionable habits. As an illustration, F2Pool, a number one miner when it comes to community hashrate, drew criticism again in 2023 when it started filtering transactions linked to addresses sanctioned by the US Workplace of International Property Management (OFAC). It was discovered that the pool excluded particular transactions from its blocks, imposing exterior compliance measures inside what is meant to be a impartial, decentralized community.
Evidently, this motion ran counter to Bitcoin’s precept of censorship resistance, sparking neighborhood backlash. F2Pool ultimately halted its filtering patch, however the level stays the identical.
Greatest Bitcoin Mining Swimming pools
A few of the prime Bitcoin mining swimming pools are listed beneath, in keeping with their hashpower, recognition, payouts and charges, safety, and key options, amongst different essential concerns.
Foundry USA
Foundry USA is the biggest Bitcoin pool in 2025, controlling over 30% of the community hashrate.
Key Options
- Institutional-grade providers: Along with normal pool operations, Foundry affords treasury administration, BTC custody, and derivatives merchandise, that are largely focused at large-scale enterprises.
- Safety and compliance: Foundry has SOC 2 Kind 1 and Kind 2 certifications, which implies robust inside controls and operations. Furthermore, all members should fulfill Know Your Buyer (KYC) and Anti-Cash Laundering (AML) necessities earlier than becoming a member of, which can deter miners preferring anonymity however gives a safer setting for each retailers and mining firms.
- Transparency and reliability: Detailed price buildings, exportable information, and in-depth analytics. This permits miners to guage and monitor their efficiency way more effectively.
Charges and Cost Strategies
Foundry USA has a tiered construction that adjusts charges in keeping with a miner’s quarterly common hashrate. Deductions come from the FPPS payouts, together with newly minted Bitcoin, e.g., block subsidies and transaction charges. Underneath FPPS, miners profit from common and predictable funds credited every day.
Furthermore, a 0.001 BTC minimal payout threshold makes Foundry approachable for smaller-scale operations, permitting frequent distributions even for these not contributing huge quantities of hash energy.
Hashrate and Supported Gear
Foundry USA is the biggest mining pool, contributing roughly 277 to 280 EH/s to the Bitcoin community. This implies it finds blocks rapidly, offering dependable payouts for taking part miners.
The pool helps numerous fashionable ASIC miners, together with Antminer S19 fashions, WhatsMiner M50 sequence, and AvalonMiner rigs.
Professionals and Cons
Professionals defined:
- Steady FPPS payouts, which embrace transaction charges
- Excessive-level safety with SOC certifications and strong compliance measures
- Institutional providers, offering lending, custody, and superior monetary merchandise
- Superior analytics and instruments for miners
Cons defined:
- KYC/AML necessities, which could be off-putting for sure miners
- Holding over a 3rd of the community hashrate means the pool has a large affect on the Bitcoin community
AntPool
AntPool, launched by Bitmain Applied sciences in 2014, stays one of the vital influential Bitcoin mining swimming pools.
As of early 2025, it instructions near 19% of the community’s complete hashrate, offering miners with a sturdy infrastructure and a number of reward buildings. Though primarily targeted on Bitcoin, AntPool additionally helps different proof-of-work cryptocurrencies.
Key Options
- Multi-currency assist: Along with Bitcoin, AntPool helps Bitcoin Money (BCH) and Litecoin, amongst different fashionable PoW choices.
- International server: AntPool operates servers worldwide, serving to scale back latency and off shares. This community design contributes to extra steady efficiency, no matter a miner’s geographic location.
- Day by day payouts and reliability: As soon as a miner’s steadiness reaches 0.001 BTC, earnings are despatched out each 24 hours. Safety measures embrace two-factor authentication (2FA), DDoS safety, and pockets locks, all of which safeguard consumer accounts.
- Instruments and sources for miners: The dashboard affords real-time hashrate metrics, detailed revenue histories, and built-in profitability calculators. These options simplify monitoring and assist customers fine-tune their operations.
Charges and Cost Strategies
AntPool affords three payout schemes, and so they include various charges, influencing particular person earnings:
- PPLNS: 0% price (transaction charges not included).
- PPS+: 2.5% price.
- FPPS: 4% price.
Miners obtain payouts as soon as they exceed the 0.001 BTC threshold. Distributions happen every day after that steadiness is reached.
Hashrate and Supported Gear
With a reported output of roughly 132.7 EH/s, AntPool contributes near 19% of the entire Bitcoin community hashrate. AntPool accepts many ASIC miners, together with Bitmain’s Antminer sequence (S19 Professional, S19 XP), WhatsMiner (M50), and AvalonMiner gadgets. Though it’s developed by Bitmain, different SHA-256 ASIC rigs can join with out problem.
Professionals and Cons
Professionals defined:
- A number of payout fashions
- Zero price for PPLNS (transaction charges not included)
- Backed by Bitmain’s longstanding mining experience
- International server infrastructure for lowered latency
Cons defined:
- FPPS has a better price (4%) in comparison with some options
- Massive share of hashrate might enhance centralization issues
- Some customers discover the interface much less streamlined than different swimming pools
ViaBTC
ViaBTC is among the greatest crypto mining swimming pools, with a popularity for strong infrastructure, in depth coin assist, and an unlimited suite of sources and instruments for miners.
Headquartered in China, it has turn out to be the third-largest Bitcoin mining pool globally, holding about 14% of the community’s hashrate as of early 2025. Along with BTC, ViaBTC covers quite a few different PoW cryptocurrencies.
Key Options
- Big selection of property: ViaBTC helps over 20 crypto property, together with BTC, BCH, LTC/DOGE (merged mining), ZEC, and DASH.
- International server: Distributed servers reduce latency and guarantee steady connections for members throughout completely different areas.
- Auto-conversion: Miners usually are not required to manually commerce their BTC earnings because the pool can mechanically convert their earnings.
- Safety measures: ViaBTC implements two-factor authentication (2FA), multi-level threat controls, and pockets locks for enhanced account safety.
- Superior instruments and cloud mining: The pool affords real-time efficiency monitoring, cell apps for on-the-go monitoring, and a cloud mining characteristic for individuals who want mining with out proudly owning bodily gear.
Charges and Cost Strategies
ViaBTC affords PPS and PPLNS for miners, charging 4% and a couple of%, respectively.
Hashrate and Supported Gear
ViaBTC contributes round 83.5 EH/s, accounting for roughly 14% of Bitcoin’s complete hashrate.
Furthermore, ViaBTC helps ASIC miners for Bitcoin and different SHA-256 cash and GPU rigs for altcoins resembling Ethereum Traditional (ETC) or Zcash (ZEC). It additionally affords numerous setup guides for mining software program like PhoenixMiner or T-Rex Miner.
The default minimal threshold for payouts is 0.0001 BTC, making the pool accessible to smaller-scale members. Miners are paid as soon as they exceed this quantity, with disbursements usually processed every day.
Professionals and Cons
Professionals defined:
- Helps a number of cryptocurrencies for diversification
- Totally different payout strategies
- Low payout threshold to go well with smaller miners
- Sturdy security measures
- Auto conversion and different instruments to simplify consumer expertise
Cons defined:
- PPS charges are greater than most opponents
- Cloud mining remains to be thought of dangerous because it’s usually related to market volatility
Luxor Mining Pool
Luxor Mining Pool, established in 2018, is a North American-based operation acknowledged for its Full Pay Per Share (FPPS) mannequin and broad assist for a number of cryptocurrencies.
Although its Bitcoin hashrate is decrease than some market-leading swimming pools, Luxor stays a powerful alternative for miners in search of hourly payouts, aggressive charges, and additional providers like Catalyst, which permits mining altcoins however receiving rewards in Bitcoin.
Key Options
- Catalyst service: Multi-coin miners can direct their hash energy to cash like Zcash or Sprint however go for Bitcoin payouts, simplifying portfolio administration throughout numerous networks.
- International servers: These are unfold throughout Asia, Europe, and the Americas to cut back latency and bolster uptime for miners worldwide.
- Superior analytics and developer instruments: Luxor’s dashboard affords detailed efficiency monitoring, an API for customized integrations, and user-friendly sources for real-time monitoring.
- Safety: The pool is licensed SOC 2 Kind 2, bolsters accounts with 2FA, and maintains cloud redundancy to safeguard miner information.
- Tax reporting integration: Miners can companion with Luxor’s advisable platforms to automate tax filings for cryptocurrency revenues, streamlining compliance.
Charges and Cost Strategies
The pool costs a price of 0.7% for Bitcoin, solely underneath the FPPS system, with constant hourly payouts based mostly on submitted shares, together with block rewards and transaction charges. For altcoins, the price construction might range, as some altcoins use PPS or PPLNS fashions (sometimes at 0% for PPLNS).
Luxor’s 0.7% price underneath FPPS compares favorably in opposition to different main swimming pools, particularly these with greater percentages for full pay-per-share payouts.
Hashrate and Supported Gear
Luxor contributes an estimated 20 EH/s to the Bitcoin community, which places it behind some bigger opponents but retains it influential in North America.
The pool works with main ASIC miners:
- Bitmain Antminer (e.g., S19 Professional, S19 XP)
- WhatsMiner (e.g., M50 sequence)
- AvalonMiner gadgets
GPU mining can also be supported underneath the Catalyst characteristic for sure altcoins. The minimal Bitcoin payout is 0.004 BTC.
Professionals and Cons
Professionals defined:
- Aggressive 0.7% FPPS price
- Hourly payouts for steady earnings
- Catalyst service converts altcoin positive factors into Bitcoin
- Sturdy safety (SOC 2 Kind 2, 2FA)
- Developer-friendly API for superior analytics
Cons defined:
- Roughly 20 EH/s—smaller than main swimming pools like Foundry USA or AntPool
- Increased payout threshold (0.004 BTC) could be much less handy for small-scale miners
- No merged mining assist (can not mine a number of cash concurrently underneath a single algorithm)
F2Pool
F2Pool is among the many market’s longest-running and most various cryptocurrency mining swimming pools. Established in 2013, it helps over 40 digital property, together with Bitcoin, Ethereum PoW (ETHW), Litecoin (LTC), and plenty of extra.
Alongside its broad coin protection, F2Pool affords a variety of payout buildings (PPS+, FPPS, and PPLNS), every day computerized distributions, and robust security measures to safeguard miners’ earnings.
Key Options
- Multi-currency assist: F2Pool accommodates greater than 40 cryptocurrencies. It additionally helps completely different {hardware} for these altcoins.
- Superior instruments: F2Pool delivers in-depth statistics like real-time hashrate monitoring, income historical past, and profitability projections. It additionally helps cross-platform accessibility via net and cell apps, making it easy for miners to trace and handle their operations on the go.
- Safety measures: Sturdy DDoS defenses and safe payout methods assist reduce disruptions. The corporate’s popularity, constructed over almost a decade, is a testomony to its reliable infrastructure and immediate responses to potential threats.
Charges and Cost Strategies
2FPool affords three kinds of cost strategies, relying on the consumer’s want: PPS+, FPPS, and PPLNS.
F2Pool’s Bitcoin mining charges range based mostly on the payout mannequin, typically starting from 2% for PPLNS to 4% for FPPS. Though this can be barely greater than smaller swimming pools, many miners discover the soundness and reliability worthwhile. Once more, all of it will depend on the consumer’s objectives and wishes.
Bitcoin miners can count on a minimal payout of 0.005 BTC by default, which they will alter of their account settings to go well with their preferences.
Hashrate and Supported Gear
F2Pool gives about 10% of the entire Bitcoin community hashrate in 2025, translating into roughly 81.4 EH/s. This implies the pool usually finds blocks comparatively rapidly. Furthermore, most fashionable ASIC gadgets, just like the Antminer S19 sequence, are suitable, and F2Pool additionally accommodates GPU mining for sure altcoins.
Professionals and Cons
Professionals defined:
- A stable monitor file since 2013
- A variety of mineable cryptocurrencies
- Complete mining statistics and real-time monitoring
- Strong safety and DDoS protections
Cons defined:
- Increased charges than some competing swimming pools
- Has engaged in questionable practices that contradict Bitcoin’s decentralized nature, fueling issues about Bitcoin mining centralization
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