Bitcoin Mining Pools: What They Are and How They Work in 2025
What is a Mining Pool? A crypto mining pool is a collective group of miners who combine their computational power over a network to increase the chances of finding a block or successfully mining. This collective effort enhances the probability of mining rewards, resulting in more frequent payouts.
Why Join a Mining Pool? With the increasing competitiveness in Bitcoin mining, succeeding as a solo miner is highly unlikely unless you have a large-scale operation. As mining difficulty grows with more participants, most miners prefer joining a pool to increase their chances of success.
How to Choose a Mining Pool When selecting a mining pool, consider these factors:
- Fees: Pools charge a transaction fee from your rewards, but fees vary. A low fee can be tempting, but a higher fee may reflect a more powerful pool.
- Minimum Payouts: The minimum amount you need to mine before receiving payouts. For instance, if the minimum payout is 0.005 BTC, you won’t get paid until you reach that threshold.
- Pool Size: Larger pools have more computing power, which increases the chances of mining a block faster, while smaller pools may take longer to mine. Pool size can also indicate trustworthiness.
Best Bitcoin Mining Pools in 2024 Here are some of the top pools for 2024:
| Pool | Fees | Reward Distribution Method | Hashrate |
|---|---|---|---|
| F2Pool | 2.5% | PPS+ | 30.60 EH/s |
| Braiins | 0% (with Braiins OS+), 2-2.5% | Score | 12.3 EH/s |
| AntPool | 0% on PPLNS, 4% on PPS+ | PPS+, PPLNS | 24.04 EH/s |
| BTC.com | 1.5% | Advanced FPPS | 13.630 EH/s |
| Poolin | 2.5% | Solo, PPS, PPLNS, PPS+, FPPS | 21.01 EH/s |
| ViaBTC | 2% on PPLNS, 4% on PPS | PPS, PPLNS | 20.37 EH/s |
Top Pools Breakdown:
- F2Pool: A massive player in the industry, with around 18% of all Bitcoin blocks mined. It charges a 2.5% fee and supports various cryptocurrencies. Minimum withdrawal: 0.005 BTC.
- Braiins (formerly Slushpool): The oldest functioning mining pool, known for its low fees with Braiins OS+ (0%) and other fee structures up to 2.5%. Minimum withdrawal: 0.0001 BTC.
- AntPool: A reliable pool with flexible payment options, including PPLNS (0% fee) and PPS+ (4% fee). Payments are made daily when you exceed 0.001 BTC.
- BTC.com: One of the largest pools with a 1.5% fee. It focuses solely on Bitcoin and Bitcoin Cash. Minimum withdrawal: 0.005 BTC.
- Poolin: A major player with 2.5% fees and multiple payout methods. Minimum withdrawal: 0.005 BTC.
- ViaBTC: Offers various mining options but charges 4% for PPS and 2% for PPLNS. Minimum withdrawal: 0.0001 BTC.
How Do Bitcoin Mining Pools Work? In a mining pool, miners contribute their processing power to collectively solve complex algorithms. When the pool successfully mines a block, the reward is distributed among contributors based on the shares of computational work they've contributed.
Mining Pool Payout Methods:
- Pay-Per-Share (PPS): You receive a fixed payout for each share you contribute.
- Full-Pay-Per-Share (FPPS): Similar to PPS but includes a transaction fee reward.
- Pay-Per-Share-Plus (PPS+): A combination of PPS with an added reward for transaction fees.
- Pay-Per-Last-N-Shares (PPLNS): Your reward depends on shares contributed during the last period between two blocks, encouraging continuous participation.
Tax Considerations: Mining rewards are generally taxable based on the market value of the cryptocurrency when received. Use a crypto tax calculator to track your rewards and understand the tax implications in your country.