Choosing the Best Ethereum Mining Pool
So, you’ve heard that mining Ethereum can be a profitable business and may have bought a mining rig.
Your next step should be to join an Ethereum mining pool.
Mining pools are simply groups of miners that work together to mine Ethereum. Joining a pool helps to lower the volatility of your payouts by providing smaller, more frequent payments rather than a lump sum that you only receive when a block is solved.
When choosing a mining pool, it’s important to join one with low fees that brings reliable returns. You should also consider the server location of the pool when deciding which is best for you. The closer your mining rig is to the server, the more efficiently it can mine.
In this article, I highlight three of the best Ethereum mining pools so you can confidently decide which one to join:
For a complete list of the available mining pools, check out EtherChain.
Ethpool and Ethermine are operated from two different websites but contribute to the same pool. With ~25.0% of the network hash rate power, this pool is the largest one on the Ethereum network. Ethermine currently has over 62,000 miners using the pool software while Ethpool has a little under 900.
Both Ethpool and Ethermine charge a 1% fee on each reward that you receive – one of the lowest fees of the pools I researched.
Ethermine allows you to set the minimum payment threshold needed to receive your rewards. If you want to receive your payments infrequently, you can set the threshold to the maximum of 10 ETH. Set your threshold to the 0.05 ETH minimum to receive payments more often.
Nanopool is the third largest mining pool with ~13.2% of the network hash rate and over 38,000 miners. The pool fee is also less than most competitors at 1%.
The default minimum payout threshold using Nanopool is 0.2 ETH, but you’re able to lower and raise the minimum in your settings. The interface is straightforward and simple to use if you’re just getting started.
Some miners have reported that their hash rate through Nanopool is significantly less (sometimes up to a 10% difference) than mining in other pools or on their own. Overall, though, the community seems to trust and like this pool.
Once a market leader, Dwarfpool is now smaller with only ~4.3% of the Ethereum network hash rate. Like Ethpool/Ethermine and Nanopool, Dwarfpool charges a 1% fee on block rewards.
Your account balance needs to reach 1.01 Ethereum before payout and the pool pays out 6 times per day. Unless you’re mining with a powerful mining rig or using multiple miners, you may want to join a pool with a lower payout minimum.
You really can’t go wrong joining any of the top mining pools. Most of the largest ones are fairly reliable and have a similar fee structure. In the end, it’s important to choose the one that you’re most comfortable using.
Once you’ve started making a consistent profit, you’ll need to find the best way to sell the Ethereum that you’ve mined.