Mining pools: what they are, how they work, and which are the best

Bitcoin mining has become an increasingly complex and competitive activity over time. While a home computer was initially sufficient to obtain a fraction of a BTC, today powerful and expensive infrastructure is required. The halving mechanism, which periodically reduces rewards, also contributes to making mining even more difficult. In this scenario, mining pools have become the most effective solution for those who want to continue mining profitably.

Let’s look at what they are, how they work, and which are the best mining pools in 2025.

What is a mining pool

A mining pool is a group of miners who combine their computing power to increase the chances of solving a block. Revenue is then distributed proportionally to each miner’s contribution, according to schemes such as PPS (Pay-Per-Share) or PPLNS (Pay Per Last N Shares).

This collaborative approach also allows small miners, who would have little chance of success alone, to earn regular, albeit smaller, profits.

However, with increasing mining difficulty, rising energy costs, and new infrastructure requirements after the halving, participating in a pool has become practically the only way for retail miners to survive.

How Mining Pools Work

To understand how mining pools really work, we need to start with a simple principle: in cryptocurrency mining, computing power is everything. And when you don’t have enough on your own, you join forces. This is where pools come in: groups of miners who pool their resources to increase their chances of finding a block and earning rewards.

Each participant contributes to the collective effort by sending a share—called a share—which measures their actual commitment to the process. If the pool manages to validate a block, the rewards are distributed in proportion to the contribution made. No block, no reward. But at least the work isn’t wasted: the load is shared.

At the center of the pool is a coordinator, who distributes tasks among miners to avoid duplication. This can happen according to two models:

• with direct assignment, where the miner receives a specific range of nonces to process;
• or with free work, where the miner chooses their own range, but the coordinator ensures there are no overlaps.

But not all mining pools work the same way. The reward distribution criteria vary, and this directly impacts profitability:

• PPS (Pay-per-Share): Pays immediately for each valid share, regardless of the block outcome.
• PROP (Proportional): Divides the rewards among participants only if the block is actually solved.
• FPPS: also adds transaction fees to the reward, always proportionally.
• PPLNS: only takes into account the most recent shares, rewarding consistency.
• Methods such as SMPPS, DGM, Slush’s Pool, or SCORE introduce variables related to time, risk, or the overall efficiency of the pool.

Best Mining Pools Today

In 2025, the mining pool world is increasingly concentrated. A few companies dominate the scene, driven by efficiency, low costs, and transparent payouts. Foundry USA continues to be the number one pool in terms of Bitcoin hash rate, largely thanks to the support of large North American operators and favorable policies in the United States. Close behind is Antpool, tied to the Bitmain giant, still very strong in Asia and increasingly focused on eco-friendly strategies to reduce energy consumption.

Reliable alternatives also include ViaBTC, offering a good balance of mineable cryptocurrencies and flexible reward systems (PPS+, FPPS), and F2Pool, a historic Chinese mining pool that has successfully adapted to the global market. Also of interest is Binance Pool, which has gained traction thanks to its integration with the well-known exchange’s ecosystem, offering advanced management and revenue tools.

Those seeking decentralization are looking at solutions like Luxor or Braiins (formerly Slush Pool), which focus on open-source transparency and tools to optimize mining efficiency, even for small operators.

The real question is: is it better to choose the pool with the highest hash rate, or the one offering fairer payouts, perhaps on smaller cryptocurrencies? In 2025, choosing the best mining pool is increasingly strategic. And choosing the wrong partner means minimizing margins, in an environment where every watt counts.

Here is a comparison table updated to 2025 with the major mining pools, useful for quickly comparing hash rates, supported cryptocurrencies, payment methods, and strengths:

How to Join a Mining Pool

To truly understand whether it’s worth joining a mining pool, you first need to carefully evaluate some key parameters. Not all pools are the same, and a wrong choice can impact your real earnings more than you think.

• Fees: Most mining pools charge a fee between 0.5% and 1.5%. Beware of hidden fees: sometimes the real cost is hidden in the chosen payment method.
• Minimum Payout: Many pools set minimum thresholds for withdrawing rewards, often between 0.001 and 0.01 BTC. Below a certain threshold, additional fees may apply.
• Server location: The closer the server is geographically to your hardware, the lower the latency and the greater the efficiency. For those mining from home or in Europe, it’s best to avoid pools with servers only in the United States or Asia.
• Global pool hashrate: Joining a pool with high computing power increases the likelihood of block solvers (and therefore frequent earnings).
• Multicoin support: Ability to mine multiple coins.
• Payment method: From FPPS to PPLNS, each scheme affects the timing and size of rewards. In some cases, one method is more advantageous than another based on the stability of the pool and your personal hashrate.

How to get started

Once you’ve chosen a mining pool, the process is simple:

1. Register on the official platform (website or mobile app);
2. Download the mining software compatible with your cryptocurrency and hardware (ASIC or GPU);
3. Connect your wallet and set the pool parameters (server, port, worker ID, password);
4. If you’re a beginner, many platforms offer demo versions to simulate mining and learn how to use the dashboard;
5. Once everything is configured, launch the software and start mining. The first payouts will arrive when you reach the minimum threshold you set.

In 2025, most mining pools allow you to independently adjust the minimum payout, but be careful: going below certain limits may result in additional fees. The golden rule of mining applies here too: every detail counts.

Mining pool: is it profitable?

Many wonder if mining pools are still profitable. Bitcoin mining is very complex and requires high initial investment and maintenance costs, making it unsuitable for beginners working on a small scale.

The truth is that mining, especially Bitcoin, has become a capital-intensive activity, dominated by professional operators with access to low-cost energy and cutting-edge ASIC hardware.

For those working on a small scale, solo mining is now out of reach. This is why mining pools remain one of the few viable options for those who want to earn rewards without investing millions in infrastructure.

From 2009 to today, the context has changed radically. Back then, each mined block guaranteed 50 BTC. But Bitcoin’s value was negligible. Today, after the April 2024 halving, the block reward has dropped to 3.125 BTC. This means that much more computing power is needed to earn, and every single Satoshi counts.

The Role of Hashrate (and the Right Pool)

To determine whether joining a mining pool is profitable, you need to start with one key point: your personal hashrate. With a high-performance ASIC (like the Antminer S21 or equivalent), you can join a pool with low latency and good fees, allowing you to earn a financial return even now.

But be careful: you need to carefully calculate costs (energy, hardware depreciation, any pool and withdrawal fees). An efficient setup, combined with choosing a pool with a favorable payment method (like FPPS), can make the difference between profit and loss.

In short? mining isn’t dead, but it’s no longer for everyone. Mining pools can still offer margins, especially if operated with a smart strategy and good energy optimization.

Which cryptocurrency is worth mining

Mining is no longer an activity reserved exclusively for Bitcoin. In 2025, several mineable cryptocurrencies offer good opportunities, even for those without professional equipment or significant energy resources.

Here are the most interesting cryptocurrencies to mine this year.

• Bitcoin (BTC): After the April 2024 halving, the block reward dropped to 3,125 BTC.
• Kaspa (KAS): One of the surprises of 2025. Mining is done with GPUs using the KHeavyHash algorithm and is highly regarded for its energy efficiency and blockDAG structure, which allows for faster and more scalable transactions. The block reward is around 166 KAS.
• Monero (XMR): Still at the top of the list of cryptocurrencies mineable with CPUs and GPUs, thanks to the ASIC-resistant RandomX algorithm. The fixed reward is 0.6 XMR per block, and its strength remains complete anonymity in transactions.
• Dogecoin (DOGE): It is mined with GPUs or ASICs (Scrypt), often in a joint pool with Litecoin. The reward is high—10,000 DOGE per block—and the community remains very active. It is ideal for those seeking volatility and market visibility.
• Ergo (ERG): Attractive for GPU miners, thanks to the low-energy Autolykos 2 algorithm. The reward is 45 ERG per block. The project combines smart contracts, sustainability, and decentralization.
• Ravencoin (RVN): Another name to keep an eye on. With 2,500 RVN per block and the KawPow algorithm, it is ASIC-resistant, offering a fairer playing field for home miners.
• Litecoin (LTC): Sharing the Scrypt mining system with Dogecoin, it offers 6.25 LTC per block. Less demanding than Bitcoin but more stable, it’s a good option for those who already have compatible ASICs.
• Zcash (ZEC): With a reward of 3.125 ZEC per block, it’s mined via GPU (Equihash) and strikes a good balance between privacy, notoriety, and exchange support.

How long does it take to mine 1 Bitcoin

Bitcoin mining involves verifying transactions and adding new blocks to the blockchain. According to the rules set out in the white paper published by Satoshi Nakamoto, the time required to mine a new block is ten minutes.

As the number of mining participants increases, the difficulty of mining 1 bitcoin increases so that it takes exactly 10 minutes to find a new block. The chances of being the first to find the correct hash to mine the new block are extremely low, however, and vary depending on the performance and processing power of the computer being used.

This is why with a standard CPU computer, it could take years to complete the process: a miner with a hash rate of 0.48 TH/s could take 31,240 years if they mine continuously. In other words, they have a 1 in 1.6 billion chance of completing the block.

Original article published on Money.it Italy. Original title: Mining pool, cosa sono, come funzionano e quali sono le migliori