Solo Cryptocurrency Mining Vs. Pool Cryptocurrency Mining
Updated April 19, 2020
Should I mine solo or join a pool? This is a common question on forums. Although not clearly articulated, the answers are almost always based on how long it will take to mine a block given the forum poster’s available hashrate.
For most all cryptocurrencies, the probability of mining a block within a given time period with a given hashrate is going to be higher today than in the future due to the increasing mining difficulty over time. For example, this Bitcoin difficulty graph and this Litecoin difficulty graph show the rate of change of the difficulty over time for each cryptocurrency. It is therefore advantageous to mine as much as possible while the difficulty is less, and mining pools provide this advantage. Mining pools also provide other advantages such as more frequent payout due to reduced block mining time, eliminating the need to run a node, etc.
However, these advantages of pool mining come at a price. Most pools do not pay out transaction fees to miners in the pools. Also, most pools take a percentage of the reward. And, of course, the remaining amount is split amongst the miners in the pool.
All things considered, it may be better to mine solo if your available hashrate provides a low enough block mining time. The Solo Vs. Pool Mining Tool below will help you determine this for a number of popular cryptocurrencies. There is no set answer, but most people seem to think solo mining makes sense up to about 2 weeks. After that, you are better off mining in a pool.
Solo Vs. Pool Mining Tool
Enter your total available hashrate (sum of all devices for a given hash algorithm) and maximum time to mine a block (default is 2 weeks). Then choose how you want the results sorted and select "Run." The rows are automatically colored to show the suitability of each cryptocurrency for solo mining and pool mining.
|Coin (Symbol)||Hash Algorithm||Time To Mine A Block (days)|