Mining Pools: Why They’re Essential for Crypto Mining
What is a Mining Pool, and do you need one to mine Crypto? If you’re new to mining, you’ve likely come across the term “mining pool.” This blog post is for you if you want to understand the big picture of crypto mining.
How mining pools work, why they matter, and how they fit into the broader mining ecosystem.
Whether you’re setting up your first miner or seeking trusted partners in the industry, we’ll explain:
- What a mining pool is and why it matters
- The difference between a mining pool provider and a hosting provider
- How miners, pools, and hosting work together
- Why you, as the miner, stay fully in control of your earnings
If you’re looking to better navigate the crypto mining landscape and make informed decisions about your setup and partners, this post is for you.
What is a Mining Pool?
Imagine this, a mining pool is a group of cryptocurrency miners who combine their computational power to improve their chances of successfully mining a block.
Instead of mining individually, which can take a long time and yield inconsistent results, miners in a pool work together and share the rewards proportionally based on their contributed hash power.
Think of it as teamwork: the more hash power you contribute to the pool, the larger your share of the reward when a block is found.
Here’s a practical example:
Let’s compare two types of miners mining Bitcoin in a pool.
Scenario A:
3× Antminer S21
Approx. 200 TH/s per miner
Total contribution: ~600 TH/s
Scenario B:
3× Antminer S19 Pro
Approx. 110 TH/s per miner
Total contribution: ~330 TH/s
Both miners are connected to the same mining pool, working on the same blocks.
What happens in the pool?
When the pool successfully finds a block:
- The total reward is split among all participants
- Each miner gets paid proportionally to their hash power
In this example
Senario A with 3× S21 contributes almost twice the hash power
Result: ~2× higher share of the pool reward compared to the S19 Pro setup
Why this matters
- Pools reduce income volatility
- Higher-performance miners earn larger and more consistent payouts
- Hosting efficiency + miner choice directly impact long-term profitability
Same pool. Same effort. Different results. Driven by hash power.
Do You Always Need a Mining Pool?
Technically, no.
You can mine solo, but it’s increasingly impractical unless you have massive hash power at your disposal. The chances of finding a block on your own are extremely low and unpredictable.
For most miners, especially those using hosted solutions, joining a mining pool is the most efficient and reliable way to earn consistent rewards. So, you don’t need it, using a mining pool is highly recommended.
Why Mining Pools Matter
Here are a few key reasons why using a mining pool is so important:
- Higher and more stable earnings: By pooling resources, you receive smaller but more frequent payouts.
- Reduced variance: Mining solo can be extremely inconsistent. Pools offer more predictability.
- Easy to use: Most pool providers offer simple dashboards to track your performance, earnings, and payouts.
This synergy represents the next evolution of smart mining where hosting and pooling work hand-in-hand to maximise performance and sustainability.
Roles: Mining Pool and Hosting Provider
It’s important to understand the difference between a mining pool provider and a hosting provider like Hamus Hosting:
Mining Pool Provider:
This is the digital platform your miners connect to. It aggregates the hash power from all participating miners and manages the reward distribution. Common mining pools include Foundry USA Pool, NiceHash, Binance Pool, ViaBTC, and many others. You choose the pool, create an account, and connect your miners using a pool-specific URL and wallet address.
Hosting Provider:
This is the physical and operational service that keeps your miners running. At Hamus Hosting, we ensure your machines receive electricity, proper ventilation, cooling, and uptime. We reboot them when needed, perform small repairs, and make sure your hardware operates at optimal performance.
How the Two Work Together
Here’s a simplified overview:
- Your miners are hosted with us.
- You connect them to your preferred mining pool.
- The pool receives the hashrate from your machines and tracks their performance.
When rewards are earned, the mining pool pays them directly to your crypto wallet.
You Always Control Your Earnings
One of the most important things to understand as a client is this: you are always in full control of your miner’s earnings.
Your hosting provider such as Hamus does not receive or manage your crypto payouts. We simply make sure your machines are online, running efficiently, and getting the power they need. You configure your miners with your chosen pool credentials and wallet address.
That way, your earnings go directly to you, without any third party interference.
Here’s more information about how ASIC Hosting works.
Trusted Partnerships at
Hamus Hosting
At Hamus Hosting, we have been in the mining hosting industry for a long time. This experience has taught us a lot, and as we continue to grow and serve miners around the world, we remain committed to building trust and long-term reliability.
We carefully hand-pick our partners to ensure the best experience for our clients. Whether it’s helping you find reliable mining machine distributors or recommending trusted mining pool providers.
Our trusted partners in mining include:
- NiceHash
- OurPool
Looking to learn more about setting up your miner with Hamus Hosting? Check out our blog: Hosting with Hamus.
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