Bitcoin mining is the process of creating new Bitcoin by solving a computational puzzle. This is the way to get digital coins without spending money on the cryptocurrency itself.
However, you should have funds to buy mining equipment and get necessary knowledge of the whole mining process. First, you need Bitcoin mining software and a Bitcoin wallet. In addition, you should have an ASIC miner.
Then it is time to select a mining pool. In this article, we will provide you with more detailed information about it.
A mining pool is a joint group of crypto miners who combine their computational resources over a network. When you join other miners in a group, the pool allows finding blocks more frequently. Miners who cooperate in the group agree to share block rewards proportionally.
The mining pool shares the rewards after creating a new Bitcoin block. A mining pool reduces the time for mining of an individual miner. It is more convenient to share the work of each miner in a pool and then split the reward with the members.
Miners can redirect their hashing power anytime they decide to change a different mining pool.
When we talk about all the mining pools in general, you will see that their greatest concentration takes place in China. Chinese pools manage around 60% of the network hash rate.
According to the statistics, Czech Republic follows China, then goes Iceland, Georgia, Japan and Russia. Many mining pools have Chinese websites and support.
China dominates Bitcoin mining by a very high point. It is an unchallenged world leader in Bitcoin mining. China is a huge manufacturer of the world’s mining equipment and it hosts massive mining farms. In fact, there are six major mining pools to pay attention to.
To get a clearer picture of mining pool operation let’s choose AntPool as an example. Antpool mined its first block in March 2014, it appeared four years after the first mining pool Slushpool.
Considering Bitcoin network hash rate, AntPool takes the leading role in the list of Bitcoin mining pools. You can join AntPool for free and the process requires a couple of steps. You already have Bitcoin mining hardware, download mining software and then sign up with AntPool.
SlushPool was the very first mining pool. We can see the statistics that its users have mined more than 1 million Bitcoins over the last decade using its services and software. Since its start, the pool has had its ups and downs.
Actually, Bitcoin’s story itself has not been all that smooth. However, for now the results of SlushPool operation are positive and impressive. The only minus of the service is that transaction fees are quite high comparing to other services.
You might be puzzled with the ways for mining Bitcoin, but it is not that difficult. When we talk about mining pools, it means that you have mining hardware and you join the pool to split profits. Cloud mining works differently.
Cloud mining is when you pay a service provider, it mines for you and you get the reward. You should be very careful with cloud mining. Most of cloud mining companies are actually scammers.
A company can claim about its guarantees and existence of mining hardware, but you should trust only proven names. To start, you learn more information about the AntPool cloud mining.