A Bitcoin mining pool is a bunch of miners who mix their computational (hash) energy to spice up their possibilities of mining new blocks. To clarify extra merely, the miners join the mining {hardware} on the pool’s server fairly than creating your personal. Furthermore, the pool rewards are distributed amongst members primarily based on how a lot hash energy every offers.
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 person 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 provide less-experienced miners help, instruments, and steering.
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 tricky 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 couple 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 value 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 cut back total revenue.
- Much less autonomy for the reason that pool operator typically 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 clarify how Bitcoin mining works, let’s use establishing and becoming a member of a BTC mining pool for example.
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 not worthwhile for BTC mining. The mining rig ought to meet present effectivity requirements to remain aggressive.
Transferring on, match your energy provide unit (PSU) to the miner’s energy draw. As an illustration, an Antminer S9 can eat roughly 1,375 watts, so a sturdy and dependable PSU is important.
Subsequent, arrange a secure, wired Ethernet connection (advisable) to reduce downtime and guarantee your rig can talk persistently with the pool’s servers. It’s because your shares (i.e., your items of labor to show your contribution to fixing the cryptographic puzzle) have to be submitted as shortly 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 many others.).
Miner Settings and Pool Navigation
Naturally, you need to plug within the miner and the PSU and join an Ethernet cable to your native community. The subsequent step is to make use of a community scanner, like Offended IP Scanner, to seek out your miner in your native community.
The device will scan your community and present the IP addresses of all related gadgets. Discover the miner’s IP handle and enter it into an online browser to open its management panel. Miners have default login particulars, typically “root/root” username and password, however it’s possible you’ll need 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 primarily based on charges, payout schemes, safety measures, and server geography. Among the greatest Bitcoin mining swimming pools embrace F2Pool, Foundry USA Pool, and Slush Pool.
When you’ve chosen a pool, you should create your employee credentials, that are principally your username and password. Your username (needs to be) typically a mix of your pool account identify and an optionally available “employee” identifier (e.g., account_name.worker_name), however the password will be of any worth (or the one prompt by the mining pool).
Configuring the Miner
Subsequent, examine the pool’s web site and go to the dashboard to examine the listing of Stratum addresses. It is a URL protocol that your miner will use to submit work and obtain duties. Whereas mining swimming pools provide a common/default Stratum URL, ideally, you need 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 handle particular to your chosen mining pool, alongside along 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 handle 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 typically their earnings are despatched to their wallets.
In case you don’t have one already, try our information on a number 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 by its personal interface or the pool’s web site.
How Are Rewards Distributed in Bitcoin Mining Swimming pools?
There are three sorts 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 set, 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 set 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 may include barely greater charges for the reason that 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 primarily based 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, nonetheless, this technique can yield greater rewards throughout fortunate intervals.
Tips on how to Select the Correct Payout Methodology
Selecting a reward distribution mannequin is as essential as choosing the proper pool. There are 4 details to think about: threat tolerance, charges, mining objectives, and dependency on operators, which will be summarized as follows:
- PPS and FPPS are good matches for individuals who favor a gentle revenue and keep away from fluctuations tied to dam discovery. Nonetheless, PPS and FPPS swimming pools are likely to cost greater charges as a result of they assume extra threat however pay their members no matter block discovery.
- Nonetheless, PPLNS swimming pools provide decrease charges however are far more unstable. They typically have uneven payouts relying on how typically the pool finds blocks. In different phrases, the extra blocks which might be discovered, the upper the yield.
Usually talking, there are two explanation why a miner would select PPs or FPPS: both they’ve restricted sources, or they need predictable, regular revenue. Nonetheless, these with substantial hashing energy and sources typically 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 largest rewards.
Dangers of Utilizing Bitcoin Mining Swimming pools
When utilizing a BTC mining pool, there are three foremost 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 couple of entities wield elevated affect over transaction validation and block manufacturing.
One other threat to think about 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 important management over reward distribution, and people dishonest might manipulate payouts, delay rewards, and even vanish with members’ funds (in what is named an exit rip-off).
When assessing any mining pool, it’s prudent to confirm its observe file of uptime, the safety measures in place, comparable to 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 income. As an illustration, in 2020, Poolin, one of many largest Bitcoin mining swimming pools on the time, suffered a DDoS assault through 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 at all times a basic step earlier than becoming a member of one.
Besides, there’s no assure {that a} respected mining pool gained’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 Overseas 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 group backlash. F2Pool finally halted its filtering patch, however the level stays the identical.
Greatest Bitcoin Mining Swimming pools
Among the prime Bitcoin mining swimming pools are listed beneath, in line with their hashpower, reputation, payouts and costs, safety, and key options, amongst different essential issues.
Foundry USA
Foundry USA is the biggest Bitcoin pool in 2025, controlling over 30% of the community hashrate.
Key Options
- Institutional-grade companies: Along with normal pool operations, Foundry affords treasury administration, BTC custody, and derivatives merchandise, that are principally focused at large-scale enterprises.
- Safety and compliance: Foundry has SOC 2 Sort 1 and Sort 2 certifications, which suggests 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 offers a safer surroundings for each retailers and mining corporations.
- Transparency and reliability: Detailed price buildings, exportable knowledge, and in-depth analytics. This enables miners to judge and observe their efficiency far more effectively.
Charges and Fee Strategies
Foundry USA has a tiered construction that adjusts charges in line 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. Below FPPS, miners profit from common and predictable funds credited day by 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 shortly, offering dependable payouts for taking part miners.
The pool helps numerous widespread ASIC miners, together with Antminer S19 fashions, WhatsMiner M50 sequence, and AvalonMiner rigs.
Execs and Cons
Execs defined:
- Steady FPPS payouts, which embrace transaction charges
- Excessive-level safety with SOC certifications and sturdy compliance measures
- Institutional companies, offering lending, custody, and superior monetary merchandise
- Superior analytics and instruments for miners
Cons defined:
- KYC/AML necessities, which will be off-putting for sure miners
- Holding over a 3rd of the community hashrate means the pool has an enormous affect on the Bitcoin community
AntPool
AntPool, launched by Bitmain Applied sciences in 2014, stays one of the 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 help: Along with Bitcoin, AntPool helps Bitcoin Money (BCH) and Litecoin, amongst different widespread PoW choices.
- World server: AntPool operates servers worldwide, serving to cut back latency and rancid shares. This community design contributes to extra secure efficiency, no matter a miner’s geographic location.
- Each 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 person 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 Fee 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 day by 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 full 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 subject.
Execs and Cons
Execs defined:
- A number of payout fashions
- Zero price for PPLNS (transaction charges not included)
- Backed by Bitmain’s longstanding mining experience
- World server infrastructure for decreased latency
Cons defined:
- FPPS has a better price (4%) in comparison with some alternate options
- Giant share of hashrate might enhance centralization issues
- Some customers discover the interface much less streamlined than different swimming pools
ViaBTC
ViaBTC is likely one of the greatest crypto mining swimming pools, with a popularity for sturdy infrastructure, in depth coin help, and an enormous suite of sources and instruments for miners.
Headquartered in China, it has develop into 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
- Wide selection of belongings: ViaBTC helps over 20 crypto belongings, together with BTC, BCH, LTC/DOGE (merged mining), ZEC, and DASH.
- World server: Distributed servers reduce latency and guarantee secure connections for members throughout totally different areas.
- Auto-conversion: Miners should not required to manually commerce their BTC earnings because the pool can robotically convert their income.
- 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 function for individuals who favor mining with out proudly owning bodily tools.
Charges and Fee 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 comparable to Ethereum Basic (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 sometimes processed day by day.
Execs and Cons
Execs defined:
- Helps a number of cryptocurrencies for diversification
- Completely different payout strategies
- Low payout threshold to swimsuit smaller miners
- Sturdy safety features
- Auto conversion and different instruments to simplify person expertise
Cons defined:
- PPS charges are greater than most rivals
- Cloud mining continues to be thought-about dangerous because it’s typically 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 help for a number of cryptocurrencies.
Although its Bitcoin hashrate is decrease than some market-leading swimming pools, Luxor stays a powerful alternative for miners looking for hourly payouts, aggressive charges, and further companies 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.
- World servers: These are unfold throughout Asia, Europe, and the Americas to scale 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 Sort 2, bolsters accounts with 2FA, and maintains cloud redundancy to safeguard miner knowledge.
- Tax reporting integration: Miners can associate with Luxor’s advisable platforms to automate tax filings for cryptocurrency revenues, streamlining compliance.
Charges and Fee Strategies
The pool prices a price of 0.7% for Bitcoin, solely below the FPPS system, with constant hourly payouts primarily based 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 below 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 rivals 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 be supported below the Catalyst function for sure altcoins. The minimal Bitcoin payout is 0.004 BTC.
Execs and Cons
Execs defined:
- Aggressive 0.7% FPPS price
- Hourly payouts for secure earnings
- Catalyst service converts altcoin beneficial properties into Bitcoin
- Sturdy safety (SOC 2 Sort 2, 2FA)
- Developer-friendly API for superior analytics
Cons defined:
- Roughly 20 EH/s—smaller than main swimming pools like Foundry USA or AntPool
- Larger payout threshold (0.004 BTC) will be much less handy for small-scale miners
- No merged mining help (can not mine a number of cash concurrently below 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 belongings, together with Bitcoin, Ethereum PoW (ETHW), Litecoin (LTC), and lots of extra.
Alongside its broad coin protection, F2Pool affords a variety of payout buildings (PPS+, FPPS, and PPLNS), day by day computerized distributions, and powerful safety features to safeguard miners’ earnings.
Key Options
- Multi-currency help: F2Pool accommodates greater than 40 cryptocurrencies. It additionally helps totally 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 by net and cell apps, making it simple 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 Fee Strategies
2FPool affords three sorts of cost strategies, relying on the person’s want: PPS+, FPPS, and PPLNS.
F2Pool’s Bitcoin mining charges range primarily based 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 steadiness and reliability worthwhile. Once more, all of it depends upon the person’s objectives and wishes.
Bitcoin miners can count on a minimal payout of 0.005 BTC by default, which they will modify of their account settings to swimsuit their preferences.
Hashrate and Supported Gear
F2Pool offers about 10% of the full Bitcoin community hashrate in 2025, translating into roughly 81.4 EH/s. This implies the pool typically finds blocks comparatively shortly. Furthermore, most trendy ASIC gadgets, just like the Antminer S19 sequence, are suitable, and F2Pool additionally accommodates GPU mining for sure altcoins.
Execs and Cons
Execs defined:
- A stable observe file since 2013
- A variety of mineable cryptocurrencies
- Complete mining statistics and real-time monitoring
- Sturdy safety and DDoS protections
Cons defined:
- Larger 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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