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In this article, we’re going to talk about some factors that you should consider before picking a mining pool. These tips will help you choose the right pool whether it’s the best ergo pool, ravencoin pool, ETC pool, etc.
So, let’s get started:
1. The Ideology of Pool Mining
The pool’s ideology is something to think about while choosing which pool to contribute your hash rate and mining power to. Mining pool operators are for-profit businesses, which makes it even more challenging to understand their ideology.
While some performers are selflessly helpful, others may have ulterior motives beyond financial gain. Some pools have a history of trying to undermine the value of the cryptocurrencies they back.
This includes mining pools that deliberately produce blocks with no transactions in them to artificially inflate transaction fees, slow down the network, or push for the adoption of an alternative system.
As a result of their superior hash power, some mining pools have blocked necessary system updates and even started new versions of the blockchain they are mining. The ideology of a mining pool cannot be determined with any certainty or ease.
On the other hand, it is often possible to tell if a mining pool is contributing to the greater ecosystem by looking at the community’s reaction to the pool and the pool’s history of behavior.
The best ways to make sense of the mining pool ideology are to keep up with Bitcoin news and to read online forums.
2. The Reputation of the Pool
Another important factor to take into account while selecting a pool is pool reputation. Some mining pools use deceptive practices to steal subscribers’ hash rates or mining profits.
It is easy for bitcoin miners to switch away from pools that swindle them since news of such schemes spreads quickly and switching costs are low.
Nonetheless, there have been multiple cases of fraud involving mining pools and cloud mining services.
The best way to recognize a scam may be to follow the proverb “If anything seems too good to be true, it probably is.” (Bitconnect wasn’t a mining pool in the traditional sense; rather, it was a company that promised a certain rate of return on bitcoin investments.)
There are other warning signals that a mining pool or cloud mining service is a scam, such as, but not limited to:
Guaranteed Profits:
profit pools or cloud services that make such claims overpromise their capabilities. An old proverb says that if something seems too good to be true, it often is.
Avoid Anonymous Perpetrators:
Mine at your own risk if using a pool or a service that is owned or operated by an unknown company or individual.
Schemes for Multi-level Marketing:
Some mining pools or cloud mining services operate on a multi-level marketing model in which members who bring in new users are rewarded with increased earnings.
Do your research carefully if multi-level marketing (MLM; sometimes known as pyramid schemes) is involved; this does not necessarily mean the firm is a scam. (Many online businesses provide recruiting bonuses, but MLM takes it to a new level.)
Not having a Public Auditable Infrastructure:
If a pool or cloud mining provider isn’t forthcoming with information, such as by sharing videos of their mining processes or disclosing their hash rate statistics, they may be trying to scam you out of your money.
No Proof of Hash Rate:
Some pools publish publicly available hash rate statistics that can’t be manipulated and can be verified by any prospective miner.
On the other hand, some pools claim to have a high hash rate without providing any evidence to back up their claims.
Unlimited Hash Power Purchases:
If a cloud mining company offers ridiculously large volumes of hash power for purchase, it is conceivable that they are merely aiming to keep your bitcoin for themselves rather than delivering any kind of long-term services.
Be careful with services that offer big packages, because they might be promising more than they can deliver.
Reputation is hard to earn but easy to lose in the Crypto mining industry. That’s why many of the pool owners operating today and commanding sizable shares of the hash rate on the bitcoin networks they back are legit.
If they were scammers or criminals, shrewd miners would have already switched to a safer pool.
Conclusion
It could appear to be an impossible effort to select a mining pool from among the many that are currently functioning. It is dependent on the miner’s aims, the miner’s equipment, and the miner’s tastes as to which pool is the “bestl” for that miner.
