There are two basic types of cryptocurrency mining: pool mining and solo mining.

There are two basic types of cryptocurrency mining: pool mining and solo mining.

If you are starting to mine crypto, it is worth to clarifying what mining in a pool means and what the process looks like if you mine alone, what the advantages and disadvantages are.


A mining pool, in simple words, is a collection of individual cryptocurrency miners who work together to make the chances of successful mining higher. The resources of many individual miners are pooled together, combined together, increasing the chances for successful mining due to the more extensive output. The successfully mined cryptocurrency is distributed among the participants of the pool. Moreover, there is a commission on all earnings, established by the pool. As a rule, the commission is somewhere between 1 and 5 percent, depending on which pool you choose.

The pool acts as a manager of the individual combined efforts. It manages the hash functions of the individual mining rigs, records the results of each mining rig, combines the processing power of individual units for successful mining, and assigns the rewards as the result of mining.

The mechanisms of the mining pools differ greatly. In some pools, the system randomly allocates work to individual members. In other pools, individual members choose the amount of work to úthey are allocated. There are also different mechanisms behind the distribution of payments in each pool. Most often, they are paid either as a share of the work done by each participant or as a share of the work done by everyone in the pool.

Smaller pools can be combined into bigger pools to increase the amount of cryptocurrency mined. However, the commission in the pool, if pools are combined, can be higher.



  • Income from mining in a pool is more stable than income from individual mining and you receive frequent payouts.
  • Pool mining allows you to choose between different cryptocurrencies, including the most popular ones, such as Bitcoin, Litecoin and EthereumClassic, which are difficult for individual miners to access.
  • You can use the free tools, that come with participating in the pool, such as control panels.


  • Pool mining can be subject to frequent downtime and network interruptions.
  • Although the revenue from pool mining is steady, it is usually less than the revenue from individual mining due to the fees.
  • Pool mining is less secure and reliable and may be vulnerable to service attacks.


In solo mining, the miners mine directly from the blockchain without joining a specialized pool. Solo mining is similar to the lottery because it results in a low probability of being rewarded. However, if you manage to mine, the reward will be much higher than in solo mining.



  • There are no extra fees for solo mining, so the payout will be much higher if you mine successfully.
  • The potential for power outages is very low with solo mining, resulting in higher network uptime than with pool mining.


  • You need to invest in special hardware early on, for many coin mining applications, such as ASICs, because solo mining is simply not possible with GPUs.
  • Solo mining is not viable for large mining networks such as Bitcoin and Litecoin, because these networks are too complex and have very high mining difficulty to mine without an established mining pool.
  • Revenue from solo mining is less stable than revenue from pool mining.


As you can see, both pool mining and solo mining have obvious advantages and disadvantages, so choose wisely according to your individual circumstances. As a general rule, if your mining machine(s) has enough hashrate to generate one crypto block per day, then solo mining is the best choice for you. However, if you do not have that much power, then pool mining is probably your best option.

If you have further questions about crypto mining, book an appointment online or in person for a consultation with one of our crypto experts.

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