Before selecting a mining pool, there are several variables that you should consider, which we will discuss in this article. These guidelines will assist you in selecting the best ergo pool, ravencoin pool, ETC pool, etc.
So, let’s get started:
1. Pool Mining Ideology
Consider the pool’s philosophy while deciding which pool to provide your hash rate and mining power. The fact that mining pool operators are for-profit businesses makes it even more difficult to comprehend their mindset.
Although some performers are altruistic, some may have ulterior goals beyond monetary gain. Some pools have a history of attempting to devalue the coins they support.
This includes mining pools that intentionally generate blocks with no transactions to artificially raise transaction fees, delay the network, or promote adopting an alternative system.
Due to their higher hashing power, some mining pools have prevented necessary system updates and even initiated new versions of the blockchain they mine. A mining pool’s ideology cannot be identified with certainty or ease.
In contrast, it is frequently possible to determine whether a mining pool contributes to the larger ecosystem by examining the community’s response to the pool and past activity.
The most effective methods for understanding the mining pool ideology are keeping up with Bitcoin news and reading internet forums.
2. The Reputation of the Mining Pool
The pool’s reputation is an additional crucial consideration when choosing a pool. Some mining pools utilise misleading methods to steal the hash rates or mining revenues of their subscribers.
Bitcoin miners can easily switch away from pools that defraud them due to the rapid diffusion of information about such schemes and the low switching costs involved.
There have been numerous instances of fraud with mining pools and cloud mining services.
Following the adage “If something looks too good to be true, it usually is” may be the most excellent approach to spot fraud. Bitconnect was not a mining pool in the usual sense; instead, it was a firm that guaranteed a return on bitcoin investments.
Other red flags indicating a mining pool or cloud mining service is fraudulent include, but are not limited to:
3. The Reputation of the Mining Pool
Cloud services and profit pools that make such claims overstate their capabilities. According to an old proverb, it usually is if something seems too good to be true. Avoid Unknown Perpetrators:
Using a pool or service owned or run by an unknown company or individual is at your own risk.
4. Schemes for Multi-level Marketing:
Some mining pools and cloud mining services utilise a multi-level marketing model in which members who recruit new customers are rewarded with higher revenue.
If multi-level marketing (MLM, sometimes known as pyramid schemes) is involved, conduct a thorough study; this does not necessarily indicate that the company is fraudulent. MLM takes the concept of recruiting bonuses to a whole new level.
4. Lacking an Auditable Public Infrastructure:
If a pool or cloud mining service withholds information, such as videos of their mining procedures or hash rate statistics, they may attempt to steal your money.
5. No Guaranty of Hash Rate:
Some pools publish publicly available, non-manipulable hash rate statistics that any prospective miner may confirm.
On the other side, some pools claim to have a high hash rate without giving proof.
6. Unlimited Hash Power Purchases:
If a cloud mining company offers absurdly high quantities of hash power for sale, it is possible that they are not interested in providing long-term services but rather in keeping your bitcoin for themselves.
Be wary of services that provide large bundles, as they may promise more than they can give.
In crypto mining, reputation is challenging to earn yet simple to lose. As a result, a significant proportion of the pool owners functioning today and commanding significant portions of the hash rate on the bitcoin networks they support are legitimate.
Astute miners would already have shifted to a safer pool if they were fraudsters or criminals.
Choosing a mining pool from among the numerous operations may be challenging. It depends on the miner’s objectives, equipment, and preferences regarding which mining pool is the “best” for that miner.