The pool you mine Ethereum at has a direct relationship with how much money you make. Not all mining pools are equal. If you are a small scale miner, joining a mining pool is the most profitable way to mine. Unless you have a large mining farm, solo mining will never be profitable. So, as a small scale miner, your options are limited.
Ethereum is a cryptocurrency that can be mined profitably with a powerful graphics card or with an ASIC. There are many factors that affect the profitability when mining Ethereum. The mining pool you select is one of those factors. Since we want to earn the highest possible reward to maximize profit, we must select the best mining pool. If you are wondering what is the best Ethereum mining pool, this article is for you.
Before we list out the best Ethereum mining pools, here’s an introduction to mining pools:
What is a Mining Pool?
A mining pool is a place where miners come together to increase the chances of mining cryptocurrency blocks. Once a block is successfully mined, the reward is split among the miners in the pool. The reward is split according to the amount of mining power contributed to the pool by the miner. If you want to earn steady income, mining in a pool is the best way to mine, as opposed to solo mining.
A solo miner may be able to keep all the mining rewards for himself, but the chances of finding a block alone are slim to none, unless you have a large mining farm.
Choosing the Best Ethereum Mining Pool
As a miner, when joining a mining pool, there are some things you need to look for. These include:
Size of the Pool
The largest pool will always mine the majority of blocks. No pool owns 100% of the network’s hash power. However, the larger the pool is in comparison to other pools, the more steady your earnings will be. Bigger pool size does not equate to more profit. This is because the block reward has to be distributed among all miners in the pool. So, your payout is smaller compared to a small pool.
Mining in a pool isn’t free. The pool fees can range between 1% to 4%.
Different pools use different methods to calculate the payout. The 3 most popular methods are PPS, PPLNS, and PPS+:
PPS – In this method, your mining power is divided with the total mining power of the global network. By doing this, the mining pool can estimate the amount of work you have contributed to the pool. Then the pool allocates a reward based on this calculation. It is important to note that in PPS, transaction fees are not rewarded to the miners. However, PPS payouts are very steady.
PPLNS – In this method, payouts are distributed based on the number of shares contributed by the miner. It is defined by the number of shares contributed by the miner in a specific time period or by a number that represents the last ‘N’ number of shares received up to the block solving. In this payout mode, if the mining pool mines a lot of blocks, payouts can increase significantly. However, if the pool doesn’t mine any blocks, your payout will be 0. In PPLNS transaction fees are also rewarded to miners.
PPS+ – This method combines both PPS and PPLNS. In PPS+ the mining reward is settled using PPS and the transaction fees are settled using PPLNS. In other words, PPS+ is the same as PPS, but with the added benefit of rewarding transaction fees based on PPLNS.
Now that we know all popular modes of payment, it is time to check out some of the best Ethereum mining pools. So here are some of the best Ethereum mining pools as of today:
This is the biggest Ethereum mining pool at the time of writing. Sparkpool uses the PPLNS method to calculate payouts. As of now, the pool fee is 1% with a minimum withdrawal amount of 0.05 ETH. Interestingly, they also have mining pools for coins like GRIN and BEAM.
This is the second biggest Ethereum mining pool as of now. The best thing about this pool is that you do not need to signup to join this pool. You only need your Ethereum address to start mining here. Which means you can mine anonymously. Ethermine uses PPLNS with a fee of 1%. The minimum withdrawal amount is 0.05 ETH. You can also mine Zecash, RavenCoin, Ethereum Classic, Beam, and Ycash.
This is one of the oldest Ethereum mining pools. F2Pool uses PPS and PPS+. The fee is a bit high at 2.5%. Although this is common with all pools using PPS and PPS+. You can expect the rewards to be constant. The minimum withdrawal threshold is 0.1 ETH. Interestingly, F2Pool also has mining pools for a variety of coins. Some of these coins include BTC, BCH, BSV, LTC, XMR, GRIN.
Nanopool is another anonymous mining pool that uses PPLNS as payout mode with a fee of 1%. The minimum withdrawal amount is 0.05 ETH. Additionally, you can mine Zcash, Monero, Ethereum Classic, Pascal, Raven, and GRIN.
Is Mining Ethereum Profitable?
Yes! Ethereum is very profitable to mine as of now. However, you do need a powerful graphics card/s or an ASIC. If you want to estimate how much profit you are going to make mining Ethereum, you can always use a mining calculator. You can use CryptoCompare calculator for this. Input the hash rate of your mining rig, the power consumption of your rig, electricity fee in the area you live in, pool fee, and hit calculate. You will see a breakdown of estimated mining profit.
If you are a small scale miner, always join a mining pool to mine Ethereum or any other coin. Also, be aware of different payout modes used by these mining pools to maximize profit. If you still can’t decide which mining pool you should join, go with the mining pool that has the highest hash rate. In other words, join the biggest pool.