We introduced what was mining in the last issue and many people are eager to have a try! Take your time and let’s learn what’s difference between mining pools and mining farms since many newbies often get confused about them.
In fact, they are totally two different things. The mining farm is the place where the miners are installed. It is a physical place used to store miners. The mining pool is more like a virtual chat room or a platform, which is only responsible for helping you find those who can mine with you so that you can set up a team for joint mining. So, it is more like a cloud service and a software.
Why is there a mining pool?
Because you must look for someone who wants to mine just like you.
In the last article, we compared the mining to looking for gold by removing bricks. It is conceivable that if the mining farm is big enough but your mining is too slow, you will have to spend many years on finding gold.
So, you must find the mining workers as many as possible to mine together. So long as there are enough manpower, the gold will be mined within a short period of time and each of you will divide the gold by the total number of people to share it. In this case, your income will be very stable, just like getting wages.
The mining pool just helps you to achieve such a goal. When you join the mining pool, you naturally set up a team with others. The profits you get are just the income distributed to you based on the overall revenue of the whole pool. In other words, you work for the mining pool and get the payment from it.
How to make the investment?
Different capital scales demand different investment models.
If you don’t have enough money, you can invest on mining in the same way of investing on fund management. You only need to spend money to rent the cloud hashrate and the pool will buy miners and install them in proper farms for you. Then, you will just wait for collect corresponding returns. It’s the investment with lowest costs.
If you have enough funds, you can buy the miners and install them in the appropriate farms.
If the size of your funds is larger, you can invest on the upstream and downstream industrial chains, such as buying miners, building mining farms, setting up mining pools, recruiting operation and maintenance personnel, dealing with transactions, etc. All these should be based on strong capital and technology strength.
Choose the mining pool
If you want to join a mining pool or invest on a mining pool, you must confirm whether the mining pool is reliable or not. We have previously written an article on how to choose a mining pool(How to Select Cryptocurrency Mining Pools?).. Here is a brief reminder of the main points
The first and most important issue is what everyone cares about most, the income. We should give priority to the mining pool with the highest returns. Making money is of course the most important thing.
Secondly, the stability of the mining pool. Your miners are connected to the mining pool. If the mining pool is out of service, your miners will work in vain and the electricity you paid during this period will also be wasted. Therefore, the stability of mining pool will directly influence the stability of your income.
Thirdly, it’s the security. If the mining pool is under attack, your benefits will not be under good protection.
It is said that the profits of mining workers all over the world are worth 110 million yuan per day. Yes, believe your eyes, the income is just so high!